Slide 1: Q4 2023 Shareholder Letter
Q4 2023 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM
Slide 2: Forward-Looking Statements
Forward-Looking Statements This letter contains forward-looking statements. Shift4 that may cause our actual results, performance or grow and increase our profitability; additional risks Payments, Inc. (“we,” “our,” the “Company,” or “Shift4”) achievements to be materially different from any future
Slide 3: Dear Shareholders
Dear Shareholders, For several reasons this quarter, I have challenged myself to keep matters simple and to the point. With that, I am reasonably pleased with our results and would summarize the 4th quarter as follows: Excellent: – Strong Q4 KPI’s. 55% YoY growth in end-to-end volume, 33% growth in
Slide 4: Performance Highlights Fourth Quarter 2023
Performance Highlights Q4 Fourth Quarter 2023 +55% YoY +33% YoY +35% YoY $19.2M • $136.1M Q4 END-TO-END PAYMENT VOLUME GROSS PROFIT GROSS REVENUE LESS NETWORK NET INCOME +44% YoY FEES(A) ADJUSTED EBITDA(A) • End-to-end ("E2E") payment volume of $32.1 billion during • Net income for Q4 2023 was $19.2
Slide 5: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives Moving up market with industry leading volume growth while improving overall unit economics e siz ant e rch m rage a ve Tactical Move Up Successful move Market upmarket Industry Leading E2E Driving industry Volume Growth leading volume growth And improved YoY In
Slide 6: Restaurant Update
Restaurant Update Continuing to rapidly gain market share in the food & beverage space 69% YoY Restaurant SaaS fee growth 2024 Goal: 10,000 restaurants in Europe and Canada 2024 Goal: over 30,000 SkyTab systems installed in US NOW IN THE UK! 6
Slide 7: SkyTab Website Builder Powered by AI
SkyTab Website Builder Powered by AI Merchants can now leverage AI technology to build a custom SkyTab website AI Generated Restaurant Websites SkyTab plugins: Online Ordering, Gift Cards, Loyalty & Reservations Fully Integrated Menu Content SEO and Analytics to promote discovery and boost conversio
Slide 8: Core - Hospitality
Core - Hospitality Continuing to expand market share in hospitality vertical Carter Hospitality ★ Destination Residences Hawaii ★ Carter Hospitality Group is a family-owned hospitality company Destination Residences Hawaii offers a collection of luxury with four luxurious hotels and resorts as well
Slide 9: Core - Hospitality
Core - Hospitality Continuing to expand market share in hospitality vertical The Cliffs Hotel and Spa ★ Ojo Caliente ★ Nestled on an oceanfront bluff overlooking a breathtaking beach Steeped in New Mexico history and tradition, Ojo Caliente is one on California’s Central Coast, The Cliffs provides a
Slide 10: Core - Specialty Retail
Core - Specialty Retail Continuing to expand market share in Specialty Retail Big Y James Allen Diamonds Big Y manages nearly 100 grocery stores and convenience stores across James Allen is an online jewelry retailer based in New York, Connecticut and Massachusetts. specializing in diamonds and enga
Slide 11: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more SIGNATURE WINS Shift4 will process payments for concessions and mobile Shift4 will be powering all ticketing transactions for the Rams transactions at all events at MetLife Stadium, including New York through
Slide 12: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more Kia Forum Los Angeles Dodgers Shift4 will power payments at the iconic Kia Forum in Los Angeles, home Shift4 will be processing payments for all retail sales throughout Dodger to a wide range of events includi
Slide 13: New Verticals Update
New Verticals Update Continuing to gain momentum in new verticals NON-PROFITS SEXY TECH GAMING 1 13 3
Slide 14: International Expansion Update
International Expansion Update Shift4 continues to move Boldly Forward towards becoming a truly global company Shift4 is Now a Global Company Quickly expanding our international capabilities • Live restaurants & hotels in Europe and Canada • Hospitality offerings in the Caribbean • Powering payments
Slide 15: Introducing Full Year 2024 Guidance
Introducing Full Year 2024 Guidance We are providing full year 2024 guidance across our main KPIs FY 2024 Guidance End-to-End Payment Volume $167 Billion TO $183 Billion +53% YoY +68% YoY Gross Revenue Less Network Fees $1.30 Billion TO $1.35 Billion +38% YoY +44% YoY Adjusted EBITDA $635 Million TO
Slide 16: On Track to Exceed Our Medium Term Guide
On Track to Exceed Our Medium Term Guide We made a commitment in November of 2021 to deliver stellar results by 2024 across three KPIs - we have followed through every year since and will push to do so in the future E2E VOLUME ($MILLION) GROSS REVENUE ($MILLION) GRLNF ($MILLION) 1 16 6
Slide 17: Appendix - Financial Information
Appendix - Financial Information 17
Slide 18: Condensed Consolidated Balance Sheets
Fourth Quarter of 2023 Condensed Consolidated Balance Sheets UNAUDITED In millions December 31, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents $ 455.0 $ 702.5 Restricted cash 84.4 74.0 Settlement assets 321.2 — Accounts receivable, net 256.8 195.0 Inventory 3.4 4.8 Prepaid ex
Slide 19: Condensed Consolidated Statements of Operations
Fourth Quarter of 2023 Condensed Consolidated Statements of Operations UNAUDITED In millions, except share and per share data Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Gross revenue $ 705.4 $ 537.7 $ 2,564.8 $ 1,993.6 Cost of sales
Slide 20: Condensed Consolidated Statements of Cash Flows
Fourth Quarter of 2023 Condensed Consolidated Statements of Cash Flows UNAUDITED In millions Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 OPERATING ACTIVITIES Net income $ 19.2 $ 38.5 $ 122.9 $ 86.7 Adjustments to reconcile net income
Slide 21: Reconciliations of Gross Revenue to Gross Profit and GRLNF
Fourth Quarter of 2023 Reconciliations of Gross Revenue to Gross Profit and Gross Profit to Gross Revenue Less Network Fees UNAUDITED In millions Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Payments-based revenue $ 648.0 $ 502.7 $ 2,
Slide 22: Reconciliations of Net Income to Adjusted EBITDA and Adjusted Net Income
Fourth Quarter of 2023 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 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 NET INCOME $ 38.5 $ 20.4 $ 36
Slide 23: Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow
Fourth Quarter of 2023 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 December 31, March 31, June 30, September 30, December 31, 2022 2023 2023 2023 2023 NET CASH PROV
Slide 24: Reconciliation of Shares
Fourth Quarter of 2023 Reconciliation of Shares UNAUDITED Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 BEGINNING BALANCE Class A Shares 53,006,376 54,153,218 56,770,614 56,467,133 56,544,839 Class B Shares 25,829,016 25,829,016 24,162,351 23,831,883 23,831,883 Class C Shares 3,626,749 2,889,811 2,090,706