Yahoo Finance Lightspeed founder Dax Dasilva back as interim CEO, Chauvet steps down
Lightspeed Commerce (LSPD.TO)(LSPD) has announced the return of founder Dax Dasilva as interim chief executive officer, replacing Jean Paul Chauvet, amid a struggling stock price for the commerce technology firm.
Dasilva served as chief executive of the commerce software company from its founding in 2005 until Feb. 2022, when he stepped into the role of executive chair and was replaced by Chauvet. Chauvet, who was with Lightspeed for 11 years, has left the company.
"We've entered a new stage ...and it requires a different kind of leadership," Dasilva said in an interview with Yahoo Finance Canada.
"Growth is obviously a core part of the strategy, but profitability has got to be as important part of the focus as growth, and operational efficiencies have to be considered throughout the company. This is a good time for me to come back, and really bring that ethos to the company."
The value of Lightspeed shares has fallen about 30 per cent this year, even as the company has grown sales and gained profitability. The stock plummeted 24 per cent in one day following the release of third quarter earnings on Feb. 8.
Lightspeed shares closed the trading day on the Toronto Stock Exchange at $19.70 per share, a more than 7 per cent increase compared to Wednesday's close.
Under Chauvet's leadership, the company focused on shifting new and existing customers to use its payment software, and on adding larger clients to its customer base. Last year was what Chauvet called "the year of execution" on that strategy, and he had said that 2024 would be focused on achieving profitable growth.
Dasilva said on Thursday that Lightspeed's strategy is on the right path, but that "frugality needs to be brought back to the ethos of the company."
ATB Capital Markets analyst Martin Toner wrote in a research note following the release of financial results last week that the possibility that operating expense growth is necessary for Lightspeed "renewed concerns about the efficiency of the company's business model."
Dasilva said he hopes to build back trust and confidence among investors, noting that when Lightspeed first went public in 2019, the company has $77.5 million in sales. The company reports its financial earnings in U.S. dollars.
"Today we are approaching $900 million, yet the stock price is the same," he said.
"I want to build back that shareholder confidence and trust, and build shareholder value for all the shareholders that have believed in us."
The company will also replace chief product and technology officer Ryan Tabone with John Shapiro, the company's current senior vice president of retail technology. Patrick Pichette, the company's lead independent director, will move into the role of interim board chair.
"On behalf of the Board, we welcome back Dax Dasilva as Lightspeed's interim CEO," Pichette said in a statement.
"Under his guidance, we have witnessed remarkable growth and innovation, propelling Lightspeed to the category leader it is today. I am confident that he will continue to steer Lightspeed towards new heights of success."
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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