Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Lightspeed Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you. Gus Papageorgiou, Head of Investor Relations, you may begin your conference.

Thank you, operator, and good morning everyone. Welcome to Lightspeed's fiscal Q3 2022 conference call. Joining me today are Dax Dasilva, Lightspeed's Founder and Executive Chair; JP Chauvet, our newly appointed CEO; and Brandon Nussey, Chief Financial Officer. After prepared remarks, we will open it up for your questions. We will make forward-looking statements on our call 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 of 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 yesterday, our third quarter 2022 results presentation available on our website, as well as in our filings with U.S. and Canadian Securities regulators. Also, our commentary 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 earnings press release, which is available on our website on sedar.com and on the SEC's EDGAR system. In addition, our commentary 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. Note that because we report in U.S. dollars, all amounts discussed today are in U.S. dollars unless otherwise indicated. Before I turn it over to Dax, I want to take this opportunity to remind everyone that Lightspeed will be hosting a webcast to highlight the release of its flagship Lightspeed Restaurant offering. The webcast will take place on Tuesday, February 8 at 12:30 pm. Eastern Time. Please go to the Events & Presentations section of our IR site to register. With that, I will now turn the call over to Dax.

Thanks, Gus. Good morning, everyone and thank you for joining us today. I'm sure most of you have seen the press releases from last night announcing both the earnings for the quarter and changes amongst the senior executive leadership team. I was pleased that Lightspeed was again able to deliver results ahead of our previously established outlook, with strong organic growth. With regards to changes in the executive leadership team, I will be assuming the newly created role of Executive Chair and focusing my time, setting strategic priorities for the company at the board level and will be directly responsible for our ESG and DEI initiatives. JP Chauvet, my longtime colleague and friend has been appointed CEO. JP joined the Lightspeed in 2012 as its Chief Revenue Officer. He became a board member in 2013 and was promoted to the role of President in April of 2016. JP has driven the company's M&A strategy was instrumental for our listings on both the Toronto and New York Stock Exchanges, and led the launch of the highly successful Lightspeed Payments offering. His vision and focus on execution has helped Lightspeed transform from a regional POS provider to a global commerce platform integrating suppliers, merchants and consumers. 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. Given JP has assumed more and more responsibility during his tenure at Lightspeed, this is a natural progression, and I expect a seamless transition. As Executive Chair, I will remain very involved in Lightspeed's future direction, ensuring the company remains the commerce platform of choice for businesses everywhere, as well as the preferred employer for the world's top talents. On that note, I would like to take this opportunity to publicly welcome our two new board members, Nathalie Gaveau and Dale Murray. Both women are distinguished leaders from the technology sector, and possess extensive board experience. Ms. Gaveau was a co-founder of one of the largest e-commerce marketplaces in Europe and Ms. Murray co-founded Omega Logic. Both bring international experience that will be very valuable for the company. I look forward to working with both Nathalie and Dale in the months and years ahead. And with that, I will pass it over to JP.

Thank you, Dax. Before I begin, I just want to thank you and our board for entrusting me with the position of CEO. Lightspeed has been my home for the past nine years, and it has been both an honor and a thrill to help you build this company into the global player that it is today. I joined Lightspeed because I believe in the company mission, which is to help entrepreneurs all over the world operate and grow their businesses. And I believe strongly that what we do matters, because it allows our customers to recognize their ambition, invest in their community, provide employment, support their families, and deliver local flavor and color to their neighborhoods and case. Lightspeed is a mission-driven company and it will remain so under my tenure. Before we discuss this quarter, I wanted to provide a framework for how I view the company and outline my goal over the coming years. I think it's very important to stress that Lightspeed is a software company first and foremost. Yes, payments is an important revenue stream. But payments is there to enhance the value of our core software offering not replacing. Our customers do not come to us, because our payments offering. They come to us because our software allows them to better manage their inventory, reach their customers, simplify their operations, and grow their businesses. And this software provides value. I'm sure many of you saw our press release from last month, it is highlighted the fact that Lightspeed retailers in the U.S. who same-store GTV at nearly twice the rate of industry sales growth. 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. Maintaining a superior software offering…

