An ongoing shift in its payments processing strategy helped
The
The company spent much of the quarter at work on its strategy to integrate customers into its own payment processing offering, rather than having the option to use a competitor's platform. The change has long been positioned by
Chief executive
"Fortunately, this risk has not materialized," he said on a Thursday call with analysts.
"On the contrary, our churn levels remain very much in line with our historical ranges."
That realization will come as a relief to Chauvet, who was appointed chief executive in
“At the beginning of this year, I promised that fiscal year 2024 will be the year of execution,” Chauvet said.
“The results from this quarter firmly show that we are delivering on that promise.”
Chauvet's bellwether for the company's progress has long been his goal to reach positive adjusted earnings before interest, taxes, depreciation and amortization.
On Thursday,
Many companies use adjusted EBITDA and other adjusted metrics to strip out one-time items or account for seasonal or volatile changes. However, it is not a metric accepted under international accounting standards because there is no uniform list of items included in the figure.
Net income is the more traditional measure of profitability.
Asked about when the company may reach profitability based on net income, Chauvet mentioned
"The reason why cash flow is negative, it's because the majority of that is for cash advances," he said in an interview.
"As long as that business is going to be growing and it's growing at a very hefty rate, that means the money we lend to our customers is going to grow and that means when you look at our operations, it's going to look like we're burning cash, but at the end of the day, we're not."
"We're advancing cash because the returns are very strong on that."
On an adjusted basis,
The results pushed
In its outlook for its third quarter,
Baked into those projections are "increasing signs that consumers plan to be more frugal this upcoming holiday season,"
This report by The Canadian Press was first published
Companies in this story: (TSX:LSPD)
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