Lightspeed Commerce Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Lightspeed second quarter 2020 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Chris Mamoni, Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Lightspeed's fiscal second quarter conference call. Joining me today are Dax DeSilva, Lightspeed's founder and CEO, Brandon Nussie, Chief Financial Officer, and J.P. Chauvet, President of Lightspeed. After prepared remarks, we will open it up for your questions. We will make forward-looking statements on our call today that are based on assumptions and, therefore, subject to risks and uncertainties that could cause actual results to differ materially from those projected. We undertake no obligation to update these statements, except as required by law. You can read about these risks and uncertainties in our earnings press release issued earlier today, as well as in our filings with Canadian security regulatory authorities. Also, our commentary today will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures. Reconciliations between the two can be found in our earnings press release, which is available on our website. And finally, note that because we report in U.S. dollars, all amounts discussed today are in U.S. dollars, unless otherwise indicated. With that, I will now turn the call over to Dax.

Thanks, Chris, and thank you, everyone, for joining us today. We're pleased to announce another quarter of progress and solid execution as we continue our journey of building a global, leading, cloud-based, omnichannel commerce platform for complex SMBs in retail and hospitality. Highlighting our top line growth during the second quarter, total revenue grew by 51% versus last year and topped $28 million to exceed the high end of our guidance range. More than 90% of this base consists of recurring software and payments revenue, which grew 52% during the second quarter. We believe the complex SMB is seeking a recognized global market leader for the solutions we provide. and we're making great progress in our journey to be known as that go-to player for many high-performing global brands. We've now reached almost 57,000 customer locations across our increasingly worldwide footprint. Our customers continuing to succeed through greater use of the Lightspeed platform invigorates us the most. To this end, GTV growth of greater than 37% over the last 12 months to approximately $17.4 billion is an effective gauge of a healthy, growing customer base that is finding increased success through partnering with Lightspeed. We expect that Lightspeed's long-term growth will be driven predominantly by three main organic growth factors. Number one, attracting new merchants, where we are well-positioned to continue growing our overall location count. Number two, entering new markets, where we see significant opportunity given that less than one-third of our revenue comes from outside North America today. And number three, expanding ARPU, where we have tremendous white space to capitalize for both new and existing customers paying for more than one Lightspeed product. Lightspeed Payments has continued to be the notable product success story for us in 2019, and we gained very good traction this quarter as attach rates, once again, were approximately 50%, for eligible new customers in our U.S. retail base. We'll continue to be deliberate in what we commit to accomplish with licensing payments as this remains uncharted territory for us. But as we draw closer to launching payments to additional large customer pools such as Canada and restaurants, we are more confident than ever that those new segments will embrace payments in a big way, affirming our overarching strategy of being a one-stop shop for the core commerce needs for our customers. While we are very pleased with our progress against our longer term strategic objectives, we are still at the start of our pursuit of a vast global market opportunity. We believe this fragmented market needs a leader, and we believe that leader will be Lightspeed. We are moving decisively to achieve this vision, first through continued sharp execution organically, but also accelerating that foundation by bringing together the best of breed players in the space in our quest to create a global powerhouse. We're finding that the best companies in the world with the best minds, the best technology, and the best customers want to join forces with Lightspeed. Most recently, we acquired Counta, a rapidly growing, leading cloud-based hospitality POS platform in Australia and New Zealand, serving more than 7,000 customer locations across that region. Counta fits perfectly into our growth strategy, to enhance our organic global growth opportunity by combining the most innovative and disruptive teams in technology, working to modernize the merchant point-of-sale environment. Counts' team believes in our strategy of building a one-stop shop for their complex SMB customers, offering advanced analytics and purchasing modules, and they have recently begun to monetize their own payments opportunity. We intend to leverage Counts' experience and relationships with the region to accelerate the adoption of Lightspeed's retail offering, to further our data strategy, and to eventually leverage Lightspeed's payments as well. This team fits culturally with Lightspeed and we're fully aligned on how to build a global leader in this segment. From our perspective as a leader, we also believe Lightspeed's breadth of expertise can help immensely. To that end, I'd like to share some statistics on the performance of ChronoGolf, an acquisition we completed six months ago that brought us instant leadership in the golf course operator vertical. As a result of the amazing team effort from our new employees in leveraging the Valley of Lights Leads brand more closely, as well as our expertise in partnering with complex SMBs, Chrono Golf's growth in new customers accelerated to 114% over the past six months, up from 53% a year ago. This type of growth acceleration is a great proof point that our strategy is the right one. close to 700 golf courses now use the Lightspeed offering to power their operations. Since the acquisition, we've assigned many multi-course operators, highlighted by Kemper Sports, an Illinois-based operator with more than 100 courses, Landscapes Golf, a Nebraska-based course operator with 50 total locations, and several others with at least 10 or more courses. Turning to iCAN2, the cloud-based POS system specializing in the hospitality segment in Europe, that we acquired in July is integrating well into Lightspeed. iCAN2 has had some new customer wins, such as the Mantra Jazz Fest, one of the world's most renowned jazz festivals held annually in Switzerland in early July. We'll provide a more thorough update to iCAN2 in a future call. Turning to our product innovation efforts that further our position as the leading cloud-based end-to-end solutions platform in our space, During the second quarter, we rolled out the newest version of our core Lightspeed retail platform, Lightspeed Retail 3.0. Key features behind this faster and more streamlined user experience include a sleek new design, simplified navigation capabilities, more mobile-friendly functionality, and a more seamless sales workflow engine designed to optimize the selling process in complex retail environments. We have other major new product releases and enhancements coming within both the Lightspeed retail and restaurant platforms throughout the year, and I look forward to sharing with you more of the details around this rapid product velocity, a hallmark trait of Lightspeed in future earnings calls. Lightspeed continues to enjoy strong momentum from complex retailers and restaurant owners in North America and around the world, many of whom continue to select Lightspeed given our ability to manage their omnichannel business needs seamlessly. Customers such as international fashion brand Gabriela Hurst, new U.S. bakery chain Jacques Torres Chocolate, and the Four Seasons-operated Costa Palmas Resort in Mexico all selected Lightspeed in the quarter. I'd now like to highlight some recent successes with our channel partner strategy as yet another lever we are utilizing to bolster our go-to-market approach. We work with many great channel partners in the Lightspeed ecosystem to help complex SMB customers manage all aspects of commerce in their business. Recent strategic partners brought into the Lightspeed ecosystem include Avero, which has integrated its hospitality management software and analytics suite into the Lightspeed restaurant solution. Lendio, to offer its small business loan marketplace to applicants directly inside the Lightspeed offering. And finally, MailChimp, which offers our omnichannel merchants additional ways to engage with their customers. Recently, we hosted the annual Lightspeed Partner Summit in Montreal and Amsterdam, where we recognized the latest Lightspeed partners of the year for their efforts in helping to grow the Lightspeed brand into important new growth markets for our company. To sum up, I'm extremely proud of the entire Lightspeed team for their relentless spirit and enthusiasm around our vision. It's gratifying to see their hard work pay off with these quarterly results. We have the team, the vision, and the technology to become the clear leader for complex SMBs globally. I'll now turn it over to Brandon to provide greater detail around the financials for the quarter, as well as to provide our updated outlook for fiscal 2020. Brandon?