Thank you for standing by, and welcome to the Lightspeed Fourth Quarter 2024 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. I'd now like to turn the call over to Gus Papageorgiou, Head of Investor Relations. You may begin.

Thank you, operator, and good morning, everyone. Welcome to Lightspeed's fiscal Q4 2024 conference call. Joining me today are Dax Dasilva, Lightspeed's Founder and CEO; Asha Bakshani, our CFO; and JD Saint-Martin, our President. After prepared remarks from Dax and Asha, 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 earlier today, our fourth quarter 2024 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 and ratios. 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+, and on the SEC's EDGAR system. And finally note that because we report in U.S. dollars, all amounts discussed today are in U.S. dollars, unless otherwise indicated. With that, I will now turn the call over to Dax.

Thanks, Gus, and welcome everyone. As you are well aware, I've recently returned as Lightspeed's CEO. I'm excited and energized to be back in this role and look forward to guiding Lightspeed through the next phase of its evolution, a phase that will be defined by profitable growth. So far, we are off to a great start. I'm happy to announce that this past quarter we delivered revenue of $230.2 million, up 25% year-over-year, ahead of previously established outlook, and adjusted EBITDA of $4.4 million. For the full fiscal year, we grew revenues by 24% to $909.3 million and delivered on our promise of breakeven or better adjusted EBITDA. And I am very proud that payments penetration came in at 32% this past quarter, meeting our target of between 30% to 35% by the end of our fiscal year. Our unified payments initiative has been a resounding success, and I want to thank everyone at Lightspeed that was involved in this effort. It highlights how effective this organization can be when we set goals and work together towards achieving them. I founded Lightspeed with the aim of helping independent businesses bring life into our cities and neighborhoods by helping them create exceptional customer experiences, the kind that stand out from the crowd. Our role is to empower these players with technology that was once available only to large enterprises. And this quarter, we were honored to add a host of compelling new customers, including: the five-star Hôtel les Roches Blanches in Cassis on the southern coast of France, which adopted Lightspeed Restaurant to operate their four beautiful restaurants and luxury villa; Johnston Canyon Lodge & Bungalows in Banff National Park, which has chosen Lightspeed to power their restaurant and café; NASA's Langley Research Center, which selected Lightspeed Retail to operate…

Thanks, Dax, and welcome everyone. Lightspeed had another great quarter. I will walk you through our year and latest quarter's performance, then outline some of the cost reduction and margin expansion efforts for fiscal '25, discuss our recently announced share repurchase program, and close with an outlook for the upcoming quarter and fiscal year. On results, most of my commentary will be focused on Q4, but first, I'd like to highlight a few elements from our full fiscal 2024. We delivered on our key goal in 2024. We significantly improved payments penetration and we achieved positive annual adjusted EBITDA for the first time. Total revenue of $909.3 million grew 24%, surpassing our outlook for the year of between $895 million to $905 million. Subscription revenue was up 8% and transaction-based revenue up 37%. We had a net retention rate of approximately 110%. Gross payments volume as a proportion of GTV ended the year at 32% versus 19% at the end of last year. Adjusted EBITDA improved by $35.1 million to $1.3 million. We ended the year with total cash and cash equivalent of $722.1 million, with our capital program using approximately $51.3 million in cash for the year. In terms of the quarter, Lightspeed had another great quarter, with revenue coming in at $230.2 million, ahead of our previously established outlook, and growing 25% year-over-year. Our positive adjusted EBITDA in the quarter was $4.4 million. And our unified payments efforts continue to increase the monetization of our trailing 12-month GTV of $90.7 billion. Subscription revenue increased 7% year-over-year to $81.3 million. Gross margins on subscription revenue came in at 77%, an increase from 75% in the same quarter last year. When removing the impact of share-based compensation expense, gross margin on subscription revenue was 78%, up slightly from last quarter,…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Your first question comes from the line of Dan Perlin from RBC. Your line is open.

