Lightspeed Commerce Inc. (LSPD) Earnings Call Transcript & Summary

Okay, everybody. I'd like to like to welcome everybody to our -- to Lightspeed's Capital Markets Day. We have a pretty full agenda for everyone today. So thanks, everyone, for joining us live here in New York and also on the webcast. For those of you on the webcast, reminder that you can ask questions. So please feel free to type the questions into the dialogue box during the day. We will take questions at the end with the senior management team answering any of those questions. Of course, we have our disclaimer. I'm going to read a brief version of it. We will make forward-looking statements during our presentation today that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Certain material factors and assumptions were applied in respect to conclusions, forecasts and projections contained in these statements. We undertake no obligation to update these statements, except as required by law. You should carefully review these factors, assumptions, risks and uncertainties in our earnings press release issued on November 4, our Capital Markets Day presentation available on our website as well as in our filings with U.S. and Canadian securities regulators. Also, our presentation 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 Capital Markets Day presentation, which will be available on our website after the presentation as well as on our November 4 earnings press release, which is available on our website on sedar.com and on the SEC's EDGAR system. In addition, our presentation today will include key performance indicators that help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Such key performance indicators may be calculated in a manner different from similar key performance indicators used by other companies. And finally, note that because we report in U.S. dollars, all amounts discussed today are in U.S. dollars, unless otherwise indicated. So this is for the agenda for today. JP and Dax are going to kick it off by recapping the quarter, and then Dax is going to give you the Lightspeed story. Later on in the day, Mike and JP will give you the state of Lightspeed's business, both present and future. And then Brandon Nussey, our CFO, will wrap it up with our business model. As well for those of you in the room, there is a live demo of the new flagship Lightspeed restaurant product. So please take the time during coffee breaks to review the project. And aside from that, I will turn it over to JP.

Thank you. Good morning. We're super excited to have you today. So my name is JP Chauvet. I've been at Lightspeed and Dax and I have been working at building this wonderful company. I've been here for 9 years, and I joined -- we were slightly over 40 employees. And now we have offices in 3 continents and so super excited to be here today. I kind of -- with Dax, have been running the company. I focus a lot on the internal on ensuring that the teams are aligned and that as we grow, we continue to have this very strong vision and the strong alignment between go-to-market and product. So yes, super happy to be here today. Before we go into the vision, I think it's worth for us to just look at how far we've come since we did the IPO and just wanted to recap a bit where we are and where we're heading. So I think when you look at the numbers, they're just outstanding. And you look at the growth that we've gone through, very exciting to watch, and we really are where we want it to be at this stage. So if we look at the key numbers, we were 47,000 customers locations when we went out and today we're 156,000. So pretty substantial growth. If you look at the GMV, it was $13 billion. Today, we are $55 billion in this only in a few years. Our revenues were $72 million. And today, we have $389 million in revenues. We had just launched Lightspeed Payments and I could recognize a few faces here, but for those of you who listened to our pitch when we did the roadshow, we had just launched payments. And the whole conversation in the company was, are we capable of launching payments and making Lightspeed not just a software company, but an integrated business with software and payments. And today, the last quarter, we announced more than $2 billion in transaction volume. So again, huge progress. And when I look at this, today, we know how to sell payments, we know how to attach payments and most of all, the customers see a lot of value of integrating payments in software, which was what we set up to do when we went out. And then finally, our revenue, our growth when we went public was about 36%, if we looked at the compounded CAGR. And yes, forced to say that with everything we've done and all the modules and payments that's been launched, our growth has accelerated, and our organic growth in the last quarter was 58%. Brandon is going to be sharing also historical growth. So you can see that we really are in the right direction and very pleased. So I just thought I'd take a moment to look at this because sometimes, when you climb a mountain, it's tiring and once in a while, you turn around, you look at the view and the view is pretty good and Lightspeed is in a pretty good spot. Also I want to -- before we go into day review Q2, because I want to be sure everybody understands where we are and what's happened and there was a lot of questions, so we'll talk about them. But again, let's look at the quarter end review. So $133 million, and our guidance was $120 million to $125 million. So -- And I think this is the 11th quarter since we're public, and we've always expect -- exceeded the expectations, and we're very proud to -- we have this internal messages, do what you say you're going to do. And I think this drives the entire company and how we operate, but here, very pleased with the results here. The organic growth, of course, the absolute growth was 193%. That's because we did acquisitions. But for us, we stare at organic growth every day. And we stare at the funnel. And here, organic growth was 58% in the quarter, excluding the acquisition. So very proud of that number. Payments. Payments is now 11% of our GMV. And I think the way you can look at this is, wow, that's great progress. But the other way you look at it is there's so much opportunity and there's so many drivers of growth there, but 11%. And if you look at a year ago, we were 5%. So really good progress. And I think where the progress is really on a number basis. We processed about a year ago, $500 million. And this year, we processed about $2 billion. So huge growth on the number standpoint too. ARPU. I remember also when we did our initial IPO, everybody was like go, is the ARPU going to grow, and we were very confident saying that the ARPU would grow because 2 things. We have a number of modules. And if you look at the attach rates over time, customers buy more from Lightspeed because they see value in having the integrated products. We do more by integrating than if you're buying the products individually. And the other reason why we said ARPU would grow is we have strong confidence in payments. And here, very happy to say that just in 1 year, we went from an average ARPU of $170 to $270. Finally, I think this is the -- I think the grant of the future growth, we're very pleased with the progress in payments. And we acquired a number of companies. We had this vision that we would put components together and create a much better application. I invite you to go at the back of the room and see a demo of the product. But here, we're very proud of a few things. The first 1 is we launched Lightspeed restaurant series. And this is the aggregate of all the acquisitions that we've put. We've worked out it really hard for a year now, and we've launched this product, and we're very confident it is the best product on the market with regards to hospitality. We launched it in Europe. It was a great success. And as you might have read in the press releases, we're launching it in the U.S. now. It's in private beta, it's going to be very soon available and before the end of the fiscal year, available to the entire market. And not wanting to do comparisons, we're very proud with that product, and we know that it does more than most of the competitors in the market. We announced the acquisition of Ecwid and we said that because the view of Lightspeed for the future is not so much, bring customers to your website and transact on your website. Our view of the future is embed commerce everywhere and enable your customers to sell on any platform. And so here, Ecwid was a very big component that we wanted to add to our family. And this was the latest of the acquisitions, and it's already now available in beta to all of our customers in all regions and all products. So huge progress there and very pleased with the outcome. And for us, that was the way of saying low, it's not just physical first if you want to build an e-commerce site in the industries that matter for Lightspeed, Digital first is very important for us and digital-only is very important to us. And we'll be talking about this quite a bit in the coming hours. And finally, very proud of the progress of payments. You remember, we said we'd start in the U.S., we moved to Canada, we've moved to Europe and then we moved to Asia. And you may have read the announcements, but you know we launched Europe a quarter ago, very pleased. 800 customers have now signed up in 1 quarter. It's going to take time. They're going to now become transaction in the following quarter, but very pleased with the progress and we now just launched hospitality, Australia on payments. So progressing well there with the objective of having all products in all regions, unlikely payments for 1 and only 1 good reason, ARPU of a customer, net ARPU doubles when somebody buys payments from Lightspeed. The attack rates on new customers are very strong, and that's what the market wants. So we are laser-focused on delivering this globally. Now a few questions came out. We try to kind of summarize the questions that we had when we did our earnings call. And before we go into the future, I just want to take a little bit of time to go through these 3 question marks and kind of share with you in a very transparent way. where we are and what are the underlying reasons for this. First question was net customer locations, everybody felt that it was not as strong as it used to be. So here's the reality. The reality is if you look at the funnel, you look at the close rates, you look at the intake of gross customers, it's been 1 of the strongest quarters we've ever had. So we're very pleased, again, remember this whole mission around 1 Lightspeed globally, we said we want to be that go-to brand. That is working. We're very happy with that. Now the reality is because of our global business, and it helped us quite a bit during the pandemic, because of our global business. We have a large piece of our customers who are in Australia and New Zealand. And here in Australia and New Zealand, you might have heard, but there was a shutdown that was the most severe shutdown in what we've seen everywhere. And what happens when there is a shutdown the monthly customers churn because they can't operate. And so what happened, and we've seen that everywhere else, those customers churn during the pandemic lockdown. And then when the lockdowns are removed, we see a lot of that churn turn into customers resubscribing to Lightspeed, which has the opposite in [indiscernible]. That's actually what happened -- When you look at Europe, not this quarter but the quarter before, we had a lot of net new customers. That's because Europe went back out of the pandemic and all of the customers who have churn came back as new customers. And so really what I'm here to say is what we can control, the funnel, the close rates, the organic growth, we're very happy with that. But the reality is the majority of that, that the discrepancy between gross and net was due to Australia and New Zealand. The rest of the churn in the business was very much planned as we had -- it was in line with what we had planned. And so here, I think the takeaway on that one is whatever we control, we did well, and we're very excited where we are. Second question we had, and I have a little slide for this one, is we had a lot of questioning around, okay, yes, you guys seem to think payments is going well, but it was from 10% to 11%. Why? And so here, we wanted to kind of give you a bit of an understanding of what happened. So numerator on the left, very easy. This was on a dollar basis. We grew quarter-over-quarter on Lightspeed Payments by 19%, okay? So very much in line with what we wanted actually, and we're very pleased with that. On the right side of the screen, this shows you GTV and it shows you GTV by segments of products. And here, what you can see from this slide is the 2 drivers of the growth of the GMV, the strong drivers in the quarter were EMEA hospitality and [indiscernible] hospitality, but if you look at retail and you look at the total, that was in line with the expectations. But the reality here is the segment that grew the most EMEA Hospitality was the segment where Lightspeed had no payments. So you understand now that on -- it went -- on an aggregate level, it looks from 10% to 11%, but on anything, again, that we control, it's great. And actually, this is really good news. EMEA growing really fast quarter-over-quarter means that once the lockdowns are out, the business is driving again. And the other good news is we just signed 800 customers on this in the quarter. So this will have a very strong impact as we go. And this again, we're very pleased with the progress in Lightspeed Payments. In the areas where we have Lightspeed Payments, the growth is exactly in line with what we wanted. And there's good news here. EMEA is growing much faster than we thought. And what does that mean? That means that now that we've launched payments in EMEA, that's good news for the future growth of the business. All right. So I wanted to cover this. Very simply put, try to disclose a bit more, try to share as much as possible. So again, what is the takeaway? Whatever Lightspeed controls, really great quarter, payments in line with where we want it to be and revenues ahead of guidance. Last question we had was around the forecast -- And everybody wanted to understand why the last quarter of the year, we didn't forecast as much growth as we -- as the market wanted. And I think also a lot of questioning around the next quarter. So what I wanted to share with you, and I'm just going to describe this slide, this is actually Lightspeed Payments. And I want to -- the reality is almost 50% of our revenues now is Lightspeed Payments, and Brandon will be sharing the data with you later on. But because of that, we need now to educate you and share with you what really seasonality looks like for our merchants. And here, this slide, basically, the first assessment is growing, that's good news. So you can see that quarter-over-quarter, and so here, Q2, Q3, I just want to maybe point out these are Lightspeed calendar. So Q3 '20, where the spike happens is Christmas season, okay? And then the Q4 of Lightspeed is the Q1 calendar year. And so here, what I just wanted to share with everyone is the graphs look pretty similar. But all you see is growth. And what you have to see is Q3 is an extremely strong quarter, and Q4 is always the lowest quarter in the year. And so here, again, if you look at 2020, you go into '21, last year, spike, Q4, decline and then we see basically all of the new customers that are growing. And so here what I just wanted to share with you is when we did our forecast, there was one real question we had. And we're not the only company that have that question is like there's a supply chain issue. And actually, we have 3,000 brands working with Lightspeed with new order now. So we aggregated all the data that we could find. And the question is, will the merchandising hit the store of our customers in time for us to see the usual Christmas spike. That's the fundamental question we're wondering. And that's why we were fairly conservative in our forecast because we are hearing the brands worried that because of the shipping issues and supply chain, they are worried that the merchandising will not be at the stores of our customers. This has nothing to do with Lightspeed ability to sell, nothing to do with our hardware. All of that is secured. It's the real fundamental question. And I think if you look at Amazon and everybody is basically questioning, will supplies hit the stores in time for the spike during the holiday season. Now we have forecasted a spike, but the question is, is it going to be as strong as last year? Nobody knows. But that's why we were fairly conservative in our forecast there. And then the second question that I want to answer is yes, of course, we now have to take into account that Q4 is the lowest quarter of the year for Lightspeed, which is Q1. So post holiday season. And as we go forward, because payments is successful and because payments is now almost half of our revenues, there is going to be seasonality as we do. And I think for us now, we just wanted to share and we just want you to understand now how it works and how these quarters work at Lightspeed for our merchants, all right? So I hope we put to [indiscernible] the 3 main questions that came out. Fundamentally, and that's why we are so happy with where we are. Fundamentally, everything we can control is exactly in line with what we wanted. The business is good. The one Lightspeed brand is great. This whole thing about being the global go-to brand, everything around our products that we wanted to launch that are that are the aggregate of all these strategic acquisitions we've been doing are exactly in line. Payments has launched as we had planned. So happy days at Lightspeed, we feel really good at where we are. Now there are factors that we can't control. And we've done 11 quarters in a row of exceeding expectations. And maybe we are a bit conservative, but we'd rather be conservative than to not guide in the right way. And we did what we thought was right and we wanted to guide in the best of our knowledge on what the market is going to look like. But I think for us, 11% penetration payments, launching payments globally, I mean, the runways are everywhere, and we're very excited about the future growth of [indiscernible]. All right? So now, we're going to invite by -- I know it's not a good term, but the partner in crime, my partner in crime. This is Dax. We've been at it for many years. Our Founder and CEO, is going to talk to you about the history and where we came from. Thank you very much.

