Lightspeed founder Dax Dasilva has returned to the top job on an interim basis at the Montreal-based point-of-sale transaction software company, replacing Jean Paul Chauvet. Here’s what you need to know:

Last week’s stock selloff: On Feb. 8, Lightspeed released third-quarter earnings that beat revenue and loss-reduction forecasts, but still disappointed investors. The company’s stock dropped 24 per cent that day. The selloff was a blow for Chauvet, whose focus on acquisitions and balancing growth with a path to profitability since replacing Dasilva as CEO in February of 2022 has failed to turn the company’s long-term share price struggles around.

The bigger picture: Since going public in 2019, Lightspeed has increased its revenue from US$77.5 million to an expected US$900 million this fiscal year. It’s one of Canada’s largest publicly traded technology companies and a point of pride in Quebec’s corporate landscape. But almost five years after its initial public offering, its share price is more or less flat.

A 2021 report by short seller Spruce Point didn’t help. The report alleged Lightspeed changed its gross transaction volume by over US$2 billion within a year on its website, inflated its customer base by nearly 100 per cent or more and used expensive acquisitions to improve its growth metrics. In an interview with The Logic at the time, Chauvet called the allegations “wrong and misstated.”

Dasilva on what went wrong: In an interview with The Logic Thursday, Dasilva said he thinks mentions of future acquisitions on the third-quarter earnings call “spooked” investors. Growth by acquisitions that aren’t funded by cost-cutting is a strategy “from another stage of the company,” he said, stressing “large M&A is off the table.”

Why he came back: Dasilva, who had served as chair of Lightspeed’s board since leaving the C-suite, called Chauvet “my brother” Thursday and said the two made the decision together that he would take Chauvet’s place. As a large shareholder himself, Dasilva said, he’s well positioned to understand investors’ concerns. “I know what the market wants to see from Lightspeed,” he said. “I think the founder has a special place in a company and I think this is a stage that I’m well suited for.”

What’s next: Dasilva said he will strive to balance growth with profitability—“I think we’re out of a stage of the company where it’s growth at all costs.” He said he’ll be working with the leadership team to plan how to cut costs in the coming weeks. Asked if cost-cutting measures might include workforce reductions, he said: “We’re going to be talking about every avenue.”

How long he’ll stick around: Dasilva’s position is officially interim CEO, but he said that’s mostly because of the speed of the transition. His job has no end date. He said it’s up to the board to choose whether or not to make his role permanent: “They’ll decide if I’m doing a good job or not.”

How Dasilva’s feeling: Dasilva is returning to the job after taking two years to focus on projects related to the environment and equality—and finally earning his university degree. He said he’s returning from the break energized. Ultimately, he said, he’ll be able to give back more if he succeeds in his new mission: “If Lightspeed is successful, I can be more philanthropic.”

The rest of the shakeup: Ryan Tabone, Lightspeed’s chief product and technology officer, will step down in April, the company announced. He will be replaced by John Shapiro, who is currently senior vice-president of retail technology. Patrick Pichette, a former senior vice-president at Google and lead independent director at Lightspeed, will become interim chair of the board.