Shift4 Payments, Inc. · NYSE:FOUR
Shift4 Payments — Q3 2020 Earnings Presentation
24 slides from Shift4 Payments's earnings presentation, Nov 5, 2020
Slide 1: FOUR Reports Third Quarter 2020 Results
FOUR Reports Third Quarter 2020 Results November 5, 2020 ALLENTOWN, PA – (BUSINESS WIRE) Shift4 Payments, Inc. (NYSE: FOUR “the Company”), a leading provider of integrated payment processing solutions, today announced its third quarter 2020 results. “We are very pleased with our third quarter 2020 r
Slide 2: Quarterly Investor Call Details
Quarterly Investor Call Details: Management will host a conference call today (November 5, 2020) at 8:30 am ET to discuss its third quarter 2020 financial results. To register for this conference call, please use the link: http://www.directeventreg.com/registration/event/2090479. After registering,
Slide 3: 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 4: Non-GAAP Financial Measures and Key Performance Indicators
Non-GAAP Financial Measures and Key Performance Indicators We use supplemental measures of our performance which are derived from our consolidated financial information but which are not presented in our consolidated financial statements prepared in accordance with generally accepted accounting prin
Slide 5: Earnings Presentation NOVEMBER 5, 2020
Earnings Presentation NOVEMBER 5, 2020
Slide 6: Dear Shareholders
Dear Shareholders, It’s hard to write a letter highlighting our progress with so much unrest in the world. I will temper my enthusiasm and state that Q3 was a reasonably good quarter. In all measurable ways, we delivered better than expected results including strong year-over-year growth. We also co
Slide 7: Q3 2020 Earnings and Business Highlights
Q3 2020 Earnings and Business Highlights End-to-end payment volume (YoY): $7.1 billion (up 20.2% YoY) Gross profit: $51.5 million (up 11% YoY) Gross revenue less network fees: $87.7 million (up 10% YoY) Net Loss: $(9.9) million compared to $(22.6) million in prior year Adjusted EBITDA: $28.7 million
Slide 8: Why Customers Choose Shift4
Why Customers Choose Shift4 This NJ restaurant implemented Shift4 technology, including QR Pay, SkyTab, and online ordering, to help boost sales 15-20% during COVID. This 3-location chain in TX utilized various Shift4 solutions, including QR Pay, SkyTab, and online ordering, to adapt operations duri
Slide 9: 3dcart Acquisition
Sy Shift4 PAYMENTS 3dcart Acquisition
Slide 10: Shift4 Has Acquired 3dcart
Shift4 Has Acquired 3dcart 3dcart provides everything a business needs to build a secure ecommerce website and start selling products or services online. Turnkey ecommerce experience includes an intuitive website builder, product and order management, customer marketing tools and more. Customers can
Slide 11: 3dcart Acquisition Adds to the End-to-End Solution
3dcart Acquisition Adds to the End-to-End Solution *Source: eMarketer, May 2020
Slide 12: 3dcart Customer Case Studies
3dcart Customer Case Studies FRANCE LUXE SARABETH’S Sarabeth’s is a world-renowned brand and multichannel business, famous for their online catalog of delicious baked goods, jams, and specialty foods; retail package goods available through special and grocery channels; and restaurants located throug
Slide 13: Our Vision
Our Vision
Slide 14: Shift4 Evolution
Shift4 Evolution y Shift Shift4 Future s Ecommerce Agila, Global Eig Commerce Co Platform Sports & Entertainment
Slide 15: Financial Summary
Sy Shift4 PAYMENTS Financial Summary
Slide 16: Driving Strong Performance
Driving Strong Performance GROSS PROFIT $46.6 $50.2 $44.5 $32.3 $51.5 NET LOSS $(22.6) $(13.8) $(5.2) $(75.0) $(9.9) Impact of converting certain hardware to operating lease accounting treatment (A) For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial me
Slide 17: Capitalization
Capitalization Ample liquidity to pursue both organic and inorganic growth opportunities As of September 30, 2020, no outstanding borrowings under the Revolving Credit Facility On September 15, 2020, the Company completed a follow-on offering and received net proceeds of $91.8 million, after deducti
Slide 18: Q4 2020 Outlook
Q4 2020 Outlook END-TO-END PAYMENT VOLUME We expect Q4 End-to-End Payment Volumes to range between: $7.2 billion and $7.6 billion GROSS REVENUES LESS NETWORK FEES(A) Driving Q4 Gross Revenues Less Network Fees between: $88 million and $92 million ADJUSTED EBITDA(B) Resulting in Adjusted EBITDA betwe
Slide 19: Third Quarter 2020 – Balance Sheets
Third Quarter 2020 – Balance Sheets September 30, December 31, (in millions/unaudited) 2020 2019 Assets Current assets Cash and cash equivalents $ 328.9 $ 3.7 Accounts receivable, net of allowance for doubtful accounts of $5.9 in 2020 (2019 - $2.5) 91.3 78.6 Contract assets, net of allowance for dou
Slide 20: Third Quarter 2020 – Balance Sheets (cont'd)
Third Quarter 2020 – Balance Sheets (cont’d) September 30, December 31, (in millions/unaudited) 2020 2019 Commitments and contingencies Redeemable preferred units, $100,000 par value; 430 shares authorized, issued and outstanding at December 31, 2019 - 43.0 Members' deficit - Shift4 Payments, LLC Cl
Slide 21: Third Quarter 2020 – Income Statements
Third Quarter 2020 – Income Statements Three months ended September 30, Nine months ended September 30, (in millions, except share and per share amounts/unaudited) 2020 2019 2020 2019 Gross revenue $ 214.8 $ 193.8 $ 556.0 $ 529.3 Cost of sales 163.3 147.2 427.7 400.5 Gross profit $ 51.5 $ 46.6 $ 128
Slide 22: Third Quarter 2020 – Cash Flow Statements
Third Quarter 2020 – Cash Flow Statements Nine Months Ended September 30, (in millions/unaudited) 2020 2019 Operating activities Net loss $ (90.1) $ (44.3) Adjustment to reconcile net loss to net cash provided by operating activities Depreciation and amortization 60.1 46.3 Amortization of capitalize
Slide 23: Third Quarter 2020 – Cash Flow Statements (cont'd)
Third Quarter 2020 – Cash Flow Statements (cont’d) Nine Months Ended September 30, (in millions/unaudited) 2020 2019 Investing activities Residual commission buyouts (2.1) (3.1) Acquisition of property, plant and equipment (2.6) (7.7) Capitalized software development costs (7.0) (3.7) Customer acqui
Slide 24: Third Quarter 2020 – Reconciliation to Non-GAAP Financial Measures
Third Quarter 2020 – Reconciliation to Non-GAAP Financial Measures Reconciliation of Net Loss to Adjusted EBITDA (in millions/unaudited) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Net loss $ (22.6) $ (13.8) $ (5.2) $ (75.0) $ (9.9) Interest expense 12.9 13.4 13.3 11.7 7.1 Income tax (benefit) provision