Lightspeed founder Dax Dasilva hands over the Montreal cloud-based commerce company’s guides to Jean Paul Chauvet and will now lead the board of directors, replacing Patrick Pichette, who retains a seat on the board as an independent director main.
Posted at 6:41 p.m.
JP Chauvet, 49, thus becomes CEO of Lightspeed. He previously held the title of president and therefore adds that of CEO that Dax Dasilva had.
At Lightspeed since 2012, and president since 2016, JP Chauvet was already responsible for most departments, except for finance and human resources. These two responsibilities now fall to him.
Dax Dasilva, 45, explained in a telephone interview that the discussion surrounding management changes dates back to last spring. “You always have to adapt to the needs of the company,” says the new chairman and director of the board of directors.
“It’s my 17and year with the company, and JP has been here for 10 years. It really is our baby, and we will take on new roles for the next stage of the journey. »
JP Chauvet speaks for his part of a “natural transition”. He says the time was right because of what the company needs to accomplish to fulfill its mission for the next five years. This plan was presented to analysts and investors on November 23 during the day of detailed presentations intended for market participants.
The attack on Spruce Point Capital
Lightspeed was attacked by a short seller four months ago. The company’s stock market value has been falling since the release of Spruce Point Capital’s negative report. The stock was worth $142 the day before this report was released at the end of September. The stock has since lost more than 70% of its value during a period when tech stocks as a whole went through an intense period of volatility. Lightspeed closed at $40.76 on Wednesday in Toronto.
“We have accelerated growth. We integrated acquisitions. We have extended our payment solution. What we have learned in recent months is that perception has nothing to do with reality,” says JP Chauvet.
“We’re not preoccupied with the short term, but rather obsessed with long-term customer value, and I would say our investors think like us,” he says.
“You have to distinguish the rational from the irrational,” he adds. To maintain investor confidence, we must continue to do what we say we are going to do. We maintain our growth forecast of 35% to 40% for the next year and we expect to achieve profitability during the next fiscal year. We have to gain market share now, but we have to find the balance between growth and profitability. »
Asked if the company intended to release funds to buy back shares, Dax Dasilva replied that it was something that would be discussed by the members of the board of directors. “There is nothing to announce on this side today,” he said.
JP Chauvet is tasked with expanding Lightspeed’s presence in the foodservice and retail sectors, especially with “the most established companies”. The organization estimates that there are 6 million such companies out of a total of 47 million restaurateurs and retailers worldwide.
Many purchases
He points out that Lightspeed has bought out its strongest competitors in its target market in recent years in order to accelerate its growth.
The new CEO says statistics show that Lightspeed’s platform customers are seeing revenue grow twice as fast as the industry norm. “Our customers are looking for the platform that will help them thrive. They want the best solution. »
He also points out that internally, there are currently 300 vacancies at Lightspeed. “We are looking for missionaries and not mercenaries. Clearly, we are looking for people who really care about our industry, SMEs and helping the community,” says JP Chauvet.
Lightspeed revealed at the end of the day a loss of 7 cents US per share and revenues up 165%, to 153 million US, for the last three months of 2021. This performance is above market expectations. Analysts had expected a loss of 9 cents per share and revenue of 143 million US.
A conference call with analysts is scheduled for Thursday morning before the stock markets open to update them on the latest quarterly financial performance and organizational changes.
