Second Quarter 2021 Results November 5, 2020 Disclaimer Ge - - PowerPoint PPT Presentation

Second Quarter 2021 Results

November 5, 2020

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Disclaimer

Ge General All references in this presentation to the “Company”, “Lightspeed”, “us” or “we” are to Lightspeed POS Inc. All references in this presentation to dollars, “$” or “US$” are to United States dollars, and all references to Canadian dollars and “C$” are to Canadian dollars. Cautionary y Note Regarding Forwa ward-Looking Information This presentation contains “forward-looking information” and “forward-looking statements” (collectively, “forward looking information”) within the meaning of applicable securities laws. Forward looking information may relate to our financial

• utlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, plans and objectives. Particularly,

information regarding our expectations of future results, performance, achievements, prospects or opportunities, the markets in which we operate, prospects and customers (including those of ShopKeep), expected acquisition outcomes and synergies, and the impact of the COVID-19 pandemic declared by the World Health Organization on March 11, 2020 thereon is forward-looking information. This forward-looking information and other forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operation, under “Risk Factors” in our most recent Annual Information Form, and in our filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The forward-looking information contained in this presentation represents our expectations as of the date of this presentation (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Non-IF IFRS Measu sures s and Indust stry y Metrics This presentation makes reference to certain non-IFRS measures and key performance indicators, which do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by

• ther companies. Refer to section “Non-IFRS Measures” of Lightspeed’s press release dated November 5, 2020 for more details and the definition of “Adjusted EBITDA“. In addition, the terms “Average Revenue Per User” or “ARPU”, “Customer

Locations”, “Gross Transaction Volume” or “GTV”, and “Net Dollar Retention Rate” are operating metrics used in our industry. See “Appendix A” of this presentation for the definition of each such industry metric.

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(1) As of September 30, 2020 (2) Average GTV as of September 30, 2020 (3) 3-months ended September 30, 2020 vs September 30, 2019

(1)

>100 >100

Countries

$4 $45.5M

2Q’21 Total Revenue

62% 62%

YoY Revenue Growth

90% 90%

Recurring Software and Payments Revenue (2Q’21)

~$8 $8.5B

2Q’21 Gross Transaction Volume (“GTV”)

>80,000

Customer Locations

(3)

~$600K/y /yr

GTV/customer

(2) (1)

Lightspeed at-a-glance

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Lightspeed’s clo loud pla latf tform is powering th the fu futu ture of f commerce

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Lightspeed is positioned to win in the current environment and beyond

~57,000 ~80,000

2Q'2020 2Q'2021

Total Customer Locations $17.4 $26.1

LTM 2Q'2020 LTM 2Q'2021

GTV (in $B)

Ou Our r Resp sponse to

• COVID

ID-19 19 Resili silient Busin iness and d Customers rs Accele lera ratio ion of

• f Secula

lar Tre rends

• Del

elive vered the e tools and reso esource ces customers need to preserve and grow revenue

• Seam

amlessly y met et increased dem eman and for eCommerce, Delivery, Loyalty and Payments offerings

• Dive

verse co core cu cust stomer bas ase processes ~$600K of GTV/year

• GT

GTV V not only y rec ecove vered but grew 56% Y/Y in 2Q’2021

• Virtual

al go-to to-marke ket strategy

• Digitiza

zation of f wo work and co commerce accelerated across all sectors and geographies during the COVID-19 crisis

• Om

Omni-ch channel has become particularly relevant with immediate and transformational benefits

• Cust

stomer Locations grew 40% Y/Y to more than 80,000 in 2Q’2021

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Com

• mprehensi

sive Bac ack-Off ffice Su Suite

Manage your operations with ease, no matter the complexity Engage with your customers wherever they are

Omni ni-Channel Rea each

Bookings and Membership Management Floor & Table Management Customer Management Reporting, Analytics and Dashboards Discounts, Price Rules & Gift Cards Loyalty Accounting Employee Management Complex Workflows Inventory Management Product and Menu Management In-Store Cloud POS eCommerce Mobile Curbside Pickup and Delivery

Open API Supporting an Ecosystem of Integrated Partners

APIs

Tailored financial solutions

Pay ayments s & Fi Financing

Lightspeed Capital Lightspeed Payments

Li Lightspeed Mer Merchant Platfo form Su Suppliers Con

• nsumers

A comprehensive commerce OS for sophisticated independent businesses

Marketplaces / Platforms

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Lightspeed’s recent product innovations meet rapidly evolving consumer behaviors

