Slide 1: Q3 2021 Shareholder Letter & Investor Field Day
Q3 2021 Shareholder Letter & Investor Field Day November 10, 2021 Ex. 99.1
Slide 2: Safe Harbor Statement and Forward Looking Information
Safe Harbor Statement and Forward Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered
Slide 3: Q3 Shareholder Letter
Q3 Shareholder Letter
Slide 4: Dear Shareholders
Dear Shareholders, The third quarter and the last few weeks has been especially interesting. The quarter began with record volume, followed by a noticeable but not dramatic setback from the COVID delta variant, a confusing secondary offering from our sponsor, TSYS service outage, a rocket launch, su
Slide 5: Q3 2021 Highlights
• Record quarterly end-to-end payment volume of $13.5 billion during Q3 2021, up approximately 90% from Q3 2020 • Record quarterly gross revenue of $377.8 million, up 76% from Q3 2020, or gross revenue adjusted for the TSYS outage of $400.2 million, up 86% from Q3 2020 (1)(3) • Gross revenue less ne
Slide 6: Recent customer wins
T-Mobile Arena Shift4 is now powering a next-generation commerce experience at Las Vegas’s T-Mobile Arena, home of the NHL’s Golden Knights and various other live events. Beaver Run This slopeside resort and conference center in Breckenridge, CO recently upgraded from a gateway relationship with Shi
Slide 7: Q3 2021 Outlook: 2021 Guidance
Affirming Three of our 2021 Guidance Measures (End-To-End Payment Volume, Total Revenues and Adjusted EBITDA) and Increasing our Guidance for Gross Revenue Less Network Fees END-TO-END PAYMENT VOLUME Leaving our End-to-End Payment Volume range unchanged: $46 BILLION $48 BILLION and TOTAL REVENUES Le
Slide 8: Introduction
Introduction
Slide 9: Allow Us to Reintroduce Ourselves
ALLOW US TO REINTRODUCE OURSELVES
Slide 10: Values
BOLDNESS | EXCELLENCE | OWNERSHIP | TRUST | We take risks and boldly challenge the status quo to deliver a superior commerce experience We create processes to achieve expedience and effectiveness with a customer-first mindset Clear, concise roles and responsibilities empower our culture of ownership
Slide 11: Vision, Mission, Values
Shift4 illuminates the world through connected commerce We power commerce through our bold and determined spirit, and deliver the most trusted, comprehensive payments experience Boldness Excellence Ownership Trust VISION MISSION VALUES 1.2 Vision, Mission, Values 11
Slide 12: By the Numbers
25+ YEARS IN BUSINESS $200 Billion+ PROCESSED ANNUALLY 200,000+ CURRENT CUSTOMERS 425+ TECHNOLOGY INTEGRATIONS 3.5 Billion+ ANNUAL TRANSACTIONS 7,000+ SALES PARTNERS We Power The Most Recognizable Brands In North America 1.3 By the Numbers 12
Slide 13: A True Pure-Play Integrated Payments Provider at Scale
Purpose-built and vertically-tailored solutions Over 425 software integrations Strategic acquisitions to extend vertical expertise As a reminder: 99% of all payment transactions originate from directly integrated software 1.4 A True Pure-Play Integrated Payments Provider at Scale BUILD PARTNER BUY N
Slide 14: What We Told You Prior to IPO vs. Today
(1) Guidance given in the February 2020 Analyst Investor Day Presentation. (2) Represents CAGR from 2019 to the mid-point of 2021 guidance. PRE-IPO GUIDANCE | FEBRUARY 2020(1) TODAY On track to exceed pre-IPO growth projections by 2x+ despite pandemic headwinds 1.5 What We Told You Prior to IPO vs.
