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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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      "text": "Since its IPO, it's evident that LSPD's business has become more competitive by analyzing hardware margins. Whereas before, it could make money on the POS systems, now they are sustaining losses.",
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      "text": "Hardware Gross Profit % margin: -20.9%",
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      "text": "Since its IPO, it's evident that LSPD's business has become more competitive by analyzing hardware margins. Whereas before, it could make money on the POS systems, now they are sustaining losses. When we asked a former employee for insights, the explanation was because the competition now gives it away for free. Even more concerning, the former employee said ARPU was declining while the Company reports that ARPU has been steadily increasing.",
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      "text": "It is because Shopify and Square give free hardware. Lightspeed is going to have to change, and they are going to have to give away free hardware. They are still using printers that haven't changed in the last two and a half decades. When you look at the decrease in software ARPU and take into account the negative margin on the hardware, ARPU as a whole has dropped significantly.",
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      "text": "It is because Shopify and Square give free hardware. Lightspeed is going to have to change, and they are going to have to give away free hardware. They are still using printers that haven't changed in the last two and a half decades. When you look at the decrease in software ARPU and take into account the negative margin on the hardware, ARPU as a whole has dropped significantly. — Former Lightspeed Employee",
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      "text": "Source: LSPD financial filings",
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      "text": "Lightspeed's Progressive Hardware Margin table showing Q4 2020 to Q1 2022 data for Hardware Sales, Cost of Hardware, and Hardware Gross Profit/Margin.",
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      "text": "A Leading Indicator: Hardware Margin....",
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