Slide 1: Q3 2022 Results SkyTab Showcase & Business Update
Q3 2022 Results SkyTab Showcase & Business Update November 7, 2022
Slide 2: Safe Harbor Statement and Forward Looking Information
Safe Harbor Statement and Forward Looking Information Non-GAAP Financial Measures and Key Performance Indicators This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend- such forward-looking statements to be covered
Slide 3: Dear Shareholders
Dear Shareholders, Throughout our 25 years in business, we have navigated through “dot-com”, the great recession, and a once-in-a-century pandemic. We understand how to innovate and grow during the best and most challenging of economic and geopolitical circumstances. I mentioned earlier this year th
Slide 4: Gateway conversions, new verticals and M&A
• Gateway conversions: The previously announced gateway sunset program continues to deliver favorable results. While we remain early in this multi-year initiative, we have already pulled forward volume that we otherwise may not have achieved, as well as renewed agreements with several enterprise cus
Slide 5: Quarterly Highlights & Financial Metrics
Quarterly Highlights & Financial MetricsQ3 Net Cash Provided by Operating Activities & Adjusted Free Cash Flow ($MILLION) Q3 End-to-End Payment Volume Gross Profit & Gross Revenue Less Network Fees ($MILLION) Net Income (Loss) & Adjusted EBITDA ($BILLION) +53% YoY Q3 END-TO-END PAYMENT VOLUME +118%
Slide 6: Increasing Our 2022 Outlook
TOTO Increasing Our 2022 Outlook $70 Billion $71 Billion (1) For comparative purposes, gross revenue for fiscal year 2021 excludes the impact of the payments to merchants due to the TSYS outage. (2) Gross Profit is estimated to be approximately 60% of Gross Revenue Less Network Fees and cost of sale
Slide 7: Adjusted Free Cash Flow Outlook
Q3 ...Including Our Adjusted Free Cash Flow(A) Outlook 2022 Outlook • Year-to-Date (YTD) Net Cash Provided by Operating Activities was $136 million. • Adjusted Free Cash Flow conversion improvement driven by operating leverage + benefits from organic initiatives, including Gateway Sunset. • Will con
Slide 8: SkyTab Showcase & Shift4 Business Update Q3 2022
SkyTab Showcase & Shift4 Business Update Q3 2022 8
Slide 9: Agenda
Introduction High Growth Core SkyTab POS New Verticals International Expansion Capital Allocation, Outlook, Financials Q&A Appendix Agenda 01 02 03 04 05 06 9
Slide 10: Introduction
Introduction 01 10
Slide 11: High Growth & Profitable at Scale
$200 Billion+ PROCESSED ANNUALLY 200,000+ CURRENT CUSTOMERS 500+ TECHNOLOGY INTEGRATIONS 170+ APMs 45+ COUNTRIES 2,100+ EMPLOYEES 47% E2E VOLUME 33% Gross Revenue Less Network Fees 46% ADJUSTED EBITDA(1) 3-YEAR CAGR GROWTH RATES (2019-2022*) *Based off mid-point of our 2022 Outlook Ranges. . 25 YEAR
Slide 12: Scorecard since 2021 Investor Day
* Reflects midpoint of 2022 outlook ranges. (1) Please refer to Page 5 for the nearest GAAP equivalent for Gross Revenue less Network Fees and Adjusted EBITDA. 2 YEAR CAGR (2019-2021) 45% 32% 41% 47% 3 YEAR CAGR (2019-2022)* Q3 2022 YoY or Margin E2E VOLUME 53% NET REVENUE 33% ADJ EBITDA 53% ADJ EBI
Slide 13: A True Integrated Payments Provider at Scale
A True Integrated Payments Provider at Scale 13
Slide 14: Powering the Most Recognizable Brands
Powering the Most Recognizable Brands Casinos & Online Gaming Food & Beverage Travel & Hospitality Sports & Entertainment Retail & eCommerce Sexy Tech SkyTab POS can be installed at all these verticals 14
Slide 15: At IPO
At IPO 1.5 COMING SOON 15
Slide 16: Today
Today 1.6 170+ APMs 20+ CURRENCIES 45+ COUNTRIES 16 16
Slide 17: Creating a Dominant Global Payment Platform