Great Thanks, everybody, for joining us here at NYSE. It's amazing to have all of you with us today. thanks JP for recapping the quarter. Great explanations, and a great walk-through of the numbers. So these are results that we're all really proud of. And the team, as you can see, has been working super hard to capture market share in economies that are reopening all around the world and also releasing innovative new solutions and really actually really -- I'm personally really proud to be showing you guys the new flagship and restaurant, demo super well. We're going to be talking about that throughout the day and all the other flagships that are coming to market. Before we get into the vision for the future, which JP is going to walk us through, I wanted to talk to you about where we've come from. And the journey this company has been on since it was founded in 2005. It's almost 1.5 decades in the second floor apartment in Montreal. And I also want to speak about our mission. And that's the mission against Lightspeeders and all the exec team up in the morning. And that's the mission to build the tools that are going to power those businesses in our neighborhoods and our communities and our cities all around the globe. So what drove the company from an early stage was the belief that the small and medium-sized businesses in retail and hospitality in our cities and communities, there were a source of great richness for our societies. They gave the cities the uniqueness that -- the uniqueness and the texture that we all really value and that they should really have the tools to compete in a rapidly changing consumer environment and that there was an increasing complexity of doing business and that can be simplified by software that could be simplified by technology. And I think that's really at the core of the mission of what we do. Personally, I was -- I've been building software since an early age. My dad was a graphic designer. He used to bring him a MAC. And it pretty much geeked out in my early days. And by age 13, I was working for an Apple developer and building software on the Mac. And I was building software, my teens and 20s for a lot of businesses. I really -- I guess my credo was UI and UX and simplifying the complex and a lot of that software was for retail. And so -- That was the -- that was where the original Lightspeed came from, from that interest in building software and solving those problems. And I built the original software for that retail segment. And the first 2 years of Lightspeed were just programming from until 4 in the morning to create that original product, which is now called Lightspeed Onsite. And what's remarkable is that the original profile of customers that use that original Lightspeed, that hasn't changed. We're still serving that complex segment of the market, we're still serving those businesses that have those deeper operations, those neighborhood businesses. But what's really changed over the years is the consumer behavior and the market has radically changed over the 1.5 decades Lightspeed's been around. The way the consumers shop, the way that they dine, the way that they discover business is, the way the businesses expand and the way that they have to compete has radically changed. And that's what's fueled this company. So it's fueled our mission. That's what's fueled also the growth of the company. And that original Lightspeed, it had the depth and the breadth of features to fully serve the operations of this business, and we have to continue to evolve, and I'm going to show you that evolution over the years. what remains consistent is that we are building the software that SMBs need to be able to compete against those big chains, those big box firms and those e-com giants and give our customers, our SMBs, that technological edge, that competitive edge to be able to differentiate on experience. And we are proud to be powering the businesses that are the backbone of the global economy. So as I mentioned, we had an amazing start on the MAC. And the MAC in 2005, remember, this is about 2 years before the iPhone. Steve Jobs is at the helm and the MAC represented empowerment. And that's why small businesses were super attracted to it. Not to mention that all the new Mac products were super beautiful and everybody wanted them on the counter of their retail store. And so it represented in power made it represented ease of use -- And the original Lightspeed on site was all of that. It helped you manage a very complex retail business with tens or hundreds of thousands of SKUs in the segments that we currently serve. And it was so popular that a lot of our early customers became our resellers. And that's why Lightspeed has such a strong international DNA because I remember in 2006, we had 40 different resellers from all over the world as far away as Australia and Saudi Arabia come 1 year into our business to learn how to resell Lightspeed. And that's why we have such a global streak to our business because it's from the early, early days. The next stage was really, really exciting. Around 2009, 2010 is when Amazon declared that retail was dead. And at around the same time, Apple just basically flipped the script. They just said, that's not true. We're opening Apple stores, and we're going to bring the experience on to the showroom floor with mobile units and they have this new Apple store experience, which totally reinvented retail. And basically, Apple came to Lightspeed and said, "Well, we're not going to ever deliver this system for SMBs, but everybody wants this." And that's where Lightspeed brought out Lightspeed Mobile and followed up with Lightspeed on a tablet, Lightspeed for iPad. And that's where we really started on this journey of first empowering on the Mac, but then totally reinventing retail as we went, starting with that mobile checkout. But we realized very, very quickly that as these businesses were moving into 2010 and beyond, that they were really starting to need to connect all the pieces of their business. There was -- there was apps that they need -- wanted to be able to add to the business like things like loyalty and accounting and all of the things that were interconnected, but 1 of the main areas was online buying, e-commerce. And we have an e-commerce solution from an early stage. We had things like multi-store, but what was really needed to bring all of these things together was cloud. And so we were 1 of the very first to bring cloud to retail in a -- for a retail package that had depth of functionality that Lightspeed had were the very most -- one of the most powerful retail systems in the cloud from an early stage. And what that really enabled and unlocked was our omnichannel vision, an omnichannel meant that what was important in the store or in your chain of stores in terms of selling was mirrored by being able to sell online in just as powerful a way and be able to run that all from 1 system. And that's where we started to not just match what the legacy systems could do. And we're going to talk about TAM in this presentation, legacy systems from a lot of the bigger players were very powerful. They had all of these deep analytics tools. They had all of these strong inventory management tools, and we were starting to get there. But once we got into cloud and once we've gone into omnichannel, where we could really super seed them because now we could interconnect things. We can get data from across different systems, and we could bring in all of the digital sales channels. So that was super powerful, which leads us to the next stage. And so yes, we lit up things like delivery and e-com and loyalty, but that brings us to the next stage of our evolution, which is payments. notice now we knew we partnered with payments, different payments providers, but we knew that there was payments touch points along all of these elements in the omnichannel journey in-store across different locations online and things like curbside pickup and delivery and loyalty. And we knew that managing payments across all these different elements was suboptimal for the business owner. That they needed to have 1 back office. They need to have 1 payment experience, and that's why in 2019, just ahead of our TSX IPO, we rolled out Lightspeed Payments. And as JP showed how powerful that's been for our business, but it's also been a game changer for customers. And as we look into the future, we're seeing even the potential for even more financial services from Lightspeed like Lightspeed Capital and beyond. The other theme that we're really excited about, and we're going to be talking about throughout the day JP, Mike and JD are going to go into our supplier strategy. Supplier network is an element of our strategy that's had a really amazing response. And that I think we're I believe that's where it comes from is the fact that we've been so close to this complex segment for so long, and we know what is really going to move the needle for them in terms of a competitive edge and optimizing supply chain and bringing those merchants and their suppliers closer together is going to completely change their competitiveness. And as you can see from what's happening in supply chain, if they had more control over those relationships. And there was more data being interchanged between suppliers and merchants, they'd be much -- in a much better place. So we're very, very excited about that. But I think one of the things I'm most excited about is the new flagships. The fact that we've been able to bring together the top teams from around the world companies that we've competed with for years in the complex segment, many of whom have execs that are now part of our team, and they're actually in this room bringing together those companies with the Lightspeed teams, with our UI expertise to roll out the flagships in retail and hospitality, I think is going to be a watershed moment for Lightspeed. And if you look at the restaurant product that we're demoing today, that is the best of Lightspeed. It reminds me of the tightness of UI and interface back in the day when we were crafting that original Lightspeed UI. It's crisp, it's tight, it's fast and put it side by side, and we have some side-by-side comparisons with anything, and you'll be impressed. So can we for you to see that. And yes, I think it's going to be a major piece -- a major player in the market. So where we get with all of these omnichannel native flagships and our work in payments and suppliers, that really strengthens our position as that one-stop commerce platform. And in our complex segment, the main components, the belief is that the main components that these businesses use should all come from Lightspeed that because that they have this complexity to their business, they want to be getting more components from us that we want to be building the most powerful components and tying it all together with payments and with all the supply tools that we're going to bring to it. We see ourselves as that trusted vendor, the vendor that's going to roll out new financial services that are really tailored to that customer and all the new software tools. So we're the center of their business. We're at the core, where they're operating system, both online and in store. And of course, we always keep it sophisticated yet intuitive powerful yet simple. Part of the journey to realize this ambition is to have the scale and the global reach. And like I mentioned earlier, we've had that international DNA from the beginning. And now we've brought the best technology and the best teams from all over the world. And what that amounts to is that scale. We've got 156,000 locations in over 100 countries, and that scale has allowed us to really execute on that payment strategy, that software strategy and that supplier strategy. And it's given us a company that's fared well during COVID, it's diversified and it's really resilient, which brings us to why we're here today. Our TSX and our NYSE IPO, which was last September about a year from now, a year in the past. It gave us the capital and the profile and the connections and the -- yes, the level to realize our ambitions to execute on our growth strategy. And that's -- that, I think, has been really great for the company to be able to do all of the things that you've seen us do to expand rapidly in this period to really capture the market. And that leaves us today to Capital Markets Day, where we are excited to be able to deep dive with you into our vision, into our products, which are ultra excited to share with you and into our business model. So this is just the beginning. I'm going to pass it back to JP for a vision of the future, but I thank all of you for joining us today. Thanks.

Thank you, Dax. So Dax is a very humble man, but the story of Lightspeed is very simple. It's a story of a company that started with a crazy good mission, helping the small against the big and helping small independent retailers compete with the large big box players. And it's the story of a company that has always been ahead of the game. When you look at it, we were 1 of the first doing mobile checkout. When nobody was doing mobile checkout, we were one of the first new omnichannel when nobody was doing omnichannel. We were 1 of the first companies to have this vision of integrated commerce with all of the essential components. And today, that's why we're so excited to be showing and sharing with you the next steps in this vision. And I think we -- I believe we've earned the trust of the market and to say, okay, this is where we think we're heading. And we're -- one thing is sure we're obsessed around executing the next step of our journey. So before we talk about the product, I want to talk about the market. And there's a lot of questions around this market. It's one of the largest markets out there. There's 47 million retailers and restauranters on the planet. And I say the planet because Lightspeed is truly a global business. And workflows in Paris versus workflows in Germany versus the workflows in Australia are completely different. The integration, the fiscal integrations in all these countries are completely different. And Lightspeed is the only player on the market that has a true global footprint. And so here, what is the difference between 47 million and 6 million. What we look at is inside of the SMBs, we want to work with the more sophisticated SMBs. And the way we look at this great year, the difference is the 6 million is more than 5 employees, restauranteers and retailers. And I think that's a good differentiator. And the more you go in complexity inside of the SMB market, the more we shine. There's a huge difference between 1 location and 2 and all this logic of centralized inventory, centralized menu management. And also, the other thing that matters for us. And I always used to say, we're not interested in small, medium, large copies or small, medium, large features. We want people that have really sophisticated needs. And you look at our customers, they are Michelin star restaurants, they are fine dine, they are retailers with hundreds of thousands of SKUs, and that's where we shine within the SMB space. And the market is so vast that it's not one player takes it all. And even though from the outside, we'll be talking about this, it looks pretty similar to everybody. There's a big difference between Lightspeed and the rest of the market, and it really maps to the market we're going after. The other way to look at it is really when we think about the world, we think about channels, and from pure e-commerce to physical. And we strongly believe omnichannel. And even before COVID, 5 years ago, we were saying omnichannel. And I think we were right there and COVID had a really accelerating impact on adoption of solutions like ours. But our view is you need to remove the silos and the only way you're successful, if you're a retailer or a restaurant are today in our segment, you need to work across channels. And so we see ourselves really in the middle. And regardless of its e-com first or if it's physical first, you need to be in the middle. And then the other way we look at it is simple merchants versus complex. And the simple we talk about the copies, and there's a few players in that market. or the simple 5 to 10 size of T-shirts and colors and grids. We are really on the more sophisticated side. When you look at some of our merchants, a bike store, pet stores, electronic stores, apparel. These are normally stores that have quite a bit of complexity, and that's where we shine. Not to say that we don't do small [indiscernible] that is not the big differentiator would like be -- The big differentiator is likely, and that's where most of our customers need us, they couldn't operate without a platform like ours. And here, I think the most interesting piece is really the dotted square underneath Lightspeed. And let's not fool ourselves. That is the majority of the market is still on legacy systems that are on-premise, non-connected, not open, and those platforms in today's world are more and more difficult to operate. And so naturally, that is the market that's up for grabs. That is a market that's going to come to platforms like ours in the coming months and years and quarters. And here, that's where we have a very strong opportunity for Lightspeed. And this brings me to the next side. Why? And I always called it the hidden side of the iceberg. And it's a bit confusing because everybody has an iPad or some kind of mobile device or a cash register a scanner and a payment terminal, but the reality is not all of those are similar. They all have the same front end, arguably some are more property than others. But that nobody else does is this depth of complexity and where -- and that's where I think we're in a really good spot for the legacy system is those legacy systems are very rich. And even if you look at our latest product that we just released K-Series in the U.S., it is -- it can bend in any way you want and it's 1 of the only POS on the market that can really accommodate the transition from a legacy system to a platform in the cloud. And so that's why we're so excited about it. And again, 6 million potential buyers. And we have -- about 156,000 customers. So there's a ton of runway there. Okay. It's not because we handle complexity that our platforms are difficult to use. And this goes back to what Dax was saying, since day 1, the obsession of Lightspeed, it takes something really complex and make it as simple and as pretty as possible. And the word I think about is elegance. And even, again, inviting you to come and look at our new products, this is the most elegant platform you can find. You look at how we handle the checkout, how we handle the split build. I mean, that platform is just pretty and elegant and very easy to use and it's flying fast. And so that's why now I'd like to say hospitality was a hobby for Lightspeed and sell this new product. We are now very seriously going after the market. We just launched this product in beta. We have customers on it. And now we are really going after this big market in the U.S. But don't forget that this platform has been released in Europe. We are the leader in Europe, and we've had incredible good feedback on this. And so I invite you today to have a look at it, but I just want to show a few interfaces because it's really pretty and it works really well. All right. So let's talk about where we're heading and what we think are the big next step. So we started talking about this at some of our earnings calls. But today, we want to go into details on where we're heading and where we think the market is heading and how -- what is the next big stepping stone for our customers and how we're going to help them in the future. So before we look a bit about the past. I mean nothing to comment here, but the world started on-premise and then it was the rise of the payment terminals, and that's when you started seeing connection and recognizing the user across the stores through the payment terminal. Then the whole POS went into the cloud, and we've been saying for 5 years now omnichannel, omnichannel, omnichannel. And what was nice to have has become a must-have in the last year. And I think that's why we are more relevant than ever, and that's why we're so excited about where we stand as a company. And that's why when I was describing the quarter and where we are and we look at the funnel and we look at the close rates, and we look at the intake of leads, we're really in a good spot right now. because omnichannel is the only way you go forward and Lightspeed has the best omnichannel offering on the market. Now this is where we are today. And if you look at the solutions that we offer today, we are mainly focused on the merchant. So what have we been trying to do over the years. We've been trying to take -- to actually look at inside of the merchant and say, okay, let's make it as efficient as possible. Let's enable real omnichannel where you enter your inventory once and then you can sell it across channels, you recognize your customers across channels, you can recognize your data and the behavior across channels. And we do a little bit with consumers and with suppliers. But the reality is no matter how hard we work at automating inside the store. If we don't look at how the store works with their suppliers and how the information flows between the suppliers or the brands, the stores and the consumers, you can't help them go better. And so that's why when we look at the future of Lightspeed, we are now trying to triangulate the data and triangulate everything between the brands, the merchants and the consumers. And it's really important because when you ask our customers, where you spend a lot of time, you will realize that most of their time is spent working with the suppliers and the brands. And this is all manual. It's Excel sheets, it's pen and paper, it's back and forth. And that's because the brand has no visibility on sell-through and the store has no visibility on inventory levels at the brand. And so what happens very frequently is the store is running a lot in inventories, and they're like, "Oh, I need to order 100." They do a purchase order. They actually e-mail that purchase order. And then what happens, the brand comes back, I can't allocate that much. Please redo a purchase order and then they're going to redo a purchase order at the right level. And then finally, when they get the goods, they need to manually going into the system and start typing the description, start putting in the images. And the reality is because of omnichannel and because that they now need to engage with COVID through multiple channels, a lot of their time is spent preparing the descriptions and the pictures and everything to be able to automate, but the problem is unless you start looking at how do I integrate the description from the supplier directly into the store? How do I integrate the ordering from the store to the supplier? How do I help the supplier see real sell-through, you'll always have problems with supply chain and complete disconnection between what the supplier or the brands are producing and what is actually selling in realtime. The last piece of the equation here, at Lightspeed, we are starting to build a lot of concentration within verticals. So we have extremely strong visibility on what sells in industries. And that information today is completely locked within Lightspeed, but now we need to make this available to the brands that work with us so that they can actually see what their consumers are buying and what they like and what they dislike and help them actually guide new products and guide production so that everything is always produced just in time. So very exciting world. At the core of all of this is data services which we started building out for years, we have a pretty large data pipeline. And at the core of this, as Dax was saying, it's financial services. We are in a really good spot to propose all types of financial services to everybody within the triangle. And I think that's what you're going to see, we started by focusing on the merchant, where we offered payments mainly to the merchants on the sell side. We're now going to do payments on the buy side. Now we just launched capital. So we're enabling our vendors to access money. And here now, we're going to also be doing this on the supply side. And over time, there's a lot of things we should be doing, great? So why is this so important? I started talking about this, but let's talk about the merchant. It goes back to our vision. We need the merchants to be successful, goes back to the mission, David against Goliath, we need to enable them to have as much technology as possible so that they can compete. So for them, if we do this right, what is that going to mean? That's going to mean they're going to spend way less time back office, handling all of this manual stuff when they order their supply. We're going to help them understand when they should be ordering what. We're also going to help them identify new goods that they do not have in their inventory today because with the data services that we have, we can very easily see what is the outlier in store A that is not selling in store B and enable store B now to access distribution or to access new brands. We're going to help them provide a much better experience, be much faster omnichannel. And ultimately, here, we're going to help them also provide them financial services. And imagine this world where we know that they don't have a certain supply that they should hold. I'm going to lend them money so that they can go and get that supply. They're going to use license payments to order that supply. And I'm now going to help the brand identify new stores, and I'm going to start taking a cut of distribution also. So it's a very exciting world ahead, but the value proposition for merchants is pretty straightforward. Brands, value proposition and the main one is brands have 0 visibility on what's selling where at what price. So if you ask the brand, the most important thing for them is, okay, I want to be sure I understand at what price and where my goods are selling? And what happens today, there's a real disconnect. So the only time they know that they need to sell some of their goods. It's at the or order point. But they never see what's selling. They don't even know what discount levels and what happens also with the high the -- highly valuable brands, they hate it when they're goods get discounted on networks because the stores cannot sell them. And so here, enabling the store to understand exactly what levels of order they need to do so that there is no good that stay in industry inventory enabling the brands to have the sell-through so that they can see on an aggregate level, what sells inside of the Lightspeed network, and then also providing them trends so that they can adjust their product offerings is very important. And here, I think that there's -- from all the brands we've spoken to and we announced the acquisition in the order, I mean, almost every single brand we're talking to is like when can we get the sell-through. And so that's really the value. And I think that's why we're so excited about where we're heading in the future. Well, first of all, nobody has done this. And this is not about dropshipping goods from Asia. This is high -- this is really helping a network of high-value goods. And here, we're very excited to be bringing this to market because we're in a position now where we've gained a lot of concentration in verticals, and you need that for those network effects to work. Value proposition for consumers very simple. You're going to go to stores, you're going to discover brands in stores that are in line with what you want. We're going to provide a much better experience. And ultimately, what we're going to be doing here is as consumers inside the verticals go from store to store, we're going to be building profiles of consumers that will then in return, ensure, sorry, that when the consumer goes to a store, they have an incredible experience because all of that aggregate level data will help the store identify what the brands would be consuming -- sorry, what the customers should. So imagine, you'll know the size, you know how they fit based on everything they've been buying, you know the brands that they like, you know the colors that they like. And from that, we can basically build beautiful persona that we can share across the network to provide a much better experience for the consumers. All right. This is only valuable if you have concentration. And what do we mean by concentration? You need to have enough stores within geographies for hospitality and within industries, so that these network effects work. So a good example I can give you, if I'm going off to the [indiscernible] market, and I only have 10 stores, Nobody within the supplier market is going to care about me. And none of the stores are going to care about the supplies because I don't have enough critical mass. And here, when we look at this, hospitality has to be around geographies no matter we have a beautiful chain in Spain called Go for Grill. They were acquired by LVMH and they do the lot burger. No matter how much I love those burgers, I won't have them shift to Montreal. So that's why for us, when we think about the hospitality market, it's really around geographies. And here, we need to build concentration within cities and regions. When I think about retail, it's a completely different thing. It's a global market. It's not a perishable good. And in retail, it's really the industry to drive the suppliers. So if I'm strong in golf, I'm strong in outdoors, some strong in bike, come strong in electronics. There's often a handful of suppliers that really matter in each of those industries that every store holds. And those are the ones that are really valuable to Lightspeed, those are the ones we want to work with to build basically the flywheel. So with this in mind, now I hope you've understood the strategic moves we've been doing across the last few years. We wanted to get to this point, and this has always been in our mind. And now when you look at the history here, we've gained concentration. And I'd love to say if I'm not for chips in Sutat, likely has a restaurant there selling for it. If I'm looking for Gourmet Burger in Spain in any of the big cities like [indiscernible]. I'm in New York, I'm looking for a sushi Lightspeed there. We have absolutely gained concentration in all the geographies. And we are the only player on the market in hospitality that has a true global footprint. Same thing with retail. And now if you look at the big markets where we operate, we have concentration within the large verticals and not the small, medium, large coffees or the small, medium, large t-shirt within the industry that hold a lot of inventory, Lightspeed has now gained concentration in the industries that matters. So that's why if you look at the last 2 deals we did, these 2 deals are not around concentration, and these 2 deals are acceleration of roadmaps and acceleration of roadmaps because the time is now and we want to get to market with a full complete solution as soon as possible that triangulates suppliers and brands, stores and consumers. So new order, as you know, worked with 3,000 luxury brands. And they have the capabilities now to support all the verticals we're going to offer, and we're now hard at work integrating all of the marketplace. Basically, the new order mark will place into the Lightspeed into the Lightspeed world. The other deal we did was Ecwid and Ecwid really was to support stronger capabilities in e-commerce and accelerate basically our roadmaps in telling the market, it's not physical first anymore Lightspeed even if you're a digital only, if you're in one of the verticals that matter for Lightspeed, we want you as a customer, cool? All right. I mean there's a lot to talk about here, but there's 2 concepts I'm going to pull out of this. I talked about it, digital first, digital only or physical perks. What drives Lightspeed's roadmap now is verticals. And we are very confident in our ability. And as you know, we launched a press release where we now have launched a new Lightspeed e-commerce based on, of course, a piece of that being Ecwid. The great news here is we can now go face-to-face on digital first within the industries that matter for Lightspeed. I would argue we can do more. We can embed commerce anywhere. I don't know if you read the announcement with TikTok, but we can even now sell Lightspeed or build a card within TikTok to enable people to buy goods. And I think that's the big change in philosophy, we're no longer in this world of you need to come to our website to sell. We're in this world of embed commerce everywhere so that the merchants can do well. And that's really, again, the big learnings of COVID, you need to invest commerce everywhere, and that's what Ecwid does. And actually, Ecwid came from e-commerce widget. That would just be embedded in all those platforms. Okay. [indiscernible], their network effects, when you have those suppliers, supplier is going to be drawn to the platform and bringing a lot of their stores to the platform and the stores are going to be driving suppliers to the platform, yes. And here, we've seen this. And you know like is probably where the most advanced with 60% to 65% of old bike stores in North America. And here, what we see is everybody within the -- we see the best [indiscernible] inside of bikes. And here, we're very excited to be bringing this to all the verticals, and thanks to new order, we can now accelerate our roadmap there. We have this pretty exciting on endless inventory. It's our term, and we're very proud of the term. Here, the logic is to say, I will enable a merchant to sell a good that I do not hold in store as if it was in my warehouse because I'll have access to inventory levels at the suppliers. And I will enable that sort to sell the good and have a drop ship from the brand directly to the consumer. And again, working hard at this, but we think that is also incredible because when we look at Lightspeed. We have the highest [indiscernible] in the world, 156,000 stores. So there's 1 model, but then we can also have the model of I'm going to have all the brands working with Lightspeed that have now the drop shipping capabilities to the consumers, and I'm going to use the network of consumers that go to stores to have those brands ship to consumers. And obviously, we believe that over time, there's brand awareness is just going to drive network effect, and we're going to go just much faster in the verticals that we operate in. All right. So what is the end point of all of this? We want the merchants on the Lightspeed platform to have a higher chance of success than on any other platform. And hopefully, by integrating and triangulating all this data and enabling the stores and who are the ultimate customers of Lightspeed, enabling them to do more, to be much more efficient, to have much more visibility, it's going to drive them to be more successful. As I said, digital first, digital only or omnichannel, we want you as a customer within the verticals that matter for Lightspeed. That's the last -- the third, I think, is one of the very exciting ones, too, is, so the way it works today, a brand, how does a brand discover stores? They normally have agents, and those agents work with stores. And so there's a pretty large disconnect between the brand and what's actually selling inside of the store. And here, there's a lot of fees that are done throughout distribution. And so here, what's exciting with Lightspeed and with the data set that we're aggregating, I will be in probably the best position within the verticals that matter to tell the brands here are stores that could expand your distribution network in a very controlled way. And today, I could see very easily if 2 stores have 80% commonality in inventory. And store A has an outlier that's selling like crazy, there's a high probability that store B could sell that good and could make a good living with this. And so Lightspeed is now going to start putting in contact or in relationships, the brand with distribution and new stores that are going to be good for them. And here, I'm sure you're familiar with companies like Faire or there are companies like there that take a distribution fee. But I think Lightspeed because we have the sell-through all the way and we know everything about the stores and the consumers within those verticals, we can do much more there. So I think that's a very big piece. And that's actually what's very exciting when we talk to our brands is they all want to do more, but they want to do it in a very controlled way because the fear is that the brand ends up in the hands of the wrong stores who's not going to represent them well. Of course, everybody in the network, suppliers, virtual consumer gets value from Lightspeed, that's the endpoint here. And that's really the network effects we're trying to build. And really, ultimate point here is help the small compete against the big. And in the early days, we used to call it the back savings cities. They're like you're trying to sell safe cities. And we're like, yes, nobody wants to go to cities without the texture of these small businesses, that makes cities different one another. Nobody wants kind of globalization in the sense that in every city, you have only exactly the same brands. And so our mission here at Lightspeed is to ensure that we help the small restauranteurs and retailers in every city in the world keep the texture of the city. And this goes back to our initial mission, and it will always be there. All right. Let's talk about the money now and why this is really important. Of course, if we put this in place, there's a lot of drivers. There's even more drivers to growth, not that with 6 million potential buyers, we have [ 150 ], there's a huge runway there. But I think putting in place these network effects and putting in place this triangulation is going to drive even more growth likely. So the first one here with the flywheel, because everybody within the network in the verticals gain value from Lightspeed, the net result is the cost of acquisition of a customer goes down and the lifetime value goes up. We see this in the industries where we're very strong, where we have the beginning of catalogs. We see that everybody within the verticals want Lightspeed to succeed. And so here, because we'll triangulate even more and because we'll automate even more, and we'll make those merchants more successful, CAC to LTV is going to, of course, go into the right direction. The second thing, spoke about it a lot, financial services. We are going to build financial service for everybody in the network. Today, we're focused on the merchants. We launched, of course, payments. We're going to launch it globally. The next step after this is going to launch capital globally. We've now launched it in the U.S., and we see good traction there. But we're going to do more. And I think we'll be in this world where I will be providing capital for specific inventory. I'll be going to a store, and you imagine this world of a store logging in, in the morning, the store owner, and here, you're like, "Hey, here are 5 items you should sell to the network because we know other stores want to buy them and you're having a hard selling them." Second line is, "Here are 5 goods that you do not hold in inventory today and that you should hold in inventory." And by the way, "Here's $50,000 to go and order its inventory because we know it's going to sell." And finally, "Use Lightspeed payments to order and use Lightspeed payments to sell." So there's a whole world of building on Lightspeed financial services that is ahead of us, and all of this triangulated by strong data. Data Services, I think, will be an offering by itself. When you -- when we talk to all of the big brands and bikes, the only thing they want is they want to buy from us the aggregate level data because they know that we know trends better than anybody else within the industry where we operate. And so here, I think you can expect a world where we will be selling aggregate data on industries to players inside of an industry and making a good living out of this. And then finally, distribution we talked about. This is a very exciting one, enabling brands to expand their distribution and actually introducing brands to new stores without the middleman. And I think that's very exciting, too. So that was my high-level view. I hope you sense the excitement, but we -- as I said, Lightspeed for all these years, we've always been, I think, ahead of the trends. We listen to our customers. We know our industries very well. And so we were just super excited to share this with you. Today -- throughout today, we're going to be going into details. We'll have more information on the supplier network. More information about what we're doing in the hospitality also with suppliers. But yes, beautiful world ahead, and I hope you're enjoying this, and have a great day. Thank you.