Slide 15: Scorecard since IPO
1.6 Scorecard since IPO Growth Strategy (from S-1) Rationale Continue to win new customers Organic share gain as demonstrated by 46% volume CAGR(1) Unlock substantial opportunity within existing merchant base Gateway conversion proceeding according to plan Leverage domain expertise in hospitality ma
Slide 16: Shift4 at IPO: High Growth Core
Shift4 at IPO High Growth Core
Slide 17: Consistent Track-Record of Strong Volume Growth in Core Verticals
(1) Represents mid-point of 2021E End-to-End volume guidance, restaurant and lodging volume assumed at same volume split as YTD 2021 through October. (2) Competitor CAGRs represent total volume growth rates from 2017-2021E per J.P. Morgan Payment Processing Database September 22, 2021. 2.1 Consisten
Slide 18: Consistent Restaurant Share Gain Despite Competition
(1) Represents mid-point of 2021E End-to-End volume guidance guidance, restaurant volume assumed at same volume split as YTD 2021 through October. 2.2 High Growth Core: Consistent Restaurant Share Gain Despite Competition Accelerating growth in the face of consistent competition 18
Slide 19: Vertical-Specific E2E Spreads Stable; Mix Shift
2.3 Vertical-Specific E2E Spreads Stable; Average Spreads Impacted by Mix Shift High Growth Core: Mix and Spread by Vertical Demonstrated pricing power within core verticals, average spread driven by lodging share gains (1) Represents Q3 2021 blended spread, calculated as Payments Based Revenue ($34
Slide 20: Deliberate Move Up-Market: Average Merchant Size
(1) Calculated as Gross End-to-End Revenue less IAAP expense, Q3 2021 adjusted for TSYS outage per prior disclosures. 2.4 Deliberate Move Up-Market Driving Meaningful Increase in Volume and Revenue per Merchant High Growth Core: Average Merchant Size Larger merchants | More complex environments | Le
Slide 21: Expanding Margins While Investing in Growth
2.5 Expanding Margins While Investing in Growth and New Verticals High Growth Core: Adjusted Margin Expansion Nearly 500 bps of margin expansion since IPO, inclusive of investments in growth 21
Slide 22: Where Does Shift4 Fit?
+46% +31% (1) For Shift4, volume and revenue growth represents 2-year CAGR growth of 2021 mid-point guidance versus actual 2019 full year results. For other acquirers, volume and revenue growth represents 2-year CAGR growth of 2021 consensus estimates versus actual 2019 full-year results. As of 11/5
Slide 23: Continued Growth Vectors
(1) October 2021 annualized monthly gateway only volume. • Scarce integrations provide wide moat: executing strategy for ~4 years with minimal churn • Steady win rate: proven strategy of converting merchants throughout the pandemic • Long runway ahead: multi-year growth potential with refilling conv
Slide 24: Introducing SkyTab POS
Introducing SkyTab POS 2.8 Next Generation Restaurant Platform 24
Slide 25: Rationale for SkyTab POS
(1) Estimated based on a discount applied to the 49% LTM SaaS revenue uplift observed among our active Harbortouch merchant base. (2) Estimated based on US restaurant locations per IBIS World multiplied by the average annual subscription revenue per location among our active Harbortouch Merchant bas
Slide 26: SkyTab All-in-One Platform
1 2.10 SkyTab All-in-One Platform Modern, Android based, hybrid cloud architecture Fully integrated loyalty, waitlist, reservation, CRM, and customer engagement tools to build and grow a brand Comprehensive mobile solution including online ordering, tableside order/pay, QR order/pay, Apple Pay/Googl
Slide 27: Already Deployed and Growing
2.11 Already Deployed and Growing In use today at over 2k high profile locations 27
Slide 28: Shift4 Today: Expansion Since IPO
Shift4 Today Expansion Since IPO
Slide 29: Shift4 Today: New Markets
JUSTINE Expanded TAM by $630bn+ into 3 new high-growth verticals 3.1 Shift4 Today: New Markets SPORTS & ENTERTAINMENT GAMING ECOMMERCE 29
Slide 30: Shift4 Today: Activity Since IPO
3.2 Expanded into 3 new verticals and completed 4 acquisitions Shift4 Today: Activity Since IPO Capital Deployed Since IPO $200mm Organically & Inorganically Revenue Created $45mm+ Embedded Payments Cross Sell $6bn+ Incremental TAM $630bn+ 30
Slide 31: Grown TAM by >60% since IPO: New Verticals
MERCHANT & PARTNERS (1) Long-term total addressable market including GGR, OSB and iGaming in the US, per the American Gaming Association. (2) Assumes 1.2mm US e-comm merchants per etailing insights and $251k avg. S4Shop merchant volume. (3) Estimates per Venuenext internal forecasts, includes sports
Slide 32: Shift4 Tomorrow: New Expansion
Shift4 Tomorrow New Expansion
Slide 33: We are Taking Our TAM Global
4.1 Shift4 Tomorrow: We are Taking Our TAM Global +$2bn St. Jude opportunity +$900bn non-profit/healthcare TAM +$1.8bn Allegiant Travel opportunity +$550bn airline TAM +$100bn Starlink opportunity +$500bn broadband/internet TAM +massive global commerce opportunity 33