Analytics Lightspeed Capital Lightspeed Subscriptions

Bac ack-Office Om Omnichannel

Order Ahead eCom for Restaurants Loyalty

Paym Payments

Lightspeed Payments

eCommerce for Restaurants

• Allows restaurants to seamlessly transition to an online model
• Enables frictionless delivery and takeout experience

Order Ahead

• Cost-efficient online ordering platform designed to facilitate

100% contactless takeout experience for customers Lightspeed Subscriptions

• New module allowing North American retailers using Lightspeed

Payments to collect recurring revenue through their POS Payments – Recent successf sful expansion to more markets s

• Added Canada Retail and U.S. Restaurant customer segments

earlier this year to Payments offering Hospitality POS – New flagship product rolling out globally

• New Order Ahead featuring expanded pickup and delivery tools
• Completely redesigned our restaurant eCommerce product

Omni-channel Loyalty – New customer engagement tool

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Notable new customers demonstrate Lightspeed leadership serving complex SMBs

✓ Operator of an award-winning selection of ultra-luxury hotels, villas, spas, clinics and private residences located in the most exclusive destinations around the world

High Highli lighte ted Ligh ights tspeed Cus Custo tomers Cus Custo tomer Det Details ls

✓ all-natural pet food store with over 50 locations in the mid-western United States, selling natural food, pet care essentials, toys, grooming products and treats for your pet ✓ Located on the popular island of Maui, and home to the PGA tours Sentry Tournament of Champions, Kapalua Golf maintains two of the most majestic golf courses in the world - the Plantation and Bay Courses

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Lightspeed’s multiple growth vectors

Pur ursu sue Str trat ategic ic and and Val alue ue Enha nhancin ing g M&A

• Lev

ever erage e acqu cquir ired ed ex exper pertis tise e to facilitate continued growth

• Identify targets to accelerate product roadmap,

increase market penetration and create value for shareholders

Accele ccelerate e ARPU U Exp xpans nsion

• n by

by Intr ntroducing ing New ew Mod

• dule

les

• Large portion of existing customers are ado

dopt pting addi dditi tional al modu dules les as s they ey grow

• 40%

40% of customers use se more than an 1 Lights tspeed eed modu dule le (1)

Buil uild on

• n Suc

ucce cesses in n Paym ayment ents and and Fi Fina nancia ial l Sol

• lutio

ions

• Hi

Highly co complem lement entar ary of cu current t offer ering and allows us to monetize a larger portion

• f GTV
• Lights

tspee eed Ca Capita pital l provides additional lane of growth

(1) As of March 31, 2020 (excludes customers of acquisitions: Chronogolf, Kounta, and Gastrofix)

Expa xpand Presen resence With thin in Vert ertic icals ls

• Become em

embedded bedded with thin the e eco ecosys system tem of ver ertical ticals

• Monetize data up and down the supply chain

Expa xpand Custo ustomer er Locat Locatio ion Fo Foot

• tprint

int

• Significan

cant t po potentia tial l to increase ase pen penetr etrati ation of our TAM, attract new customers and drive customers to adopt cloud-based systems in place of legacy systems

• Expand in existing markets and target

et new ew geo geograph phies es and d ver vertic icals als

• Lightspeed is acquiring ShopKeep for total estimated

consideration of ~$440 million in cash and stock

• The transaction is expected to close before the end of

fiscal Q3 (Dec), subject to customary closing conditions

• Combined company will have >100K customer locations

globally and >$33B in LTM GTV pro forma

• Wide reach and seasoned team brings scale and

experience to Lightspeed’s already robust US presence

• Increased resources to invest in sales, marketing and R&D

to capitalize on the increasing demand for modern cloud- based omnichannel commerce solutions

• Significant opportunity to drive greater ARPU over time with

additional Lightspeed modules and capabilities

• View the official press release here: Lightspeed to Acquire

ShopKeep to Accelerate Digital Transformation of SMBs Across the United States

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(1) As of 9/30/20

(1)

Fin inancia ial Ove verview

12 12

Financial model characteristics

Feat ature res Bene nefi fits 90% 90% Recurring Software and Payments Revenue Growth th in n Av Avera rage Revenue / / Cus ustomer r (AR ARPU) Po Positi itive Net t Dolla lar Retention Rates Recur currin ing Sub ubscri riptio tions Recur currin ing Pa Payments

New customers More modules More locations % of transaction volume

(2) (1)

(1) In 2Q’21 (2) Comparison of 2Q’20 to 2Q’21 (3) As of FY ended March 31, 2020

(3)