Thanks, JP. It was another strong quarter from the business. We were able to deliver $153 million in revenue, ahead of our guidance of $140 million to $145 million, with software and transaction-based revenue up 74% from last year on an organic basis, and total revenue up 165% overall. Customers continued to show their resilience. Their positive outcomes drove our good results today, as these businesses overcame supply chain disruptions, and another wave of the global pandemic. So despite our caution on the macro environment, as we entered the quarter, the business and our business model were able to deliver some great results. The diversity of our customer base, and our multiple growth levers continue to serve us well that our business can continue to deliver organic growth at this level, given the various challenges we have faced, speaks well to our long-term potential. As an overall note, you'll see in our press release issued today that we've broken out the impact of Ecwid on the quarterly results given the timing of that acquisition and the different characteristics of their business versus our core. We trust you'll find this incremental disclosure helpful in tracking your progress. I will speak to the overall Ecwid business later. Looking at customer locations, we now serve approximately 315,000 customer locations around the world, including approximately 156,000 online businesses served by Ecwid. When excluding these, our locations grew from almost 115,000 a year ago to over 159,000 at December 31st. We provided a split of these locations in our press release issued today. We continue to see good demand for our retail offering in the quarter which provided strong organic growth. We also saw improvements in Australia and New Zealand after pandemic lockdowns affected that region last quarter. And while not a significant contributor to…

[Operator Instructions]. And your first question comes from the line of Dan Perlin from RBC. Your line is open.

Thanks. Good morning, everyone and good quarter. I wanted to ask a question around what you're seeing and hearing within the SMB space and I don't necessarily be micro, I mean, really sizable SMBs with more complex environments, because what we've heard thus far from kind of our companies and maybe some other channels is that they're having a slower start to the year. And we're also seeing kind of a non-app consumers, I think also starting a little bit more difficult. So I'm wondering if there's anything you can tell us about trends that you're seeing maybe more recently. Let's say in January that would shed some light on that view? Thanks.

Yes, good morning. I'll take it, JP answering. Look, I think the first thing when we think about the trends is, we went into this quarter concerned about supply chain issues, and what we see the lift, the traditional kind of called Christmas period lift. And we're very excited to see that. Actually, we did have growth in GTV that was very strong. And we did see kind of your similar patterns with the past. So that's good news. That means that our merchants were not affected by supply chain. And we did see the traditional flows, where we are strong like bikes and outdoors go down in the quarter, which is normal. So I think for us right now, where we stand, we don't see any trend, that that is not in line with the traditional. Now every year, of course, January, February, March is the lowest months for GTVs for our customers. And what we're seeing for now is very much in line with the expectations, nothing less, nothing more.

Okay. And then just a quick follow-up if I could on the payments rate. So as that gets calculated in the quarter, it looks kind of flattish sequentially. I know you called out December was up 12%. But I often feel like, there's certain dynamics around your GTV growth, which Brandon; I think you kind of called out a little bit. So maybe, if you wouldn't mind, we'd get a lot of questions on this. Can you just talk about the dynamic there and maybe in particular around hospitality? Because I think that could must faster than the overall company and I forget where that is, in terms of payment penetration? Thanks.