Okay. We're going to take a 10-minute coffee break. Just a few questions from online. The presentation will be available at the end of the day after all the presenters are finished. You can download it then. For you and for those of us who are here in the room, please go over -- Evan is back there, he can show you the demo of the flagship Lightspeed Restaurant product. It's actually quite cool. We will be -- and again, we will be taking questions at the end of the day with all the presenters. So we'll take a 10-minute break, and we'll be right back. Thanks. [Break]

Okay. If everybody could take their seats again, we'll get things rolling again. Okay. We're going to have Mike DeSimone and JD Saint-Martin take you through our retail, hospitality and payments business. So I'll call Mike up. Mike?

Thanks, Gus. Hi, everybody. I'll give you a minute to take your seats, and hope you got a good sense of why we're so excited about the release of our new hospitality flagship. I'm Mike DeSimone. I'm the Chief Business Officer at Lightspeed. I'm based here in the New York City area. I joined the company about a year ago. I came over with the ShopKeep acquisition. And as Gus just said, JD and myself are going to go into a bit more detail about our business, what's happening currently on the ground and how we're bringing the strategy that JP and Dax talked to you guys about earlier to life. Before we get started, I thought maybe I'd share since I'm fairly new, I'm almost up to my first year at Lightspeed, I thought I'd share a story about how we put the companies together and how we came to the decision to do it. So prior to COVID, ShopKeep's recurring revenue was growing about 25%, and we were EBITDA positive on an annual basis. And like Lightspeed, we were recovering quickly from COVID, from the initial impact of COVID. And fundamentally, we had a lot of options in terms of what we could do with the company. I met JP about 2 years ago. And the more time I spent with him and the more I got to know how he was thinking about the business, and then with Dax, started to really see how we can change commerce in -- everywhere in our local markets and in the local communities in which we operate. It got us so excited that that's actually the primary reason we did the deal. We saw the potential of bringing these companies together and establishing an absolutely globally dominant player in the markets in which we choose to target. So just quickly, and you've heard it all day and you're probably going to hear some more today, just to give everybody a sense of our business lines. I think you guys know we started in retail. And you've heard a lot about the type of retailers that we work with, and we're going to go into a lot more detail about that. We also have hospitality, which is restaurants and hotels and really just the hotel industry. We also have golf, which is a newer business for Lightspeed. It came is part of an acquisition of Chronogolf. It was founded by my colleague, JD, who's going to be up here in just a minute. And that's a business that we started in North America, but have now expanded into the U.K. and to the EU. We also have a financial services business line. And the reason that's kind of wrapped there is it's not really an industry vertical, we think about financial services literally as a service that we plug into each part of our business. And I'm going to talk more to you guys about that today and kind of how we think we can leverage that. But really, I think just to frame the day and frame what we're talking about, we're going to spend today, this afternoon focused mostly on hospitality, retail and financial services. I'm going start my timer. I think it's a theme again you're going to hear today that I think we all think is just a massive differentiator for Lightspeed, which is unlike some of our competitors, Lightspeed is a truly global business. And we believe that gives us major advantages. The regions and countries that you see here are really where we have the most material presence of our customers. But we also operate -- we also have merchants in Latin America. We have merchants in the Middle East, and we also have merchants in South Africa. And we believe that the geographic diversification really helps amplify the existing diversification in our business line. We focus on different verticals. We focus on different ways to monetize those verticals. And now we can focus on that globally around the world. And at the same time, although we think globally and we operate globally in terms of scale, we also have -- can bring a local execution of that, and that's a pretty big advantage. JP told the story this morning about the schnitzel restaurant in Leipzig, but if you think about it, in a country like Germany, if you're -- I think you start running a restaurant, and you think about upgrading your system because of all the challenges that we just talked about for the first part of this morning, how different -- how special is it to be able to call a German number, speak to a German salesperson and ultimately get a system with a global sort of viewpoint scale built really to handle anything, but localized specifically for your market. Germany has some pretty complex fiscalization rules. They have different payment types. They also are able to get support locally in German, makes a massive difference in terms of how we can leverage the investments that we're making in our global platforms all around the world. If I recall this slide from the strategic overview that JP shared with us this morning. I think it's worth maybe just doubling down a bit on it and how we think about building -- or leveraging our global presence by building critical mass. And the areas we're building critical mass are data, suppliers, consumers and distribution channels. And really, it's important when you think about our acquisition strategy and kind of the journey that you saw in JP's slides earlier today, how we built that concentration through our M&A strategy, we looked at it a little bit differently for these 2 business lines. For hospitality, we want to build a geographic concentration, for exactly the same reasons that JP shared. Supply lines are different. You can't order a cheeseburger to be delivered from Spain overnight. You might actually be able to do it, but it may not show up in really good shape, and it's certainly not going to be as good an experience as if you ate it there. And so really, what we want to do is go deep there, understand the local markets, understand how customers and restauranteurs operate, understand the challenges that they have, understand the supplier landscape and how we're going to build into that. And retail, it's a little different. We go deep into verticals. And as JP said a bunch of times this morning and Dax mentioned as well, we focus on retail verticals that have a significant amount of complexity in the business. We generally throw around terms like inventory, okay? That's a pretty generic term. But you have to think about that the inventory as an apparel brand, how different that would be from a bicycle. Bikes have thousands of parts on the cycle list. Each part has an individual serial number. It is treated in different ways, where obviously, apparel has completely different considerations. And the awesome thing about our platform is that we built to be able to work within those verticals, and it's just as applicable to a bike shop as it is to a home furnishing business because we built that flexibility into the platform, while keeping the interfaces as you saw in our case series demo in the back, elegant and simple. By building these businesses along these vectors -- building our business along these sectors, we think Lightspeed is able to go incredibly deep into serving the needs of independent businesses, their brands and suppliers, and the consumers that both work there and interact with their businesses. So we've been talking about a flagship, and I want to spend a little bit of time talking through kind of how our core merchant platforms are kind of coming together and where we are with each one of them. For each of our business lines, we're building -- we're bringing together the best of our acquisitions from technology to talent, to know-how. And we're combining that with the DNA, the commerce DNA of Lightspeed, which is incredibly powerful. And that's allowing us to deploy these new best-in-class flagship products across each of our business lines. You just saw the demo in the back of Lightspeed Restaurant. We're super excited about rolling it out, and we're also super excited about the fact that we've been able to leverage different aspects of the companies that we've partnered with and acquired into it. Upserve drives the analytics engine, which hopefully you got a chance to see. Evan, I hope you showed that, right? It has an analytics engine, specifically into the different quadrants and shows restauranteurs what their best items are, not just the bestselling, but the best items in terms of return business. Kounta. We leveraged the ingredient management elements of Kounta to really beef up what we put into the Lightspeed Restaurant flagship. We're also building a new Lightspeed retail platform. Our new flagship, which is -- we refer to the restaurant internally as the X -- is called K Series, retail is called X Series. And again, here, we're incorporating elements of these acquired companies. Ecwid. JP mentioned earlier, it's already integrated through our flagship. Can we make it better? Absolutely. But it's already integrated, and we expect to really enhance our digital and multichannel capabilities significantly with Ecwid. Vend. Elegant self-service, elegant, I'd like to choose it that way. Elegant self-service and how merchants can start with us onboarding themselves and then grow into the overall platform. Financial services. Very focused on payments. We've talked a lot about payments. JP says -- believe it or not, says payments, payments, payments every day and almost every single team meeting. And we see the massive and transformational power the payments has had in our business. We're also now starting to think about how to expand that. So as we've been talking a little bit about the expansion of capital, ShopKeep had a pretty evolved capital business, where we built underwriting models and how the risk flows should work and establish a small but decently sized business with really nice margin characteristics. We're now taking those learnings and applying them all the way across our financial services business as we roll out capital and expand it. And then lastly, NuORDER, which is actually allowing us to think differently about payments in terms of instead of just a credit card or a consumer payment, now we think about B2B payments. And we're starting to think about trade finance and other things that we can leverage based on the data that we have and understanding of how our customers' businesses operate and the trusted position we have with them in their ecosystem. So as we close out this overview -- sorry, it's a bit warm up here. As we close out this piece of the -- this part of my presentation, I want to make it very, very clear, Lightspeed is not a roll-up. This is a true integration play. We are bringing all of these amazing organizations, capabilities and platforms together under a single brand, with a single go-to-market flow. We're building everything into the Lightspeed go-to-market flow. And we're building global platforms where all the elements work together seamlessly to deliver an expanding value proposition to our customers over time. This is about building 1 Lightspeed globally. If you don't take anything else away from today, I really hope you guys get the message that we're bringing all of this together into an absolutely best-in-class platform. I just wanted to take a minute to introduce you to our General Manager team. It's a team that leads each of these industries. Ana Wight, who is our General Manager of Retail, comes to us from Vend. Ana was the CEO of Vend for 2.5 years. She came with the acquisition and is now running our retail business. Ana has held senior roles with McKinsey, Microsoft and also New Zealand Telecom. Unfortunately, because of the situation in New Zealand, the travel restrictions, Ana couldn't make the trip here, and she sent her regards and hopes to come and be able to talk to you soon. Next up is Pete Dougherty, who's here in the room. Pete, if you could just raise your hand. Pete's at the back. Pete's our General Manager of Hospitality. Pete's been with Lightspeed since 2011 and has done a number of different -- led a number of different initiatives within the company, including expanding up our account management team, establishing our global partnerships program and launching several of our platforms that we brought to market. And then last up is Jona Georgiou, who's also in the room. Jona, back there. And Jona was our Prototype General Manager. Jona was the first general manager in the company and has been with the company since 2018. Jona runs our financial services business and bring 16 years of expertise in fintech companies, a deep expertise in payments and financial services. I encourage you -- during the Q&A, Jona and Pete will be available. I encourage you to ask questions. I'm happy to answer questions on retail, but take advantage of the team. They're happy to be here, and they're pretty excited about what we're building. So with that, I'm going to turn it over to my colleague, JD. I'm going to step off for a minute and let you take things on. And I'll be back up to talk to you about our retail business and financial services businesses shortly. Thank you.