Thanks. Good morning, and nice results here. I just wanted to touch on the pivot of the sales force going back to subscription-based revenues away from payments a little bit. And just -- the question there is, obviously, we've got a ramp into the second half as you were just describing, is there any expected fallout in terms of payments penetration as a result of that? I know you're saying it's going to continue to climb throughout the year, but I'm just wondering how that interplay is going to work since -- when you pivoted to payments, it obviously drove an enormous, and if you're pivoting away, I'm just wondering how you're thinking about that penetration rate throughout the year? Or are you just suggesting that because now it's so unified that if you're just selling subscription, payments will follow? So, thanks.

Yeah, thank you for the question. JD Saint-Martin here. Maybe let me start just by saying when Lightspeed is focused on something, we get it done. And to your point, last year the focus was really unified payments, and you can see the results in top line and bottom line. That said, what I'm most excited about is all the foundational work behind the scenes that we did that sets us up for the future, and we don't always get credit for that. After all our acquisitions, we've moved to a single flagship per industry, moving to a single tech stack of systems and tools that will really set us up incredibly well to drive innovation to our customers and ultimately also run the playbooks that allows us to continue to gain market share in the segments that we focus on. As far as the AM motion is concerned, you know, from a go-forward perspective, as we come out of unified payments and that program, our AM team is rotating back to a balanced approach of cross-selling payments as well as upselling software and mitigating churn. As you know, our AM team is a driving force here at Lightspeed, typically accounts for about 50% of our software bookings. So, you can expect substantial improvements throughout the year as we drum up pipeline and it makes its way through to revenue from a subscription perspective. It's worth highlighting beyond AM as well, on the new customer front, we have various initiatives that will drive more sales in the $500,000-plus segments and ultimately that will have a positive impact on subscription and payments. Worth highlighting that our flagship products have a higher ARPU and that's going to make its way through. But that said, payments is still a focus. It's one of our OKRs this year and we're going to continue to make progress on payments penetration, 32% is a step forward, but there's a lot more coming. Asha, maybe you want to touch on that?

Yeah, sure. So, thanks for the question, Dan. With respect to payments penetration, JD just touched on the subscription, but from a payments penetration perspective, as I said in the opening remarks, it's inevitable that we continue to monetize more and more of our GTV through payments because now we're selling our software as one unified platform with payments. So that ultimately means that the majority of any new GTV coming in will be monetized on payments right away. And we've said in the past that we expect to end fiscal '25 in the 40% to 45% range on payments penetration, and we're still confident with that trajectory.

That's great. Can I just ask one quick follow-up on transaction gross margins? And here the question really is the interplay between like Lightspeed Capital and then you've got, I guess, instant deposit and the payments gross margin, obviously, which is lower, but the transaction margin held in pretty good this quarter on a sequential basis. And I'm wondering, as we think about the cadence for next year, is it possible that we could have kind of flat to up margins, maybe not for the full year, but just in any one of those sequential quarters? Thanks.

Yeah, sure. You've heard us say this before, there's lots of puts and takes in the transaction gross margin, but you're absolutely right, we expect it to be stable or even higher than what you're seeing today. And I'll give you the pluses and the minuses that are driving that. On the residuals piece, as payment residuals come down, as we move these customers over to Lightspeed Payments, we get more gross profit dollars. So, it's great for Lightspeed, but it does put downward pressure on the transaction-based gross margin. On the other side, however, we're growing our capital business. It's still a nascent business. We did under $20 million in revenue in fiscal '24. We're expecting to grow that quite nicely. That comes in at 95% gross margins, so that pushes up the transaction-based gross margins. And last but not least is the international expansion on Lightspeed Payments. As you've heard from us, the gross take rates are lower in Europe and APAC. They're in the 1% to 1.5% range. But the net take rates are in the 35% to 40% -- 35 bp to 40 bp range. And so from a gross margin perspective, Europe and APAC actually has higher gross margins than what we see in North America. They're in the 30%, 35% range. And so, all told, all of those factors together does result in pushing up the overall transaction-based gross margins for Lightspeed.