Yes, for sure. So, just reminder on some of the stats, we just recited on a year-over-year basis. We see close to 200%, more active customers using payments, those customers process, about 300% more volumes on a year-over-year basis. And all that drove to about 250% increase in revenue for us on a year-over-year basis. So this continues to go really well. GTV, as we mentioned, has also been a growing thing. We view that as a positive organic growth and GTV was better than 50% in the quarter, and up 100% and some odd percent overall. Some of that, of course, comes by way of M&A and the fact that we've been able to double our penetration rate year-over-year. Despite that M&A coming in, we view as a very positive overall. Ultimately, if we're growing our payments penetration at the same time as we're growing GTV that's a pretty good long-term formula for us. So we think that's all good news. Penetration rate for us, we've always viewed this metric as being more of a potential indicator where the potential can go for this solution. I think what we're seeing on a quarter-to-quarter penetration rate calculation, some of the anomalies Dan that you're getting at. I mentioned M&A, we had Vend a couple quarters ago that goes into the denominator. We don't yet have one solution there. So that of course impacts things. Just even the ebbs and flows of the virus on a quarter-to-quarter basis. Some quarters were hospitality is contracting other quarters like this one where hospitality is up 79% year-over-year organically and based on our varying penetration rates in some of these segments and some of these countries that's what you're also seeing on a quarterly measure basis. And then finally, JP also mentioned the seasonality aspects we deal with some of our strong verticals like bike and home and garden, our golf courses. Those are segments where we have a lot of market share, we do a lot of payments processing. And as they go through seasonally different periods as we go through the year that penetration rate is going to fluctuate quarter-to-quarter. So that's why we think of this as being more of a long-term potential measure as opposed to a quarterly performance measure. Ultimately end of the day performance is showing up in active customers' volumes and revenue. And I think we are seeing really good stats across all of those. We will continue to penetrate payments no doubt as we look into the future. But the quarter-to-quarter measures there's a lot of puts and takes happening given what's going on in the macro environment overall.

Yes, understood.

Just to be clear on the payment volume.

Sorry. Go ahead, JP.

Yes. Just maybe wanted to add we're so net-net we're very happy with the progress. We're incredibly thrilled that we are growing by 304% year-over-year. And maybe one other dimension to add is, we've launched Europe, and we've launched Australia on likely payments and the motion there were very satisfied with the result.

That's great. I just wanted to make sure that the KPI payment volume is going to be consistently reported. I think it's a great, great thing to report.

And we will do that, Dan. Yes.

Your next question comes from the line of Andrew Jeffrey from Truist Securities. Your line is open.

Hi, good morning. Appreciate you taking the question. Congratulations, JP. Look forward to working with you going forward. Brandon, I'm getting a lot of questions just on the organic calculation and certainly the Ecwid disclosure is helpful. Can you maybe parse out a little bit the performance I think specifically of ShopKeep and Upserve versus prior quarters. Just trying to understand what those businesses contributed revenue wise this quarter and how generally they're performing? And I guess sort of as an adjunct, is there any COVID impact we should be thinking about in those businesses, specifically, in terms of their performances score, and then looking out in the future?

Yes, so we record our organic growth rate software and payments revenue up 74% year-over-year. So you can quite simply take last year's software and payments revenue, grow up by 74%, and come to our organic measure on revenue. That includes then Ecwid and NuORDER, of course, those acquisitions happened partway through this cycle. And then include the stub period for ShopKeep and Upserve, because we -- they came into our mix partway through our Q3 of last year. Overall, we -- in terms of how those businesses are performing, there're two very different contributors, I think, overall Upserve, we bought them in the midst of some of the depths of COVID and we always felt like that business has a lot of potential to bounce back as transaction volumes bounce back. So we're seeing that play out in our results for sure. The Upserve business and the actual volumes have performed really, really well for us. We're quite happy with those. We've also been able to leverage a lot of the technology from Upserve into our flagship hospitality offering that you hear from JP as well. ShopKeep, different situation there. ShopKeep, when we acquired the business, the idea there was bring on the customers, bring some additional payments list to that customer base, and then redirect sales and marketing and do our flagship product. And we've been quite happy with the progress there as well. But all-in-all the -- those results are reflected in our organic calc or excluded depending on which way you're approaching that question. Organic is purely organic, and excluding the period we did not own the businesses from the prior quarter.

Okay, yes. And I appreciate the disclosure just seemed like maybe there was a little bit of volatility, especially in the Upserve and ShopKeep pieces this quarter. So maybe we can talk about that offline. And then, I guess as a follow-up in terms of the locations, excluding Ecwid, you talk about sales productivity now location growth is slowed a little bit here Q-on-Q. I'm just wondering how much that is, perhaps some businesses better offline because of COVID? Or if there's anything else we need to be thinking about in that figure?

