Lightspeed Commerce Reduces Revenue Outlook

In a surprising announcement, Lightspeed Commerce Inc. (LSPD-T) has reduced its revenue outlook for the upcoming 2025 financial year, citing increasingly challenging economic conditions.

New Revenue Growth Expectations

The Canadian tech company now anticipates a year-over-year revenue growth of approximately 18% for the financial year ending on March 31, 2025. This marks a notable decrease from its previous expectation of around 20% growth, indicating a shift in the company’s outlook in response to external factors.

Decline in Same-Store Sales

Since releasing its third-quarter results on February 6, Lightspeed has observed a decline in same-store sales, attributed to worsening macroeconomic conditions, including inflationary pressures and fluctuating consumer confidence. These factors are causing concern not only for Lightspeed but for many businesses across various sectors.

Optimistic Operational Stability

Despite the revised revenue forecast, Lightspeed maintains an optimistic belief in its operational stability, projecting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to exceed $53 million for the financial year. The company’s management remains committed to strategic initiatives aimed at navigating the current economic landscape effectively.

Capital Markets Day

This updated outlook comes as Lightspeed prepares for its capital markets day at the New York Stock Exchange, where investors will be keen to hear about the company’s plans for growth and adaptation in these turbulent times. As market conditions evolve, all eyes will be on Lightspeed to see how it adjusts its strategies to meet the challenges ahead.

Conclusion

Stay tuned for more updates on Lightspeed Commerce’s performance and strategic direction as the financial year progresses!