200,000 GLOBAL CUSTOMERS 170+ APMs 160+ CURRENCIES Creating a Dominant Global Payment Platform 1.7 45+ COUNTRIES CURRENTLY PROCESSING COMING SOON 17 17
Slide 18: Growth Strategy (from S-1) Results
GROWTH STRATEGY (FROM S-1) RESULTS Growth in line with mid-term outlook 52% 3-year E2E Volume CAGR (Q3-2019 vs Q3-2022) despite delays in new vertical integrations, challenging macro, and geopolitical environment Unlock substantial opportunity within existing merchant base Gateway sunset and SkyTab
Slide 19: High Growth Core
High Growth Core 02 19
Slide 20: High Growth Core Remains Primary Driver of Our Growth
High Growth Core Remains Primary Driver of Our Growth! High Growth Core: Shift4 Verticals at Time of 2020 IPO2.1 Restaurants Hotels Specialty Retail Verticals at Time of IPO High Growth Core Sports & EntertainmentSexy TechTravel Non-Profits Gaming Expansion Since IPO New Verticals 20
Slide 21: High Growth Core: A Consistent and Reliable Performer
High Growth Core: A Consistent and Reliable Performer2.2 • Gaining Share • Over 500 mission-critical software integrations: 85+ new software integrations completed in past 9 months. • Taking out Parts • De-emphasizing gateway-only connections to remove unnecessary parts while capturing greater share
Slide 22: Shift4 will power commerce for the numerous restaurants, bars and retail stores located on
Shift4 will power commerce for the numerous restaurants, bars and retail stores located on this historic 800-foot pier on Florida's Space Coast. Shift4 will power payments for Honolulu’s premier luxury resort, set on a secluded beach just minutes from the world- class shopping and entertainment of W
Slide 23: Gateway Sunset Initiative
Gateway Sunset Initiative2.4 Battleplan Sunset legacy connections and free up operational resources Early Results Properly monetize existing relationships Accelerate migration to end-to-end offering RECENT GATEWAY SUNSET WINS • Eliminated several hundred operational tasks per month • Targeted volume
Slide 24: SkyTab POS
SkyTab POS 03 24
Slide 25: Next-Generation Restaurant POS Platform
Already in thousands of locations, including: 3.2 Next-Generation Restaurant POS Platform STARBASE TX 25 25
Slide 26: Launch of SkyTab
Launch of SkyTab • Shift4 owns the entire ecosystem • Modern cloud-based tech stack • State of the art mobile hardware • Robust feature set with continuous deployment of new functionality • Disruptive pricing • Free Loyalty, Marketplace, and Online Ordering modules • Out-of-the-box single vendor off
Slide 27: SkyTab Opportunity
3.4 SkyTab Opportunity We can grow revenue and margins… without adding a single new customer 27
Slide 28: SkyTab Distribution Strategy
SkyTab Distribution Strategy3.5 THIRD PARTY DISTRIBUTION DIRECT DISTRIBUTION AS OF Q2: 100% THIRD PARTY DISTRIBUTION TODAY: 50/50 DIRECT VS THIRD PARTY 28
Slide 29: SkyTab Unit Economics
SkyTab Unit Economics Distribution insourcing increases our best-in-class payback periods even while enhancing our disruptive value prop 3.6 Improved Profitability | Enhanced Value Prop | Unmatched Unit Economics Gross profit enhancement due to: • Elimination of ~40% net residual payment to distribu
Slide 30: SkyTab KPIs
SkyTab KPI's3.7 1,000+ Merchants Sold Since Launch 30 30
Slide 31: New Verticals
New Verticals 04 31
Slide 32: Sports & Entertainment Update
77 Stadiums 120+ Stadiums 4.1 Significant Run-Way to Penetrate Additional Major League Sport Teams Added Theme Parks & Other Venues • Music venues (Chicago Symphony Orchestra) • Largest theme park in the U.S. Added In-Venue Gaming • Launching With first 2 Clients Added Ticketing • SeatGeek: Integrat