All right. Thank you, Mike. My name Jean-David Saint-Martin. I would like to bring simplicity to complexity, so you can call me JD. It's much easier. And I lead our go-to-market teams globally. I joined Lightspeed back in 2019 by the acquisition of Chronogolf as Co-Founder and Co-CEO. You'll see me twice today, but in the upcoming slides, I'll be covering how we are building the global leading commerce platform for the serious restaurant operator. So you'll see a few iterations of this slide throughout the deck. But if you look at this slide in the context of our hospitality business, what I want you to retain is that we're truly building a global business and is already a global business. We have significant concentration in EMEA and APAC. And across all the markets where we operate, we have local feet on the ground and offices. We have incredible upside ahead of us. And we'll cover that in the upcoming slides, but there are 2 things that are flowing in motion and in parallel. On one side, and we talked about this already on a few occasions, we launched our new Lightspeed Restaurant flagship products in North America. This is a product that is coming from EMEA, but we're extremely, extremely excited to bring it to North America. It's fully embedded within our payments platform, and we see tremendous upside. As JP highlighted earlier, we're just getting started. It was really a hobby before, now we're really, really getting started with this really strong product in North America. But in parallel to that, we're also bringing our Lightspeed Payments solutions across the globe and more specifically in EMEA and in APAC, where we were not present on that front on the payments side. We see tremendous upside with our existing strong base of customers. Now when we think about our customer characteristics, I want to make sure I leave you with one comment, we are not a square. Lightspeed Restaurant is a commerce platform for the serious operator. Our restauranteurs work with Lightspeed because we provide a solution that is built for scale. While other players focus on low GTV merchants, our solution can really flex with the depths that you need. So from single-location bars, restaurants, high-volume QSRs, fine dining, and we'll give you some really strong examples of that, but you can imagine, fine dining is very complex, particularly around all the table service side of the business, all the way through to multi-location groups and even hotels, which are also very complex and require deep integrations with their property management solutions. So we have a great customer quote here. But a few weeks ago, we announced the launch of our North American flagship product or that flagship product that we'll bring to North America from EMEA. We're extremely excited. You can hear in the tone of my voice. We truly, truly believe that this product is going to be a game changer. And it's built with foundations to build on for years and years to come. But this is precisely what impressed Tara Morrow at Cafe Lola, who sees Lightspeed restaurants not only as a future-proof and elegant solution, but also as a product that already outshines the depth of on-premise platforms, like Aloha and Micros. As you can imagine, COVID has absolutely accelerated the digitalization of restaurants. Today, at Lightspeed, there is no compromise. With our solutions, our customers are able to operate across in-person dining, curbside pickup, deliveries, multiple ordering services, selling not only meals, but also merchandise all through one single commerce platform. In the context of COVID, our customers' guests or our customers' customers also expect a VIP experience. And our technology allows you to deliver on that promise by tracking individual food preferences, leveraging loyalty programs and member benefits, capturing unique customer data to really optimize your menu and offer customized experiences to your most valuable customers. Now when we talk about COVID, we also talk about labor shortages in the hospitality industry. And with labor shortages, automation is the only way that our operators having to often wear multiple hats on the facility can really continue to find success. And our deep inventory and ingredient management module as well as our analytics module allows these operators to save precious, precious time to accomplish more with less. Lastly, our solution not only drives top line but also gives our operators visibility into margin expansion and cost reduction opportunities across their entire business all the way through to the menu item level. And again, if you had a chance to spend a bit of time with Evan. Hopefully, he has a few minutes to show you our Magic Quadrant because that's actually spectacular from an insights perspective, and we'll talk about that a little bit. So as we said before, this is our beautiful new Lightspeed Restaurant flagship product. We're extremely excited about it. And as you will see, when you look at this product and for those of you that are tuning in online, we'll also have a video showcasing the product during the coffee break, we believe at Lightspeed that this product is miles ahead of the toast of this world. First of all, our new product is already built for global markets, and it combines the best-in-class technology of all our acquisitions. And Mike highlighted that before, but our ingredient management module comes from Kounta. Our advanced analytics comes from Upserve and the core technology of the POS comes from iKentoo. And so this allows us to bring a solution to a market that has unmatched capabilities. And let's spend a few seconds on those unmatched capabilities. One, as I said before, we bring simplicity to complexity with our modern interface that handles all the complex flows that a serious restaurant operator needs with a modern, elegant, beautiful UI and UX. And that's key as you bring new staff to your facility, you want to make sure that they can ramp up quickly and that they can use the tool with all its capabilities. The product is also built on a private blockchain technology. And this allows us to do a few things in this space. First and foremost, the product is blazing fast. And again, I encourage you to test it out, you will see it for yourself, it's really, really impressive. But when we talk about blockchain technology, it also allows us to address fiscal requirements that are a growing trend in the hospitality industry. This product is already available in Europe, and it is already fiscalized in Europe, where you can expect governments to be more and more present in that industry. And with blockchain technology, we're already a step ahead. And blockchain technology also allows you to operate as efficiently off-line as we operate online. And again, in the context of a restaurant or a fast -- high-volume hospitality operations, being able to operate off-line is absolutely key. Third, we talked about the smoothness and the elegance and the speed of the front end, but that front end is also matched with deep, deep features that really impress at every single demo. Every time a prospect sees this solution, it really needs these legacy on-premise solutions ended up. And then four, as I mentioned before, it is a platform that is built for scale. So a lot of our customers start with 1 location, but they grow. They find success. And JP highlighted that, we want to make sure our customers find success with our technology, and we see it. And as they grow, they add more locations, and then you want to make sure that our solution can handle that. And so what's unique with this platform is with centralized global menu management system, you're able to really see all your menus, all your locations in 1 central menu locations. With Lightspeed, you don't rely on other companies to complete our offering. We talked about the fact that we're a one-stop commerce platform. We've talked about the fact that we released our advanced analytics module coming from Upserve. We also talked about our ingredient management module. These are all things that are available to you. And so as you grow as a business, you can continue to work with Lightspeed to complete our offering. And we bring all this data together in order to provide prescriptive recommendations to our restaurant operators, allowing them to continue to win in that space. So truly, from our perspective, using Lightspeed provides you with a competitive edge. So let's dive into a few features of that new product, and this is on the B2C side, providing exceptional guest experience or order anywhere module allows our restaurants to provide contactless ordering, contactless dining for table sites, pickup and delivery. And obviously, this is a necessity in today's world. But not only did we release this module in the context of the post-pandemic era, it is already integrated with our payments platform. And it is also integrated with a wide range of ordering services. The closing point of every demo, and I talked about our Magic Quadrant is when prospects discover the universe of Lightspeed insights. With unmatched analytics, we are able to actually triangulate processing data -- payment processing data to triangulate unique customer behaviors. And our restaurant operators are able to make successful business decisions using Lightspeed insights. They literally look at their menu as a profit center matched with ingredient management and margin tracking. Now we talked about the impact of the global pandemic on the hospitality industry. And frankly, with this pandemic, everything changed. To thrive as a restaurant, technology is not an option anymore, it's a must. But not any technology, hardware and software that works for you by automating the complex tasks of your operations through a sleek, intuitive and beautiful interface and design. And that's the promise that we deliver on. But of course, we're not stopping here. We're only getting started. If you think about the operations of a restaurant, I like to think of it as a circular motion. On one hand, you start by interacting with your suppliers. You find local produces, local food and you build your menu. You market that menu on multiple channels. You provide unique customer experiences and you collect orders and payments. You turn around and you manage your staff and you pay your staff, then you select on the performance of your restaurant or your facility by looking at reporting, benchmarking trends. And lastly, you identify room to grow and seek capital to take it to the next level. And that circle continues and continues and continues. And so at Lightspeed, we want to continue to do more in that circle. So these are 2 examples of upcoming modules that are in our road map, Lightspeed suppliers. I mean we talked a lot about the suppliers. We believe solving that complex equation on the hospitality side as well is going to be a game changer for us and then benchmarks and trends. What you can expect from Lightspeed is that we will be there at every single step of the operator's journey, and we will continue to lead with innovation so that our customers are always, always ahead of the game. So before we bring back Mike for the retail business, I just want to leave you with just a quick summary, right? First and foremost, I mentioned this before. We are a global business. We are already a global business in hospitality. And the reason why we highlight this, and JP touched on this before as well, it is really complex to sell in international markets, particularly in hospitality. Every single location, every single region, every single country is different. We talked about fiscal requirements, localization aspects. It's very different. You've experienced it before when you eat in a restaurant in Paris versus when you eat in a restaurant in New York City, it's a completely different experience. And our products are already built to handle that complexity. We talked about our customer characteristics, and I want to leave you with this and this is constant across all our industries, we seriously focus on the complex operations. We focus on the serious business operators in the restaurant space, and we've really built a product to handle those complex needs. We also want you to make sure you remember, this is state-of-the-art technology. We are bringing all these strategic acquisitions together to build a very modern and future-proof product. And it, again, really shows in that demo, and we're super excited. And it's a product not only that fits the needs of the post-pandemic era, but it's a product, again, on blockchain technology that we can continue to build on for many, many years to come. And then lastly, as I reintroduce Mike back to the podium, we're only getting started. We have tremendous upside ahead of us, and we're still so excited for our future. So thank you, and we'll move on over to the retail business.