Yes, I'll take that one. I mean, of course, Omicron hit in the quarter, but I think ultimately here, churn performed very well at Lightspeed. And I think for us, we're not that obsessed by locations. And I know I say this every -- every quarter, but we could onboard many more locations of customers that would churn within a year. And I think as we move along at Lightspeed, the obsession is really around added MRR. And I think another way to say this is I would rather have fewer customers with a higher MRR than more customers with lower MRR because they're going to be more established, less prone to churn, and more prone to take multiple solutions from Lightspeed. So I think here as we go-forward of course, locations matter. But what matters is to bring on really good customers that do not churn. And that will be with us forever. And so I think that's why when you look at ARPU, you look at ARPU growth. And you look at our churn numbers, they really reflect the fact that Lightspeed is working with more established vendors. And we actually like that. So I think that's how we look at the business. That's how we'll be looking at the business going forward, really here in our mind is what is the added MRR and what is the ARPU of the added MRR and also observing what is going to be the churn of those customers within year one, year two, year three, and really optimizing the business for the long-term.

Your next question comes from the line of Tim Chiodo from Credit Suisse. Your line is open.

Hey, thanks a lot for taking my question. I want to stick with the locations. And I totally appreciate what you're saying JP that we just wanted to get down some of the mechanics. I was actually hoping Brandon maybe you could help me on this. I know that in the past we've talked about in Q1 there were roughly 10,000 organic location ads, but a little bit of that was a boost from some of the reactivation that you saw. And then last quarter there were roughly 3,000 or so but it was impacted negatively from some temporary deactivations, in this quarter is roughly 3,000 organic location addition number maybe you could just talk about the deactivation, reactivation dynamic. How that played out, how that worked into the 3K and I guess what we're really trying to get at is, what was the underlying gross add trend, the churn et cetera. But the deactivation, reactivation would be very helpful.

Tim, a little bit of this, churn, we actually saw a pretty positive quarter overall for churn, so nothing by way of deactivation out of normal. In fact it was one of our better quarters, for churn. So in terms of gross location adds a little bit of a mixed bag there. I mentioned on the call we saw retail do well for us. We're encouraged because Australia, New Zealand begin, it's bounce back. Really what affected the gross location ads in the quarter was just Omicron affecting certain markets, namely in December. So that was a little bit of a headwind for us. JP also mentioned our increasing focus on making sure that the types of customers we're bringing on or the types of customers that drive good long-term LTV. So a little bit of a mix thing happening as well. But I think the biggest notable thing was December was affected by Omicron, mainly in our hospitality business, mainly in Europe.

Okay, I follow you Brandon, thank you. So and I fully appreciate in your prepared comments you referenced that that would have impacted, I guess implied gross adds. Okay, related to this, I just want to shift a little bit to the recent hiring of some of the feet on the street sales teams, the job postings that are available in many major markets. Maybe you could just talk a little bit about this strategy change and what it might mean for LTV to CAC, if anything and how that progress of hiring those salespeople is going?

