Slide 1: Q2 2023 Shareholder Letter
Q2 2023 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM
Slide 2: Forward-Looking Statements
Forward-Looking Statements This letter contains forward-looking statements within the ability to continue to expand our market share or expand proceedings; our ability to raise additional capital to fund meaning of the Private Securities Litigation Reform Act of into new markets; our reliance on thi
Slide 3: Dear Shareholders
Dear Shareholders, We have been busy but we finished up another reasonably strong quarter. We delivered record results results across across the the board, board, landed landed many many notable notable enterprise enterprise merchants, merchants, installed installed thousands thousands of of new new
Slide 4: CEO letter closing
It is not easy to deliver these kind of results. It takes a lot of hard work and sacrifice from thousands of Shift4 team members and well over two hundred thousand customers that put their trust in our service. I am very thankful. As always, I welcome all your feedback, including business opportunit
Slide 5: Performance Highlights Second Quarter 2023
Performance Highlights Q2 Second Quarter 2023 +59% YoY +61% YoY +25% YoY $37M •$110M Q2 END-TO-END PAYMENT VOLUME GROSS PROFIT GROSS REVENUE LESS NETWORK NET INCOME +68% YoY FEES(A) ADJUSTED EBITDA(A) • End-to-end ("E2E") payment volume of $26.8 billion during • Net income for Q2 2023 was $36.8 mill
Slide 6: Executing on Our Strategic Objectives
Executing on Our Strategic Objectives High Growth Core: Gaining Share, Taking Out Parts Gain Share & Steady Growth 5 Year Total Cost of Ownership Analysis E2E Volumes and Blended Spreads Move Up Market by Quarter Average size of merchant based on volume is +185% of 2021 levels. (A) For Visa and Mast
Slide 7: Restaurants & Bars
Restaurants & Bars Rapidly gaining market share in the food & beverage space Nearly 6,500 SkyTab systems installed in the 2nd quarter Over 900 Focus POS merchants converted to Shift4 since acquisition – nearly 10% of the Focus POS install base *Illustrative quotes assuming 5-year total cost of owner
Slide 8: High Growth Core
High Growth Core Continuing to expand market share in our fast-growing core verticals ★ Shift4 will process payments for Fontainebleau Las InTown Suites & Uptown Suites, two national Vegas, a 67-story, vertically integrated luxury resort extended stay hotel brands, have agreed to opening in December
Slide 9: High Growth Core
High Growth Core Continuing to expand market share in our fast-growing core verticals Westgate Resorts ★ Rosewood Sand Hill Shift4 will power payments for all Westgate Resorts & Hotels Shift4 will process payments for this notable hotel set in the properties across the US. heart of Silicon Valley. H
Slide 10: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more Carolina Panthers Texas Rangers Shift4 will be processing all concessions payments for the Carolina Shift4 will be processing payments for all of the Texas Rangers’ Panthers, including POS, kiosk, and mobile t
Slide 11: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more Philadelphia Phillies Purdue University Shift4 will be powering payments for the Phillies’ mobile ordering Shift4 will be processing payments for Purdue University’s concessions solution. transactions. Univers
Slide 12: New Verticals Update
New Verticals Update Gaining momentum in new verticals NON-PROFITS Shift4's efforts in the non-profit space are building momentum as we leverage the unique capabilities we possess with The Giving Block to establish new partnerships and sign more non-profit organizations to our platform. SEXY TECH Re
Slide 13: 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 $108 Billion $114 Billion $2.60 Billion $2.70 Billion TO TO +51% YoY +59% YoY +30% YoY +35% YoY from $104 Billion to $110
Slide 14: Appendix - Financial Information
Appendix - Financial Information 14
Slide 15: Condensed Consolidated Balance Sheets
Second Quarter of 2023 Condensed Consolidated Balance Sheets UNAUDITED In millions June 30, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents $ 649.0 $ 702.5 Restricted cash 76.3 74.0 Accounts receivable, net 228.7 195.0 Inventory 2.8 4.8 Prepaid expenses and other current asset
Slide 16: Condensed Consolidated Statements of Operations
Second Quarter of 2023 Condensed Consolidated Statements of Operations UNAUDITED In millions, except share and per share data Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Gross revenue $ 637.0 $ 506.7 $ 1,184.0 $ 908.6 Cost of sales (exclusive of certai
Slide 17: Condensed Consolidated Statements of Cash Flows
Second Quarter of 2023 Condensed Consolidated Statements of Cash Flows UNAUDITED In millions Six Months Ended June 30, 2023 June 30, 2022 OPERATING ACTIVITIES Net income $ 57.2 $ 1.8 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 97.6 5
Slide 18: Reconciliations of Gross Revenue to Gross Profit
Second 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 June 30, Six Months Ended June 30, June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Payments-based revenue $ 600.1 $ 473.9 $ 1,1
Slide 19: Reconciliations of Net Income to Adjusted EBITDA
Second 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 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 NET INCOME $ 15.0 $ 46.4 $ 38
Slide 20: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow
Second 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 June 30, September 30, December 31, March 31, June 30, 2022 2022 2022 2023 2023 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 40.0 $
Slide 21: Reconciliation of Shares
Second Quarter of 2023 Reconciliation of Shares UNAUDITED Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 BEGINNING BALANCE Class A Shares 53,618,573 51,458,312 53,006,376 54,153,218 56,770,614 Class B Shares 26,272,654 25,829,016 25,829,016 25,829,016 24,162,351 Class C Shares 4,302,657 3,650,380 3,626,749