Great. Thank you. Thanks, JD. And clearly, there's amazing opportunities ahead of us in hospitality business with the launch of our new platform, with the expansion of our footprint. And so now I'm going to switch gears. I'm going to talk about our retail business and kind of get into that. Again, the thing you're going to see all day is that we're very global. And like hospitality, our retail business is truly global. The country is here, again, where we have the largest customer density in our retail business. We also have Latin -- I'm sorry, we also have retailers in other parts of the world, like I mentioned earlier, in Latin America. Retail is actually scattered throughout much of the world in a number of different countries. But the concentration of our retail business has been and it continues to be primarily in North America, which we believe balances nicely with our larger hospitality presence outside of North America. And with the expansion of Lightspeed Payments into EMEA and APAC this year, Lightspeed Payments is now able to reach more than 70% of our global merchant portfolio. Okay. You're going to be seeing a few quotes today. And I think while I give you a second to read it, there's just really no better way to hear about Lightspeed than from our customers. And for me, in looking at this and thinking about it, that first line there from Damon Gabriel, who operates a home furnish and decor retailer in Artful Ellijay, Georgia, "Lightspeed is like the spinal cord of my business." It's a pretty dramatic statement actually. And as you can see from the store itself, there's quite a bit of inventory and different things here. The more we realize on Lightspeed to manage what looks like some pretty complex inventory, I think I would imagine there's a lot -- not much standardization or standard sort of SKUs in his shop. And he also does a lot of customization and a lot of work orders and a lot of things that make that delivery of that much more expensive. And then ultimately, maintaining full visibility across all those workflows, making sure the work gets done on time, products deliver and you get paid. We'll keep an eye on is operating margin is absolutely what Lightspeed delivers, all of that. Ties it all together, whether it's really handling again, think about all the different kinds of inventory that might be in a shop like this, it's pretty best. And then having to customize that and manage all of that through. It's almost like your retail store is like a little factory in some ways. And when we think about these businesses as independent or smaller, they do have, as J.D. alluded to just a minute ago, a lot of complexity, whether in a hospital or in retail. And when I reflect on this quote, one thing that really come away with is we're really deeply respectful of the trusted position we occupy with our customers. And our team of Lightspeeders around the world is working extremely hard to continually upgrade the value we offer to them every day across all of our platforms. So anyway, look, you're going to see some more of these quotes, but I think it's just really powerful when we hear our customers talk about it. So as we've been discussing, and we probably keep continue discussing, COVID has rearranged just about everything related to commerce. And what we're all aware that sales have shifted online, we don't know if we talk about the level of complexity that shift has introduced to the operation of independent retail businesses. So when we say no compromise omnichannel, we understand the omnichannel does mean giving a merchant a website, right? Most merchants, most of these businesses don't get a lot of traffic or sales, not restaurants, but on the retail side from their website. However, they do get a lot of business from digital channels. So they might sell via an Instacart. They might sell on eBay. They might sell on Amazon. They might sell all over the place as well as their own website and trying to manage all of that complexity from all those sales channels and trying to keep track of where the inventory is, and do I have enough of this and not enough of those. That is super complex, and it's only gotten more complex as the process of buying has been further disaggregated. We've all seen the trend for the past 30 years, right? We've seen the rise of Amazon and online, all of those pieces. But I think with the pandemic accelerating those trends, what you've really seen is the breaking apart of the buying process, how we select the product, how we pay for that product, and how that product is fulfilled, right? It used to be you go into a store, you pick out what you want, you pay for it, puts in the bag and you walk out. Now you might start on a web or a mobile app. You might pay for it on your way. You might do a curbside pickup. You might have home delivery. All of those channels now have become disaggregated from each other. And the ability to offer technology that helps small businesses manage that level of complexity and that's not just -- that's across really a single channel in a store or a website, you start adding in those other channels it gets super complex. And I think the -- it's not just about the consumer access and giving them the ability to order multiple -- from multiple channels and in different ways, it's really also about making sure that everything gets fulfilled appropriately, that you maintain service levels, you deliver the product from the date that you commit. And again, you can keep track of all of that and understand, am I profitable. Am I making money? Is my inventory costing me too much? All of that is embedded within our platform. Okay. So as JD clearly stated earlier, and it's probably worth stating again, we're not square. Square is great for taxi drivers. What taxi drivers don't have, inventory, right? They have time, and that's what they're getting paid for, and it's valuable, but they don't have inventory. They don't really have many sales channels. If you get in the cab and pay them, that's their sales channel, and not a lot of things that they have to manage across. So we don't target simple businesses like that. As you can see here, Lightspeed Retail is built for established and complex retail businesses that typically have deep functionality requirements. They're specifically related to the vertical in which they operate. I made the point earlier, the bike shops and an apparel store or a home decor store are going to have the characteristics of the inventory are very different. And the ability to handle those things and mix and match in some cases is pretty -- think about a bike shop. We do talk a lot about them, but they're a good example, and I'm a cyclist. So you made of a bike, which is made up of 1,000 parts that you have to keep track of, but you also have a jersey, which is small, medium and large, right? So the ability to have all of that in your system, everything kind of fitting together, whether the sale happens online or it happens in your store, is a pretty dramatic level of complexity for a small -- for these smaller businesses. And again, we're starting now to see the ability to sell across social channels. I mean, JP mentioned the partnership that Ecwid struck with TikTok, and that's the ability really to have a TikTok post, click on the item and buy it right away. You're not being transported to a website, you're actually doing commerce right on the social media platform. So you can see, I think, how the fact that all of these verticals. And you have all of these sales channels, in-store, online marketplace and social, creating a huge amount of complexity. Now layer that across the global footprint and you start to understand the intelligence and the sort of, I would say, the stream smarts that we're building into this platform. Again, these merchants are physical first or click-to-mortar, they're sophisticated merchants with thousands of SKUs. And again, that inherent complexity, which you probably spend a lot of time describing it a little too much time. But I wanted to give you guys a sense of how we think about our retail business and how we approach the different elements of it and the fact that we don't just deal with super simple businesses with small, medium, large coffees, they just need to take a payment, love those businesses. They're well serviced by others. This is the market we go after. So this is the new retail platform. It's our new retail flagship. It's rolling out as we speak. It's currently in beta in the U.K., Australia and New Zealand. It's not quite as far along as our hospital platform at this point. But this platform has been built to, really, I think, absorb that disaggregation of commerce, right? The whole breaking apart of the buying, payment and fulfillment process. And specifically how today's consumers expect a seamless shopping experience regardless of the channel, digital, physical or both. I think in light of that view, I think we've really designed the Lightspeed retail platform really to be as -- omnichannel is really -- I'd like to say multichannel, actually at this point. I guess it's kind of the same thing, but omni kind of sounds to me like everything becomes one, and I guess that's what's happening. But think about the complexity of the retailers deal with, to me, it feels kind of more of a multichannel. And so we're really working hard to break all those pieces apart. At the same time, all of that complexity, we talked about in the inventory on the previous slides, we are maintaining the ability to manage that. And we're the only provider in the cloud who can do that. On-prem deep integration systems from Toshiba and things like that, that were installed in Lord & Taylor 20 years ago, they have a huge amount of functionality. So does Lightspeed, but it's a modern operating platform built for a disaggregated world that enables the high level of customized workflows and the delivery against that complexity. We're going to talk a lot about omnichannel. We're going to talk a lot about multichannel. And I think upgrading our omnichannel capabilities was a big priority for the company. And as we talked about a little bit earlier today, it's certainly been significantly upgraded with our acquisition of Ecwid. I'm so excited about Ecwid. ShopKeep actually worked with Ecwid for 4 years prior to our acquisition by Lightspeed. So I know the company, I know the team, I know the product, and I'm absolutely thrilled. We looked at a lot of options to upgrade that e-commerce and digital commerce experience that we have. The Ecwid's ease of use, it's deep feature set and overall extensibility of the product will be superior to anything we've seen in the market. We also love the way the team there thinks about digital commerce. Having been pioneers in enabling a range of multichannel headless commerce experiences, this idea of you sell through things that aren't your website or your storefront. And it goes far beyond opportunities like probably on the merchant's own website. And as I mentioned earlier, things like eBay, being able to access that marketplace and extending into the concept of contextual commerce, so enabling it within social media platforms. All of that's already in the platform. The platform is already integrated to our retail platform. What we obviously need to do is beef that up and enhance it, but it's going to get us killer omnichannel capabilities. The product is built to connect to a wide range of commerce technologies. As we've been saying all day, it's integrated to our flagship retail platform. It's in part -- it's being bundled on a beta basis to new retail customers in the U.K., Australia and New Zealand. We're currently integrating Lightspeed Payments to this platform as well. You remember earlier, I talked about the fact that Lightspeed Payments is built as a service and can be integrated very quickly into new businesses as they come in. And so taking all that into consideration, we believe that Ecwid, which as JP mentioned a little while ago, is being rebranded Lightspeed E-commerce, is a total game changer for our business. So I know you guys remember the slide from earlier. We spent a lot of time on it. So what I want to do is shift gears a little. This is still about retail. But I think what we're so excited about is retailers, we think of them up here in the merchant services corner, and how they interact with brands. JP talked a lot about this and about what our strategy is and what we want to build and how we want to really, I think, connect and automate merchandising and distribution for the brands. And for retailers, especially with today's supply chain complexity, help them discover new products and get access to inventory that they can easily order and add to their assortment. So one thing I really want to emphasize, JP obviously was talking about our vision for the future, we're building this right now. This is happening right now as we speak, we have engineers with hands on who are building this and connecting the new order platform, down here in this corner, to our flagship retail platform. Let me tell you a little bit about what we're building and why we're so excited about it. So as we've been talking about, it's a core dependency for brands and retailers to interact. Otherwise, they wouldn't have any products. And within the industry, they have to be able to connect, but their systems are completely different. I think JP said they swap spreadsheets and things like that back and forth. Not efficient, doesn't connect, no visibility and the description of the PO processes was, disturbingly, like you get that sense of now -- can I have 100, can I have 80, can I have -- you have more than that. Can I get you 2. It's kind of a guessing game on what you're going to order. So the systems are so disparate that they aren't -- they don't run in sync with each other. To the point where we have this multibillion-dollar industry, swapping spreadsheets to manage things like assortment selection, merchandising, placing orders, it's a mess. And it makes that process difficult just to do business. But imagine if you're a small retailer trying to find a new assortment, a new brand, access to more products. You're just jammed. What are you going to do, do a trade show during COVID, right? Like you can't find these products. And then what you do, then you have to build a whole relationship with the brand and figure out how you're going to pay them. It gets really, really complicated. So we definitely see -- for me, I've been in technology for 25 years. For me, when I see a mess like that, that's an opportunity to go after with tech. And so as I said on the slide number -- I don't want to blow that line until now. So that's the way it's been until now. So I'd like to introduce you to Lightspeed's Retail supplier marketplace, which is a key element of the supplier strategy that JP shared with us this morning. So the new product is being built, as I mentioned, on the new order platform and integrated it into Lightspeed Retail flagship. When complete Lightspeed Retail merchants, the guys here will be able to easily connect to the brands that they already do business with and transact with them now right through the platform. But better yet, they're going to be able to discover new brands, new products, new assortment items. And again, the key here, the data piece of this is we are going to have enough information to be able to surf this recommendation, hey, you sell these types of products. Just think of it kind of like Amazon does it, but more for inventory ordering in that -- say, other retailers like you, like these brands, do you want to explore? Do you want to connect to them? And so the retailers are going to be able to have access to that. They're going to be able to get new products, new assortment. It's going to be super great for them. Obviously, brands want that. They want to have -- be able to connect to their existing retailers. They also want to be able to expand their business, get more points of distribution. And obviously, all kind of that all flows through here. ultimately, and again, kind of the -- one of the holy grails here for the retailers is to get access to inventory for the brands is to get access to sell-through data. They don't have visibility to who's buying their product, where they're buying, what the return rate is, what the repair rate is in a lot of cases, they don't have that information, but we do. And obviously, all of this ends up linking back to the customer. So that was a little bit about -- pardon me, about how it works and kind of what it is. Let's talk about what really drives the value here for both participants in the marketplace. So from a brand standpoint, you're going to be able to, just on day 1, automate everything you're already doing with your existing retail outlets. So we can just take it from that ugly process of swapping back and forth with e-mails and paper and get on there and make it happen. So sales ordering, digitizing their catalog, virtual showrooms, the ability to merchandise, all of that comes on to the platform, makes life easier for everybody that already has access to it from the standpoint of the retailers. As we talked about, though, getting more access to more retailers and then understanding more about what they're selling into whom is an absolute game changer on the brand side. And we believe that's going to bring tons of brands to the platform more and more as we add more retailers. And obviously, we're already coming in with 150,000 retailers. So integrated ordering with product data, automated replenishment, retail assortment, ultimately, as these retailers begin discovering new brands, I think the real magic really kicks in, in that with a couple of clicks, they can order inventory. They don't have to go offline now and go and find the brand, call them up, have lunch, talk about their products, go through all of these things before they can just place the order and pay without having an established business relationship, using Lightspeed Payments and our financial services options. This is why we're thinking that trade finance might be an interesting part of this. And ultimately, does it really need to ever go into the merchant's inventory? If someone approaches the consumer through their e-commerce site or through in their store and asks for something that the merchant doesn't have, they can use the network just to have a dropship directly to the consumer. So they never even have to bring the product into inventory. So you can see, I think, why we're so excited about how compelling this is going to be when we bring it to the market. And we believe that the network effect of this is pretty massive, right? We have brands, they're going to be able to connect to existing retailers. Great. And then they're going to start to be able to find more retailers. And that cycle is going to kind of keep turning and growing, and we think this creates that network effect that just draws both more retailers to our platform and more brands. And given the value drivers of work, what we're really trying to do here, if you can't tell by the visual is get a flywheel turning, a flywheel of revenue that actually is built on the GMV that's being conducted between both parties and the networks. So it's the actual merchandise value that's flowing back and forth, that's how we're going to monetize it. We believe we can charge the brand a fee for access to new retailers. Makes sense, right? We're giving you access to distribution, it's almost like an affiliate to an e-commerce deal. And from the retailer standpoint, we're going to monetize all of this through Lightspeed Payments, but we also think there's money to be made in the transfinance piece of this. So I think all in all, this has been a really good way that we've been able to, I think, kind of almost bottle up the connection between these and with the acquisition of new order accelerating us into it, we think we can really get to market much more quickly. And it gives us a ton of competitive defensibility, right? If you're not on this network, and this network is a critical mass, you're really missing out as a brand and as a retailer. So as I mentioned at the opening of this section, this is not just slideware. We're actively integrating our retail platform to the new order platform and standing up this marketplace around that. So we do expect to be material announcements about the supplier marketplace in fiscal '23. Stay tuned. But we're obviously really couldn't be more excited about what this is going to bring for our retail business. I'm going to do a time out there, folks. Thank you. Sorry. So you guys have to hear so much from me. I have a lot of slides, but I'll try to make it entertainment -- or entertaining. So the last segment of my time today, I'd like to turn our attention to our Payments and Financial Services business. And I know you've heard a lot about it. And I think it's Payments is kind of just one of those things. It's the lifeblood of any business, but especially an independent business that has limited financing options. We introduced Lightspeed Payments in 2018. And like all Lightspeed products, it's designed to simplify the complexity of operating a small business. With the overall goal really of making our customers' lives easier and setting the business is up for success, right? Being an expert in payment processing is probably not in the skill set of most merchants. And I think that the principle here is captured really well on this quote from Jarred Drown, who operates Freshwater Tavern, which is in Michigan. Specifically, the part that reads, it's just that little bit of extra support that helps the server handle a fifth table. Sounds nice. But actually, if you run the math on that, that's a 20% improvement in productivity, right? And in a time when you can't hire staff in the restaurant, getting 20% more out of the staff you have is a meaningful difference. So why does it work so well? It's just easy and it's designed for restaurants. It understands that people tip in restaurant. And actually, it also understand is that people tip in restaurants differently in different parts of the world, and in some cases, not at all. So it's things like that where I think you have the kind of global perspective with the high level of regionalization that makes a huge difference that delivers value like this to the Freshwater Tavern. My dad used to own -- owned a restaurant when I was a kid. And if we could have gotten 20% more out of every server, I would have gotten to a much better school. So look, independent retailers for the businesses face a ton of complexity and challenges on a daily basis, and these are just some of them. What's interesting is even when you look at the ones that don't say credit card, they still have a financial component, right? When you think about order ahead, the ability to place an order and say, "I'm coming to pick it up, okay, I want to have that." Well, somewhere in there a payment has to happen. And it's a whole lot better if it happens at the time the consumer orders because they pay for it, they're probably a lot more than likely to come to pick it up. But the timing of that and how it fits into your day-to-day process, all of that is pretty daunting, right? And that's where the Lightspeed eCommerce platform pulls those things together and organizes that. This is not just what we do with payments. This is what we do with everything. So that you have that one window in everything that's happening in your business. And that's exactly how the approach we've taken to our financial services products. So the reason we're showing it this way is likely payments doesn't have a go-to-market theme, right? Like the payments sold through our retail go-to-market, hospitality go-to-market and golf platform. It's designed as a service. And I keep using that very specifically because that gives us the ability to go very, very fast. That's why we're going to have equities to really quickly, unlike the payments. Subsequent acquisitions, we're also going to be able to stand up really quickly. But other things we can do. We talked about our golf business. Golf uses retail and hospitality as part of the value proposition. Our Chronogolf -- the core of our Chronogolf operation has a pure like a golf course piece, but overall, it's a -- it works through if you have a restaurant works through our hospitality, works through our retail. So why am I making such a big deal out of that? It's one merchant account. So you don't have to have different merchant accounts as a golf course for different parts of your business. All of those pieces, again, fitting together and dramatically simplifying the kind of setup and reconciliation process to make all of this work. If you imagine, if I was a golf course and I had to have 3 merchant accounts that runs in 3 different banks because each one had a somewhat different characteristic. So the idea here is keep it as a service and work through the go-to-market structure, which JP is going to be talking about in just a minute. So Lightspeed Payments. This is specifically the payments product. It's a flexible, designed for our customers, best-in-class payment services that allows our merchants to accept card electronic payments wherever their customers happen to be. That's really important, whether it's online, in the store, on their phone and because it's integrated to and embedded within the Lightspeed eCommerce platform, it streamlines all the processes of credit card acceptance, including taking a range of local and global payment types, automated reconciliation and reporting with what's happening inside of your POS platform, linked transactions for returns, so you can come in and just return it without actually having had the card there, and enabling advanced transactional features, things like split tenders, things we don't usually think about. But when someone comes in with a gift card, namics gift card. My kids used to do this all the time. There was like $3 left on it. but you want to buy something for $20. Sometimes that can end up in a big mess depending on the merchant. And so -- the other thing I would say is that they really appreciate having a single point of contact for support. I don't know if any of you have ever been in a small business, even just maybe when you're in college, but if your payment terminal goes down, you call the payment company, they tell you to call your technology company, your technology company tells you to call your payments company and you're kind of caught in this finger-pointing war between the 2 of them. Meanwhile, you have a line growing out the door while you're waiting for this to come true. So again, these are the things that really drive the value for our merchants, and we offer all of this as a simple, easy to understand and predictable price. There is so much I'm trying to see [indiscernible] -- there's so much messing around the pricing of payments, especially for small businesses. They get the statement at the end of the month and look at it, they have no idea what it says. With Lightspeed Payments, you know exactly what you paid for. Another thing is I love this image because of the shield, but all the advanced capabilities and ease of selling in the world work out great. But the thing here that I think makes a big difference is that we're shielding our customers, we're shielding them from the complexity and the risks. We help them make sure they're PCI compliant. We protect customers from chargebacks and fraud. If we didn't do that, and they ran into problems, their processing fees will desperately go up. If they do it long enough, they will start to get charged fees by their processors. And if they're bad enough factors, they'll get dropped, and then they won't have the lifeblood of their business. All of that is protected by the way that we manage Lightspeed Payments. We do a lot of the heavy lifting when it comes to underwriting and risk and all of those pieces sit with us so that our merchants can focus on doing what they love. [indiscernible] favorite slide and mine, too. So when you think about the Lightspeed Payments opportunity, we started in U.S. retail about 2.5 years ago and it took us that long to penetrate 20% of our GTV. This is the penetration of our GTV. So it took us that long when we started it. We still -- it was brand new for us. Then we launched in Canada and only took us 20 months to get to 15%. So what's happening here, as you can see, we're lighting up these different countries, each in regions, as we've talked a lot about today. Takes a little while to kind of get everything situated. But from there, we're poised to grow. And we've executed this plan very well in North America. JP has talked about the 800 merchants we added in EMEA last month or last quarter, and so we have the playbook. We're just running it and it's happening. And now we're all the way up to $55 billion GTV volume processed through our platform, that's all of it, not all the volume we get, on the last 12-month basis. We're growing, so this number going forward should grow. We will have 11% of that. I can tell you that these circles have been mathematically measured and are disproportionate to each other and that this ultimately represents our opportunity and that this continues to expand, it's so clear. And we've got the playbook. Like it's really well set up. I don't know how much we're clear to make. We've opened up the countries. We know how to do this, and we're just getting started on execution against our plans. Thanks for the last time you have to look at this map, which is really to talk about -- we talked a lot about where -- okay, where have you expanded. So in EMEA, these are the countries we're live, and looking to add a few more. And then in APAC, we're live in Australia, and we'll be launching -- New Jersey -- New Zealand in -- early in the calendar year. So continuing to expand the footprint, I think we mentioned earlier, it -- we can currently reach 70% of our merchant footprint. We're still going to go after and trying to get as close to 100% as we can. But I think we've really set the stage here and now we're just executing down this plan. And as I mentioned earlier, we're starting to think more broadly about our financial services capabilities and what we can offer our customers. And one area we're pretty excited about is Lightspeed Capital, which is in the process of enabling across all of our verticals and platforms in North America and starting to look at how we expand it globally. To do that quickly and well, as I mentioned, we -- leveraging the learnings from ShopKeep, which launched its own capital products in 2019. And obviously, it's a business I'm very familiar with. And we're taking that in conjunction with what we've learned from Lightspeed Capital and bringing it together, that's the theme, right? We're taking companies, we're bringing not just the technology, but the teams and the know-how on how to do these things together to really accelerate what we're doing in capital. And as I can tell you from my experience with this product, merchants love it. They absolutely love it. And as you can see on this slide, look, we use proprietary data that we have in our customers' business to determine eligibility. So we scan that database to determine the eligibility, and we established an amount that they would be approved for up to $100,000. When the merchant, then, is interested in getting that capital, they let us know through the platform because they're already -- the eligibility has already been determined, it's a pretty quick and easy approval process, and they have really quick access to funds, comes in in just a couple of days. It's a cash advance on their credit card receivables. So there's no fixed payment or time frame. The repayment process is a set percentage of daily sales and the cost of the advance never changes. I think one of the things merchants really like about the product, which is it's based on how well I do. If I sell a lot, I pay you back more. If I close for a day because I had to take a day off, I don't pay you anything, and they're not getting a dunning message. There's not a fixed amount with late fees and interest rates to keep going up as it goes longer. So the cost of the advance never changes while outstanding. And they can use the money for whatever they want. They typically use it to grow their business. So I'm going to show you an example of that in just a minute. And look at ShopKeep, this business scales beautifully. Our default rates were -- in some ways, I felt when I was running ShopKeep, doesn't really went too low. [ Crystal ] smiling at me because these numbers, I use to tell you to lose more money or try and lose more money on to the fall rates. But people -- these -- it's so intertwined with their business and the fact that we just have such good visibility into the business, we know if they're growing. We even know if they hire employees. We have such great data that really allows us to make excellent risk decisions. I think for the sake of time, I'm just going to -- I'm going to kind of blow through the slide. This is a flow on how it works. And really the point I wanted to make. Okay, the real point I want to make is after the merchant borrows the money -- sorry, I shouldn't say borrow, once we've advanced money to the merchant, the first time the renewal rate is massive, it's extremely high. I know what it was at ShopKeep. I don't want to say it here because it may be different for Lightspeed and Brandon will get upset with me or Dan will get upset with me. But it's very, very high. It's very likely once the merchant takes it, they'll take another one. And it sets up this flywheel effect of their business grows, they're able to pay us back faster then they're able to take another advance. And we do see it, and this is a good example. So this is from a business called WaterLilly, which is in Lake Geneva, Wisconsin. And Leanne Leronimo has taken 3 advances so far this year. And each one larger than the next one for 35 months, for 10,500 or 19,500. And you can see, loves borrowing it, so much less paperwork, it's tied to my success. And if you're wondering, and I'm not saying this is 100% because we are able to advance them some money, but their business this year is up more than 100% from last year. They're growing really, really nicely. So we hope that the money we advanced them, helped them grow. But also, certainly, as their business has gone up, we're able to advance more money and we're able to monetize that. We monetize the product with a -- with fee just a flat fee on the total. Okay. So in wrapping up this section, I thought I'd share about how we're thinking about our priorities for our Financial Services business going forward. So number one, we're going to continue to drive into that GTV base. We talked about it probably prior to hearing that stat. I bet you all know that we now have can reach 70% of our merchants, and we make sure that, that lands. So now it's just a matter of executing against that and improving that penetration and then continuing to expand. We want to get as close to 100% of our merchants, get to 100% of our merchants as possible in-store and online through Ecwid and in all core regions. We want to make sure that our payment service can be integrated like lightning fast, super quick and be able to get us -- get us hooked up to new acquisitions and other technologies, partnerships is all kinds of ways we can leverage the technology that we built in here to be able to extend this financial services business. And then here is the new growth opportunities. We talked about B2B payments. We've talked about trade finance. These merchants, we've talked about all the money going into our platform. Well, most of that goes out. If you have to run a small business, you don't have a great profit margin. And so there's lots of opportunities to monetize the outflow of money from our customers as well. So we're really just getting started in terms of how we think about financial services for our customers. JP, I'm sorry, I think I left you late. But now I'd like to bring JP back up. JP is going to take you through how we go to market and share some awesome customer stories. Thank you so much for listening to me. I'm sorry if I took a little extra time, hopefully, it was worthwhile.

