The e-commerce space has erupted during the COVID-19 pandemic. According to data from Finaria, the pandemic increased the number of digital commerce users around the world by 9.5%. It now sits at over $3.4 billion. This trend is poised to continue in 2021.
Shopify has dominated headlines in Canada and its stock has been explosive since its 2015 IPO. Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is my preferred target today. This Montreal-based company provides commerce enabling Software as a Service (Saas) platform for small and medium-sized businesses. Its shares have dipped 12% in 2021 as of late afternoon trading on March 30. However, the stock has soared nearly 300% in the year-over-year period.
Lightspeed released its third quarter fiscal 2021 results on February 4. Revenue rose 79% from the prior year to $57.6 million. Meanwhile, customer locations reached nearly 115,000 globally. The company reported gross transaction value (GTV) of $9.1 billion in Q3 FY2021 – up 48% from the prior year. This included GTV e-commerce growth of roughly 100%.
The company closed two important acquisitions in the third quarter. The acquisitions of ShopKeep and Upserve will bolster Lightspeed’s position in providing cloud-based commerce platforms to small and mid-sized businesses. Lightspeed is projecting revenue between $68-70 million in the fourth quarter of fiscal 2021. It also anticipates an adjusted EBITDA loss between $12-14 million.
Lightspeed has posted solid revenue growth in recent quarters. It boasts a solid balance sheet and is thriving in a fast-growing sector.
