Lightspeed Commerce Inc.

Ladies and gentlemen, thank you for standing by. And we'd like to welcome you to the Lightspeed Fiscal Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode, and 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. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I'd now like to turn the conference over to Chris Mamone, Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Lightspeed's fiscal third 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 to 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 securities 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 on 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 third quarter, total revenue grew by 61% versus last year and topped $32 million to exceed the high end of our guidance range. Just under 90% of this base consists of recurring software and payments revenue, which grew 58% during the third quarter. We believe the complex SMB is seeking a recognized global market leader for the solutions we provide. As we approach the one-year mark since we became a public company, we're extremely proud of how far we've come in our journey to be known as that go-to player. Highlighting some of our most compelling proof points to underscore that success At IPO, we served around 47,000 customer locations. Through strong organic growth and select M&A, including the recent additions from GastroFix in Europe, we're now at over 74,000 customer locations globally. A year ago, our business was heavily weighted to retail in North America. Today, our customer mix is much more balanced, with hospitality comprising approximately 45% of total locations, and international customers making up roughly half of our overall footprint. At IPO, our customers were processing approximately $13.6 billion in GTV for the 12 months ended December 2018. That LTM figure has grown to almost $20 billion a year later, an effective gauge of a healthy, growing customer base that is finding increased success through partnering with Lightspeed. As further emphasis to this point, Results from our 2019 year in review revealed that retailers in the US powered by Lightspeed grew their GTV more than four times faster year over year than the industry average retail GTV during the first 10 months of the year. A year ago, loyalty and payments for brand new module offerings from Lightspeed. Today, thousands of Lightspeed customers leverage both solutions as a mission critical component to their business operations. When we set out to do our IPO, we did so with the ambition of creating a category leader for the highly fragmented, complex SMB space. Our thesis was that the additional exposure afforded us by the public markets would yield tremendous opportunities to further our brand, extend our reach, and facilitate some terrific M&A opportunities we saw at the time. Just one year later, we believe we are demonstratively further down that road. Our brand recognition has never been stronger, our technology stack never more advanced, and our geographic reach never further. And we're still just scratching the surface of our overall growth potential. We took a calculated risk a year ago when we rolled out a sophisticated payments offering to our U.S. retail customers in the public eye. But Lightspeed Payments has continued to be the notable new product success story for us in 2019. It has gained considerable traction with customers, and today we have several exciting updates to share on our progress in payments, furthering our position as the leading cloud-based end-to-end solutions platform in our space. First, attach rates ramped higher during the most recent quarter, nicely exceeding 50% on the back of strong demand and some smart adjustments to our marketing strategy. Overall for the month of December, after we initiated this new program, we had our most successful month yet in terms of customers signing up for payments. Furthermore, and for the first time since payments went live, monthly payment sign-ups from our existing base exceeded what we signed up from net new customers. We've been deliberate and learned a lot during the past 12 months about our ability to forecast, sell, support, and grow the payments business. Drawing upon this experience, We've never been more confident that payments will be an important long-term growth driver for Lightspeed, and we're really excited for the additional payments capabilities we announced today in three main areas. Number one, for our U.S. retail customers, we announced improvements to the overall customer experience, such as an expanded lineup of available acceptance devices, enhanced reporting capabilities, and a faster checkout experience. We believe these upgrades will drive further improvements to attach rates. This new customer experience has been in beta with approximately 450 locations for the past two months, and we received really positive customer feedback. Secondly, today we also announced the availability of light-speed payments to Canadian retail customers. This customer segment represented nearly 10% of our GTV for the last 12-month period, and we believe is poised to embrace payments in a meaningful way. And third, we announced the initial availability of LightSeed payments for our restaurant customers in the US. We believe this integrated offering greatly facilitates our ability to lead the hospitality segment in North America. We're very pleased to be teaming with Stripe as our new payment processing partner for these additional payments capabilities. Our aggressive M&A strategy ensures that we move decisively to achieve our vision to create the world's leading cloud-based POS provider to SMBs. M&A augments our strong organic growth foundation by bringing together the best of breed players in the space. Whether these tuck-ins accelerate our progress in specific verticals or via geographic expansion, 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. Last quarter, we talked about our ability to accelerate the growth of these businesses once we folded them into Lightspeed. For ChronoGolf, new business grew by over 100% in the first six months of the fiscal year versus over 50% a year earlier as those synergies were unlocked. iCAN2 was the second acquisition we completed. Our integration has progressed well in the six months since bringing this European cloud-based POS system for hospitality on board. As it pertains to iCantoo's business operations, we successfully rebranded the product as Lightspeed, converged the product roadmap for our developers, fully integrated it into our marketing and sales funnel management, and rolled it out into large high-priority markets like the UK and France. In conjunction with all of this heavy lifting, we've still achieved growth in recurring revenue of greater than 40%. Next up was Counta. a rapidly growing, leading cloud-based hospitality point-of-sale system in Australia and New Zealand, serving over 7,000 customers across that region. We will wait to provide a more thorough integration update on a future quarterly call, but I can attest to the fact that we're off to a successful start in leveraging Count's experience and relationships in the ANZ region and implementing our go-to-market methodologies. Most recently, we announced the acquisition of GastroFix, the leading cloud-based point-of-sale provider in Germany and our largest purchase to date. As the premier hospitality system in Europe's largest economy, Gastrofix represented an important chess piece for Lightspeed. This is a timely acquisition, helping to solidify a clear leadership position for Lightspeed across Europe as the cloud-based point-of-sale provider of choice for complex retailers and restaurants. As Europe undergoes further regulatory changes pertaining to point-of-sale system upgrades, we are very well positioned to capitalize on these market tailwinds going forward. We're working diligently to fully integrate GastroFix and our other acquisitions into Lightspeed and believe there are substantial growth synergies that will stem from these activities. We look forward to sharing our progress with you. 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 the high-end Danish sound equipment brand Bang & Olufsen, Spanish gourmet burger brand Goico Gourmet, and a popular sneaker store in New York called UpNYC all selected Lightspeed in the quarter. 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, division, 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?