Yes, I'll take that one. JP here again. Look, first of all, the company is obsessed around LTV over CAC and on every cohort, we look at it and we ensure that the unit economics are very strong, and they have to be normal for it to be very strong at Lightspeed. And so here, very simply put, because we're attaching more and more customers on payments as we bring them in, it give us more room to spend on acquiring those customers. And so I think generally speaking in the markets, where we have very strong attach on payments, so historically, North America, now Europe and Australia, we now have the tactics of saying okay, well, we can spend more to get those customers, which will -- which should grow our revenues long-term. And so I think here going back to the previous question, that we're not trying to get customers at all costs, we're trying to get the right customers that have a high enough ARPU that will not churn and that will be really good long-term customers for Lightspeed. Now talking about foot on the ground, what's happened in the U.S. is, we've launched our U.S. Lightspeed Restaurant Solution which is our new products, we have a strong belief that that is the best product in the industry, I would invite everybody to just look at the interfaces and how beautiful this thing is. But now with that in mind and knowing that we are going to attract higher GTV customers that have a higher lifetime value, we are putting in place a blended model. And the blended model is we will still use marketing and we know how to do this better than anyone, we will still use marketing to drive the leads to our website, we will still use internal sales to qualify those leads. But when those leads are qualified, we will then hand them off to field sales reps in the major cities in the U.S., so that these reps can now go in-person and meet the customer in-person and create a much better experience. And again, why are we doing this because we can now afford it. We can keep very strong unit economics with having people with foot on the ground and we're hoping that's going to be a really good strategy to accelerate. So it's still early days, it's going well; we've hired couple of handfuls of people now. And ultimately, the company's getting ready for the full launch of Lightspeed Hospitality, which will be at the end of this of this fiscal year. So at the end of this quarter, we'll be going out of beta and we'll be going in full fledge in public releases. And that's when we want to have everybody on the ground trained and just accelerator our penetration of hospitality in the U.S. market.

Your next question comes from the line of Daniel Chan from TD Securities. Your line is open.

Hi, good morning. Brandon, do you have a view of when you reach breakeven? I'm just trying to get color on some milestones as you move towards that 20% target, you set out on your Investor Day?

It's a priority, Dan. Specific timelines we haven't given yet. We'll provide our annual guidance in our upcoming quarter, I believe it.

Okay, that's fair. And then you've also got a billion dollars of cash on the balance sheet given that valuations have contracted significantly, what's your view on acquisitions at this point?

Yes, I'll take this. I think look, we've been very active. So we acquired well seven companies in a year-and-a-half something like that. We are now really obsessed around execution. We have a very strong strategy with regards to our supplier network; we have a very strong strategy with regards to one like big brand and ensuring that we have one product globally for each industry. That's really the focus of the business right now. Of course, if we see some and we've always said there are companies we love, there are companies we don't care about in the industry, if we see some of the companies we love and which we have incredible relationships are on the market and there's opportunity, we'll look at it at that time. But for now, the obsession is path to profitability, sustained growth and really ONE Lightspeed which is launching all these products globally.

Your next question comes from the line of Thanos Moschopoulos from BMO Capital Markets. Your line is open.

Hi, good morning, and congrats Dax and JP on your new roles. Brandon, maybe please clarify on the 35% to 40% growth targets. I know you're not providing formal 2023 guidance at this stage. But is it safe to assume that that's the level of growth that is achievable for 2023?

Yes, we made that comment in our prepared remarks as we look beyond the upcoming quarter and into the future. As we sit here today, we remain confident that we can continue to achieve those.

Okay, great. Just clarifying that point. And just going back to the current business trends in January, you talked about the GTV and the normal seasonal trends. What about churn I can imagine there has been some uptick with Omicron. And in terms of software, ARPU, any discounting that you're doing on the back of that or is that a --?

Yes, churn is in line with the expectations, it's always obviously a quarter with higher churn at the end of the fiscal year. And as you know, most of our churn at Lightspeed is business failure, like most players in the SMB space, but there's nothing out of the norm.

Thanks. Finally on attach rates, can you just comment on what you're experiencing in Europe and Australia, I mean do those continue to trend up now post-launch along the trajectory that you saw in North America, or has there been different dynamic in most geographies?

So on the sales motion attach rates are arguably better than when we launched in the U.S. So we are and we're getting very close to similar attach rates. So we're very happy with the sales motion. As you know, when you launch payments in a region starts with a sales motion, and then your customers starts coming in, and then you need to ignite them. So you need to get them to terminal and you need to be sure to and that's really been the big focus right now is to getting all these customers that want to buy from us that have signed a contract active. And another maybe point that we could share is nobody wants to change terminals during the holiday season. It's a very, it's a season where they make most of their revenue. So we're now in the phase where all of these very strong sales are going to convert into GTV.