That's great. Thanks so much.

Your next question comes from the line of Andrew Bauch from Wells Fargo Securities. Your line is open.

Hey, good morning, guys. Dax, great to hear you back. Maybe we can just start there. You've been involved with the company over the last two years, but not at the helm. So, maybe just taking a step back and how you're thinking about the business going forward now relative to the last time you were in the seat?

Yeah. So, excited -- super excited to be back. It's been a great 90 days working with the team. We're in a new phase. This is the profitable growth phase of Lightspeed. So, thrilled to be leading this period of the company. I think for me, how that breaks down is, in fiscal '25, we want to accelerate software revenue growth. JD outlined very well how we're going to go about that. I think we have very compelling products that are tailored for our ICP customer and we have a very compelling customer journey that we're also tailoring across a land, launch, manage and support for that ICP. I think we're going to be the software vendor that meets their needs better than anyone else. We can serve this customer better than anyone else. So, very excited about seeing software revenue grow in fiscal '25. The second part of the profitable growth strategy is continuing payments penetration, as Asha just mentioned, ending the year between 40% and 45%. And then finally, operational efficiency. This has been our laser focus for the last 90 days, and we will continue to find operational efficiencies throughout the company. And I think we have our marching orders for the year. And you'll see that we're balancing growth and profitability in our guide for fiscal '25.

Got it. And then maybe I'll just ask the macro question. A lot of your verticals that you play in have a lot of sensitivity to the macro. So, maybe anything that you've seen through May at this point that's worth calling out, be it from points of strength, or places that are maybe under a little bit more pressure?

Hey, Andrew, I'll take that one. So, with respect to the macro, what's contemplated in our guide is very much what we've seen in fiscal 2024. You've heard us say throughout fiscal 2024 that there's certain retail verticals that still haven't come back to pre-COVID levels, bike and home and garden in particular. Their same-store sales are flat or slightly down in those verticals. And we're continuing to assume those same numbers when we look to fiscal 2025. And despite that, we're confident that we could grow the top line at least 20%. So, what that means for Lightspeed is when those verticals do come back to growing same-store sales year-over-year, it's a much better outcome for us.

Great. Thank you, Asha.

Your next question comes from the line of Trevor Williams from Jefferies. Your line is open.

Great, thanks. Good morning. Appreciate you taking the questions. And this is kind of a follow-up to what Andrew was just asking. Just on GTV growth, so the up 2% this quarter, if you could unpack some of the moving pieces within that? I mean, it sounds like there's still some macro pressure in some of those retail verticals, location churn kind of at the low end. But anything else worth calling out there? And I know you guys don't guide GTV growth, but if you could just give us a sense for how quickly you think GTV growth can start to reaccelerate? Thanks.

Yeah, sure. I'll talk about Q4 first. So, I think the first thing that we want to highlight is that GTV growth in our flagships has grown 29% year-over-year. And that's really encouraging for us. Even when we look at same-store sales, when we look at the same-store sales and the cohort of customers that are on our flagships, that's grown year-over-year, which is not what we're seeing overall in our portfolio, which includes non-flagships. And so that tells us that we're targeting the right customer base and that we are increasing our overall base of customers with the right mix. For Q4, overall GTV was about 2% up -- 2% year-over-year. And that was heavily influenced by two things. One is the non-flagships that I just talked about, and second was the weather-related issues that we saw in January. You heard that from several others in the industry as well. In particular, it impacted North America hospitality. And because North America hospitality is a big portfolio for us, that did impact the overall GTV growth at 2%. As we look forward into fiscal 2025, you heard from JD earlier that we've got a very aggressive plan on growing software revenue, which we're really excited about. And more customer locations, more customer locations in our ICP, more customer locations on our flagships, all mean better GTV growth. So, even though we're not guiding GTV growth, we are assuming GTV growing at healthier clips than we saw in fiscal '24 because as you know, fiscal '24 was all about unified payments for us. And with fiscal '25 being focused on increasing our ICPs, increasing our location count in that cohort, we expect GTV to grow as well.

