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Mar 31, 2022
Shift4 Q1 2022 Earnings Report
Shift4 exceeded expectations in all key performance indicators and grew end-to-end volume despite impact from the COVID Omicron variant.
Key Takeaways
Shift4 Payments reported a strong first quarter, exceeding expectations. End-to-end payment volume increased by 68% year-over-year, driven by growth in core verticals and new customer acquisitions. The company reaffirms its 2022 guidance.
End-to-end payment volume of $13.4 billion during Q1 2022, up 68% from Q1 2021.
Gross revenue of $401.9 million, up 68% from Q1 2021.
Gross revenue less network fees of $148.8 million, up 53% from Q1 2021.
Adjusted EBITDA of $44.3 million for Q1 2022 and Adjusted EBITDA margins of 30%.
Shift4
Shift4
Forward Guidance
Despite moderate impact from Omicron in Q1 and other macro realities, Shift4 affirms its 2022 guidance for End-To-End Payment Volume, Total Revenue, Gross Revenue Less Network Fees, and Adjusted EBITDA.
Positive Outlook
- Leaving our End-to-End Payment Volume range unchanged and $68 Billion to $70 Billion (+46% to +50% YoY)
- Leaving our Total Revenue range unchanged and $1.9 Billion to $2.0 Billion (+37% to +44% YoY)
- Leaving our Gross Revenue less Network Fees range unchanged and $675 Million to $705 Million (+28% to +33%)
- Leaving our Adjusted EBITDA range unchanged and $240 Million to $250 Million (+44% to +50%)
- Gross profit is estimated to be approximately 60% of Gross Revenue Less Network Fees
Challenges Ahead
- Moderate impact from Omicron in Q1
- Other macro realities
- Our 2022 Outlook excludes contribution from the two acquisitions announced on March 1, 2022
- Cost of sales is estimated to be approximately 40% of Gross Revenue Less Network Fees for fiscal year 2022
- Estimated adjustments from net income to Adjusted EBITDA at the mid-point of the guidance range above for fiscal year 2022 are depreciation and amortization expense of approximately $130 million, interest expense of approximately $29 million, equity-based compensation expense of approximately $38 million and income taxes of $8 million.