Lightspeed stock plunges as FX, macro headwinds dent year revenue guidance (NYSE:LSPD)
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Lightspeed Commerce (NYSE:LSPD) stock dropped 16.4% in Thursday afternoon trading as foreign exchange and macroeconomic headwinds negatively impacted the company’s fiscal year revenue outlook and hampered its FQ2 net loss.
After adjusting for those factors, the commerce platform for merchants now expects revenue to be $730M-740M for the year ending March 31, 2023 compared with the prior range of $740-760 and the consensus of $750.6M.
The full-year outlook for adjusted EBITDA is a loss of $40M, or approximately -5% as a percentage of revenue, versus the previous view of -$35M to -$40M.
But in Q2, the company “delivered revenue ahead of previously established outlook despite headwinds from foreign exchange fluctuations,” CEO JP Chauvet highlighted. “Our new flagship products are being strongly received by customers globally. Payments adoption continues to increase and our go-to-market teams are showing very good progress,” he added in his company’s Q2 earnings call.
Adjusted EPS of -$0.05 at September 30, exceeding the average analyst estimate of -$0.11, improved from -$0.08 at Sept. 30, 2021.
Q2 revenue of $183.7M, topping the $182.9M consensus, climbed from $133.2M a year before.
Gross transaction volume rose to $22.3B from $18.8B in Q2 of last year. Consolidated average revenue per user was $182.
Against a backdrop of poor macro conditions, Piper Sandler downgraded Lightspeed (LSPD) to Neutral from Buy “currency impacts, macro headwinds, & SMB churn might be too difficult for the business to overcome over the near term,” the firm wrote in a note to clients.
“The threat of a recession is making consumers more cautious about their spending habits and the omnichannel expectations consumers developed during the COVID pandemic made operating a small business more complicated than ever,” Lightspeed’s Chauvet noted.
Earlier, Lightspeed Commerce GAAP EPS of -$0.53 in-line, revenue of $183.7M beats by $0.77M.
