Slide 1: 'Tis the Season for Enterprise Wins
'Tis the Season for Enterprise Wins Q3 2024 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM
Slide 2: Forward-Looking Statements
Forward-Looking Statements This letter contains forward-looking statements within the We have based these forward-looking statements largely on and information security, marketing, cryptocurrency, meaning of the Private Securities Litigation Reform Act of our current expectations and projections abo
Slide 3: Dear Shareholders
Dear Shareholders, We wrapped up another reasonably strong quarter, executing well on our strategy – Dear Shareholders, growing rapidly and profitably, generating free cash flow, improving our products, unlocking efficiencies, enhancing our capital structure and, most importantly, topping off We wra
Slide 4: With less than two months to go in the year, we have tightened our
With less than two months to go in the year, we have tightened our volume range and raised the mid-point of Q4 GRLNF and EBITDA guidance ranges. If you annualize the midpoint of our Q4 Adjusted EBITDA guidance, we are already at 2025 consensus Adjusted EBITDA. Moreover, on a trailing twelve-month ba
Slide 5: If it wasn't clear before, we have a lot going on
If it wasn’t clear before, we have a lot going on, and I love that. We embrace the complexity because that’s how we differentiate and win. What we do is hard, but the results over our last 4.5 years as a public company speak for themselves and I don’t expect things to slow down anytime soon. I feel
Slide 6: Performance Highlights Third Quarter 2024
Performance Highlights Q3 Third Quarter 2024 +56% YoY +48% YoY +50% YoY $72.2M • $187.4M Q3 END-TO-END PAYMENT VOLUME GROSS PROFIT GROSS REVENUE LESS NETWORK NET INCOME +51% YoY FEES(A) ADJUSTED EBITDA(A) • End-to-end ("E2E") payment volume of $43.5 billion during • Net income for Q3 2024 was $72.2
Slide 7: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives Moving up market with industry leading volume growth while improving overall unit economics E2E Volumes and Blended Spreads Move Up Market by Quarter Average size of merchant based on volume is +163% of 2022 levels. Blended Spreads by Vertical Contracted Volume
Slide 8: Restaurant Update
Restaurant Update Shift4 continues to gain market share in restaurants, winning new restaurants every day Over 55,000 SkyTab installs since coming out of beta, and on pace to exceed 35,000 installs in 2024 alone Search "Shift4" on X (f.k.a. Twitter) to see dozens of installs every day! 8
Slide 9: Q3 Record Hospitality Wins
Q3 Record Hospitality Wins 9 9
Slide 10: Hospitality Update
Hospitality Update Continuing Continuing to to expand expandmarket marketshare shareininhospitality hospitalityvertical vertical Laguna Beach House The Bristol Hotel Nestled in the heart of Laguna, the Beach House is a one-of-a-kind Ranked as the #11 hotel in the US by Travel + Leisure, this boutiqu
Slide 11: Hospitality Update
Hospitality Update Continuing to expand market share in hospitality vertical Hotel Polaris The Resort at Paws Up Located in Colorado Springs at the U.S. Air Force Academy, this hotel The Resort at Paws Up is Montana's premier luxury ranch resort features 375 rooms and suites, multiple restaurants, a
Slide 12: Hospitality Update
Hospitality Update Continuing Continuing to to expand expandmarket marketshare shareininhospitality hospitalityvertical vertical Stephanie Inn (managed by Columbia Hospitality) Charming Inns The Stephanie Inn is the premier Cannon Beach oceanfront hotel A family of four luxurious, historic inns and
Slide 13: Hospitality Update: KSL Resorts
Hospitality Update: KSL Resorts KSL is one oftothe Continuing many market expand hospitality sharewins in we're proudvertical hospitality to announce this quarter Shift4 has partnered with KSL resorts, a premier operator of dozens of hotels and resorts, for nine of their hotels, as well as potential
Slide 14: KSL has an impressive portfolio of premium resorts
KSL has an impressive portfolio of premium resorts from beach side to mountain top! 1 14 4
Slide 15: And one more thing
undisclosed And one more thing We are thrilled to announce that we have officially signed a premier operator of luxury hotel and casino properties around the world. 1 15 5
Slide 16: Sports & Entertainment Update
Sports & Entertainment Update Powering payments through POS, mobile ordering, ticketing, and more SIGNATURE WINS - WITH TICKETING! Shift4 will power commerce at the Shift4 will now process payments for Barclays Center, home of the Brooklyn Panthers ticketing transactions in American Airlines Nets –C
Slide 17: Sports & Entertainment Update
Sports & Entertainment Update Powering payments through POS, mobile ordering, ticketing, and more Vanderbilt University Dallas Stars TICKETING WIN Shift4 will process payments for food & beverage concession sales at Shift4 will now power payments for ticketing transactions at American Vanderbilt Uni
