Slide 1: Q3 2023 Shareholder Letter
Q3 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 are quickly approaching our 25th year in business but the last 4 years have been the most volatile and challenging times I can remember. We all continue to navigate the unfortunate realities of a global pandemic, social unrest, immense political divide, economic uncertainty, on
Slide 4: Letter continued: Finaro closing and SkyTab success
With respect to global expansion, we were thrilled to announce the long-awaited closing of the acquisition of Finaro on Oct 26th. This acquisition marks the beginning of our European expansion and represents a major milestone for the company. The significant revenue and EBITDA synergies we unlocked
Slide 5: Performance Highlights Third Quarter 2023
Performance Highlights Q3 Third Quarter 2023 +36% YoY +34% YoY +24% YoY $46.5M • $124.5M Q3 END-TO-END PAYMENT VOLUME GROSS PROFIT GROSS REVENUE LESS NETWORK NET INCOME +46% YoY FEES(A) ADJUSTED EBITDA(A) • End-to-end ("E2E") payment volume of $27.9 billion during • Net income for Q3 2023 was $46.5
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 +192% of 2021 levels. (A) For Visa and Mast
Slide 7: SkyTab First Year Update
SkyTab First Year Update Continuing to rapidly gain market share in the food & beverage space 7
Slide 8: High Growth Core
High Growth Core Continuing to expand market share in our fast-growing core verticals ★ Pebble Beach has renewed and expanded We have partnered with SkyTouch the scope of the end-to-end agreement to Technology, a property management include use of SkyTab and VenueNext system installed at over 7,000
Slide 9: High Growth Core
High Growth Core Continuing to expand market share in our fast-growing core verticals Ocean House Collection ★ Tiburón Golf Club The Ocean House Collection offers three distinctive oceanfront Located in Naples, FL, Tiburón Golf Club features two 18-hole, Greg properties in Rhode Island, including th
Slide 10: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more SIGNATURE WINS - WITH TICKETING! Shift4 will be providing a complete commerce Shift4 is now processing ticketing transactions Shift4 is now powering concession payments ecosystem for the Orlando Magic, includi
Slide 11: Appetize Acquisition
Appetize Acquisition Accelerated our dominance in the Sports & Entertainment space IS NOW Classic Shift4 playbook: acquired an under-monetized payment opportunity at an attractive price point Instantly added 600+ venues to our customer base More than tripled our market share across major league spor
Slide 12: New Verticals Update
New Verticals Update Continuing to gain momentum in new verticals NON-PROFITS Give Lively, which provides powerful fundraising solutions to over 8,000 nonprofits, will add Shift4 as a payment processor and expand donation processing capabilities to include stocks and top cryptocurrencies via Shift4
Slide 13: International Expansion
International Expansion With the closing of Finaro, Shift4 moves Boldly Forward towards becoming a truly global company + Shift4 is Global • We are thrilled to fulfill a promise we made 20 months ago with the closing of Finaro, having molded a business that looks very different than it did at announ
Slide 14: Breaking Down Fourth Quarter Guidance
Breaking Down Fourth Quarter Guidance We expect full year guidance to fall within the previously provided ranges Q4 Guidance End-to-End Payment Volume $32 Billion TO $33 Billion +52% YoY +57% YoY Full Year Range: $108.5 Billion to $109.5 Billion Gross Revenue $741 Million TO $766 Million +38% YoY +4
Slide 15: Q4 2023 Expected Contribution from FocusPOS, Appetize, and Finaro
Q4 2023 Expected Contribution from FocusPOS, Appetize, and Finaro, inclusive of Synergies Figures above includes partial contribution for Finaro due to October 26th closing. Adjusted for a full-quarter closing of Finaro, Q4 YoY Gross Revenue less Network Fee growth would be 45% (Q4 Guidance). 1 15 5
Slide 16: Looking Ahead to 2024
Looking Ahead to 2024 Breaking down expected volume in the medium term Volume Growth Bridge (#039;s in Billions) Additional $180 billion embedded payment opportunity comprised of Gateway-only and Software-only Restaurant customers 1 16 6
Slide 17: Appendix - Financial Information
Appendix - Financial Information 17
Slide 18: Condensed Consolidated Balance Sheets
Third Quarter of 2023 Condensed Consolidated Balance Sheets UNAUDITED In millions September 30, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents $ 692.3 $ 702.5 Restricted cash 91.0 74.0 Accounts receivable, net 232.1 195.0 Inventory 2.5 4.8 Prepaid expenses and other current a
Slide 19: Condensed Consolidated Statements of Operations
Third Quarter of 2023 Condensed Consolidated Statements of Operations UNAUDITED In millions, except share and per share data Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Gross revenue $ 675.4 $ 547.3 $ 1,859.4 $ 1,455.9 Cost of sale
Slide 20: Condensed Consolidated Statements of Cash Flows
Third Quarter of 2023 Condensed Consolidated Statements of Cash Flows UNAUDITED In millions Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 OPERATING ACTIVITIES Net income $ 46.5 $ 46.4 $ 103.7 $ 48.2 Adjustments to reconcile net incom
Slide 21: Reconciliations of Gross Revenue to Gross Profit
Third 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 Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Payments-based revenue $ 626.9 $ 509.0 $ 1
Slide 22: Reconciliations of Net Income to Adjusted EBITDA
Third 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 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 NET INCOME $ 46.4 $ 38.5 $ 20.
Slide 23: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow
Third 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 September 30, December 31, March 31, June 30, September 30, 2022 2022 2023 2023 2023 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 65
Slide 24: Reconciliation of Shares
Third Quarter of 2023 Reconciliation of Shares UNAUDITED Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 BEGINNING BALANCE Class A Shares 51,458,312 53,006,376 54,153,218 56,770,614 56,467,133 Class B Shares 25,829,016 25,829,016 25,829,016 24,162,351 23,831,883 Class C Shares 3,650,380 3,626,749 2,889,811