Okay, great. And then on GPV, could you just give us an update today on where we sit on the mix between US and international? And then within that, 40% to 45% target for this year, and how you see the mix changing as part of that? Thanks.

Yeah, for sure, Trevor. So, we don't disclose, actually, the overall portfolio or GPV between US and international. But what we have said in the past, and I'll reiterate, is today the majority of the GPV is still from the US portfolio. But that is changing. From about a year ago, I would say in fiscal 2024, the international portfolio has pretty much doubled because of the unified payments efforts. So, even though it's lower than in the US, international portfolio is growing, and I alluded to that earlier when I talked about expanding margins and the transaction-based revenue.

Thanks.

Your next question comes from the line of Raimo Lenschow from Barclays. Your line is open.

Hey, thanks. Congrats from me as well. Two questions. One is on the reacceleration of the software part. Obviously, there's going to be a benefit from the sales guys refocusing. And then, like the other initiative, can you split that into -- is the bigger effort coming more from just kind of refocusing the sales guys, or is it more like the product go-to-market changes there? And then, I had one follow-up for Asha.

Yeah, I mean, as I said earlier -- JD here, thank you for the question. So, if you look at our go-to-market motion, historically, our AM team represents about 50% of our software bookings. So, going forward in our land-and-expand model, we're expecting to go back to that healthy balance. And so, to your point, you can expect the subscription line to accelerate going forward. It's probably worth highlighting, too, that we have opportunities from a pricing and packaging perspective that will create additional opportunities for a subscription line and that will play out throughout the year.

Okay, perfect. And then -- thank you. And then, Asha, if you think about the cost actions you took last year and this year, in a way, there's usually a lag effect. So, can you talk a little bit about, like how you see this kind of feeding into your P&L this year? And then, are we done with those efforts now? Or like, how do you see this going forward in terms of optimization of the business? Thank you.

Sure. Thanks for the question, Raimo. So, with respect to the restructuring that we announced early this quarter, so April 3, we do expect to see the benefit of that for the majority of fiscal 2025. The restructuring will be substantially complete in this quarter. So, definitely benefits the full year from a cost perspective. In addition to that, and we said that in the opening remarks, we're looking outside of headcount. We're trying to rationalize our footprint in different offices, we're looking at our IT licenses, and we continue to find cost synergies and expect that we will continue to do so as we move forward quarter by quarter.

Perfect. Thank you. Well done.

Your next question comes from the line of Matt Coad from Autonomous Research. Your line is open.

Hey, good morning, guys. Thanks for taking the question. I wanted to touch on the One Lightspeed initiative. It's great that you kind of have 100% attach rate of flagship products for new merchants. I kind of wanted to go back to the topic of converting your back book of merchants over to the flagship products stuff. Curious if you could give us like any numbers, maybe on what percentage of locations are on your flagship products or what percentage of your volume comes from your flagship products? And then like what is the path forward to getting more of your customers over to those flagship products?

Yeah, thanks for the question. First of all, the non-flagship platforms are profitable for Lightspeed. Very little in the way of R&D costs and low support costs. But we are focused on creating an easy upgrade path to the flagships. So right now, we're focused on having migration tools that easily transfer data and configuration, because people do -- our customers will want -- some segments of them will want access to the product innovation that's happening on our flagship products. So, the upgrade program, it's a retention play for customers that have reached the limits of our non-flagship products and are looking for more functionality. And of course, ARPU is higher on the flagship products and creates revenue expansion opportunities. So it's a opportunistic sort of upgrade path. And we're creating that path right now with the tooling and that will happen as the year goes on.

