Financial Data and Key Metrics Changes - Shift4 Payments reported total Q3 volume of $43 billion, a 56% year-over-year increase [52] - Gross revenue less network fees grew 50% to $365 million [52] - Adjusted EBITDA increased by 51% year-over-year to $187 million, with adjusted EBITDA margins at 51.3% [53] - Adjusted free cash flow was $111 million, up 46% compared to the previous year, representing a 59% free cash flow conversion [57] Business Line Data and Key Metrics Changes - The hospitality vertical saw significant new logo wins, including KSL Properties and a major Las Vegas casino operator [7][8] - Subscription and other revenue reached $102 million in Q3, up 111% year-over-year, driven by growth in SMB, SkyTab, and sports and entertainment [55] - The restaurant POS product, SkyTab, has installed over 55,000 systems since coming out of beta, exceeding the 2024 goal of 35,000 installations [16][69] Market Data and Key Metrics Changes - The backlog increased to approximately $33 billion, up from $25 billion in Q2, indicating strong sales momentum [41] - Same-store sales in restaurants experienced a decline of roughly 3% year-over-year, while hotels improved to flat year-over-year [40] - Sports and entertainment verticals showed record processing volumes, particularly during overlapping seasons [41] Company Strategy and Development Direction - The company aims to enhance its capital structure and has acquired Givex, adding 130,000 premium customers and a potential $300 billion in volume [10][33] - Shift4 is focusing on expanding its global e-commerce capabilities and has launched in four new African countries, with plans for further expansion [23][24] - The company is committed to maintaining profitable growth while pursuing strategic acquisitions to enhance its service offerings [36][50] Management's Comments on Operating Environment and Future Outlook - Management noted a softening in consumer spending, particularly in certain verticals, but expressed confidence in sustaining volume growth due to a strong backlog [11][41] - The company expects full-year organic gross revenue growth to exceed 25% and has raised guidance for Q4 based on strong performance [27][68] - Management emphasized the importance of operational efficiency and plans to improve margins through internal initiatives and AI investments [56][65] Other Important Information - The company repurchased approximately 289,000 shares for about $20 million, with a remaining capacity of approximately $460 million [59] - GAAP net income for Q3 was $72 million, with a diluted EPS of $0.74 [60] - The company recorded a non-cash income tax benefit due to the realization of tax benefits, reflecting strong growth since the IPO [63] Q&A Session Summary Question: Discussion on Q4 guidance and seasonal volume - Management acknowledged that Q4 has become more predictable due to the impact of sports and entertainment, suggesting that the $49 billion high end of guidance could serve as a baseline for future projections [80] Question: Building blocks for 2025 guidance - Management highlighted the importance of Vectron, Revel, and Givex opportunities, emphasizing that Q4 could be viewed as an average quarter for future volume expectations [79][80]

For the quarter ended September 2024, Shift4 Payments (FOUR) reported revenue of $365.1 million, up 50.3% over the same period last year. EPS came in at $1.04, compared to $0.82 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $369.07 million, representing a surprise of -1.08%. The company delivered an EPS surprise of -5.45%, with the consensus EPS estimate being $1.10.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Shift4 Payments (FOUR) came out with quarterly earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.45%. A quarter ago, it was expected that this company would post earnings of $0.91 per share when it actually produced earnings of $0.96, delivering a surprise of 5.49%.Over the last four quarters, the company h ...

Analysts on Wall Street project that Shift4 Payments (FOUR) will announce quarterly earnings of $1.11 per share in its forthcoming report, representing an increase of 35.4% year over year. Revenues are projected to reach $369.07 million, increasing 51.9% from the same quarter last year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over th ...

The market expects Shift4 Payments (FOUR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be r ...

Don't sleep on these 3 stocks heading into 2025.The leaves are falling, and the weather is getting cooler. You know what that means: It's time to start thinking about next year.We're running out of months in 2024, and investors are increasingly focused on what next year will bring and which stocks to buy now.With that in mind, let's turn our attention to three tech stocks that our Motley Fool contributors can't stop thinking about: Meta Platforms (META -0.07%), Shift4 (FOUR 0.12%), and Microsoft (MSFT 0.99% ...

Shift4 Payments (FOUR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Indiv ...

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Shift4 Payments (FOUR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question. Shift4 Payments is a member of our Business Services ...

As the quarter winds down, investors can look at 13-F filings to determine what the best minds on Wall Street are planning for the coming months. The Securities and Exchange Commission (SEC) requires these filings whenever an individual investor or fund holds a significant enough stake in any given stock, so this is a regular filing for big players like Warren Buffett. PHYS However, most retail investors can relate only so much to Buffett, as his cash holdings (upwards of $250 billion) are the size of many ...

