Lightspeed’s ($LSPD.TO) share price is up 16% (TSX Composite up 3%) since Tuesday, July 28. Fiscal Q1 (June 2020) revenue and headline EBITDA was better than we expected, but there are clear data points that have us continuing to believe $LSPD.TO does not deserve to be trading at a $SHOP-like SaaS multiple.
Record Locations Yet Record Low Deferred Revenue
“In the three months ended June 30, 2020, we engaged in several customer-focused initiatives, such as subscription discounts and deferred payment arrangements, aimed at supporting our customers during the COVID-19 Pandemic.”
We understand the mix towards monthly/annual payment plans vs. multi-year, but that does not explain a $3.7 million Q/Q decrease in short-term deferred revenue.
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