Slide 1: Q1 2024 Shareholder Letter
MAJOR CASINO OPERATOR & DEAL ANNOUNCEMENT Q1 2024 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM
Slide 2: Forward-Looking Statements
Forward-Looking Statements This letter contains forward-looking statements within the We have based these forward-looking statements largely on and information security, marketing, cryptocurrency, meaning of the Private Securities Litigation Reform Act of our current expectations and projections abo
Slide 3: Dear Shareholders
Dear Shareholders, It has been a little over two months since my last letter, but already so much has transpired. For the most part I would say we wrapped up another reasonably strong quarter. Despite our record results and strong free cash flow, consensus estimates didn’t really capture the proper
Slide 4: What is my personal commitment?
What is my personal commitment? I am not a founder that envisions my children running Shift4 someday. I have run Shift4 for a quarter of a century now from a teenage basement startup to the public company it is today. I own way too much of the company to ever sit on the sidelines, so I intend to see
Slide 5: Performance Highlights First Quarter 2024
Performance Highlights Q1 First Quarter 2024 +50% YoY +27% YoY +32% YoY $28.5M • $121.7M Q1 END-TO-END PAYMENT VOLUME GROSS PROFIT GROSS REVENUE LESS NETWORK NET INCOME +36% YoY FEES(A) ADJUSTED EBITDA(A) • End-to-end ("E2E") payment volume of $33.4 billion during • Net income for Q1 2024 was $28.5
Slide 6: Restaurant Update
Restaurant Update Shift4 continues to gain market share in restaurants, winning new restaurants every day Search "Shift4" on X (f.k.a. Twitter) to see dozens of installs every day! 6
Slide 7: SkyTab is a Best in Class Product
SkyTab is a Best in Class Product We are winning in the restaurant space because our merchants love our product suite 38% system install 55% Restaurant SaaS Ahead of schedule for growth QoQ growth 30,000 system installs in the U.S. in 2024 Our Merchants Get Far More Than Just a Premiere POS System w
Slide 8: Hospitality Update
Hospitality Update Continuing to expand market share in hospitality vertical Shift4 has developed a relationship with a premier global As the largest resort casino in North America, operator of casino resorts with a portfolio that encompasses Foxwoods offers gaming across seven casinos and dozens of
Slide 9: Hospitality Update
Hospitality Update Continuing to expand market share in hospitality vertical Brasada Ranch ★ Tropical Shore Beach Resort ★ Brasada Ranch is a modern desert luxury retreat offering stunning A collection of boutique hotels offering endless options for an views, upscale accommodations, farm-to-table di
Slide 10: Sports & Entertainment Update
Sports & Entertainment Update Powering payments through POS, mobile ordering, ticketing, and more SIGNATURE WINS - WITH TICKETING! The reigning Super Bowl Champions have selected Shift4 has partnered with the Minnesota Vikings to Shift4 to power the team’s ticket sales at GEHA Field power payments f
Slide 11: Sports & Entertainment
Sports & Entertainment Powering payments through POS, mobile ordering, ticketing, and more Minor League Baseball New York Racing Association Shift4 has recently partnered with seven Minor League Baseball teams Founded in 1955, the New York Racing Association (NYRA) runs thorough- to provide payment
Slide 12: Other Verticals Update
Other Verticals Update Continuing to gain momentum in new verticals NON-PROFITS We entered into an inspiring collaboration with the Cabrini Mission Foundation, which embodies the spirit of St. Frances Xavier Cabrini, the patron saint of immigrants SEXY TECH We teamed up with Pepperi to offer buyers
Slide 13: International Expansion Update
International Expansion Update Shift4 continues to move Boldly Forward towards becoming a truly global company We Are Continuing to Follow Our Global Strategic Partner into New Geographies Now Processing Notable International Wins in Our Key Verticals HOSPITALITY OTHER Hundreds of locations across t
Slide 14: International Expansion Update