Slide 18: Other Verticals Update
Other Verticals Update Continuing to gain momentum in new verticals NON-PROFITS RETAIL SEXY TECH GAMING We expect to be live in all 24 sportsbook locations by year end 1 18 8
Slide 19: International Expansion Update
International Expansion Update Shift4 continues to move Boldly Forward towards becoming a truly global company We Are Continuing to Follow Our Global Strategic Partner into New Geographies Now Live Coming Soon Notable International Wins in Our Key Verticals Magnuson is a global network of individual
Slide 20: International Restaurant Update
International Restaurant Update We are well on our way to executing on our recent Vectron acquisition in Germany, and are continuing our impressive growth in the UK and Ireland The Vectron conversion train has left the station 4 DOWN – 64,996 TO GO Our Recent Acquisition of Vectron is Already Paying
Slide 21: Givex Acquisition: Closing Announcement
Givex Acquisition: Closing Announcement We closed on our previously announced acquisition of Givex on November 8th, 2024 We have closed on the acquisition of Givex, a global provider of gift cards, loyalty programs, and point-of-sale solutions Shift4 Playbook/Key Points: Classic "funnel topper" deal
Slide 22: Thoughtful Capital Allocation is at the Beginning of Everything We Do
Thoughtful Capital Allocation is at the Beginning of Everything We Do We balance between product innovation, customer acquisition, share repurchases and M&A to accelerate our strategy CUSTOMER ACQUISITION • Eliminate upfront costs for our merchants by providing essential hardware Attractive payback
Slide 23: The Shift4 Acquisition Playbook Is Tried & True
The Shift4 Acquisition Playbook Is Tried & True Our approach boils down to unlocking synergies, expanding our capabilities, and most importantly unlocking payment volume conversion opportunities at the most attractive price Our acquisitions expand our capabilities or top off our funnel…or both TECH
Slide 24: Updating Our Full Year 2024 Guidance
Updating Our Full Year 2024 Guidance We are updating guidance for the balance of the year End-to-End Payment Volume FY 2024 Q4 2024 $164 Billion $47.0 B +50% YoY TO TO $49.0 B $166 Billion +52% YoY Gross Revenue Less Network Fees FY 2024 Q4 2024 $400 M $1.35 Billion +44% YoY TO TO $415 M $1.36 Billi
Slide 25: Appendix - Financial Information
Appendix - Financial Information 25
Slide 26: Condensed Consolidated Balance Sheets
Third Quarter of 2024 Condensed Consolidated Balance Sheets UNAUDITED In millions September 30, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 1,426.4 $ 455.0 Restricted cash — 84.4 Settlement assets 283.2 321.2 Accounts receivable, net 317.8 256.8 Inventory 7.1 3.4 Prepaid
Slide 27: Condensed Consolidated Statements of Operations
Third Quarter of 2024 Condensed Consolidated Statements of Operations UNAUDITED In millions, except share and per share data Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Gross revenue $ 909.2 $ 675.4 $ 2,443.6 $ 1,859.4 Cost of sale
Slide 28: Condensed Consolidated Statements of Cash Flows
Third Quarter of 2024 Condensed Consolidated Statements of Cash Flows UNAUDITED In millions Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 OPERATING ACTIVITIES Net income $ 72.2 $ 46.5 $ 155.2 $ 103.7 Adjustments to reconcile net inco
Slide 29: Reconciliations of Gross Revenue to Gross Profit
Third Quarter of 2024 Reconciliations of Gross Revenue to Gross Profit and Gross Profit to Gross Revenue Less Network Fees UNAUDITED In millions Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Payments-based revenue $ 806.8 $ 626.9 $ 2
Slide 30: Reconciliations of Net Income to Adjusted EBITDA and Adjusted Net Income
Third Quarter of 2024 Reconciliations of Net Income to Non-GAAP Adjusted EBITDA and Net Income to Non-GAAP Adjusted Net Income UNAUDITED In millions, except share and per share data Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 NET INCOME $ 46.5 $ 19.2 $ 28.5 $ 54.5 $ 72.2 Interest expense 8.0 8.0 8.1 8.1
Slide 31: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow
Third Quarter of 2024 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow UNAUDITED Three Months Ended In millions, except share and per share data September 30, December 31, March 31, June 30, September 30, 2023 2023 2024 2024 2024 NET CASH PROV
Slide 32: Reconciliation of Shares
Third Quarter of 2024 Reconciliation of Shares UNAUDITED Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 BEGINNING BALANCE Class A Shares 56,467,133 56,544,839 60,664,171 60,815,224 61,967,248 Class B Shares 23,831,883 23,831,883 23,831,883 23,831,883 23,750,968 Class C Shares 1,759,273 1,759,273 1,694,915