All right. Awesome. Thank you. And then just for my second question, I wanted to go back to Lightspeed Capital. Like you mentioned, revenue growth there has been robust. Curious if you guys could kind of like touch on your game plan for this business maybe three years out, like how big can this revenue line get for you? And then as the business scales, do you plan to only utilize your balance sheet, or do you plan to kind of pursue more of like a forward flow model?

Yeah, sure. I'll take that. Thanks, Matt. From a Lightspeed Capital perspective, there is, you know, a huge opportunity. I'll start by saying that. When we look at our peers that are doing capital and have been doing -- having capital for a long time as a part of their business, they're giving out about 1% of their GTV in merchant cash advance. If we were to do 1% of our GTV, that's, almost $1 billion in merchant cash advance. So definitely, a ton of growth potential for this business. What we plan on doing is growing this business very cautiously given the macro. As we've said before, we are in the perfect position to underwrite our customers for capital, determine the creditworthiness of our customers and how much they should be underwritten for. And we've had great success with the business so far, but again, growing it in a very steady and cautious manner. We don't expect that we would use our balance sheet for several hundred million of merchant cash advances underwritten. We're already in talks with partners. There are lots of interested parties because they recognize that Lightspeed is in a great spot to underwrite customers. So, we're already in talks with partners today. We have from, at any given point in time, $50 million to $60 million outstanding from merchant -- from this merchant cash advance business, and that may go up to $100 million, but we're not planning to leverage our balance sheet for much more than that.

Really helpful. Thanks, Asha.

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

Great. Thank you for the question. I wanted to come back to software and just thinking about the ramp to 10% to 15% growth. You mentioned land, expand, and pricing. Was hoping you could give some color on the contribution, the breakdown, how much growth is coming from pricing? What's really driving that? How much from customer growth? Wondering if the non-Ecwid customer count can grow in fiscal '25. And on the expand, what's the contribution and which modules are driving that? Thank you.

Yeah, thank you for your question, Josh. I don't think we would disclose the breakdown per se, but I mean, obviously what you can expect is as our AM team is rotating back to a balanced approach, historically, that team was focused on selling software, focused on selling and cross-selling payments, but also mitigating churn. So, that's going to be a big part of our story this year, and that's going to have an impact on subscription revenue. And then, on the new customer front, we have a lot of initiatives. It's been touched on by Dax earlier, but we're really evolving our approach as far as how we land customers that are in that $500,000 cohort. We're going to do more account-based marketing. We're up leveling our outbound efforts. We're up leveling our partnerships. And so, that's bringing in not only customers that have bigger GTV, which is great for payments, but these are customers that have more registers, more locations, and so they have needs for more software. And so, you can see the impact on the software ARPU as well. And then, lastly on pricing and packaging, you'll hear more from us in the coming months. Obviously, this is an effort that we have to roll out across our portfolio. We have multiple products, multiple regions, and we want to start by communicating with our customers first and foremost. But we haven't touched pricing and packaging in a long time. And especially as we drive more innovation, there's an opportunity to look at how we bundle software modules. And so, that's also going to impact this year in a positive way and also in a sustainable way for future years to come.

Thank you. That's helpful context. And just on the modules, like not specific contribution, but what are some of the key modules that are -- that customers are adopting?

Yeah. So on the retail side, our customers come to us because they have complex omnichannel requirements, right? So from a module perspective, already you can see a very strong attach rate on e-commerce and we continue to invest in that product and there's a great opportunity to really improve that. And then, once they're leveraging our platform for front of the house, from a retail perspective, then on the back of the house side, we're driving a lot of innovation around analytics and insights. And some of those insights are now leveraging payments as well, which adds another layer of information which is critical and crucial and ties into also customer loyalty. So, on the retail side, we've made a ton of progress with our X-Series flagship and there's a lot more coming up in the coming weeks that I don't want to share a spoiler alert, but that we're very excited about. And then on the hospitality side, as you know, we're known for insights module. It's probably the gold standard in the industry as far as the type of insights and analytics that we can provide. And so, we've added Lightspeed Insights to our flagship offering on the hospitality front, starting with North America and more recently in EMEA and both UK and now Continental Europe. And we're seeing strong attach rates there which drives ARPU upward. And then, the way our pricing works on both sides is also based on register count. And so, as we sign bigger customers, they by default add more registers, which in turn drives subscription upward. So, kind of another halo effect on top of the modules that we benefit from as we sign bigger customers.