Slide 33: Q3 Sports & Entertainment Wins
Q3 Sports & Entertainment Wins4.2 Powering payments through POS, mobile ordering, and more SIGNATURE WIN Shift4 is processing payments through VenueNext POS at all bars and concessions throughout NRG Stadium and also providing mobile wallet and loyalty, mobile ordering, and self-serve kiosk ordering
Slide 34: SkyTab POS: The New Standard in POS for S&E Venues
SkyTab POS: The New Standard in POS for S&E Venues4.3 34
Slide 35: Non-Profit Update
Non-Profit Update4.4 Subscription Fees Sept '22 vs Sept '21 Donation Volume Sept '22 vs 'Sept 21 Client Base Sept '22 vs Sept '21 Up 3.7x Up 1.3x Up 5.3x + Thousands More New Integrations Sept '22 vs Sept '21 Over >300% Signed St. Jude Children's Research Hospital Currently Serve Over 2,000 Non-Prof
Slide 36: Gaming Update
Adding integration to Marker Trax, a digital casino marker technology company. Additional integrations underway positioning us well heading into 2023, including a large multi-state lottery courier service. Expanding international capabilities affords cross-sell opportunities and incremental volumes.
Slide 37: Travel & Leisure Update
4 Customers 3 Integrations Several Others in Negotiation Expected volume contribution to begin during 4th quarter 1 Customer 0 Integrations Travel & Leisure Update4.6 2021 2022 37
Slide 38: Sexy Tech Update
Sexy Tech Update4.7 Attracting global brands and extending our payment rails Acquired international PSP to accelerate integration, risk management, recurring billing and business intelligence for sophisticated global customers Secured First Strategic Client Massive Volume Ramp 2nd Half Driving Inter
Slide 39: Taking Our eCommerce Capabilities to the Next Level
Taking Our eCommerce Capabilities to the Next Level4.8 Our brand new online payments platform delivers a best-in-class eCommerce experience One-time transactions for traditional eCommerce sales Recurring payments and subscriptions, including free trials and pre-set discount periods Mixed billing cap
Slide 40: Taking Our eCommerce Capabilities to the Next Level
Our brand new online payments platform delivers a best-in-class eCommerce experience 4.10 Taking Our eCommerce Capabilities to the Next Level Real-time fraud prevention with up-to-date overview of alerts and notifications Detects and prevents fraud with machine learning, tokenization, and other best
Slide 41: Investments Paying Off
Investments Paying Off4.11 Q3 Volumes >4X Q1 Levels New Verticals E2E Volume Ramp Q3 New Verticals Volume >4x Q1 STRATEGIC CUSTOMER Adding subscribers & expanding globally STADIUMS Fall football season GAMING Adding states NON-PROFITS Year-end donation season ALLEGIANT AIRLINES Not yet contributing
Slide 42: Expanding TAM: We Are Just Getting Started
Expanding TAM: We Are Just Getting Started!4.12 Grown TAM by >4X since IPO through both organic and inorganic strategies 42
Slide 43: International Expansion
International Expansion 05 43
Slide 44: Strategic Priorities
Strategic Priorities5.1 Profitably follow signature customers all over the world Bring capabilities that made Shift4 successful in USA - restaurant, stadium, hotel products and integrations in those markets Cross sell customers between markets 44
Slide 45: Capital Allocation, Outlook, & Financials
Capital Allocation, Outlook, & Financials 06 45
Slide 46: Capital Allocation & Results
Capital Allocation & Results6.1 2.4x 4.6x Growth in Annualized R&D Spend • $520M in growth capital deployed • $200M in opportunistic share repurchases • Capability enhancements in: • eCommerce • Sports & Entertainment • International • Localized Sales & Service Research & Development ResultsCapital
