Lightspeed Commerce Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Lightspeed POS fourth quarter and full year fiscal 2020 earnings results conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Chris Mamone, please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Lightspeed's fiscal fourth quarter and full year 2020 results conference call. Joining me today are Dax DaSilva, 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 filing with Canadian securities and 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 CDAR.com. 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 Dak.

Thanks, Chris. I want to begin today by acknowledging the courage of those on the front lines of the COVID-19 pandemic. From our healthcare workers to the essential staff restocking grocery stores, delivering our goods during the day and our dinner at night, we are grateful for your heroic work. You have been a lifeline to the independent businesses that we love and support at Lightspeed. As we navigate the implications of COVID-19, the importance of community and a greater good has never been more pronounced. Similarly, our mission as a company has never been more clear. For 15 years, Lightspeed has empowered the small and medium sized businesses at the heart of our communities. We've been their technology partner, enabling them to evolve and reinvent themselves to meet the changing needs of their customers. They are the social and economic backbone of small towns and bustling cities alike. I am inspired by their resolve and how they have turned this unprecedented moment in time and a future full of unknowns into a show of resilience. and an opportunity for growth. With Lightsweep's help, long-time physical retailers have built e-commerce sites overnight. Others are seizing this moment to expand the boundaries of customer service to greater omnichannel reach. Our hospitality customers, from fine dining to fast casual, are using our technology to redesign menus optimized for home delivery. Our golf course owners are enabling our online booking services to eliminate physical points of contact on the course. These are not temporary changes. What is clear is the commerce economy has changed in everlasting ways. Lightseed merchants are well-established, innovative industry leaders ready to evolve with it, inspired to amplify their sales channels, and eager to use technology to future-roof their business for these increasingly digital and virtual realities. I've been incredibly proud to see Lightspeed employees pitch in from every corner of the company to rapidly onboard these businesses with a sense of urgency and genuine care to enable them to sell online and adopt delivery capacity in record time. Thanks to an amazing team rising to the occasion in a moment of great disruption and anxiety in their own personal lives, we are supporting record adoption of Lightspeed e-commerce and payment offerings. such that GTV process by our North American retailers through Lightspeed e-commerce is up more than four times from February 2020 levels. I'm also proud to report that approximately three quarters of our customers are actively trading in some capacity despite dealing with widespread government mandated shutdowns. Lightspeed's commitment to putting the merchant first has been further amplified by our Lightspeed local initiative. The program was launched to reimburse employees in our 14 global hubs on purchases made from any Lightspeed retail or hospitality customer, whether through e-commerce shopping, meal takeout, or home delivery. We've received numerous heartfelt thanks from local restaurants and retailers for the support they received from Lightspeeders during this time, reminding us all why we come to work every day. The coronavirus pandemic has made it clear to these merchants that the cloud-based omni-channel solution Lightspeed provides is no longer simply a competitive advantage, but a business imperative as we move forward. Our merchants have demonstrated that they are the thought leaders that will redesign the retail and hospitality experiences of the future to shore up the economies and livelihoods of the communities that love and appreciate them now more than ever. These are uncertain times in our industry, but it is clear to me that Lightspeed will be a momentum company coming out of this. The legacy systems that continue to represent the majority of the market share are simply no longer sufficient, and the move to cloud and the move to omnichannel will only accelerate in our view. Fortunately, this inevitable shift is happening at a time when product innovation at Lightspeed is accelerating. On the retail omnichannel front, we streamlined our e-commerce onboarding and ramped scalability to meet the increased demand we are seeing for digital channels with upcoming improvements to our digital checkout experience. Our retail POS app also saw further upgrades to its CRM and payments capability. All of this builds upon the inventory management and point of sale upgrades we rolled out throughout this past fiscal year to solidify our status as the premier solution in cloud-based retail POS. In this regard, no other retail system operates with the power depth, and sophistication of feature set required by our segment of merchants, further appealing also to merchants that may have fewer requirements at the outset but want to do more with technology to differentiate their business in this environment. We'll be redirecting spend to hire new teams in Retail Omni globally to double down on our strengths and extend our advantage within both physical and digital channels. As Brandon will cover in his section, payments had a very strong quarter with North American verticals hitting general availability, continuing with accelerated onboarding through April and May. On the restaurant front, we made great strides to converge the efforts of our hospitality engineering teams globally onto our flagship restaurant product, which launched in the Swiss and UK markets during the quarter. Delivery tools and integrations were also made widely available in response to demand, with early onboarding occurring on an upcoming order-ahead capability. Expect more rapid innovation ahead from Lightspeed in the hospitality vertical. Finally, yesterday we launched Omnichannel Loyalty. Operating on our hospitality product as well as across retail and e-commerce, our newly launched customer engagement tool is the ultimate Lightspeed technology to help businesses foster personalized, targeted relationships cohesively with their clientele across channels in a moment where this means more to business success than ever. Thanks, Max. Thanks, Max.