Shift4 Payments Shares Surge As It Clocks 90% Payment Volume In Q3 Despite Delta Variant

Shift4 Payments Inc FOUR reported third-quarter FY21 gross revenue growth of 76% year-on-year to $377.8 million, missing the consensus of $397.8 million. Gross revenue, adjusted for the TSYS outage, $400.2 million, up 86% Y/Y.
Gross revenue minus network fees was up 69% Y/Y to $148.3 million.
End-to-end payment volume climbed 90% Y/Y to $13.5 billion. The Q4 end-to-end payment volume is off to a strong start with an October volume of $4.5 billion.
Adjusted EPS of $0.26 beat the consensus of $0.25.
Adjusted EBITDA improved 450 bps Q/Q to 38%.
Shift4 generated $25.6 million in operating cash flow during the nine months ended September 30. Shift4 held $1.3 billion in cash and equivalents.
"The quarter began with record volume, followed by a noticeable but not dramatic setback from the COVID delta variant, a confusing secondary offering from our sponsor, TSYS service outage, a rocket launch, supply chain fears, and then several weeks of disappointing share price performance," CEO Jared Isaacman said.
Outlook: Shift4 affirmed FY21 revenue of $1.3 billion - $1.4 billion versus the consensus of $1.38 billion.
Price Action: FOUR shares traded higher by 10.2% at $64.73 in the premarket session on the last check Wednesday.

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