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  "documentTitle": "Lightspeed Commerce, Inc. (LSPD)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2021-09-29 00:00:00",
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      "kind": "callout",
      "text": "Notice he said economics were holding, but at the time LSPD didn't disclose margins. Now with hindsight, we see they worsened a lot!",
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      "text": "Gross Margin: 43.0%",
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      "text": "Ever since its IPO, we believe LSPD has being heavily promoting its Payments solution as a way to bait investors with upside. The CFO was talking about upside and stability of margins, but once LSPD finally started to disclose transaction-based revenue and cost details in the 2021 Annual Report, we see that payments margins have fallen quite materially.",
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      "text": "Yes, not too dissimilar from what we've always said, Thanos. You're right, there is a slight mix change online versus off-line, and that carries slightly different economics for us. Likewise, in Canada, the economics are slightly different than the U.S. But overall, kind of our 2.6% and 65 to 70 basis point net. That's been holding for us.",
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      "kind": "quote",
      "text": "Can you update us on your payment economics and then how that's been trending? On the one hand, you have more card-not-present, presumably, on the other hand, you're doing some initial promotions. So net-net, how's that shaping out.",
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      "text": "We also generate recurring Payments revenue, which is earned as a percentage of the underlying transaction value, to-date, mainly from Payments referral partners. But with the introduction recently of Lightspeed Payments, we now have the ability to earn a much larger portion of the transaction value, and this will become a growing portion of our revenue over time.",
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      "text": "\"But with the introduction recently of Lightspeed Payments, we now have the ability to earn a much larger portion of the transaction value, and this will become a growing portion of our revenue over time.\" — CFO Nussey, Q1 2020 Conf Call. \"But overall, kind of our 2.6% and 65 to 70 basis point net. That's been holding for us.\" — CFO Nussey, Q1 2021 Conf Call.",
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      "text": "Margins Falling Hard",
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      "text": "The Ugly Truth About Lightspeed Payments",
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