International Expansion Update Shift4 Is Bringing Its Winning Formula in the Sports & Entertainment Vertical to Europe We Are Thrilled to Announce Our First Two Stadium Wins in Europe! 1 14 4
Slide 15: Thoughtful Capital Allocation is at the Beginning of Everything We Do
Thoughtful Capital Allocation is at the Beginning of Everything We Do We balance between product innovation, customer acquisition, share repurchases and M&A to accelerate our strategy CUSTOMER ACQUISITION • Eliminate upfront costs for our merchants by providing essential hardware Attractive payback
Slide 16: The Shift4 Acquisition Playbook Is Tried & True
The Shift4 Acquisition Playbook Is Tried & True Our approach boils down to unlocking synergies, expanding our capabilities, and most importantly unlocking payment volume conversion opportunities at the most attractive price Our acquisitions expand our capabilities or top off our funnel…or both TECH
Slide 17: We Continue to Win by Efficiently Allocating Capital
We Continue to Win by Efficiently Allocating Capital In Q1, Shift4 is announcing the intent to acquire Revel Systems — straight out of the Shift4 Playbook 18,000+ merchant locations and $17B+ payment opportunity SHIFT4 PLAYBOOK Blow up legacy revenue model and rebuild around payments Increase distri
Slide 18: Updating Our Full Year 2024 Guidance
Updating Our Full Year 2024 Guidance We are updating our full year 2024 guidance across our KPIs End-to-End Payment Volume Gross Revenue Less Network Fees Tightening the high end of our End-to-End Our GRLNF range remains unchanged Payment Volume range $167 Billion $175 Billion $1.30 Billion $1.35 Bi
Slide 19: Breaking Down Our 2024 Guidance by Quarter
Breaking Down Our 2024 Guidance by Quarter We are providing quarterly guidance for the balance of the year End-to-End Payment Volume FY 2024 Q2 2024 Q3 2024 Q4 2024 $167 Billion $39.0 B $46.0 B $49.0 B +53% YoY TO TO TO TO $41.0 B $48.0 B $53.0 B $175 Billion +61% YoY Gross Revenue Less Network Fees
Slide 20: Appendix - Financial Information
Appendix - Financial Information 20
Slide 21: Condensed Consolidated Balance Sheets
First Quarter of 2024 Condensed Consolidated Balance Sheets UNAUDITED In millions March 31, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 522.9 $ 455.0 Restricted cash 57.3 84.4 Settlement assets 316.4 321.2 Accounts receivable, net 252.2 256.8 Inventory 2.7 3.4 Prepaid ex
Slide 22: Condensed Consolidated Statements of Operations
First Quarter of 2024 Condensed Consolidated Statements of Operations UNAUDITED In millions, except share and per share data Three Months Ended March 31, 2024 March 31, 2023 Gross revenue $ 707.4 $ 547.0 Cost of sales (exclusive of certain depreciation and amortization expense shown separately below
Slide 23: Condensed Consolidated Statements of Cash Flows
First Quarter of 2024 Condensed Consolidated Statements of Cash Flows UNAUDITED In millions Three Months Ended March 31, 2024 March 31, 2023 OPERATING ACTIVITIES Net income $ 28.5 $ 20.4 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 66
Slide 24: Reconciliations of Gross Revenue to Gross Profit and Gross Revenue Less Network Fees
First Quarter of 2024 Reconciliations of Gross Revenue to Gross Profit and Gross Profit to Gross Revenue Less Network Fees UNAUDITED In millions Three Months Ended March 31, 2024 March 31, 2023 Payments-based revenue $ 655.1 $ 511.0 Subscription and other revenues 52.3 36.0 GROSS REVENUE 707.4 547.0
Slide 25: Reconciliations of Net Income to Adjusted EBITDA and Adjusted Net Income
First Quarter of 2024 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 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 NET INCOME $ 20.4 $ 36.8 $ 46.
Slide 26: Reconciliation of Net Cash from Operations to Free Cash Flow
First Quarter of 2024 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 March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 NET CASH PROVIDED
Slide 27: Reconciliation of Shares
First Quarter of 2024 Reconciliation of Shares UNAUDITED Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 BEGINNING BALANCE Class A Shares 54,153,218 56,770,614 56,467,133 56,544,839 60,664,171 Class B Shares 25,829,016 24,162,351 23,831,883 23,831,883 23,831,883 Class C Shares 2,889,811 2,090,706 1,759,273