Slide 34: St. Jude Children's Research Hospital
(1) St. Jude 2019 Form 990. (2) Non-profit TAM per Giving USA 2021 Report (includes individual donations and corporation/foundation giving); out-of-pocket healthcare spend per Centers for Medicare and Medicaid Service (CMS) National Health Expenditures (NHE) factsheet. 4.2 Shift4 Tomorrow: St. Jude
Slide 35: Allegiant Air Travel Company
(1) 2019 airline booking revenue per Airlines Reporting Corporation. 4.3 Shift4 Tomorrow: Allegiant Air Travel Company Expanding Hospitality Reach into Travel & Leisure Shift4 develops a multi-year, strategic partnership with Allegiant Air Travel Company BACKGROUND • Allegiant Air Travel Company (NA
Slide 36: SpaceX Starlink
4.4 Shift4 Tomorrow: SpaceX Starlink Entry into Cutting-Edge Technology with a Mandate for International Expansion 5 year global strategic partnership with SpaceX Starlink BACKGROUND • SpaceX Starlink provides high-speed, low-latency broadband internet across the globe via advanced satellites in low
Slide 37: Conclusion
Conclusion
Slide 38: Introducing Medium Term Outlook
5.1 Introducing Medium Term Outlook ~$160bn End-to-End Volume ~$1.15bn Gross Revenue less Network Fees ~$3.5bn Gross Revenue By the end of 2024: END-TO-END PAYMENT VOLUME CAGR GROWTH 50%At least CAGR GROSS REVENUES LESS NETWORK FEES CAGR GROWTH 30%At least CAGR 38
Slide 39: We Size Up Well Against the Competition
+50% +30% (1) For Shift4, volume and revenue growth represents 3-year CAGR growth of 2024 guidance versus 2021 mid-point guidance. For other acquirers, volume and revenue growth represents 3-year CAGR growth of 2024 consensus estimates versus 2021 consensus estimates. As of 11/5/2021, there is neith
Slide 40: Shift4 vs. Toast
Modern Android architecture and mature roadmap Mobile payments strategy & monetized payments Multi-Channel order management and inclusive loyalty, waitlist and reservations In-house payment platform Local distribution and support Monetizing marketplace, payroll, capital and full SaaS Monetization OP
Slide 41: The Accelerating Shift4 Story
$3.7tn global TAM to attack • 425 software integrations, up from 350 at IPO • Competitive moat proven via pricing power while continuing to take share • Organic new wins continuing at scale + long runway for gateway conversions • Capitalizing on embedded commerce opportunity + enhanced right to win
Slide 42: Questions?
SHIFT @ QUESTIONS?
Slide 43: Appendix
Appendix
Slide 44: Non-GAAP Notes and TSYS Outage Impact
(1) For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the tables titled “Third Quarter of 2021 - Reconciliation to Non-GAAP Financial Measures” in the appendix of this document. (2) Adjusted net income per share, which is a non-GA
Slide 45: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets UNAUDITED In millions, except share data September 30, 2021 December 31, 2020 ASSETS Current assets Cash and cash equivalents $ 1,288.1 $ 927.8 Accounts receivable, net of allowance for doubtful accounts of $13.4 in 2021 ($5.7 in 2020) 184.4 92.7 Inventory 2.0 1
Slide 46: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations UNAUDITED In millions, except share data Three months ended Nine months ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Gross revenue (a) $ 377.8 $ 214.8 $ 968.1 $ 556.0 Cost of sales (b) 313.4 163.3 773.8 429.5 Gross
Slide 47: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows UNAUDITED In millions, except share data Nine months ended September 30, 2021 September 30, 2020 OPERATING ACTIVITIES Net loss $ (60.3) $ (89.7) Adjustment to reconcile net loss to net cash provided by operating activities Depreciation and amortization
Slide 48: Reconciliation of Shares
Reconciliation of Shares UNAUDITED Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 BEGINNING BALANCE Class A Shares 18,693,653 28,550,026 39,737,950 42,109,580 47,215,604 Class B Shares 39,204,989 35,567,488 30,625,857 29,699,857 28,240,404 Class C Shares 20,139,163 15,920,291 10,188,852 9,114,852 7,422,140
Slide 49: Reconciliation to Non-GAAP Financial Measures
Reconciliation to Non-GAAP Financial Measures UNAUDITED In millions RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 NET (LOSS) INCOME $ (9.8) $ (21.7) $ (51.0) $ 4.5 $ (13.8) Interest expense 7.1 8.1 6.5 6.3 7.4 Income tax (benefit) provision (0.7) (1.4
Slide 50: Reconciliation to Non-GAAP Financial Measures
Reconciliation to Non-GAAP Financial Measures UNAUDITED RECONCILIATION OF GROSS REVENUE TO ADJUSTED GROSS REVENUE (in millions) Q3 2021 GROSS REVENUE $ 377.8 Add back: TSYS outage impact 22.4 ADJUSTED GROSS REVENUE $ 400.2 RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (in millions) Q3 2021