Thank you, Mike. Okay. Thank you, Mike. Lots of slides, but it was so insightful and very well articulated. Hopefully, you took away a lot of really good data and a lot of information out of that segment. So I'm back to bring all these industries together under our global go-to-market engine, which we believe is best in class, and it really is a differentiator, and I'll highlight that in a little bit. And then at least from my perspective, one of the most exciting segments we will be talking about recent customer wins that we've got to Lightspeed this fiscal year, and that really paints, I think, a good picture of everything we've discussed today. All right. So one thing you'll notice, at Lightspeed, we love flywheels and we love global maps for global domination. So here again, with more flywheels. But we're extremely, extremely proud of our global go-to-market practice, from lead generation, to qualification, to closing, to onboarding, we built a highly replicable go-to-market blueprint to land new customers that is consistent across our industries and across our regions. But once you become the Lightspeed customer, we also introduced you to an account management team that is equipped with add-ons to expand, as we mentioned before, with the growth of your business, allowing our customers ARPU to continue to rise while mitigating churn risk. And Brandon will be going over those metrics in the coming slides. But this model really, really works. And it works because it's consistent, it's standardized and it operates very, very well. But it also works because with this new print, we also benefit from an enhanced concentration in regions and in verticals. So with an increased presence in the vertical or region, we are also able, as we mentioned before, to provide suppliers sitting at the beginning of the value chain with strategic sell-through data and trends. Why is this relevant in the context of our go-to-market engine, while those suppliers now an integral part of our model have a vested interest to refer and drive more merchants to the Lightspeed platform, further lowering our customer acquisition costs. Now here comes again, the global map. So we talked about our blueprints. We mentioned that we really have a consistent and standardized methodology across the board, but our global blueprint also makes room for a very customer-centric and very local presence. And we discussed this as well before. If you're a German customer, you speak to a German team that speaks your language that understands your reality. We have feet underground, and we really truly speak the language of those customers and the language of that industry. If you look at our go-to-market engine, Lightspeeders are specialized in one of our key industries, either retail, hospitality or golf, they're specialized and they work in that industry, but they're also very passionate about that industry, and they truly speak the language of that customer and build deep, deep connections and understandings with those customers and that customer base. And that, we believe, too, makes us very unique and very different. Now with our scale, we've built highly specialized and highly skilled roles across the customer journey. Our merchants interacting with Lightspeed will speak with the Lightspeeder that really master each piece of that value chain. And we're doing this for a few reasons, but one, we believe that we bring a much better customer experience.with this model. And it really is reflected in the feedback -- and the feedback of all our customers. But on top of that, by having these specialized roles, we're also able to build a go-to-market engine that is high-performing and that drives strong and healthy unit economics. Lastly, our pricing framework is also built to support the previously explained model. So with that, what we mean is our customers come to us with already high ARPU at the first entry point. But then from there onwards, we have levers to pull some for additional expansion. New merchants are clearly incentivized to bundle software with payments for a few reasons: one being because our products, frankly, are better when combined together; but also because we have financial motivation to go with the 2 options and with the bundle option. Once a customer, our account management team, as I mentioned before, focuses on expanding your goals and is equipped with add-ons to continue to grow that ARPU. But for all the existing customers that were there before that didn't have payments attached to the point of sale or through the commerce platform, they're also focused on expanding the payments adoption all the way through our base. And then lastly, our bundled pricing strategy simplifies the decision process of our customers and our prospects, and we truly see a shortened sales cycle and life cycle across our go-to-market motion. Now I'm super excited to get into this segment of the presentation. We'll be highlighting really across these customer wins, who like we truly is and who our customers are. And we're starting here with AG Jeans. It's an American company, making best-in-class denim. I own a pair of those jeans, Hopefully, some of you do, too. But the story behind this customer is really fascinating and interesting. You are using retail Pro. Retail Pro is a sort of on-premise legacy solution in the retail space. And they are looking for a robust cloud-based solution to manage their very complex inventory needs. They have multiple locations, 19 locations actually. And as you can imagine, from an inventory management perspective, it's very complex, but they also needed an integration to the ERP. And through their research, they found Lightspeed and they were absolutely blown away by the capabilities. And so today, AG Jeans uses Lightspeed Retail, Lightspeed Payments, Analytics, Loyalty across their entire portfolio to the 19 locations and their warehouse. So moving from retail to hospitality. This is The Indigo Road Hospitality Group. They operate 20 restaurants, mainly in the Charleston area, but also in Atlanta, Georgia, Tennessee, Washington, Raleigh and Charlotte. And a similar story, they really reached a sort of a crossroad using Aloha, their legacy on-premise POS solution, and they needed a modern cloud-based solution that really could match the feature depth of Aloha, but that could really propel them in the future. Interestingly, they tried Toast at a test location and they quickly pivoted to roll out Lightspeed Payments across their portfolio. Our advanced analytics module and our OpenTable integration where the game changes and the decision process amongst other things. It's also worth noting that Indigo Road here is an amazing ambassador for Lightspeed. They actually referred another large hospitality group in the Charleston area called Golf Management. All right. So we covered retail, we covered hospitality. We're now moving over to golf. Indian Wells is a famous name. I'm sure you're familiar with that facility. This is really the finest of Palm Desert golf. And this 36-hole facility was actually ranked in the top 20 best golf courses in California by Golf Week magazine. What's really impressive with this example is that using Lightspeed Golf, and Mike highlighted this earlier, Lightspeed Golf really brings the best of the best from a technology perspective on the retail side, on the hospitality side and combines all that through a sort of one-stop shop golf solution for our golf courses. They are rolling out Lifespeed Golf across their magnificent property and more specifically, a 53,000 square foot clubhouse. So we're really, really proud of this one. Now we move from golf and sunny days to the snow. Here we are. So this is Telluride Ski Resort. It's a modern Alpine destination in Colorado. And again, what's interesting with this one is with the WiFi capabilities expanding, they embarked on a search to find a solution that can manage all their retail operations across the mountain. And what they were really impressed about when you looked at Lightspeed was, one, our ability to handle multiple sales channels, which obviously is a must in their context, our advanced analytics. And lastly, our ability to open a pop-up shop anywhere on the mountain, anywhere on the resort in a couple of seconds. Those were, amongst others, now determining factors. And so today, Telluride Ski Resort uses Lightspeed Retail POS, Lightspeed eCommerce, Analytics, Accounting and Payments across their 8 locations on the resorts, including a warehouse. Now I don't know if you knew this, and I mean, obviously, JP highlighted this and Mike, too, but we have an impressive list of Michelin star restaurants. The Omnia Group is a good example of that, or Daniel in NYC. But this is a recent one that we wanted to highlight. This is Kei Restaurant in Paris, near Lulu, and it's a 3 Michelin Star rating restaurants, really the highest rank in the community. And Kei here uses our new Lightspeed Restaurant flagship solution to provide exclusive dining experiences to their guests and for charge. And if you think of the chef that is operating Michelin star restaurant, you can be sure of one thing, they're obsessed about perfection. So it means a lot to us when they decide to go with our solutions, and I feel it's a good testimony of what we can provide to that industry. All right. This is a cool one, the AFL, the Australian Football League or Aussie Rules Football. It's a sports, obviously, in Australia that is played across 18 teams but is also a professional sports league that is using Lightspeed literally across all of their retail operations. So all of the 18 teams are using Lightspeed technology. And we've noticed over the past years that sports merchandising is an increasing team actually for us at Lightspeed. We have many other examples and it's really driven by our ability to handle complex inventory management while also being able to perform across multiple channels of sales. And so VSL here is a great example reflecting that growing segment. All right. Switching gears back to hospitality. This is in Europe, the Varyon Group. So the Varyon Group is a large German IT firm that specializes in the hospitality industry, similar to the stories that I've shared before, they went through a thorough research and a due diligence process to find the ideal restaurant platform that they could provide to their customers. And interestingly, they pick our new Lightspeed Restaurant flagship product, to roll this out for their table service and quick serve customers. And bundled with Payments, love Payments, Payments in Europe. They will start by deploying the solution across 320 locations, and this is only the start. So this, again, I believe, really articulates the ability to expand with Lightspeed across multi locations. And then lastly, this is our eighth customer example. I think this one needs no introduction. Ralph Lauren, obviously, global iconic brands, very likely that you have a piece of Ralph Lauren in your wardrobe somewhere. But we're really excited about this one. I mean, obviously, they went through a thorough RFP process before choosing us. And Ralph Lauren chose Lightspeed brand and suppliers' platform to streamline their B2B operations. With immersive virtual showrooms and digital trade shows, retailers are able to order from Ralph Lauren through personalized digital line sheets. And you can only imagine Ralph Lauren's needs are very, very complex, right? You need to manage multiple doors with thousands of customer pricing combinations and extremely large orders. And so solving this complex order flow and Mike highlighted that before, through live inventory and ERP integration is a crucial component of the new order technology. And we're so, so excited to bring this to the Lightspeed family, into the Lightspeed ecosystem because we truly believe that this is going to be a total game changer for us. And again, Ralph Lauren being an incredible example to highlight this. So this concludes our last customer highlight. Maybe just before the coffee break, if you allow me, Gus, I merely just want to leave you with a quick summary of all these customers. As you can see, we're really not interested in sort of the part-time online sellers or the low GTV small coffee shops. We're really building solutions here that are for the high GTV, serious retail, serious restaurants, serious golf operator. The merchant that is looking for a feature-rich environment that has feature-rich needs and is looking for a modern solution to bring it all together. And that's what Lightspeed is all about, and we're really, really proud of these customer wins. So thank you. With that, we'll move over to the coffee break.

All right. Thanks, JP. Okay. I can't believe I'm saying this, but we're actually on time. So we're going to take a quick 10-minute break, and then our CFO is going to wrap it up with our business model and plan and then we'll go into Q&A. We have quite a few Q&As from the online audience. So 10 minutes, and then we'll be back. [Break]

Okay. And wrapping it up today is our Chief Financial Officer, Brandon Nussey. And then after Brandon's presentation, we'll go into Q&A. So Brandon.

All right. Well, thank you, everyone. Thanks again for taking the time with us here today. Hopefully, you've gotten a good sense as to some of the long-term opportunities that we see still ahead. For as long as I've known this company, it's been about the long term. And we continue to run this business with the long term in mind. I've met many of you in the room. I think everyone in the room, I'm Brandon Nussey, for those online. I'm Chief Financial Officer. I joined the company in 2018 and walk through some of the business model and proof points and direction we're headed from here. So while we've always thought about the long term, every now and then, I like JP, I'd like to take a step back and just acknowledge how far we've come in a short period of time since we've been a public company. We're certainly in no way claiming victory here, but we are proud of the company we've built. We've been public now for 11 reporting quarters and generally speaking, have over-delivered on our commitments for each and every one of them. This has helped build us a durable, scaled-up business that remains quickly growing and attacking a really big market opportunity, as you've heard today. For those of you who are shareholders, we thank you for your ongoing support and with us on this journey from here on. So when we took the company public, we talked about moving from a pure-play point-of-sale software business, the one that we felt could become a more fulsome commerce platform. One of the first steps in making that move is going to be to solve a major customer pain point, which was to better integrate payments and software together. We felt that this would not only solve that customer pain point, but it would also unlock a significant revenue opportunity for Lightspeed. And what this chart shows is just how successful that has been to date from basically a standing start when we took the company public in 2019. We just completed a quarter where our payment solutions process better than $2 billion of processing volume and Payments now represents almost half of the company's overall revenue. So clearly, this has been a great success story for us. It continues to grow quickly, and it's been one of the contributors to the strong organic growth that we've reported. You see those stats on the bottom right of this chart, organic growth rates, as JP mentioned, have proven to be really strong on the back of just this business model working for us. Today, we sit here a well-diversified company. You've heard this today across retail and hospitality across North America and international as well. This diversification has served us well. It enabled us to weather a pandemic better than many in our space. And as we sit here today, we think creates a really enviable and differentiated situation for Lightspeed, one that has multiple growth elements now available to us to unlock and many of these growth elements our competitors simply don't have. So we're proud of the progress, but we recognize we've got a long way to go. We've heard today, 6 million merchants in our sweet spot around the world, and we're 156,000 today. So while we are proud of the progress, we know we've got a lot of work to do. and there's a lot of growth available to us if we do our job right. And as we thought about growth, when we took the company public, for those who know us well, we've always thought about having multiple compounding elements -- growth elements available to us. We felt that the move from legacy solutions to omnichannel and cloud-based solutions was going to enable us to continue to grow our customer locations. We felt that the increased complexity our customers were dealing with in solving an ever-evolving consumer at the other end would allow us to increase our software ARPU given the breadth of the solutions that Lightspeed offers. And of course, we've been strong believers that integrated software and payments is how this market was going to evolve and that the software companies are going to be in the driver's seat to make that happen. And we generally believe that if we could grow our customer allocations about 15% a year or better, if we could grow our software ARPU about 10% a year and if we could penetrate our GTV with our payment solutions that we could achieve a sustained organic growth rate of approaching 40% of the business. And of course, what you've seen from us is we've actually over-delivered on that to date. And based on our current year guidance, should we achieve it, our guidance will reflect us continuing to do that for the remainder of this year. And as we sit here today, we remain encouraged by these growth levers and the growth opportunities that lie ahead for us such that we anticipate between all those growth levers and the things you've heard from us today that we can sustain these growth rates based on these things being available to us. Now I do admit that this is with the current paradigm in mind. You've heard a lot today about a really ambitious vision that this company is trying to pull together of connecting merchants and suppliers and consumers. And should we be successful at that, I think that's a growth element that can allow us to do even better here. But as we sit here today, this is how we're thinking about the business and our current paradigm. As we go into each one of these levers with a little more depth, customer locations, you've heard at IPO, we were 47,000. We've grown that to 156,000 today. When we strip out the customers who have come to us via acquisition, we've grown our customer locations 13%, 21% and year-to-date, 12% in the current fiscal year. As we think about looking forward, we're encouraged by the industry dynamics that still are in our favor and we believe will lead us to continue the growth in this market position. namely the ongoing movement from legacy to cloud and merchants seeking more omnichannel strategies to meet consumer demand. And as you've heard earlier, should we be successful with our supplier strategy, we believe it will create a flywheel effect and the verticals we're targeting that will not only attract more suppliers, but will attract more merchants as well. We've said this often, but we've always felt that scale matters in this business. JP walked through the why earlier from a vision standpoint, but increased scale and customer locations, matters from a brand presence perspective as well, and that influences our ability to win customers in an economical way, and I'm going to walk through that in a little bit as well. But all told, as we sit here today, we remain encouraged by the macro trends that are in our favor as we look to continue to grow customer locations in the future. Looking at ARPU. This has also been a good news story from us. At our initial IPO, our software-only ARPU is around $100 a month. Today, we sit at about $130 a month and continue to be encouraged by the potential to grow this further. It's our belief that SMBs don't have the resources available to stitch together multiple point solutions. And if there was a vendor who could offer the core things needed to run their business, that they prefer to buy from that vendor. The complexity of running a retailer or restaurant shop has only increased in the past few years, and we think that based on that, that sets us up well to continue to grow our ARPU given the breadth of our solutions. We're encouraged as we look at our customer base, many of our customers today pay us better than $200 a month. that have adopted more of the solution footprint. You heard from JP moments ago, how some of those customers have adopted the full suite of products and solutions from Lightspeed. Another growth lever for ARPU is going to be as we migrate customers from some of the acquisitions we've done to our flagship offerings. That provides us built-in ARPU growth as a flagship products of more module capabilities than many of the solutions that these customers run today that came to us by acquisition. So as we sit here, of course, the last point is we're not done yet. The red boxes came out that our teams are hard at work building new functionality that we think our customers will find valuable, and we expect that to contribute in our favor as well as we think about ARPU. Payments. We brought Lightspeed public in March of 2019. We had strong conviction that point-of-sale software and point-of-sale payments belong together. The only reason they were apart is because the infrastructure wasn't available to allow them to operate as one. That problem is now solved, and we strongly believe that we have a great position to solve this customer pain point of having to deal with multiple vendors and move to being a payments processor globally for our customers. Benefit to Lightspeed is going to be a more compelling overall solution for our prospects, but it's also going to unlock significantly more revenue per customer than we're otherwise achieving. And more on that next. So we're really proud of our progress here. As you've seen earlier in the markets we first launched in U.S. retail, we're now processing better than 20% of our GTV with our payment solutions. In Canadian retail that we launched next, we're better than 15%. And overall, we're at 11%. And while we view this as good progress, we're really motivated to go and get the rest. And key to that is unlocking new markets. You heard from Mike moments ago that with our recent launch in Europe, in Australia, we have payments available for the customers that came to us via a [ vendor ] in North America. We now have coverage for better than 70% of our customer locations for our payment solutions. And that's significant. At IPO, that number was closer to 25% against a much smaller base of customers. So as we think about payments and payments penetration from here, hopefully, you've gained confidence from hearing everyone today. This is a primary focus of the business and one that with these recent market launches, we think we set ourselves up well to continue to grow our penetration of our GTV with our payments solutions. And so all of this from the beginning has been about taking a point-of-sale software business and doing significantly more as we turn ourselves into a full-scale commerce platform. And I think this chart really helps illustrate the impact of the business model working. On the left, we've got our gross profit per customer location. We felt like the opportunity was there that for the same dollar of sales and marketing, we could drive significantly more gross profit per customer location. As this chart shows, from IPO, we were around $300 a quarter in gross profit for customer location. And in our most recent quarter, that number is more like $430. That's a 40% increase in a short period of time in gross profit dollars driven per customer location. At the same time, since it's the same lead, the same prospect, the same sales team, we're seeing a meaningful decrease in the sales and marketing expense per dollar of revenue. And this really illustrates the power and the leverage that's in the business model. When I get asked about our gross margin percentage and whether I'm concerned about payments carrying a lower gross margin percentage than our software business, this is the chart I refer back to. At the end of the day, we're focused on the opportunity to grow our gross profit dollars for customer location against the same dollar of sales and marketing spend. And if we can do that, it's going to give us tremendous financial leverage to reinvest in growth well into the bottom line or some combination thereof. Another way to think of this is customer unit economics. We watch our customer unit economics closely. We do that by looking at the lifetime value of a customer against the cost to acquire that customer. These customer unit economics help guide us where we invest dollars, what our returns look like? Where we can do more? Where we should retool and think about doing things differently? And this LTV to CAC ratio is the primary measure we use. We generally run the business with a 3 to 4x ratio in mind blended across the business. We know that if we achieve that, that we're not only bringing in good, profitable customer relationships, but we're also balancing that with investments into future growth. We also know that for a net new customer -- with that marginal incremental customer that takes payments from us alongside our software, drive significantly higher ARPU and a significantly higher result in LTV. And the LTV to CAC ratio we see from that net new incremental customer in that case is more like 6x. And that's simply because for that, roughly the same CAC, the same cost of customer acquisition. We're getting a lot more ARPU. We're getting a lot more gross profit per customer, and that customer who takes payments versus the customer who don't, gives us roughly double the amount of gross profit per customer. And again, this sets us up for a strong business model leverage as we think about the future with Payments available in more of our markets. We think the leverage in the model is really exciting from here. Of course, that also shows up in EBITDA margin. And to date, we've been balancing the leverage in the business model through incremental investments into the business to drive growth and as well to showing EBITDA improvements year-over-year. Kicking deeper into EBITDA margins, what may not be apparent is just how much progress we are indeed making on a path to profitability. And before I go deeper, I just want to be clear, our focus is not on maximizing near-term profitability, but it is on winning this market opportunity that we feel is in front of us. Hopefully, as today, as I illustrated, we believe this opportunity is significant, and our metrics are telling us to keep investing. But we also believe that showing a consistently improving business is important to building a long-term winner. And so when we look at the adjusted EBITDA margins, should we achieve our guidance for the current year. We'll move from a loss of about 10% of revenue last year to a loss of about 8% this year. But what this chart shows is the impact of the acquisitions have on the current year's adjusted EBITDA margin. Because we've bought younger, growing, less mature businesses, they come with initial losses that we need to absorb before we fully realize the revenue or expense synergies that we plan for them. Additionally, you've heard from Mike and JP and everybody today, we're not running a holding company, we're not holding a portfolio of assets here. We actually spend money to integrate more quickly. And hopefully, you've seen some of those proof points today as well. So we spend money to integrate R&D and product more quickly. We spend money to integrate go-to-market more quickly. We spend some money to make back-office enhancements as well. So that comes with the near-term cost. But nevertheless, we're still showing adjusted EBITDA loss improvements as a percentage of revenue. And hopefully, what this chart shows is just how much more obvious that would be in a nonacquisitive year. And all this gets us back to something we published about a quarter ago, where we believe we've got a company that we can drive to 20% EBITDA margins. We believe we'll get there when we reach a point where about 50% of our payments -- our overall GTV is being processed by our payment solutions. With all the growth drivers you've heard available to us today, we stand here confident in our ability to continue to drive towards this, and we remain really optimistic on the future. And before I pass it back to JP to wrap this up and take your questions, I just want to reiterate what I hope you can take away from my section, which is the business model is working. We continue this drive strong leverage in this business model. We've got healthy underlying fundamentals in this business. Gross profit per customer allocation is increasing. Leverage in the business model is there. We've got multiple growth levers that we're working to date. They've all been working in our favor. We've got some exciting market opportunity still ahead. We'll continue to monitor our customer unit economics. Those will guide us in how we invest and where we invest. And overall, we remain confident that we're going to continue to show the progress we have since being a public company. And with that, I'll let JP wrap this up.