Slide 47: 2023 Consensus Revenue: FOUR vs Peer Group
FOUR's 2023 Consensus Revenue(1) estimate increased 16% since Nov 2021 (vs 7% avg peer decline) % Change in 2023 Consensus Revenue(1): FOUR vs Peer Group6.2 November 2021 Analyst Day vs Today* (1) Revenue defined as Gross Revenue Less Network Fees. Consensus Revenue estimates from FactSet as of Nove
Slide 48: 2023 Consensus Adjusted EBITDA: FOUR vs Peer Group
6.3 (1) Consensus estimates based on EBITDA from FactSet as of November 4, 2022. Excludes firms that do not generate positive Adjusted EBITDA. Adjustments included in Adjusted EBITDA varies among peers. FOUR's 2023 consensus Adjusted EBITDA(1) estimate increased 14% since Nov 2021 (vs 32% avg peer d
Slide 49: 2023 Consensus FCF: FOUR vs Peer Group
6.4 (1) Consensus estimates from FactSet as of November 4, 2022. Excludes firms that do not generate positive Free Cash Flow. FCF defined as GAAP Net Cash from Operating Activities less Capital Expenditures. For FOUR, Capex includes capitalized cost of equipment and PP&E. Costs included in Capital E
Slide 50: Consensus Estimates vs Price Targets
Consensus Estimates vs Price Targets(1)6.5 Shift4 Price Average Target down despite material increase to consensus expectations (1) Revenue is Gross Revenue Less Network Fees and based off of FactSet as of November 4, 2022. (2) EBITDA is Adjusted EBITDA and based off of FactSet as of November 4, 202
Slide 51: 2022 Guidance Updates
2022 Guidance Updates6.6 TOTO $70 Billion $71 Billion +50% YoY +52% YoY Increasing our End-to-End Payment Volume range $1.95 Billion $2.00 Billion Gross Revenues (1) +40% YoY +44% YoY Increasing the low-end of our Gross Revenue range $720 Million $725 Million Gross Revenues Less Network Fee(2) +36%
Slide 52: Medium Term Outlook
Medium Term Outlook6.7 ~$160bn End-to-End Volume ~$3.5bn Gross Revenue ~$1.15bn Gross Revenue Less Network Fees(A) BY THE END OF 2024 END-TO-END PAYMENT VOLUME CAGR GROWTH At least 50% CAGR GROSS REVENUES LESS NETWORK FEES CAGR GROWTH At least 30% CAGR 52 (A) We are unable to provide a reconciliatio
Slide 53: Executing on ESG: Social
Executing on ESG: Social6.8 Living the Shift4 Way GLOBAL ENGAGEMENT OCTOBER Donated $500K to the Edward Charles Foundation to fund ”Starlink for Schools” • Increases internet connectivity for 40,000 students in Brazil and Chile to enable access to information in isolated schools across these regions
Slide 54: Stock Based Compensation
Stock Based Compensation6.9 Dilution from ongoing share-based compensation averaging 1.2% per annum Share Dilution Components Total cumulative share dilution over the past 2+ Years = 8% 54
Slide 55: Q&A
Q&A 07 55
Slide 56: Appendix
Appendix 08 56
Slide 57: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets UNAUDITED In millions 8.1 57
Slide 58: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations 8.2 UNAUDITED In millions, except share data 58
Slide 59: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows 8.3 UNAUDITED In millions 59
Slide 60: Reconciliations of Gross Revenue to Gross Profit
Reconciliations of Gross Revenue to Gross Profit and Gross Profit to Gross Revenue Less Network Fees UNAUDITED In millions 8.4 60
Slide 61: Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income
UNAUDITED In millions, except share and per share data 8.5 Reconciliation of Net Income to Non-GAAP Adjusted EBITDA and Net Income to Non-GAAP Adjusted Net Income 61
Slide 62: Reconciliation of Operating Cash Flow to Free Cash Flow
UNAUDITED In millions 8.6 Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow 62
Slide 63: Reconciliation of Shares
UNAUDITED 8.7 Reconciliation of Shares 63