Shift4 Payments Misses Q4 Expectations, Outlines Bold Growth Targets For 2024

Shift4 Payments, Inc FOUR reported fourth-quarter fiscal 2023 gross revenue growth of 31% year-on-year to $705.4 million, missing the consensus of $$757.8 million. 

Adjusted EPS of 76 cents missed the consensus of 82 cents. The stock price dipped after the results.

Payments-based revenue of the Allentown, Pennsylvania-based payment processing company improved from $502.7 million a year ago to $648 million.

Subscription revenue was $57.4 million, up from $35 million a year ago.

Gross revenue minus network fees improved to $269.3 million vs. $199.4 million a year ago, up by 35% year-over-year.

End-to-end payment volume climbed 55% year-over-year to $32.1 billion. Adjusted EBITDA improved 44% year-over-year to $136.1 million. The margin expanded by 400 bps to 51%.

The company disclosed adding thousands of new SkyTab customers, growing restaurant-related SaaS revenue by 69% year-over-year, going live with its first locations in the UK and Canada, and launching an AI-powered restaurant website builder. It also landed many new hotels, including an expanded relationship with a Las Vegas property, and signed its first hotels in Europe and Canada.

It also added big-name Sports & Entertainment customers, including New York Yankees, MetLife (New York Giants and Jets), Los Angeles Dodgers, Los Angeles Rams, San Diego Padres, and Cirque du Soleil.

FY24 Outlook: Shift4 expects gross revenue minus network fees of $1.30 billion – $1.35 billion.

The company expects end-to-end payment volume of $167 billion – $183 billion.

It projects an adjusted EBITDA of $635 million – $675 million.

Price Action: FOUR shares traded lower by 1.84% at $71.45 premarket on the last check Tuesday.

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