Lightspeed Commerce Inc.'s new chief executive is insisting the company is on track to meet its growth and profitability targets after just one day in the top job.
JP Chauvet said Thursday that the Montreal-based technology company, which sells point-of-sale software, is poised to grow organically between 35 and 40 per cent a year.
"We know the market is interested in our profitability. I want to stress that I will continue to invest in the business and growth remains our top priority," he said on a call with analysts.
"However, given our increasing sales and strong improving economics, the path to profitability is becoming more apparent."
Lightspeed has been under pressure since a report last year by U.S. short-seller Spruce Point Management was critical of the company and accused it of misleading investors about its growth opportunities.
Around the same time, the company's shares started dropping. They are down 23.4 per cent this year and are 76 per cent from a high of $165.87 in September. On Thursday, they closed at $39.12, a drop of 4.0 per cent or $1.64.
Chauvet took over the CEO job from Dax Dasilva on Wednesday.
Dasilva, who has become executive chair of Lightspeed's board, founded the company in 2005 and has often been highlighted as one of the few non-white and openly gay leaders of a public Canadian company.
Chauvet joined Lightspeed in October 2012 as chief revenue officer, was made president in April 2016 and helped the company as it was listed on the Toronto and New York stock exchanges.
"As Lightspeed continues to execute on its mission and recognize its full potential, I can think of no one more qualified than JP to lead the company," Dasilva said on the same call as Chauvet.
"Given that JP has assumed more and more responsibility during his tenure at Lightspeed, this is a natural progression and I expect a seamless transition."
Chauvet's plan for Lightspeed has four focus areas: growth, people, product and profitability.
On top of meeting growth and profitability plans, he said Lightspeed will create a "high-performance" culture by hiring dedicated people who come from industries like hospitality and thus, have a deeper understanding of the challenges Lightspeed products aim to solve.
While the company has several payments offerings, Chauvet said the star will be its software.
"Our customers don't come to us because of our payments offering. They come to us because our software allows them to better manage their inventory, reach out customers, simplify their operations and grow their businesses," he said.
"I know some companies are willing to give away their software in order to win the payments business. We do not believe in that model."
The company will continue to advance its software through internal development, but Chauvet said more acquisitions are possible, if a company Lightspeed loves ends up on the market.
Lightspeed reported after the close of markets Wednesday a net loss of US$65.5 million or 44 cents per share, compared with a net loss of US$42.7 million or 39 cents per share a year earlier.
Revenue for the period ended Dec. 31 totalled US$152.6 million, up from US$57.6 million during the third quarter of 2021.
The company was expected to lose 39 cents per share on US$143.4 million in revenues, according to financial data firm Refinitiv.
This report by The Canadian Press was first published Feb. 3, 2021.
Companies in this story: (TSX:LSPD)
Tara Deschamps, The Canadian Press