Great. Thank you.

Your next question comes from the line of Tien-Tsin Huang from JPMorgan. Your line is open.

Thanks a lot. Hey, Dax, good to have you back. I wanted to ask you, you mentioned product strategy being a focus, of course. Just the big picture question of depth versus breadth, as you think about the go-forward on the product side, what's your priority?

I think it's depth. It's depth for the ICP customer. And as I was saying before, we want to be able to serve this customer. We already do serve this customer better than any other player. This is the complex segment, the merchant that's got complex inventory or in the case of hospitality, complex workflows. And we go deep. We go deep and not only on the product innovation side, but also on the customer journey side, how we land, launch, manage and support that customer. We're using a -- we're going to be leveraging AI to help merchants make -- to give them recommendations, to help them forecast, to remove mundane tasks. So, we're already delivering value on that front. On retail, continuing to build our competitive advantage. Those -- that complex inventory management need is served better than us than anybody else managing multiple physical locations. In restaurant, we want to continue to improve the capabilities of our flagship restaurant product. Analytics, as JD pointed out, is a real strength of that product. Nobody does insights better than us. On B2B, we want to continue to build out that product, making it more seamless for retailers and brands to do business with each other. Capital that's being built into the retail software, and that's more than doubled in this last year. And of course, another financial service that's come out this year is instant payout, launched in the US retail this past year, we're going to expand on that.

Perfect. Thanks for going through that. Just my quick follow-up. Then, just in your view, North America restaurant, I know it gets a lot of attention on the stock side. As you've taken a look at that product and how it's performed, what's your assessment there and your -- their outlook for investing in the product? I've seen it certainly more my personal experience here.

Yeah. A lot of our base is in Europe where we're very strong in fiscalization. But I think in the US hospitality market, we have strengths on the insight side and the analytics side. We have a large base in the US and we believe that we're going to compete hard for ICP customers in this market. Restaurants integrated with hotels, table service, fine dine, resorts, this is where Lightspeed really excels in terms of its feature set.

Perfect. Thank you.

Your next question comes from Dominic Ball from Redburn. Your line is open.

Hello, Dax, Asha and Martin. Thanks for your question. So, some of your competitors have announced or enacted price rises. I think you mentioned in your opening remarks as well about updating pricing across some of your products. Can we get a bit more color on this? And is there a possibility to increase prices on payment rates as well? And any timeline associated with this would be great. Thank you.

Yeah, thank you for your question. JD Saint-Martin here. Yeah, so as I said earlier, right, we haven't touched a lot packaging, and there's a real opportunity on that front. So, part of your question is more on the subscription side. We see there's an opportunity there. We want to be conscious of what we announce on this call. Like, we want to first communicate to our customers. And it's a rollout that will take time and will roll out throughout the year across different regions, across different product lines. But there's absolutely an opportunity to rethink our packaging on the front book side from a new customer perspective and then opportunities on the back book for existing customers to align existing customers with our new packaging on the front side. You touched on payments. Yes, there are also opportunities on that front. As our portfolio grows, we continue to see opportunities there and that's also part of that journey. We want to make sure when we touch pricing and packaging that we look at it from a holistic point of view now that we're both a software and a payments offering. And so, simple answer or quick answer to your question is that there are opportunities on that front as well.

Thank you. Super useful. And just one more, any further details on the transition from legacy products to the flagship products? Last time, we heard it was 30% of merchants. Can we get an update on this?

