Shift4 Payments Stock Surges On Q2 Performance: Here's Why

Shift4 Payments, Inc FOUR reported second-quarter FY23 gross revenue growth of 26% year-on-year to $637 million, beating the consensus of $$630.97 million. Adjusted EPS of $0.74 beat the consensus of $0.51.

Payments-based revenue improved from $473.9 million a year ago to $600.1 million.

Subscription revenue was $36.9 million, up from $32.8 million a year ago.

Gross revenue minus network fees improved to $228.1 million vs. $182.6 million a year ago, up by 25% Y/Y.

End-to-end payment volume climbed 59% Y/Y to $26.8 billion. 

Adjusted EBITDA improved 68% Y/Y to $110 million. The margin expanded by 1,200 bps to 48%.

The majority of our growth still derives from restaurants, hotels, and strategic enterprise relationships, but sports & entertainment and non-profits continue to gain momentum, CEO Jared Isaacman said.

Outlook: Shift4 boosted FY23 gross revenue guidance to $2.60 billion - $2.70 billion (prior $2.55 billion - $2.70 billion) versus the consensus of $2.66 billion.

Shift4 raised FY23 Gross revenue minus network fees to $945 million $$920 billion - $955 billion, up from $915 million - $955 million.

Price Action: FOUR shares traded higher by 3.54% at $66.02 premarket on the last check Thursday.