![]() ![]() The revenues are now close to meeting the burn." “The company has brought down the monthly burn from $45 million in 2022 to around $5 million now. However, a third person close to the founder said it would be a growth equity round as the company is getting closer to breaking even. and Lightspeed Commerce.“The company is looking at a bridge round of around $40-50 million in primary capital," said one of the people mentioned above. The Motley Fool owns and recommends Nuvei Corporation and Shopify. Passive Income: How to Earn $30/Day While You Sleepįool contributor Aditya Raghunath has no position in any of the stocks mentioned. ![]() The 4 Biggest Stock Market Winners of 2021 TFSA Passive Income: How Canadians Can Earn $339 Per Month Tax Free And right now, they think there are 10 stocks that are better buys. The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now. Should you invest $1,000 in Suncor Energy right now?īefore you consider Suncor Energy, you may want to hear this. The post Why Is Lightspeed Stock Down Over 8% in 2022? appeared first on The Motley Fool Canada. However, the pullback allows you to buy a growth stock at a lower valuation, making Lightspeed the perfect contrarian bet right now. It continues to trade at a premium valuation and might underperform peers if growth stocks remain under the pump. LSPD stock is valued at a forward price-to-2022 sales multiple of less than 10, given its market cap of US$5.43 billion. For fiscal 2022, sales are forecast between US$520 million and US$535 million, which suggests sequential growth would be negligible in Q4. LSPD forecasts sales between US$140 million and US$145 million in fiscal 2022 in Q3, which would indicate sequential growth of just 7%. While Lightspeed reported stellar numbers in Q2, it disappointed with its less-than-impressive guidance. However, the company’s adjusted EBITDA loss expanded to US$8.7 million from US$2.8 million in the year-ago period. Its transaction-based revenue was up 320% at US$65 million while gross transaction volume stood at US$18.8 billion. In fiscal Q2, LSPD sales increased by 193% year over year. While it’s essential for Lightspeed to expand its customer base, the fintech heavyweight can also grow sales by increasing its ARPU over time. Its average revenue per user (ARPU) has risen to US$270 in fiscal Q2 of 2022, up from US$170 in the year-ago period. Lightspeed ended fiscal 2021 with 119,000 customers compared to 49,000 in fiscal 2019. It suggests Lightspeed has masked tepid organic growth with an acquisition strategy that drove the stock to all-time highs. LSPD reported revenue of US$133 million in Q2 of fiscal 2022, 47% of which can be attributed to the acquisitions. Further, Lightspeed has also aggressively acquired companies including ShopKeep, Vend, NuORDER, and Upserve in the last 15 months, resulting in widening sales. These companies saw a significant sales decline amid COVID-19, which rebounded in the second half of CY 2021. Restaurants and retail businesses account for the majority of Lightspeed’s customer base. In the last 12 months, its sales have touched US$389 million and more than tripled year over year in the last two quarters. Its revenue has risen from just US$57 million in fiscal 2018 to US$221 million in fiscal 2021 that ended in March. Lightspeed has expanded its top line at a stellar rate. Lightspeed is wrestling with sluggish organic growth Let’s see if it can stage a comeback going forward. The underperformance continued in 2022, as LSPD stock has lost close to 9% in the first two weeks of this year. Lightspeed has, in fact, burnt significant investor wealth in the last four months after a scathing report from noted short-seller Spruce Point Capital accused the fintech giant of misleading investors. Further, the threat of rising interest rates and the emergence of the Omicron variant, in addition to higher inflation numbers, have also contributed to the ongoing pullback.Ĭanadian technology stocks, including Shopify, Lightspeed (TSX:LSPD) (NYSE:LSPD), Docebo, and Nuvei are currently trading 35%, 71%, 40%, and 52%, respectively, below their record highs. Investors were initially worried about the steep valuations surrounding tech stocks. Tech stocks have continued to underperform the broader markets in 2022. Written by Aditya Raghunath at The Motley Fool Canada
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