So occasion penetration rate, you'd probably be tracking somewhere about GTV penetration later [ph]?

Yes, [indiscernible] well we did say 195% increase in active customers on payments and yes, so it is tracking quite nicely with the overall revenue.

Your next question comes from the line of Josh Baer from Morgan Stanley. Your line is open.

Great, thanks for the question. Wanted to ask around the plan for getting customers over to the single restaurant flagship platform and then eventually retail once generally available, just as far as timeline for doing so. What kind of lift like, what does it entail will be a seamless migration, should we expect an increase in professional services or support costs, if you could just talk about that transition plan?

Yes, so we -- yes, I mean, it's in our D&A. We've done that a number of times; we evolve customers throughout the years onto different platforms. So we have onboarding teams that are very acquainted to doing this. For us, the goal here is to first of all provide the best platform in the world. So as an example, our new Hospitality now has been launched in many countries. We need to launch it everywhere. And then once that's launched, what we do is we have all of our account management teams and onboarding teams that put together promotions where to support the customers. And really the reality of this is customers go from a single point solution to a platform that does weigh more. So as an example, you know our new Hospitality has analytics that nobody else has, and actually in any of the competitors in terms of analytics that we can provide to Hospitality. So there's enough hooks that the customers are going to be willing to move. And then it's just a question for us of converting them. It's not a question of weeks or months, it's really a question of days to get customers ported over. And we're very acquainted to doing this because we've done it many times before.

Got it, that's helpful. And then in thinking about that move to single platform, can you talk through some of the impacts that we should expect to COGS and to OpEx lines?

Yes, the more we can, more we can integrate and the more quickly we can integrate, the more leverage on those operating lines, a lot of work has already happened on that respect. We are showing improvements year-over-year in terms of business model leverage. But, yes, the more we can do and consolidate infrastructure, consolidate development resources and everything, obviously has a lot of lot of ongoing leverage for us.

Your next question comes from the line of Richard Tse from National Bank Financial. Your line is open.

Yes, thanks. You commented on sort of the amendment to the revenue sharing contracts and payments. My guess is that it was primarily due to volume. What do you think the upside is to negotiate those contracts as you bring on further volumes?

Tough to give you a precise number there, Richard. I think this is an ongoing exercise, we've done this actually a couple of times now, at least since we became public. I think it's overall great news, we've always said that scale. It's particularly important to this part of our business. We're finding these partners hungry to work with us, given the scale we're building and the progress we're making. And that puts us in a good position to continue to improve net take rates for us over time. Tough for me to give you a precise number though, Richard, other than we expect to make this a part of our ongoing way of doing business looking forward.

Right. Okay. And JP, in your prepared remarks, you talked about supporting some of the acquired platforms as you convert them so to Lightspeed. How long do you think it'll take to have those conversions entirely complete?

You know supporting a platform versus developing new functionality. I mean, there's no comparable in terms of resources. So what we've done immediately after all these acquisitions, is we've taken at least 80% of all the developers that were working on all these desperate -- disparate platforms, sorry. And we brought them to our core platform. And that's why and that's the -- that's how we can get to so much progress so rapidly with our core platform. So in other words, the business models that remain are extremely profitable because most of the resources now ported onto the new platforms, and with 20% of the developers, and then all the customers paying a monthly fee, it makes those platforms very profitable. So I think that's the first comment. The second comment is we do is core to our customers business. This isn't ERP, what we offer is not just a glorified cash register. What we offer as a platform is the ERP of the restaurant of the store that manages everything for them. So we cannot force customers to move on to a new platform. We have to go with their rhythm. And so that's why we made the first move to be sure that whatever the rhythm they want to take, it's a very profitable venture. So I think the third comment I'm going to take is, it's going to take a couple of years before we can get all the customers onto one platform -- the maintenance of those platforms doesn't require a lot of resources. We want to ensure that the core platforms and new platforms are the best out there so that they can attract as many new customers as possible. And they can also attract as many existing customers to be reported as possible. So we're building a lot of functionality on the new platforms that are not available on the old ones that our customers are inclined to move over.

