Shift4 Payments(US:FOUR)2024-05-09 21:51Financial Performance - Gross revenue for Q1 2024 reached $707.4 million, a 29.3% increase from $547.0 million in Q1 2023[19] - Net income attributable to Shift4 Payments, Inc. was $20.6 million, up 39.2% from $14.8 million in the same quarter last year[19] - Net income for Q1 2024 was $28.5 million, an increase of 40.5% compared to $20.4 million in Q1 2023[25] - Basic net income per share for Class A was $0.31, an increase from $0.26 in Q1 2023[19] - EBITDA for Q1 2024 was $98.7 million, compared to $64.9 million in Q1 2023, reflecting a significant increase[173] - Adjusted EBITDA rose to $121.7 million in Q1 2024, up from $89.3 million in Q1 2023[173] - For the three months ended March 31, 2024, gross revenue was $707.4 million, an increase of 29.3% compared to $547.0 million in the same period of 2023[181] - Adjusted EBITDA for the same period was $121.7 million, up 36.3% from $89.3 million in the prior year[182] Assets and Liabilities - Total assets increased to $3,407.8 million as of March 31, 2024, compared to $3,387.8 million at the end of 2023[18] - Total liabilities decreased slightly to $2,512.0 million from $2,519.4 million at the end of 2023[18] - Cash and cash equivalents rose to $522.9 million, up from $455.0 million at the end of 2023[18] - The company’s total equity as of March 31, 2024, was $895.8 million, a decrease from $868.4 million as of December 31, 2023[23] - Total principal amount of debt outstanding as of March 31, 2024, was $1,772.5 million, including $690.0 million of 2025 Convertible Notes[194] Cash Flow - Operating cash flow for Q1 2024 was $56.7 million, down from $79.4 million in Q1 2023[25] - Net cash provided by operating activities for Q1 2024 was $56.7 million, down from $79.4 million in Q1 2023[187] - Net cash used in investing activities increased to $39.7 million in Q1 2024, compared to $31.4 million in Q1 2023, primarily due to increased equipment purchases[192] Expenses - General and administrative expenses increased to $107.1 million from $85.7 million year-over-year, indicating higher operational costs[19] - Depreciation and amortization expenses increased to $66.1 million in Q1 2024 from $47.6 million in Q1 2023[25] - The amortization expense for capitalized financing fees was $2.1 million for the three months ended March 31, 2024, consistent with the same period in 2023[81] Acquisitions - The Company acquired Finaro for a total purchase consideration of $330.8 million, net of cash acquired, to enhance its international market presence[45] - The Company also acquired Appetize for $108.7 million, with goodwill of $75.0 million, aimed at strengthening its position in the sports and entertainment market[54] - The acquisition of Focus POS Systems was completed for $45.2 million, adding POS software to the Company's offerings and enhancing its distribution network[59] - The Company entered into a definitive agreement to acquire Revel Systems, Inc. for approximately $250.0 million, expected to close in the second quarter of 2024[134] Revenue Breakdown - Payments-based revenue reached $655.1 million, up 28.1% from $511.0 million year-over-year[65] - Subscription and other revenues increased to $52.3 million, a 45.4% rise compared to $36.0 million in the prior year[65] - End-to-end payment volume surged by $11.1 billion, or 50%, from $22.3 billion in Q1 2023 to $33.4 billion in Q1 2024[161] Tax and Legal Matters - The Company's effective tax rate for the three months ended March 31, 2024, was 5%, a significant change from (21)% in the same period of 2023[100] - The company disputes allegations in ongoing legal proceedings and intends to defend against claims vigorously, with no reserves established for potential losses at this time[119] Stock and Equity - The Company has authorized a stock repurchase program of up to $250.0 million for its Class A common stock, with the full amount remaining available as of March 31, 2024[121] - The Company approved a new stock repurchase program authorizing the repurchase of up to $500.0 million of Class A common stock, effective immediately[140] - As of March 31, 2024, the Company had a total of 3,039,102 unvested RSUs and PRSUs, with a weighted average grant date fair value of $59.20[129] Forward-Looking Statements - The company emphasizes that all statements other than historical facts are forward-looking, including expectations for growth and international expansion[13] - Actual future results may differ materially from expectations, and the company does not plan to publicly update forward-looking statements unless required by law[16]