Revenue and Income Growth - Gross revenue for Q2 2024 increased to $827.0 million, up from $637.0 million in Q2 2023[13] - Net income for Q2 2024 rose to $54.5 million, compared to $36.8 million in Q2 2023[13] - Comprehensive income for Q2 2024 was $40.5 million, up from $36.7 million in Q2 2023[15] - Income from operations for Q2 2024 increased to $59.2 million, up from $33.9 million in Q2 2023[13] - Net income attributable to Shift4 Payments, Inc. for Q2 2024 was $39.2 million, compared to $25.1 million in Q2 2023[13] - Class A net income per share - basic for Q2 2024 was $0.59, up from $0.43 in Q2 2023[13] - Comprehensive income attributable to Shift4 Payments, Inc. for Q2 2024 was $28.6 million, compared to $25.0 million in Q2 2023[15] - Net income for the period ending June 30, 2024, was $54.5 million[17] - Net income for the six months ended June 30, 2024, was $83.0 million, compared to $57.2 million in the same period in 2023[21] - Payments-based revenue for Q2 2024 increased to $755.8 million, up 25.9% from $600.1 million in Q2 2023[47] - Total revenue for the six months ended June 30, 2024 reached $1,534.4 million, a 29.6% increase from $1,184.0 million in the same period of 2023[47] - Gross revenue increased by $190.0 million, or 30%, compared to the prior year period, driven by growth in payments-based and subscription revenues[100] - Payments-based revenue increased by $155.7 million, or 26%, primarily due to a $13.3 billion, or 50%, increase in end-to-end payment volume[100] - Subscription and other revenues increased by $34.3 million, or 93%, driven by higher SaaS revenue from SkyTab solutions and recent acquisitions[100] - Gross revenue increased by $350.4 million, or 30%, to $1,534.4 million for the six months ended June 30, 2024[110] - Payments-based revenue grew by $299.8 million, or 27%, to $1,410.9 million for the six months ended June 30, 2024[110] - End-to-end payment volume increased by $24.4 billion, or 50%, to $73,435.9 million for the six months ended June 30, 2024[110][118] - Subscription and other revenues rose by $50.6 million, or 69%, to $123.5 million for the six months ended June 30, 2024[110] - Gross revenue less network fees grew by $156.2 million, or 36%, to $584.3 million for the six months ended June 30, 2024[111] - Adjusted EBITDA increased by $84.8 million, or 43%, to $284.1 million for the six months ended June 30, 2024[118] - Net income attributable to Shift4 Payments, Inc. rose by $19.9 million, or 50%, to $59.8 million for the six months ended June 30, 2024[109] - Gross revenue for 2024 Q2 increased to $827.0 million, up 29.8% from $637.0 million in 2023 Q2[122] - Gross profit for 2024 Q2 rose to $218.8 million, a 37.9% increase from $158.7 million in 2023 Q2[122] - Adjusted EBITDA for 2024 Q2 reached $162.4 million, up 47.6% from $110.0 million in 2023 Q2[123] Expenses and Costs - Interest income for Q2 2024 was $5.0 million, down from $8.8 million in Q2 2023[13] - Depreciation and amortization expense for Q2 2024 was $46.7 million, up from $35.9 million in Q2 2023[13] - Network fees increased by $97.5 million, or 24%, primarily due to the 26% increase in payments-based revenue[101] - Other costs of sales increased by $27.6 million, driven by recent acquisitions and incremental residual commissions[101] - General and administrative expenses increased by $28.0 million, primarily due to growth and recent acquisitions[102] - Depreciation and amortization expense increased by $10.8 million, driven by equipment under lease and amortization of intangible assets from recent acquisitions[103][105] - Professional expenses increased by $6.2 million, primarily due to higher acquisition-related costs[104][105] - General and administrative expenses increased by $49.4 million, or 29%, to $217.2 million for the six months ended June 30, 2024[112] - Depreciation and amortization expense grew by $20.3 million, or 29%, to $91.5 million for the six months ended June 30, 2024[112] - Total depreciation and amortization for Q2 2024 was $69.7 million, compared to $50.0 million in Q2 2023[52] - Estimated amortization expense for the remaining six months of 2024 is $118.6 million[53] Acquisitions and Goodwill - The company acquired a 74% stake in Vectron Systems AG for $59.0 million, net of cash acquired, and plans to gain operational control[34][35] - The acquisition of Revel Systems, Inc. was completed for $245.3 million, net of cash acquired, to strengthen presence in the restaurant and retail markets[37][38] - Finaro was acquired for $330.8 million, net of cash acquired, to drive expansion into international markets[40][41] - The company acquired Appetize for $108.7 million, net of cash acquired, to enhance presence in the sports and entertainment market[43] - The fair value of contingent consideration for Vectron was $2.9 million as of