Richard Tse: Okay, thanks. And JP in your opening remarks, you talked a little bit about acquisitions and your success in terms of the integrations. So, I’m not sure if I’m reading that right, but it seems like you’re positioning that you may be restarting acquisitions again, like if that’s the case, what are your thoughts from an acquisitions standpoint in terms of what you need verticals or geographies that you would pursue? Thanks.
Jean Paul Chauvet: Yeah, thanks for the question. I think that the statement we wanted to make clearly is that these acquisitions have been very good for Lightspeed. And I know, because we did a lot, we had a lot of questions around, hey, how are these doing. And so for me, I’m very pleased that it’s been many quarters now of true organic growth with easy to read organic growth. And so I just wanted to make this statement that we are really good at doing M&A and they’ve helped us tremendously over the years, and we now have really strong platforms that we couldn’t have had without the M&A. So now this being said, I think a lot of the question is actually around this call were around how do we grow software, how do we expand ARPU.
And when we look at our portfolio, there’s still a number of functionalities and big blocks that we do not offer. And I think I’ve been very transparent over the years, but there are categories that our customers want to buy from us that we do not have. And I think as we go through these with our product teams, we always have the same question, do we want to build, do we want to buy. And in some — in most cases we build and we’ve launched so many products this year and a few examples, kitchen display or even our advanced insights on retails, we’ve built all of those. But there are categories that I don’t think we should be building, and that are a much better fit for an acquisition. Now the question always remains, we have to be very prudent when we do these because we need to be sure, that of course we buy them at very reasonable multiples, and we need to be sure that as we acquire them, that they’re really going to create a good hockey stick inside of Lightspeed.
So that’s really my commentary on this.
Operator: Your next question comes from the line of Timothy Chiodo from UBS. Please go ahead.
Timothy Chiodo: Great. Thank you for taking question. I know we hit on this a little bit earlier and in some of the questions around the expanding of the direct salesforce, but you started doing this, I believe in the fall of 2021, and I was just hoping you could give an update on the number of salespeople that you have today in the U.S. and then in terms of the expanded efforts this year, a rough number on how many that might ramp to? And then I have a brief follow-up.
Jean Paul Chauvet: Yeah, so look, maybe just going back in time, we really only did that primarily in the U.S. until now and really around hospitality, where we had a competitor that had a lot of foot on the ground, so we had to ensure that within the categories that worked for us and the high GMV that we had people also with foot on the ground. Now this being said, at the time it wasn’t a significant number. And even today, you’re talking about maybe 30 people. But now we have enough kind of — enough kind of time under our belt to know that these are really very good for Lightspeed and the unit economics are very good. And I think maybe the last comment I want to make is there is nobody in the retail space that has foot on the ground, and there is nobody in the retail space that has the depth of our solution for a high GMV merchant.
So I think there also, when we look at foot on the ground, we are going to heavily invest in retail in the U.S. where you will start seeing people with foot on the ground pretty much in every big metropolitan area in the U.S. And then the other piece for us is outside of the U.S. for hospitality. If you go across Europe now, we’re starting to have a lot of concentration and it’s very frequent to go into restaurants where you see Lightspeed and I think there we now want to double down in Canada, in Australia, and New Zealand and in Europe, double down on the hospitality space also, and ensure that we can accelerate our growth.
Timothy Chiodo: JP, thank you so much. Really appreciate that. My follow-up is kind of related. So, one way to go at it is to build a direct sales force, hire people, have feet on the street, but another is to work with third party ISOs, agents, retail ISOs, wholesale ISOs, bank partners, etcetera. So more of a strategy that Clover has taken sort of a multi-pronged distribution approach. Have you given any thought or how do you think about the pros and cons of using a third party distribution that might give you a more immediate result in terms of that coverage that you were talking about nationwide?
Jean Paul Chauvet: I think the high end answer is we do have a partner network and we do use both. And about 25% of our deals are touched by a partner. So it’s always been something we really important to us and you mentioned a few categories. I just want to make a comment with regards to Clover. Clover is micro merchant. It’s a very simple coffee shop. When we deal with restaurants and we cited quite a few here, these are very well established restaurants, Michelin stars, and they’re very complex in essence on how to adopt the platforms because there’s so many workflows. So, I think it’s going to be a very different strategy from the Clover strategy just being very clear. But we do believe in the partner ecosystem and partner networks and installation partners and all kinds of referral deals that we could have with banks and real estate agents.
So, I think to answer your question very clearly, we believe that the blend of both is the most important, is having people with foot on the ground to go, and really convince a more traditional customer base that we are the right platform in parallel to having a lot of referral customers, a referral partners that are bringing us the deals.
Timothy Chiodo: Excellent. Thank you, JP.
Operator: Your next question comes from the line of Raimo Lenschow from Barclays. Please go ahead.
Unidentified Analyst: Great, thank you. This is Jeremy on for Raimo. I just wanted to ask, in terms of, verticals that are eligible for Lightspeed payments, is there still more work to be done there and if so, like could you talk to what percent of overall GTV would be in some of these verticals that can adopt payments at the moment? Thank you.
Jean Paul Chauvet: Yeah, so I think first of all you need to — when you look at GTV, there’s a portion of cash, so let’s start there. So just a portion of cash brings you to roughly 80%. So that’s then the monetizable. And then I think within the 18%, I would say probably 15% to 20% are still in industries that we can underwrite or where industries where we don’t yet have a presence or even countries where we don’t yet have payments for Lightspeed. So for us, it’s always the same thing. It’s like the 80:20 rule. You start by going after the low hanging fruit, and then after that you compensate for all the rest. So just being clear, we are looking at solutions right now for high risk, which is a big category, roughly 10%. And that we are hoping to make some announcements in the foreseeable future on that.
And then I think it’s all around expanding. So as an example, I’ll just give you — in Singapore we have a lot of Michelin star and fine dine restaurants that are on Lightspeed. Yet today we don’t, Lightspeed payments is not supported in Singapore or in Malaysia or Indonesia. And these are all markets that are strong for us, but we don’t have a presence or Dubai, where we’re only selling software. So that’s why when you look at next year, it’s going to be a mix of we’re going to compound now all the industries with new underwriting players, to go into those. And then the second thing is we’re just going to expand Lightspeed Payments into new countries.
Unidentified Analyst: Got it. Thank you.
Operator: That’s all the time we have for questions today. I will now turn the call back over to Gus Papageorgiou for closing remarks.
Gus Papageorgiou: Thanks. Thanks everybody for joining us today and we look forward to speaking to you on our next conference call for our Q4 results. And we will be around if anybody has any follow up questions. Have a great day everyone.
Operator: This concludes today’s conference call. Thank you for your participation and you may now disconnect.