Thank you very much. It's funny to look at these pictures. I think there's only JD that actually looks like the photo, but -- thanks, Brandon. All right. So I'm going to close it. I think my first impression is we're really proud of Lightspeed. I mean, I hope you can sense the excitement. I hope you can sense how confident we are about where we're heading. And I think for me, why we're so proud is it starts with the mission. And everybody at Lightspeed cares deeply about small businesses globally. And anybody who has been acquired by Lightspeed cares deeply about small businesses. And I always say it a building a company is like climbing a mountain, every day you have to look at your feet and just continue going up. And once in a while, like today, we just show you the view and we show you -- and I think just for us to look at this, it's like, wow, we've done so much and we're such in a good spot. And I really hope you sense we're so proud of what we've built. Going to go back to the market. This is one of the largest markets out there. We like the more sophisticated SMBs. The most important reason is that they are less prone to churn, they're more established, and they need platforms like ours more than the simpler merchants who just need to sell a few items. And I think we've proven to the market that we have what the market needs. And I think that's what gets us excited, 6 million potential buyers in our bull's eye and the majority of the market, the vast majority on legacy systems -- And in the context of COVID and post-COVID, this has made us essential. It's not a nice to have anymore. A small business globally that is running on a legacy system needs to replace it. And our quest is to be the partner for those businesses because we know that when they join our platform, they grow faster and they thrive. And that's what gets us excited when you go back to this mission of David against Goliath, we want our customers to succeed. Because we want small businesses to still be the texture and represent communities and cities everywhere. So 156,000 out of 6 million, a lot of runway, a lot of room to growth and the market is now. We have the platforms they need today, globally. There's no other player like Lightspeed. There's no other player actually that has put together software and payments on a global standpoint. And that's what we've done. We have now all the mechanisms. We're launching this globally, and there's a lot of runway. It brings me now to payments. Payments is a game changer. It's not a game changer for Lightspeed, but it's a game changer for our customers. They need simplicity. They need one underwriter for all of the channels in which they sell, and they need to have a lot of transparency from the vendor. And that's what we bring to the market and we work hard. We've worked really hard in the last 2 years to get this to market and very proud of the progress, very proud of where we are. And even though this represents almost 50% of our revenues, we're only penetrated at 11% and we know that the attach rates on new customers are very high. So for us, going back to what Brandon presented, we're very confident that we'll get to 50% in the coming years. And that, once we get there, completely transforms our business, completely transforms our gross margin, completely transforms basically the process that we'll make as a company, and we're very happy with this. If we talk about the solutions, I think throughout the past, we've always been ahead of the game. And that's really the story of Lightspeed. When I joined the company, we were the first platform out there to provide the Apple Mobile trickout on an Apple or a mobile device, and everybody then looks like, wow, that's incredible. How can you do this? And I think today where we're heading and what we've tried to show to you today, what we're doing with the suppliers and how we're going to integrate now suppliers and consumers and triangulate the data and offer an incredible experience for everybody within the flywheel, I think, is truly game changer. And we're working and committed to making this happen. If you were inside of Lightspeed, every day, you'd see a lot of people completely dedicated and committed to our success. And for that, I really want to thank our employees. We are very proud of what we've built, and I want to thank everybody for the hard work because it is hard work, and supporting small businesses globally with one platform is hard work. Integrating businesses is hard work, but we're still happy to see the results because it fulfills what we're trying to do, which is help these businesses globally. So really, that's my closing -- the closing is simple. Customers want to buy more modules from Lightspeed, and we're giving them more modules. Customers want to buy more payments from Lightspeed, and we're giving them payments globally. And ultimately, there is room from one very large player within the more sophisticated SMBs and we want to be that. And that's what we will relentlessly work at. And we'll probably be spending here all of us. And this is a long-term play. So we'll be standing here next year and the year after continuing to cloud through our mission with a lot of great progress. So thank you very much for being here. We're super thrilled to have you as investors. Thanks for your support. But we're even more excited about the future and we're just getting started. Thank you very much.

Okay. So I'm going to ask the presenters to come up on stage. We're going to swap back and forth from questions online and here in the audience, but we will start with an online question. So Pete?

So our first question from online is from Richard. And so the question is, can you provide some color on the timing of the growth opportunities, specifically one, financial services; two, data; and three, distribution.

Do you want to start, Brandon or...

So I'm interpreting that question would be the growth levers that come from the supplier strategy...

Yes. I mean -- we're putting something together that does not exist. Cool. So we're trying to set something new. As Mike said, we're hard at work doing this. And really the way you should look at this is NuORDER I mean, just accelerate our capabilities. So it's much easier for a company to work on integrating micro services that are in the cloud and to build a platform like NuORDER that these marketplaces still rooming, pricing well. I mean, this is a huge, a huge industry to be in. And I think for me, also, what I'm very happy with NuORDER is they come with 3,000 brands that are in apparel and that are very tightly linked to our network of distribution. So very happy there. So I think for us, the steps: One, get NuORDER integrated to Lightspeed and Mike described this where you're inside of Lightspeed, you can order from NuORDER and you make an order in light -- in NuORDER and it's immediately in Lightspeed, and you don't have to rekey in anything. Number two, we're going to put Lightspeed Payments. When people order, that's a very simple next step is to say, okay, I'm ordering now that use our payment provider and let's use our solution to order with a credit card, and we can now monetize the ordering side. And I think step three of this is going to be distribution, which is really now that I've plugged in everything and I have full visibility, I'm now going to help brands identify new stores that are using from IT, and that's where you'll have capital. So again, we are expecting to have a lot of progress next year. So you'll see a lot of announcements in the following -- in our next fiscal year, so from March onwards. And from there, we're expecting to have a lot of this starting to be in motion and starting to work. But as I said, it's a lot of work, and it's again, it's redefining an industry that doesn't exist and putting together things that don't exist to create a lot of value. So there are going to be bumps like everything and everything we've undertaken, but we're very confident that we will get to market next year with this, and we'll provide some value.

Okay. Anybody in the room have a question?

One sec. It's Tien-Tsin from JPM. Just -- you built a very strong merchant platform, and I totally appreciate the gravity of going after the suppliers and all the network effects around that. But how about on the consumer side, JP. I'm just curious to get your thoughts on the consumer platform and the forces that you can get from that if you were to build that out, because you have a lot of content by across retail restaurant involved. Just how can you better engage with the consumers to get some gravity from that?

That's a really good and strategic question. Actually, it's an idea we've been turning around for years, and we kind of know the steps. But I think -- so, yes, we need to provide more for consumers. Yes, we need to try and provide more kind of customer-facing or consumer-facing products. But I think in the steps, step one, is you build concentration within a vertical. And today, there's probably 10, 11, 12 verticals where we're starting to build some real concentration. Then the step two, once you have that concentration is you, of course, need to recognize the consumer from one restaurant to the next or from one vertical to the next. And now we're starting to have a ton of visibility there. But just to answer your question, we are -- there are some products where we have some real consumer-facing products. I'll give you a good example in my mind is golf. So golf today, we do have booking portals for tea times on golf. And you could argue that we have probably one of the largest set of consumers inside of golf. And we have today platforms that are generating a ton of traffic that are basically enabling a golfer to book a tea time in any golf club inside of the Lightspeed network. And so of course, that's in our strategy, what's going to happen with all the other verticals. But I'm just going to go into details on golf because it's pretty exciting. On golf, today, if you book on a Lightspeed platform a tea time, you can pick the golf club and when you get to the gulf club, the actual history of that golfer is now brought to the golf club, which means they know what's your handicap or your lefty or your righty and even if they've never got there before. So again, that shows the value. Once you have the network, it's much easier to go to the consumer then to start from the consumer and go and try and get the network. To give you another example, in sports goods or in bikes, or -- we haven't. I mean, we have probably the largest concentration of consumers in those industries. So now, of course, we need to start triangulating the consumer across, and we need to start building platforms for consumers. Today, when you look at -- and if you listen to our customers, they have to give up a lot of margin to sell on marketplaces, yes? So they would see incredible value add for Lightspeed to build the marketplace that goes directly to consumers, knowing that we triangulate the consumers, and we have already the eyeballs inside of the platform. The last thing I want to say with golf that is very interesting for the other verticals is when we sell the golf platform, it's an option. We tell the club, "hey, do you want to have your golf clubs or your golf course available on the Lightspeed marketplace?" And the way we present it to them is like it's a value add. There's no cost to it. But it enables you actually to have more eyeballs to your club. And most of them, the vast majority say yes, because they see this as a value-added service. So there's no reason to not do exactly the same thing. I mean, we talked about hospitality. Look at online booking platforms, online review platform. I mean I'm just going to give you -- OpenTable is the #1 platform out there and -- but it took them years and years and years to build 50,000 restaurants. Today, we have 80,000 restaurants on the Lightspeed platform. I mean it's a much easier step to try and get through a consumer than if you're starting from scratch and you're trying to go and connect all the restaurants. And I would say the last thing that we do that nobody else does is we are the only ones who hold the information all the way. So this means if I'm doing a consumer portal, I can hold all the information, all the sell-through, the discounts, and I can build a loyalty platform across. So again, there, that's why we put the loss of loyalty inside of Lightspeed, loyalty gets us closer to the consumer and enabling, why not? As we go forward in a few years from now, we've gained a concentration, why not having a Loyalty program across stores, which inside a vertical. So there's so much to do. But our view -- just answering the question is we think it's much more complex to work on the back office and to get all of the vendors within a vertical and then ignite a consumer platform then to go the other way around. And I think it's a bit -- if I have to make a comparison, it's a bit what we did with payments. In the early days of the company, everybody was like, why aren't you doing Payments? What I -- because the Payments is the commoditized piece we'll do after. The most complicated is to actually build value at the merchant level and to build the eyeballs there because then it becomes a very simple thing to ignite. And I think our view on the consumers and providing services to the consumers and providing portal for consumers is exactly the same as payments. It's a much easier add-on once you have the network.

And maybe I can just add one thing. At the same time, when you consider that we 5,000 touch points around the world of ways that we can -- where consumers are doing business with our merchants. We have data on tens of millions of consumers. We're just starting to look at that. But to your point JP, we're building that list every single day. And we need to understand the assets we have for consumer, but it's kind of clear that when you complete that triangle, it really sets up a massive network effect. And for me, at least when it comes to our customers, the holy grail for me is to be able to drive customers into a business, kind of like the golf example that you used that have never been there before and actually be able to prove to the business with full attribution that, that came from Lightspeed. So those are the ways that we're thinking about it. We definitely have more work to do, but I think -- it's everything that JP said. I think we're building the critical mass around the businesses, the verticals and also tens of millions of consumer transactions are happening with quite a bit of information like e-mail addresses and things that we can at least look at even just understand who those consumers are and how we can target them. So we're building the asset. We're absolutely going to get after the strategy. It's just -- as JP said, we've got to get these other pieces in place that will really be able to leverage that asset once we have it.

So another question from our online audience from Daniel. How is the customer retention of acquired customer bases? Have the acquisitions helped drive lower CAC now that you've removed some of the competition?

Want me to go? Look, churn -- so the answer to the first part of the question, which is we see a difference in churn from some of the acquired businesses? Generally speaking, no. I mean, we do take some very intentional decisions when we acquire these companies as to whether we sustain them from a go-to-market perspective, whether we redirect that sales and marketing to our flagships, just depending on the product and the market specific case at the time. But all that's with the intent of, of course, growing our business in totality. So when we make those decisions, yes, we might see some near-term blips in churn. But in aggregate, as we take a step back, our churn rates have been holding steady.

Yes. Maybe I'll just add one thing. The objective of those was to become one global go-to brand, which is happening. So what we're seeing here is that we now have a brand everywhere, which is driving, of course, organic customers, which is what are all of us in the software industry are trying to do, and especially in our space. There's so many people who are after this market that, of course, cost of acquisition will go up over time as more people come into this industry. But I think what's offset by that is that the brand is becoming a go to. And in our industry, word of mouth is the most important. And JD gave a good example of a large customer who brought another large customer. So I think there, when we look at this, we need to provide the best customer experience because that's ultimately what's going to drive long-term growth. And so we're seeing this. But I think overall, just going back to Brandon's slide again, if you look at the cost of sales, it's gone down per $1 of revenue over time. And that's again because of the strategy of one brand globally, and one go-to-market product globally.

Okay. We'll take a question from the audience.

Martin Toner from ATB. Is there a bit of a land grab amongst the modern POS players? And if so, does that inform your go-to-market strategy?

Yes. So. All right. So we are -- we have never been a growth at all cost company, and we will never be a growth at all cost company. So it goes back to how we operate. I think a good business needs to be good on a unit basis, and you have to be profitable on your unit economics. And we've never been this company like, oh, let's just land grab, bring them in at loss. And over time, we'll build. That's not our DNA, and we will never go into that. Now this being said, the reality is when we have a product that is super competitive in a market, generally speaking, all the indicators show a good CAC to LTV and show good close rate. So that's more how we look at the business. It's like, okay -- and I'm going to go back to the U.S. now. Until now, we didn't spend a lot of money in the U.S. in hospitality because we didn't believe we had the right product. And we didn't want to compete on a price basis. So now -- and that's why we're so excited about hospitality that we're showing at the back. This product is competitive. This product is best-in-class. This product does more than the squares and the toast of the world, this product can bend in any possible way to accommodate the workflows of the legacy system. So now that we're at this, of course, we want to try and understand how we're going to go after this market. Now the good news is because Lightspeed Payments is on this, and we all see that as soon as the Lightspeed Payments is bough, and we know hospitality in the U.S., I mean, the market is now acquainted to bundling payments and software. We're now going to double down. We're now going to take the same strategies as the other guys. We're going to have people with foot on the ground because we know that on a unit basis, it makes sense. So I'm not sure I'm answering your question, but there is a market ground. And the market grab for us is sophisticated because we don't want to be going off to customers and having them churn. We want to go into a segment of the market that doesn't churn a lot, which is the one we're after. But now we do feel now it's time for us to double down in the U.S. And if you were inside of Peter's meeting in hospitality right now, it's probably 80% of our focus is like, okay, now we have to go after this thing, what are the strategies we're going to put in pace. But for sure, now in our mindset, we have the right product, we have the right unit to economics, we're now going to double down.

Go to online questions.

Yes. So another question from [ Elenor ] what's stopping the brand from taking that data, which is generated from SMBs and marketing directly to the customer?

