Montreal-based e-commerce company, Lightspeed Commerce, has reported a significant loss of US $35 million in the first quarter of this year. This news comes as a surprise to many, as the company had previously been experiencing steady growth.
According to the company’s financial report, the loss can be attributed to a decrease in revenue and an increase in operating expenses. Lightspeed Commerce saw a 51% decrease in revenue, dropping from US $36.1 million in the first quarter of 2020 to US $17.6 million in the same period this year. This decline is largely due to the ongoing COVID-19 pandemic, which has greatly impacted the retail industry.
In addition, the company’s operating expenses increased by 33%, reaching US $52.6 million in the first quarter of 2021. This can be attributed to the company’s expansion efforts, including the acquisition of two companies, Upserve and ShopKeep, in the past year.
Despite the loss, Lightspeed Commerce remains optimistic about its future. The company’s CEO, Dax Dasilva, stated that the company is focused on long-term growth and is confident in its ability to bounce back from the current challenges.
Lightspeed Commerce provides e-commerce and point-of-sale solutions to small and medium-sized businesses. The company has over 140,000 customers worldwide and has seen a surge in demand for its services as more businesses shift to online sales during the pandemic.
In conclusion, while the first quarter loss may be concerning, Lightspeed Commerce remains a strong player in the e-commerce industry and is determined to overcome the current challenges and continue its growth trajectory.
