Shift4 Payments, Inc. · NYSE:FOUR
Shift4 Payments — Q1 2023 Earnings Presentation
19 slides from Shift4 Payments's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Shareholder Letter
Q1 2023 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM
Slide 2: Safe Harbor Statement and Forward-Looking Information
Safe Harbor Statement and Forward-Looking Information This presentation contains forward-looking statements ability to continue to expand our market share or expand proceedings; our ability to raise additional capital to fund within the meaning of the Private Securities Litigation into new markets;
Slide 3: Dear Shareholders
Dear Shareholders, We just wrapped up what was a reasonably strong quarter. I am especially proud that we have established new quarterly records for volume, gross revenue less network fees, and free cash flow. Simply put, we achieved these results by executing & winning share in a large addressable
Slide 4: Shareholder letter continued: consumer spending and growth
As mentioned above, consumer spending largely exceeded our expectations. Like others have reported, we did see a bit of a moderation in March. Some have attributed this to the short-lived banking crisis, others to lower tax refunds. While it is possible that this moderation was an anomaly, we are no
Slide 5: Performance Highlights First Quarter 2023
Performance Highlights Q1 First Quarter 2023 +66% YoY +78% YoY +34% YoY $20M $89M • Q1 END-TO-END PAYMENT VOLUME GROSS PROFIT GROSS REVENUE LESS NETWORK NET INCOME +102% YoY FEES(A) ADJUSTED EBITDA(A) • End-to-end payment volume of $22.3 billion during Q1 • Net income for Q1 2023 was $20.4 million.
Slide 6: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives High Growth Core: Gaining Share, Taking Out Parts Gain Share & Steady Growth End-to-End Customers > $100 Million of Volume E2E Volumes and Blended Spreads Move Up Market by Quarter Average size of merchant based on volume is +230% of 2021 levels. (A) For Visa an
Slide 7: SkyTab POS
SkyTab POS Rapidly gaining market share across the country Continuing to Add Thousands of SkyTab Systems Each Quarter SkyTab has been a game-changer for us, providing an all-in-one technology platform to run our business - from the POS system and online ordering to mobile ordering and mobile payment
Slide 8: Focus POS Acquisition
Focus POS Acquisition Shift4 has acquired Focus POS, a significant player in the restaurant point-of-sale market, to augment our sales funnel and increase our reach in the food & beverage vertical. Topping Off the Funnel Adds 10,000+ Focus POS restaurant clients with up to $15 billion of annual End-
Slide 9: High Growth Core
High Growth Core Continuing to expand market share in our fast-growing core verticals This brand new mega-resort in Glendale, AZ will feature four unique hotel towers, a five- acre pool, world-class spa and fitness facilities, 40,000 square feet of event space, 12 onsite restaurants, 10 bars, a two-
Slide 10: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more Shift4 will process payments for all food Shift4 will power payments for all food & & beverage transactions at Fedex Field, beverage concessions at Six Flags theme the home of the NFL’s Washington parks across
Slide 11: 2023 Outlook
2023 Outlook* Increasing Our Full Year Outlook End-to-End Payment Volume Gross Revenue Increasing our End-to-End Payment Increasing low-end of our Gross Volume range Revenue range $104 Billion $110 Billion $2.55 Billion $2.70 Billion TO TO +45% YoY +54% YoY +28% YoY +35% YoY Gross Revenue Less Netwo
Slide 12: Appendix - Financial Information
Appendix - Financial Information 12
Slide 13: Condensed Consolidated Balance Sheets
First Quarter of 2023 Condensed Consolidated Balance Sheets UNAUDITED In millions March 31, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents $ 817.9 $ 776.5 Accounts receivable, net of allowance for credit losses of $20.2 and $18.1 in 2023 and 2022, respectively 209.3 195.0 Inv
Slide 14: Condensed Consolidated Statements of Operations
First Quarter of 2023 Condensed Consolidated Statements of Operations UNAUDITED In millions, except share and per share data Three Months Ended March 31, 2023 March 31, 2022 Gross revenue $ 547.0 $ 401.9 Cost of sales (exclusive of certain depreciation and amortization expense shown separately below
Slide 15: Condensed Consolidated Statements of Cash Flows
First Quarter of 2023 Condensed Consolidated Statements of Cash Flows UNAUDITED In millions Three Months Ended March 31, 2023 March 31, 2022 OPERATING ACTIVITIES Net income (loss) $ 20.4 $ (13.2) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and
Slide 16: Reconciliations of Gross Revenue to Gross Profit and Gross Revenue Less Network Fees
First 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 March 31, 2023 March 31, 2022 Payments-based revenue $ 511.0 $ 371.5 Subscription and other revenues 36.0 30.4 GROSS REVENUE 547.0 401.9
Slide 17: Reconciliations to Non-GAAP Adjusted EBITDA and Adjusted Net Income
First Quarter of 2023 Reconciliations of Net Income (Loss) to Non-GAAP Adjusted EBITDA and Net Income (Loss) to Non-GAAP Adjusted Net Income UNAUDITED In millions, except share and per share data RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 NET INCOM
Slide 18: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow
First Quarter of 2023 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow in millions UNAUDITED Three Months Ended March 31, June 30, September 30, December 31, March 31, 2022 2022 2022 2022 2023 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 30.8 $
Slide 19: Reconciliation of Shares
First Quarter of 2023 Reconciliation of Shares UNAUDITED Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 BEGINNING BALANCE Class A Shares 51,793,127 53,618,573 51,458,312 53,006,376 54,153,218 Class B Shares 26,272,654 26,272,654 25,829,016 25,829,016 25,829,016 Class C Shares 5,035,181 4,302,657 3,650,380