Many of you might not know about the company Lightspeed. I have been investing in them since the IPO. Recently there was a huge jump in the stock price which has sparked investors interested in the company.
Lightspeed is a technology company that helps to empower small and medium businesses (SMB). Through their technology platform, SMBs are able to adapt to changes in consumer behaviour without heavy upfront investment. Things like point-of-sale units (POS units) and ecommerce platforms are at the core of Lightspeed. Their product teams are customer focused and this is the kind of mindset that is necessary to succeed in this growing digital commerce space.
Lightspeed reported a 70% jump in revenue year over year for Q4 2020 even though the quarter consisted of a month with COVID-19 dominating the news lines. They currently have 75,500 customer locations with only 5% of their customers pausing their subscriptions due to COVID. This means that 95% of their customers are still actively engaging in business activity and adapting to the current situation.
Lightspeed has a lot of room to grow even though companies like Shopify and Square are viewed to be dominant in this market. 70% of businesses still use legacy systems to this date which gives a bit of colour on how big the opportunity is here. There is room for more than just Shopify and Square.
I own a position in LSPD.