June 30, 2024[35] - The fair value of contingent consideration for Finaro was $3.8 million as of June 30, 2024[40] - Goodwill from the Vectron acquisition was $79.9 million, not deductible for tax purposes[36] - Goodwill from the Revel acquisition was $117.6 million[38] - Goodwill from the Finaro acquisition was $280.6 million, not deductible for tax purposes[41] - The company issued $25.0 million in restricted stock units to Finaro employees, vesting over three years[42] - Net assets acquired from the Appetize acquisition totaled $108.7 million, including $75.0 million in goodwill and $38.3 million in other intangible assets[44] - Goodwill increased to $1,299.9 million as of June 30, 2024, up from $1,111.3 million at December 31, 2023, primarily due to acquisitions[51] - The company acquired Finaro in the fourth quarter of 2023, expanding its operations in Europe and the UK[26] - The total purchase consideration for Vectron was $66.1 million, including $63.2 million in cash and $2.9 million in contingent consideration[35] - The fair value of net assets acquired from Vectron was $84.9 million, with goodwill accounting for $79.9 million[36] - The fair value of net assets acquired from Revel was $245.3 million, with goodwill accounting for $117.6 million[38] - The total purchase consideration for Finaro was $518.0 million, including $211.9 million in cash and $302.0 million in shares of Class A common stock[40] - The fair value of net assets acquired from Finaro was $330.8 million, with goodwill accounting for $280.6 million[41] Cash Flow and Debt - Net cash provided by operating activities was $172.8 million for the six months ended June 30, 2024, slightly up from $171.3 million in 2023[21] - Net cash used in investing activities increased to $381.5 million in 2024, primarily due to acquisitions net of cash acquired at $301.4 million, compared to $108.0 million in 2023[21] - Cash and cash equivalents and restricted cash decreased to $403.3 million at the end of June 2024 from $721.8 million at the beginning of the period[21] - Total long-term debt stood at $1,754.3 million as of June 30, 2024, slightly up from $1,750.2 million as of December 31, 2023[59] - Future principal payments on long-term debt total $1,772.5 million, with $690.0 million due in 2025, $450.0 million in 2026, and $632.5 million in 2027[60] - The Revolving Credit Facility had no borrowings as of June 30, 2024, with a borrowing capacity of $100.0 million[61] - The fair value of contingent consideration related to acquisitions was $49.7 million as of June 30, 2024, with $30.6 million classified as current liabilities[64] - The fair value of Tranche 2 of the Online Payments Group earnout was estimated at $28.3 million as of June 30, 2024[65] - The fair value of the Restaurant Technology Partners earnout was $0.4 million as of June 30, 2024[66] - The company's contingent liabilities at the end of the period totaled $50.3 million, with $49.7 million related to acquisitions and $0.6 million for acquired liabilities[68] - The fair value of the company's outstanding debt as of June 30, 2024, was $1,813.9 million, compared to a carrying value of $1,754.8 million[70] - Net cash provided by operating activities for 2024 H1 was $172.8 million, slightly higher than $171.3 million in 2023 H1[125] - Net cash used in investing activities for 2024 H1 surged to $381.5 million, primarily due to a $265.1 million increase in acquisition spending[127] - Total debt outstanding as of June 30, 2024 was $1,772.5 million, including $690.0 million of 2025 Convertible Notes[129] - Cash and cash equivalents balance as of June 30, 2024 was $205.0 million, with $115.9 million held outside the U.S.[124] Equity and Shareholder Information - Total equity increased from $868.4 million at December 31, 2023, to $958.8 million at June 30, 2024[17] - Additional paid-in capital grew from $985.9 million at December 31, 2023, to $1,005.7 million at June 30, 2024[17] - Retained deficit improved from $(346.7) million at December 31, 2023, to $(297.8) million at June 30, 2024[17] - Noncontrolling interests increased from $215.1 million at December 31, 2023, to $258.0 million at June 30, 2024[17] - Equity-based compensation for the period ending June 30, 2024, was $14.3 million[17] - Other comprehensive loss for the period ending June 30, 2024, was $(14.0) million[17] - Total equity at December 31, 2022, was $480.6 million, increasing to $479.2 million by June 30, 2023[19] - Net income for the period ending June 30, 2023, was $36.8 million[19] - Additional paid-in capital at December 31, 2022, was $702.6 million, increasing to $733.8 million by June 30, 2023[19] - The company repurchased 230,400 shares of Class A common stock for $15.9 million at an average price of $68.79 per share during the three and six months ended June 30, 2024[81] - The