How were Lspd earnings?
What were the results of the completed strategic review? Sounds like the search for a buyer was unsuccessful….
How does 5i view the future prospects going forward for lightspeed … currently hold small position… would 5i sell or continue to hold .
If sell what would you recommend in similar space.
Thx
EPS of 12c beat estimates of 11c; revenue of $280M missed estimates of $283.4M. Revenue rose from $240M in the prior year. 2025 revenue growth was guided to 'approximately 20%' from prior 'at least 20%'. EBITDA guidance rose to $53M from $50M. The strategic review ended with LSPD deciding to stay public and to focus on its 'go-to-market' strategy. To appease shareholders looking for a sale of the company, it announced a $400M share buyback. The stock is down 8% pre-market. We thought a sale was the best outcome. Now, we have a company shifting gears a little bit, with relatively low growth compared with most tech companies (about 18% EPS growth expected in 2025). It is not cheap really on P/E, and cash flow has been negative every year for seven years. We would be inclined to sell this for a better tech company, but we might be cautious in selling on this news into what may be a big dip from disappointed holders. CLS, DSG, SHOP, KXS look better to us.