(1) LTM GTV as of September 30, 2020

• Payments uptake remains strong. Processed >10% of GTV through

Lightspeed Payments in U.S. Retail in the final week of 2Q’21

• Payments recently launched in Canada for Retail and

U.S. for Hospitality. Momentum continues to build here

• Solution priced at ~2.60% of the electronic transaction

volume processed on a gross basis

The Lightspeed Payments opportunity

Currently Processed by Lightspeed Payments Long-Term GTV Opportunity

$26B

LTM GTV (1) U.S. & Canadian Retail and U.S. Hospitality GTV

13 13 Launch Date Lightspeed Payments Adoption as % of GTV in Final Week of 2Q’21

>10% 3%

U.S. Retail

4%

Canada Retail U.S. Hospitality

14 14

Diverse, high-quality, growing customer base

~41,000 ~49,000 ~76,500

Fiscal 2018 Fiscal 2019 Fiscal 2020

Tot Total Cust ustomer Loc Locations

(in $B)

~57,000 ~80,000

2Q'2020 2Q'2021

Tot Total Cust ustomer Loc Locations

$10.6 $14.5 $22.3

Fiscal 2018 Fiscal 2019 Fiscal 2020

GTV TV

$5.4 $8.5

2Q'2020 2Q'2021

GTV

(in $B) 56% 56% y/y 54% 54% y/y 40% 40% y/y 56% 56% y/y

(1) GTV does not represent revenue generated by Lightspeed. See Appendix A

20% 20% y/y 37% 37% y/y 17% 17% y/y 49% 9% y/y

(1) (1)

37 37% CAG CAGR 45% 5% CAG CAGR

15 15

Strong revenue growth

$57.1 $77.5 $120.6

Fiscal 2018 Fiscal 2019 Fiscal 2020

Total Revenue

(in $M) (in $M)

$28.0 $45.5

2Q'2020 2Q'2021

Total Revenue

(in $M)

$51.1 $68.5 $106.9

Fiscal 2018 Fiscal 2019 Fiscal 2020

Software + Payments Revenue

$25.4

2Q'2020 2Q'2021

Software + Payments Revenue

(in $M) 56% 56% y/y 56% 56% y/y 62% 62% y/y 62 62% y/y 36% 36% y/y 34% 34% y/y 34% 34% y/y 37% 37% y/y

$41.1 45% 5% CAG CAGR 45% 5% CAG CAGR

$39.6 $53.9 $77.4

Fiscal 2018 Fiscal 2019 Fiscal 2020

Gross Profit

16 16

Significant gross profit expansion

($13.1) ($21.7)

Fiscal 2018 Fiscal 2019 Fiscal 2020

Adjusted EBITDA (1)

(in $M) (in $M) (in $M)

($5.1) ($2.8)

2Q'2020 2Q'2021

Adjusted EBITDA (1)

(in $M)

$19.4 $27.5

2Q'2020 2Q'2021

Gross Profit

69% 9% GM GM 70% 70% GM GM 64% 64% GM GM 60% 60% GM GM 69% 9% GM GM

($14.9) 40% 0% CAG CAGR

(1) Please see Appendix A for Non-IFRS financial measures definition and reconciliation to net loss

Investment highlights

Le Leadin ing global l cl cloud omni-channel co commerc rce platf tform rms powering independent businesses in the new digital economy Lar Large tota total l ad addre ressable mark arket mainly served by legacy systems poorly equipped to support migration to cloud Str trong an and co consis iste tent t growth with vast majority of revenue generated from recurring software subscriptions Growin ing and and divers rse cus customer r bas ase driving >$26B of GTV globally (1) Li Lightspeed Pa Payments no now driv ivin ing signif ific icant t growth for North American retail and U.S. hospitality customers Well cap capit italiz ized with th ~$ ~$513M M in unrestricted cash

(1) LTM GTV as of September 30, 2020

17 17

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Appendix A – Industry Metrics

App ppend ndix A “Average Revenue per User” or “ARPU” represents the total software and payments revenue of the Company in the period divided by the number of Customer Locations of the Company in the period. “Customer Location” means a billing customer location for which the term of services has not ended, or with which we are negotiating a renewal contract. A single unique customer can have multiple Customer Locations including physical and eCommerce sites. “Gross Transaction Volume” or “GTV” means the total dollar value of transactions processed through our cloud-based SaaS platform in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes. “Net Dollar Retention Rate” is calculated as of the end of each month by considering the cohort of customers on our commerce platforms as of the beginning of the month and dividing our subscription and payments revenue attributable to this cohort in the then-current month by total subscription and payments revenue attributable to this cohort in the immediately preceding month.

IR contact

inv nvestorrelations@lig ightspeedhq.com