Company's noncontrolling interests in Shift4 Payments, LLC amounted to $232.1 million and $215.1 million as of June 30, 2024, and December 31, 2023, respectively[82] - The Company acquired 74% of Vectron's common stock, with the noncontrolling interests balance representing the 26% economic interest amounting to $25.9 million as of June 30, 2024[82] - Equity-based compensation expense was $14.3 million and $37.1 million for the three and six months ended June 30, 2024, respectively[83] - The Company had $117.0 million of total unrecognized equity-based compensation expense related to outstanding RSUs and PRSUs as of June 30, 2024[86] - The Company's May 2024 Program authorizes the repurchase of up to $500.0 million of Class A common stock, with $484.2 million remaining as of June 30, 2024[81] - Basic net income per share for Class A common stock increased to $0.59 in Q2 2024 from $0.43 in Q2 2023[88] - Diluted net income per share for Class A common stock rose to $0.58 in Q2 2024 compared to $0.42 in Q2 2023[88] - Net income attributable to common stockholders grew to $39.2 million in Q2 2024 from $25.1 million in Q2 2023[88] - Weighted average shares of Class A common stock outstanding - diluted increased to 65,564,817 in Q2 2024 from 58,173,624 in Q2 2023[88] - Total anti-dilutive shares excluded from diluted EPS calculation were 24,055,011 in Q2 2024[89] - Net income allocated to Class C common stock - diluted remained stable at $1.1 million in Q2 2024[88] - RSUs contributed 1,126,649 shares to the diluted weighted average shares of Class A common stock in Q2 2024[88] - LLC Interests that convert into potential Class A common shares totaled 23,830,105 in Q2 2024[89] Other Financial Metrics - Unrealized loss on foreign currency translation adjustment for Q2 2024 was $14.0 million, compared to $0.1 million in Q2 2023[15] - The company's European and UK business, previously known as Finaro, operates under a direct member model, including settlement assets and liabilities on the consolidated balance sheets[30] - The company's cash equivalents consist of highly liquid investments in money market funds, with restricted cash primarily related to a deposit in its US sponsor bank merchant settlement account[26] - The company's TRA liability was $8.2 million as of June 30, 2024, up from $5.1 million at the end of 2023[23] - The company's European and UK business includes settlement processing assets and liabilities, primarily related to the acquisition of Finaro in Q4 2023[26] - The company's US operations operate under a sponsorship model, where settlement assets and obligations are the responsibility of the sponsoring member and not recorded on the company's balance sheets[28] - The company's cash and cash equivalents included in settlement assets were $123.5 million as of June 30, 2024, down from $182.4 million at the end of 2023[29] - Residual commission buyouts had a net carrying value of $187.4 million as of June 30, 2024, down from $229.6 million at December 31, 2023[54] - Other intangible assets, net increased to $674.0 million as of June 30, 2024, up from $548.8 million as of December 31, 2023[55] - Capitalized customer acquisition costs, net rose to $59.0 million as of June 30, 2024, compared to $51.7 million as of December 31, 2023[56] - Equipment for lease, net grew to $144.5 million as of June 30, 2024, up from $123.1 million as of December 31, 2023[57] - Total property, plant and equipment, net remained stable at $28.5 million as of June 30, 2024, compared to $28.6 million as of December 31, 2023[58] - The company's investments in non-marketable equity securities had an estimated fair value of $72.9 million as of June 30, 2024, up from $62.2 million in December 2023[71] - Crypto settlement assets and liabilities were valued at $7.5 million and $3.5 million, respectively, as of June 30, 2024[71] - The company's effective tax rate was (3)% for the three months ended June 30, 2024, primarily due to a $5.2 million tax benefit from valuation allowance release[72] - The company recognized a Tax Receivable Agreement (TRA) liability of $8.2 million as of June 30, 2024, with $4.1 million classified as current and $4.1 million as noncurrent[75] - Lease income for the six months ended June 30, 2024, was $12.0 million, up from $10.5 million in the same period of 2023[77] - Future minimum lease payments for hardware under SaaS agreements are expected to be $16.0 million from July 1, 2024, through June 30, 2025[77] - Total expense for services with Jared Isaacman was $0.3 million and $0.5 million for the three and six months ended June 30, 2024, and 2023, respectively[78] - The Company made $2.0 million of distributions related to income taxes paid on behalf of Rook during the six months ended June 30, 2024[78] - The Founder is expected to contribute 592,219 shares