Okay. A very good question. I think ultimately, it's a network. So everybody needs the benefit. And of course, you can't swing the pendulum too much on one side. So I think here, we're going to have to figure out what information do we share, what information do we keep and what can be shared on a macro level, always taking into account. And I think for us, it's, again, the philosophy here is who are you trying to help. And ultimately, our customer is the store, is the merchant. So we have to be sure that we don't develop something that actually ends up hurting them at the end. But so very good question, Peter, on this one. We are going to ensure that we ring fence whatever can be shared and whatever can't be shared and ensure that the stores continue to own their customers because ultimately, that's kind of what Amazon did is they took all the data on the consumer. Now they're going directly off to consumer. And I think we need to be sure that when we do this, we understand the stakeholders, and we understand the mission. And in short, we don't harm the mission by helping the brands sell more.

I also think the brands have -- they've lived this for however many years. They have channel conflicts, right? They have distribution partners. And so they built systems in order to be -- so they have policies about what you can do and what you can share. And we'll have to figure that out between the business as JP said between the brands and the retailers. But in some cases, we can think of models where if we could attribute just to give you an example of how deep we go into the data, we could attribute the consumer and every time that consumer order direct from the brand -- because we manage this contractually, we could make sure that the retailer gets part of that sale for a period of time. So we can build all of that into the contracts that we have on the supplier network. And to JP's point, we're going to have to kind of see where the biggest sensitivity is. But yes, we don't want to create -- we want to create cooperation and that flywheel effect. We don't want to create a competition, a competitive dynamic on that marketplace.

And maybe if I can add a few things, just to tie that question back to also your consumer question earlier, and we talked about it, too, with the gentleman in the room during the break. So if we expand on the golf example, if you're a golfer today and you Lightspeed golf and you create a profile online, we ask you if you're willing to share that information with our network. And so that's the [ data ] that we're also building. And so that golfer is showing up to one location to another and another has already accepted to share that information with the network, and then that data can flow over across our platform. The next steps that we're building, obviously, order anywhere on our hospitality platform, similarly as a consumer booking at a restaurant or ordering you're going to create a profile. We'll also have the opportunity to allow this consumer to determine if they want to share or not. It's not necessarily an obligation across that network. And then lastly, if you think of Ecwid and the ability to sell anywhere and everywhere on all channels, there, again, there will be more opportunities to provide that option to that consumer. So tying before triangle together, that's how we bring it back to the consumer.

This is [ Rabi ] from Barclays. Maybe just thinking about the B2B payment side that you touched on a couple of times today. Maybe you can walk us through how that's typically done by a lot of your customers today? And are there any specific pain points that you can solve for either near term or thinking about it a little longer term?

Do you want me to do it?

Yes. Sure.

So it's as we discussed in my segment and for the most part, it all happens sort of offline. So we talked about how the swapping POS back and forth and spreadsheets back and forth. Well, finally, at some point, they agree on what they're going to order, and they have to pay them. Typically, it's done through an invoicing process with terms. So the brand would invoice the retailer. The invoicing may have terms it may not. Generally paid by ACH debit or a credit push. And then for big orders, like when you think about like a big department store ordering from Ralph Lauren, that's probably is probably -- first of all, there's going terms, obviously. But that might get settled either over time, but usually, because it's up over a certain amount might be a wire transfer payments. So pretty bread-and-butter vanilla kind of payment options. And that's one of the reasons that, that business sits at that level right now because it only makes sense -- I don't know the exact breakeven, but these orders are going to be -- not going to be thousands of dollars, right? They're probably going to be hundreds and thousands and millions of dollars. And so there, you've got the scale and you don't have a lot of frequency of the transaction. So I guess it works okay, but it's not that elegant. What we're thinking about doing in terms of putting into the marketplace, the first thing we're going to do is enable just a credit card. So if some buyer a retailer, and I want to buy it, but I've never talked to this brand, I can still buy because they have a credit card. And we provide the ability to capture that and make sure that the brand gets paid. So that's still pretty vanilla, I guess. But then what we want to do is take the next step now and introduce terms and almost standing in between the brand and the retailer in terms of giving the brand -- sorry, the retailer, pay the brand today on the order, give the retailer time to pay. And when you think about our capital model and how we might be able to fold that in, like ideas like we could -- a merchant could repay us out of the sales they make with the inventory, right? Angles like that where it starts to get -- have to have the data, you have to be able to understand the risk you're taking with the customer. But all these kinds of ways just to make it super flexible. And as they grow and as those numbers go up higher and higher, eventually, they may move into that world. We talked about where we started, where the big transactions going back and forth. But we have a lot of room there below that level in lots of ways to monetize it, obviously. If we're providing financing, there'll be a cost to the merchant for that. We've talked about our payment processing model. And over again on the brand side, we intend to charge them a fee as well for access to new distribution.

Go back to online.

So next question from [ Scaria ]. Is Lightspeed targeting large retailers like Walmart, Home Depot, et cetera?

Okay. I think it's obvious from the presentation, no. I think -- so here's where it's slightly evolving is on the brand side, you've got to understand the dynamics. So if you start on the brand side, there are big department stores that order from brands. And I think that's actually the beauty of the model is, we now are selling to those big department stores, the platform, so that they can replenish and order from all the brands. And what's great there is, let's say, a [ SaaS ] are going to force all of the brands on to the platform to run their business. But that is incredible because then what happens is then all of those brands are now connected to that platform, and we used that same platform now to enable any small location or any store to order from that brand. So what I guess I'm saying is that the department stores drive the brands and those brands drive then all the small businesses and help the small businesses. So that's why -- Ralph Lauren is a good example. Ralph Lauren now is using our platform for all of the sales of -- throughout the network, but it's mainly for the department stores. But now what this enables is then all of the Lightspeed network can now order from that same platform from the same brand. So it's kind of, again, it's another network effect, where you have to get the big box multi-brand department stores that then drive the brands who drive the stores. But ultimately, the mission is the same, nothing has changed. We want to help small businesses globally. And that's a way for us to help them is to enable them to completely automate how they work with all the brands because a lot of our customers are multi-brand stores. So they will hold a lot of luxury goods. They will hold. They're not single brand. Even though we do have I mean a lot of brands now that are opening their direct stores. So as an example, in New York, Bang & Olufsen, they have a store where they show everything, and if that's running on Lightspeed or Harman Kardon, which is a direct brand-to-consumer store. It's all on Lightspeed also selling the Lightspeed goods within the [ peer ]. So I think there's a lot of things to do there. But ultimately, the mission of the company is to help small businesses globally with the platform. Now the last thing we also didn't talk about is we have some of the stores that started with one or two who are now hundreds of locations. Goiko Grill have more than 100 locations. And 4 years ago, they had 10 locations. So we're helping, and we're very proud of that. We're helping those independent retailers and restaurants grow and thrive.

And maybe perhaps a question on product [indiscernible]

Lightspeed restaurant our flagship product 200 to 320 locations, one thing to keep in mind, sorry I'm hearing a bit of echo because I'm close to the mic. But one thing to keep in mind is the solution that we built allows you to scale to those 320 locations. But at the end of the day, it's the same instance. If you think about or Walmart or a McDonald's and so on, they will require very, very custom dev and custom engineering to fit into their model. The beauty of our products is that you can flex from 1 to 300 but without having to build all that very custom and cumbersome engineering. And so perhaps that's where the question came, but ultimately, it's the same instance, it's the same product we just allow you to flex.

Okay. Anybody from in the room?

Thanks, everybody. It's a great presentation. I have one on the financial projection for the organic revenue growth of 35% to 40%. Could you talk about the time frame for this growth rate? And is that a range for each individual year or is going to -- do you think of it as an average through the period? Also I have a follow-up.

Sure. Yes. So to date, we've been doing -- when I talk about that approaching 40% growth rate, I sort of anchor back to how we would have talked about the business almost at IPO. We saw all these converging elements that are going to enable us to drive strong and sustained organic growth. And what I hope you took away from that slide is we've actually done better than that to date. And I think if you were just -- if we were to achieve our guidance for the current year, it would imply that we're going to continue to do better than that. That -- now as we sit here today, there's lots of growth levers still around us. And we think about that as being a sustainable growth rate for us. But there will be periods where I hope we over deliver on that. I hope everything we're talking about in the supplier network and this triangle comes to amazing fruition where I think it can be even better. But based on the current paradigm, that's how I think about that growth rate.

All right. Super helpful. That's awesome. Actually answered our second question, the upside on the supplier network in the e-commerce and all that. So that's super helpful.

So another question from online from Elenor. With a lot of brands going direct to consumer, how does Lightspeed see themselves continuing to help the SMBs in remaining, relevant?

Do you want to go.

Yes, I got a thought on that. Actually, it's a core part of our strategy. As we kind of talked a little bit about this before. And yes, brands go direct, JP and -- was talking about the Bang & Olufsen store, and they want to sell direct, but they also sell -- as I said before, they manage this in terms of a channel conflict. I think we'll have to go on, I think, the sort of permissions that both customers get it, whether it's the brand or the retailer and that we can manage that as we talked about before. At the same time, I think there's a very clear case to make that we're helping the SMBs by giving them access to these brands by giving them access to this inventory. And actually, if you think about it, everybody is worried about drop ship, like that's some kind of big competitive issue for these stores. They don't have to buy the inventory. That's a really big deal when you're a small business. You don't have the money. I mean you have -- you just don't have the money and you don't have access to financing tools, some of the reasons be like capital to be able to buy the inventory that you need. So the point here is that you can -- someone walks into your store, you now just became a point of distribution for that brand. It's been working together. So yes, there's always channel conflict. There's always some level of disintermediation that people worry about, and we're going to find our way through that, but it isn't really like it's not happening today. Yes, we're going to provide information back. Whether or not we would actually provide the actual identity of the consumer, that steals a little PII. We probably want to take a really good look at that before we would do that. But if we can tell who the customer is, some level of demographics, where they bought it, what was the return rate on that product, what price did it sell for? Or how much was it discount? Those are things they have no -- there's no visibility on. So I don't want everyone to get too hung up on the fact that we're going to share all the consumer information back to the brand, right? We have some more work to do on that. But I think that the machine works and I think the balancing those things are things we can do when we tune the business from the launch.

I think for me, the big thing is, why do you still go and shop at your local store. And you go and shop at your local store because you like the human contact. And I think for us, the way we're looking at this is if I can now go to my human store and my human store has more inventory in line with what I want to buy, I'll have a better experience and I'll go back sooner instead of going online. And I think that's ultimately what we're trying to do. We're trying to enable stores and restaurants. In the case of restaurants to provide better menus with ingredients that we know are selling. But in the case of retailers, we're trying to help them identify new brands and provide a better experience for the consumer. And I think going back to what [ Dax ] said, we don't believe in black or white or it's the end of retail or I think the nuance is the most important. But ultimately, you go back to a store because you like the experience. And I think I'll just put it in your hands is why do people still go to Apple stores? Because the person they're talking to provides value, understands their needs, and that is exactly what we're trying to do to small businesses globally is enable the experience to be amazing so that ultimately, we can fulfill our mission. So I don't think we're that worried by it. We're actually more obsessed around helping those small businesses thrive. And I think that's the data point we're very proud of. And I know we've shared this many times before, but customers when they use Lightspeed within the first year of using Lightspeed, they see their revenues grow very well. And I think that tells us, okay, we're doing something right. We're helping small businesses globally, and we're giving them the right solutions to succeed.

Yes. And one more note on that. Independent stores now have access to the brands to meet they may not have had access to before. The system doesn't automatically enable all those trend. We need to be in agreement to be a contract between those stores and those brands. But now it's possible. Now they can have more differentiation and those brands can have high-quality premium local stores and local relationships. And that's technical win-win for all of them and that's [indiscernible]

I'm Matt Greg with KeyBanc Great presentation so far. So it seems like the value proposition around cloud point of sale has risen with merchants revamping and launches of new business post-COVID. So I was wondering if you guys could talk about any trends that you're seeing in terms of payback period? And then if you could describe the impact around new business formation at a macro level.

I'll start maybe with the macro level and then Brandon, you can -- we give the right data points. But on a macro level, what we see is what happened during COVID, and I'll just give you the -- it's a funny one. But before COVID, we would talk to restaurateurs and retailers and we'd be like omnichannel and they're like, oh, cool, love the vision. I'm going to buy the POS. And here what happened when COVID hit was the actual opposite. Don't get us a POS just help me sell online. And so I think what we've seen on a macro level is as the shutdowns happened, the business grew very strongly online. And I think that's why we were so happy with the balance that we had as a company is. And we always used say, no matter where you want to sell, we want to be there, and we've actually proven what we said, which is, okay, COVID hits, and we see this transfer. And I think that's why the opposite happened now. So now what we're seeing is we're seeing that markets are reopening, and we're seeing a thriving business in markets that we open in the physical world. We're seeing concepts reopen. We're seeing -- we're actually seeing restaurants that have shut down that rebrand themselves and create -- so it's actually the -- let's call it the traditional dynamic with if that happens again. It's like now we're seeing everything go back to the physical world, we're seeing a ton of demand. So what happens is when those markets open, let's look at the few profiles of customers. Those who have legacy systems who were forced to close have this in mind it's never ever again. So now please help me be sure I'm ready for the next, if there is a next. What we're seeing is that those who actually close those open -- those free spaces are now creating new concepts. And again, I'll ask the question who wants to buy a legacy system when you reopen a restaurant. So they're technically drawn to Lightspeed. And then what we're seeing is that we are still seeing a few of the old habits remain inside of consumer. So it's not like it's all or nothing. We're seeing it go back to physical, but the habits remain. So people are still during pickup and order ahead and the home delivery more than they used to because they've discovered, hey, it's kind of cool to have your friends to your house and you're cooking for them or they think you're cooking for them. So what we're seeing this in a less kind of black and white way. But actually, what it just tells us is having a well-diversified business is amazing because it really reduces risk as you go forward. And that's -- and maybe the last thing we're seeing through this is that we're seeing that the successful model, and I said it a few times today, is not so much around selling on your website. The successful model is embedding everywhere, reservations, order ahead, transactional sales everywhere. And I think that's the other big trend that we're excited about is we think that merchants now have kind of evolved very rapidly and consumers have evolved very rapidly through COVID, which needs actually more complexity, which means that we need to make it even simpler for them or we're more relevant than we ever have been.

Yes. So the world is definitely reopening. The business is coming back. And obviously, there's -- depending on what's happening regionally when it comes to lockdowns and restrictions, which Brandon talked about some of the things that we were talking about in Australia. All of that is absolutely real. But the one thing -- and so in other words, it's not to your story of people they were like, yes, online is nice, I just need the POS and then we saw the complete opposite. What we're really thinking here is even though physical is coming back, consumers the way they buy have changed -- to the point JP just made. And that's really, we think, is just an awesome dynamic for us because we are so omnichannel. And we give them the ability, if they need to God forbid, hope they don't have to, but they had to change their operating stance because of something like a pandemic, they can easily do it. The scramble that happened last year, it was just really hard on these folks. And to JP said it and I'm going to shut up after this, never again, right? You can't -- you're in business and you're out of business because you can't flex. And you can't flex the way you operate. That's a big moment that opens up a lot of opportunity for companies like Lightspeed.

Let's not forget, someone who uses the legacy system needs to be in the restaurant to run analytics. So imagine in a world where you can't be at the restaurant, they would show up at the restaurant just to run their analytics and manually key in whatever order they took online into their POS. I mean it's just not adapted to the world where we're living in.

So another question from online from Richard. Thanks for providing the perspective on acquisitions and how they tie into your road map. Looking ahead, are there any more opportunities that need to be filled from a tech perspective that you may need to acquire or should we expect to pause in M&A?

Wide pause. Look, ultimately, we know the companies we like. We know the company we don't care about. There's still a lot of things we need to integrate inside of Lightspeed. And I don't think it's changed. We're going to continue to be opportunistic. We're going to continue to look at geographic concentration. We're going to continue to look at technologies that we think will take too long to build and integrate them into the business. Yes, not to say more on that subject, but we were well capitalized. As you know, we have more than $1 billion in our bank account. And we do want to be the global go-to brand within the more established SMBs. And so nothing will stop us at being that.

Maybe when you think about the gaps -- sorry to interrupt, I just was thinking -- just -- I really love everybody. There's a few things when you leave the room. Remember that triangle and think about the customer segments, now merchants, suppliers, consumers. I think those are the things that are informing kind of the way you're thinking about stuff.

I think we'll take one last one from online, and then we'll wrap it up.

This one from [ Michan ]. When will this new Lightspeed supplier network launch?

Next year. Look, we don't want to overpromise anything. And we're working hard at it. And within -- you'll hear a lot about us within the next 12 months on launching. And it's not base switch all or nothing. We're going to try and create value every quarter as we go forward.

Actually, I think we have time for one last one because that was quick. Another Daniel, what is the path to bringing capital in-house versus leveraging the strike platform?

I'll go. So we've always felt. So capital has been a relatively new product offering for us. We always thought that it would be well received by our customer base. To get launched quickly, we partnered with Stripe to help us get that product in the market. Of course, ShopKeep and Mike and his team come on board and help us move even more quickly to doing this ourselves, which is what we always felt we would end up, but the economics were going to push us to the point where having our own capital offering under our own control, much like we did with payments was going to be important to us. Fortunately, Stripe's been a wonderful partner in helping us move to that model as well. So look, we always intended to have this as our own offering. It will be our own offering, but that doesn't mean we won't partner with good partners like Stripe to help us enable that in the background.

Okay. With that, I think we'll wrap it up. For those of you in the room that will be lunch served. For those of you joining us online. Thanks for joining us today. If there are any questions, feel free to reach out to Investor Relations, and we'll get right back to you. Thanks again, everyone.

Thank you.