TFSA Investors: 1 Tech Stock to Own for the Next Decade

Lightspeed POS Inc. (TSX:LSPD)(NYSE:LSPD) adopts a focused and tailored approach that allows it to help clients run nearly every aspect of the operations.

| More on:

Image source: Getty Images.

Lightspeed POS (TSX:LSPD)(NYSE:LSPD) provides easy-to-use and software as a service (SaaS) platforms. The company’s software platforms provide customers with the critical functionality needed to engage with consumers, manage operations, and accept payments. Lightspeed operates globally in over 100 countries, empowering multi-location businesses to compete successfully in an omni-channel market environment by engaging with consumers across online, mobile, social, and physical channels.

Lightspeed’s platforms are essential to a customers’ ability to run and grow the business. As a result, most of the company’s revenue is recurring in nature. Lightspeed has a strong track record of growing revenue per customer over time. The company’s solutions are specifically tailored to meet the needs of businesses, essentially democratizing technology previously available only to large enterprises.

Robust cloud-based platforms

The company provides businesses with easy-to-use and affordable platforms with end-to-end capabilities. Lightspeed’s platforms are built to scale and the company looks to support businesses offer increasingly sophisticated solutions.

Lightspeed’s ecosystem of development, channel and installation partners further reinforces the scalability of the company’s solutions. Key functionalities of the company’s platforms include full omni-channel capabilities, product and menu management, inventory management, analytics and reporting, and loyalty and customer management. Lightspeed’s position at the point of commerce puts it in a privileged position for payments processing and allows it to collect transaction-related data insights.

Lightspeed Payments, the company’s payment processing solution, is currently available to North American retail customers. Lightspeed’s platform is well suited for various types of businesses, particularly multi-location retailers with complex operations, such as those with a high product count, diverse inventory needs or a service component, golf course operators and hospitality customers ranging from quick-service and festivals to hotels and fine-dining establishments.

Sustainable revenue model

The company generates revenue primarily from the sale of cloud-based software subscription licences and other recurring revenue sources including payments solutions for both retail and hospitality segments, which represents about 89% of the company’s revenue.

Lightspeed offers pricing plans designed to meet the needs of the company’s current and prospective customers. The company’s subscription plans vary from monthly plans to one-year and multi-year terms, with the majority of the company’s customer locations contracted for at least 12 months.

Lightspeed maintains a robust ecosystem of third-party integrations, and themes that allow the company’s customers to enhance both online and offline businesses. Lightspeed Payments further enhances the company’s offering, providing customers with full visibility into the final step of the sales process.

Simplified user experience

Lightspeed makes complexity simple for customers at every stage of development from initial onboarding through to expansion. The company provides solutions through an intuitive, easy-to-use interface that requires minimal training to operate. This affords owners and employees more time to spend on interacting with consumers and selling products.

The company provides customers with the latest innovations and technologies required to compete successfully. For businesses seeking to increase consumer engagement, Lightspeed Loyalty allows automated, regular communication and incentives to promote increased shopping and dining.

Overall, Lightspeed’s focused and tailored approach allows it to help the company’s clients run nearly every aspect of the operations.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. The Motley Fool owns shares of Lightspeed POS Inc.

More on Tech Stocks

Question marks in a pile
Tech Stocks

Should You Invest in Absolute Software Stock Right Now?

Absolute Software (TSX:ABST) is a tech stock that is worth your attention, as it offers exposure to exciting security markets.

Read more »

Online shopping
Tech Stocks

Should You Buy Shopify Stock If the Rate Hike Cycle Slows?

Is SHOP stock a buy after its 72% drop this year?

Read more »

Doctor talking to a patient in the corridor of a hospital.
Tech Stocks

3 Healthcare Stocks to Buy for Long-Term Passive Income

Healthcare stocks provide exposure to an essential service sector. They are also the best for passive income in the short…

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Tech Stocks

Shopify Stock Soars as Tech Stock Breaks Another Black Friday Record

Shopify (TSX:SHOP) stock jumped on the report of beating Black Friday sales records of 2021, and there's still Cyber Monday…

Read more »

stock data
Tech Stocks

Better Buy: CGI Stock or Constellation Stock?

Not all tech stocks are bad, and Constellation stock (TSX:CSU) and CGI (TSX:GIB.A) prove that. But when it comes to…

Read more »

healthcare pharma
Tech Stocks

Here’s Why I Just Bought WELL Health Stock

Although there are several high-quality stocks you buy undervalued today, WELL Health Technologies has to be one of the best.

Read more »

money cash dividends
Energy Stocks

Sitting on Cash? These 2 TSX Stocks Are Great Buys Today But Won’t Be Forever

If you have the appetite for risk, you might consider investing in some great buys today, including a tech stock…

Read more »

woman data analyze
Tech Stocks

5 Things to Know About BlackBerry Stock in November 2022

Should you buy BB stock?

Read more »