Lightspeed Commerce (LSPD) Morgan Stanley Technology, Media & Telecom Conference summary

Strategic transformation and focus areas

• Emphasis on two core growth engines: North America retail and EMEA hospitality, with profitability targeted from the rest of world efficiency market.

• Strategic review led to the decision to remain a public company, aiming to maximize shareholder return and support transformation.

• Reorganization included a 200-person headcount reduction in non-growth areas and hiring in growth markets.

• Commitment to a large share buyback to demonstrate confidence in the transformation and support share price.

• Capital Markets Day scheduled to outline a three-year path to greater profitability.

Market segmentation and competitive positioning

• North America retail targets complex, mid-market businesses with tailored ERP-like solutions and strong supplier integrations.

• EMEA hospitality leverages a unique pan-European solution optimized for local tax and workflow requirements, with no scaled competitors.

• Focused outbound sales motions are being scaled in both growth markets, with field sales in Europe and remote outbound reps in North America.

• Non-core markets prioritize positive revenue retention and customer satisfaction, with limited feature updates.

• 50% of locations are now on flagship products, which represent 70% of revenues.

Product innovation and vertical strategy

• Key retail verticals include sport and outdoor (golf, bike, running), home and garden, multi-brand apparel, jewelry, pet, toy, and vape and smoke.

• NuORDER supplier network drives new customer acquisition and is positioned for future payments monetization.

• Flagship platforms enable rapid software development, with recent launches like Retail Insights, scanner app, Tableside, KDS, and Pulse.

• No mass migration to flagship platforms; growth in flagship adoption comes from new customers.