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

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.

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