Business & Investment

Lightspeed (TSX: LSPD): Buy this TSX stock dip

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One of Canada’s fastest growing companies in the last few trading sessions Litespeed (TSX: LSPD)(NYSE: LSPD)Burned investor wealth at an accelerated pace. At the time of writing, LSPD shares have fallen 57% from record highs and dips are available for purchase.

Lightspeed is valued at a market capitalization of $ 10 billion and, despite a recent pullback, stocks have increased 258% since the March 2019 IPO. Two key factors that may result from the sale of LSPD shares are: Short seller report And the company’s disappointing guidance that continues recently Quarterly results..

Lightspeed reports $ 133.2 million in revenue in the second quarter

Lightspeed is a company that operates in the fintech space and provides small businesses or small businesses with cloud-based payment solutions. In the second quarter of 2022, which ended in September, Lightspeed reported revenue of US $ 133.2 million. This was a 193% increase over the previous year.

Approximately 50% of sales came from acquisitions, but intrinsic revenue from the company’s core businesses, including subscriptions and transactions, increased 58%. Lightspeed’s trading revenue increased 320% to $ 65 million and total trading volume surged to $ 18.8 billion. The number of customer locations using the LSPD platform was 156,000 at the end of the second quarter.

Despite the significant increase in revenue, Lightspeed reported an adjusted EBITDA loss of $ 8.7 million. This was broader than the $ 2.8 million loss in the year-ago quarter. Adjusted losses were $ 0.08 per share compared to a loss of $ 0.05 per share in the second quarter of 2021. By comparison, analysts forecast a quarterly adjusted loss of $ 0.09 per share.

Currently, the company forecasts third-quarter 2022 sales of $ 140 million to $ 145 million, showing continuous growth of only 7%. This guidance disappointed investors and analysts as Wall Street forecasts December quarter sales of approximately US $ 182 million. In addition, Lightspeed’s estimated revenues ranged from $ 520 million to $ 535 million in 2022, well below the 2022 analyst’s estimated $ 676 million.

What’s next for LSPD stocks?

As mentioned earlier, investors have the opportunity to buy high quality growth stocks with a lower rating. LSPD shares are currently valued at forward prices in multiples of 15, which may seem expensive.However growth stock Order a premium rating. Lightspeed is still unprofitable, but it is expected to reduce its loss per share from $ 1.16 in 2021 to $ 0.21 in 2023.

The company’s CEO, Dax Dasilva, remains optimistic about the long-term outlook for LSPD, saying: With the addition of Ecwid and NuORDER, Lightspeed continues to roll out innovative technologies that give our customers greater insight, control and confidence in the future. “

Analysts tracking stocks have set an average 12-month price target for LSPD stocks at $ 125. This offers a possibility of more than 90% increase from the current level.

Lightspeed (TSX: LSPD): Buy this TSX stock dip Lightspeed (TSX: LSPD): Buy this TSX stock dip

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