Shift4 Clocks 89% Revenue Growth In Q4; Reveals Deals For Global Expansion, Crypto Capabilities

Shift4 Payments Inc FOUR reported fourth-quarter FY21 gross revenue growth of 89% year-on-year to $399.4 million, beating the consensus of $382.9 million. Gross revenue minus network fees were up 65% Y/Y to $146.9 million.
End-to-end payment volume climbed 97% Y/Y to $13.4 billion.
Adjusted EPS of $0.08 missed the consensus of $0.18.
Adjusted EBITDA improved 65% Y/Y to $44 million. The margin contracted 800 bps Q/Q to 30%.
Shift4 generated $3.6 million in operating cash flow and held $1.23 billion in cash and equivalents.
Outlook: Shift4 sees FY22 revenue of $1.9 billion - $2.0 billion versus the consensus of $1.94 billion.
It sees adjusted EBITDA of $240 million- $250 million.
Acquisitions: Shift4 agreed to acquire Finaro, a cross-border eCommerce payments provider with a significant European presence, and The Giving Block, specializing in cryptocurrency fundraising for nonprofits. The financial terms of the transactions remain undisclosed.
The acquisitions will likely contribute over $15 billion of end-to-end payment volume and $35 million of adjusted EBITDA in 2023.
Price Action: FOUR shares traded lower by 6.46% at $49.25 in the premarket session on the last check Tuesday.

Overview Rating:

Speculative

100

0100

Earnings Calendar