Thanks for the question, Dominic. We have about one-third or actually a little more of our overall base that's on our flagships today. With respect to the non-flagship products, Dax talked about it a little bit earlier, but these platforms are profitable today. There's very little R&D costs associated with them. There's very low support costs associated with them, because the customers are familiar with those products and have been using them for several years. What we are focused on now is creating an easy upgrade path to the flagships. We want to make sure that our -- migrating to the flagships is not disruptive for our customers, that we've got the right migration tools to transfer the data, to configure their systems overnight. And so, that upgrade program for us is a retention play for customers that have really reached the extent of how they could use the non-flagships and are actually looking for more functionality because the new functionality is obviously being built on the flagships. And then last but not least, ARPU is much higher on our flagship products. And so, that creates nice revenue expansion opportunities as we do that migration. So, you'll hear more from us on the sunsetting of non-flagships and we plan to go product by product.

Cool. Sounds good. Thank you.

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

Yes, thank you. This is James sitting in for Richard. Could you just give us an update on the B2B opportunity and whether you figured out what the revenue model will look like?

Yeah. We're excited about this product. We've got it integrated into retail. For example, we have customers that can browse catalogs now from within our retail product on new order and can also import purchase orders back into Lightspeed so that those POs can be received. This -- for example, we have a customer that we've spoken about called CSP -- CVS, and they're basically able to save 40 hours a week in basically very repetitive tasks by being able to enable this workflow. We're certainly looking forward to being able to monetize this further. We'll have more news on how we monetize that payments flow. For now, we've got a number of customers that are piloting the functionality -- the purchase order functionality, and we hope to give more of an update at the Capital Markets Day.

Okay. And then just one follow-up here. With respect to the investments you talked about, could you just elaborate a bit on what those investments would be when it comes to sales and marketing, sorry? Is it adding new salespeople? And then on the marketing side, like what do you think you need to do to scale the Lightspeed brand?

Yeah, thank you for the question. JD here. So, I think Dax and Asha touched on that too. But really the investments is across the customer experience. As we said, our focus last year was unified payments. Our focus this year and beyond is going to be really our ideal customer profile and landing and retaining more of these customers. So, in order to do that, we're investing across all the steps of our customer experience. On the land front, as we land customers, Lightspeed has been historically known for a very strong inbound performance marketing motion and we've really perfected that and we'll continue to do that. We also want to balance that with more outbound and more partnerships. If you look at last year, outbound represented about 10% of our bookings from a new business perspective, and we want to double that this year and we want to continue to raise that bar as the years progress. Partnerships is also a strong motion for us and we want to continue to raise the bar on that front to get to about 25% of our bookings from a new business perspective, that's coming from partnerships. From an onboarding and launch perspective for ICP customers, we want to increase our coverage of one-to-one launch specialists per customer to make sure that our customers are having a great experience going from signing up with us to being transactional and live and using the full suite. And then, on the managed side, we touched on AM quite a bit on this call, but we want to increase our density of account managers and really improve our book coverage for customers that are in high GTV segments. So, adding account managers where it makes sense and where we can really build a strong relationship with these customers and that's going to set us up nicely for more expansion down the road. And then lastly, on the support side, we're really evolving the way we provide technical support to our customers. And then specifically for ICP customers, we're launching new white glove service offerings for the $500,000-plus, the $2 million-plus, the $5 million-plus GTV cohorts. So, it's really an evolution of our customer experience across all these steps. And obviously, that's a cohort of customers where the LTV over CAC is very strong for us, the unit economics are very strong for us and so we feel confident making those investments will generate the right ROI for the business.

Okay. Great. Thanks. I'll pass the line.

That concludes our question-and-answer session. I'll turn the call back over to Gus Papageorgiou for closing remarks.

Okay. Everyone, thanks for joining us this morning. If anyone has any follow-up questions, we will be around for the rest of the day, so please feel free to reach out. And we look forward to speaking to everyone when we report our next quarter. Thanks again everyone, and have a great day.

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