How does LSPD's earnings performance compare to industry peers?
4/12/2025 05:21pm
Lightspeed's (LSPD) earnings performance is significantly weaker than that of its software industry peers, as evidenced by key financial metrics such as ROE, ROA, net income, and revenue.
1. **Return on Equity (ROE) and Return on Assets (ROA)**:
- LSPD's ROE is -3.86%, indicating a loss in equity, whereas all other peers have positive ROEs, with Oracle's (ORCL) being the highest at 70.9%.
- LSPD's ROA is -4.59%, again showing financial strain, while peers like Microsoft (MSFT) and Palantir (PLTR) have positive ROAs of 8.34% and 5.38%, respectively.
2. **Net Income**:
- LSPD has a net loss of $26.59 million, contrasting sharply with the positive net incomes of other companies, such as Microsoft's $24.11 billion and Palantir's $76.94 million.
3. **Total Revenue**:
- LSPD's revenue stands at $280.13 million, which is substantially less than that of its peers, except for Palantir, with Salesforce (CRM) leading the pack at $9.99 billion in revenue.
4. **Market Capitalization**:
- LSPD has a market cap of $207.68 billion, which is smaller than that of Salesforce and SAP, indicating a lower market value relative to these companies.
In conclusion, Lightspeed's financial performance is under pressure compared to its software industry peers, with negative returns and a substantial net loss. Its revenue is lower than expected for the industry, and its market cap is smaller than that of some competitors, suggesting a lower market value and investor confidence.