Okay, great. Thanks for that Chauvet. Just a quick last one for me. When you look at certain metrics like ARPU just like you disclosed this quarter, given Ecwid come to a sort of a lower relative ARPU. How do you plan on reporting those metrics going forward here?

We'll continue to breakout while we can, Richard, being transparent on how some of these different business types affect the overall results. We think it's important for our stakeholders. So we'll continue to try and be transparent and helpful on all that. We think it's important that you continue to track our underlying progress on ARPU. It's important part of our business strategy. And we do think it's important that you can continue to track our progress there.

Next question comes from line of Josh Beck from KBCM. Your line is open.

Thank you, and just wanted to say congrats, Dax and JP on the new roles very exciting. I wanted to ask about what you've learned with this hospitality platform launch, obviously, you've gotten very far, and you're just about out of beta. But just curious what you've learned and kind of how that's going to impact the retail omnichannel launch, and how we should think about the timing there?

Well, look I think bottom-line we're very excited, very happy with the progress. We -- I think, for me, this proves that these acquisitions were the right moves. I mean, we've managed to completely relaunch a product within a very short amount of time. And we've seen tremendous success. So Europe is now launched and incredible success in Europe. And now we're starting to launch this in the U.S. we're in line with where we want it to be. And as I said, we're really getting the team's ready for a full launch. I think what -- again, it's not the first time that we bring a product to the U.S., it's not the first time that we launch a new product to the market. So I think we're very well oiled. And everything is very much in line with what we're expecting. I think the last thing we've learned is that our product has real advantages compared to the market. I'm happy to walk you through those on the one-on-one, but we're very excited about the product. And we feel really strongly about how competitive this is going to be.

Excellent. And a follow-up question, really about the long-term growth algorithm, the 35% to 40%. If I listened to a lot of the commentary on the call, it certainly seems like you're focused on really MRR quality. It certainly seems like, investing in CAC so. Is the location growth in the mid-teens type of rate range, the right metric, or is there a chance that could be augmented and replaced with more ARPU growth. Just kind of curious on some of the puts and takes around the long-term algorithm?

Yes, I'll start Brandon, and then you can jump in. Look, I think, for me, it's very simple. I mean, we are a business, the way we need to run this business is being sure that we have a strong organic growth and a strong top-line growth and that we get to profitability. So with this in mind, we're going to use all the tech we have and all the knowhow we have in acquiring leads and closing leads to ensure that we optimize throughput. That's ultimately what this business is around. And so I think that's really going to be the obsession. And when we look at the drivers of growth, they're very simple. We are more and more competitive. So we shouldn't see very strong input of customers. And I don't know the count, but if they're going to be good customers that are -- that have good long-term value for Lightspeed. The second thing, we're very sure about is ARPU of software alone is going to continue to grow because we have a ton of modules and our customers buy more from us over time. And then the third thing we're certain about is that the launch of Lightspeed things [ph] has been a tremendous success. And now we have it available. And we're going to have it completely available in every region by the end of this fiscal year. And that's going to be a huge driver of growth also for top-line and bottom-line. So that's how we look at it and that's why we're really bullish about the business today. And we're very -- yes, I mean, we're very comfortable around this 35% to 40% growth long-term.

And that is all the time we have for questions. I will turn the call back over to Mr. Papageorgiou for closing remarks.

Okay, thanks everyone for joining us today. I just want to remind everybody there were quite a few questions on Lightspeed Restaurant. We will be having a webcast next week on Tuesday at 12:30. We'll be going through that platform and JP will be joining us for a Q&A session at the end. So look forward to hosting everybody then. Thanks for joining us again today. If there's any follow-up questions please feel free to reach out to the Investor Relations. Thanks everyone and have a good day.

This concludes today's conference call. Thank you for your participation. You may now disconnect.