Lightspeed Commerce’s (TSX:LSPD) stock has fallen by more than 30% after the company issued a soft earnings outlook and highlighted ongoing supply chain problems during its earnings release.
The Montreal-based company, which sells point-of-sale and payments software to retailers, released fiscal second quarter results that showed ongoing negative impacts of supply-chain woes on customers ahead of the holiday season. The company said low inventories could translate into smaller transaction volumes for some Lightspeed clients, affecting the company’s revenue going forward.
Lightspeed stock fell as much as 32% in Toronto trading, the most in the company’s history. It was down 28% on the day to close at $88.93 per share.
The company has also been attacked by Spruce Point Capital Management, which issued a 125-page report in September alleging Lightspeed had inflated its numbers before getting publicly listed. Spruce Point said it sees as much as 80% downside risk to the shares, citing evidence that the company has been exaggerating its growth prospects.
Chief Executive Officer Dax Dasilva addressed the report at the beginning of his latest call with analysts, saying Lightspeed has been consistent in how it accounts for revenue and transparent in how it defines other business metrics.
Any claim that the company lacks organic growth "is categorically false," he said.
