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Sep 30, 2020

Shift4 Q3 2020 Earnings Report

Shift4's Q3 2020 results exhibited growth in a challenging market with successful capital offerings and acquisitions.

Key Takeaways

Shift4 Payments reported an 11% increase in gross revenue to $214.8 million for Q3 2020. End-to-end payment volume increased by 20% to $7.1 billion, resulting in gross revenue less network fees of $87.7 million. Adjusted EBITDA was $28.7 million, up 17% from the prior year period. The company also completed two acquisitions and strengthened its liquidity.

Gross revenue increased 11% year-over-year to $214.8 million.

End-to-end payment volume increased 20% year-over-year to $7.1 billion.

Gross revenue less network fees increased 10% year-over-year to $87.7 million.

Adjusted EBITDA increased 17% year-over-year to $28.7 million.

Total Revenue
$215M
Previous year: $194M
+10.8%
EPS
-$0.09
Previous year: -$0.579
-84.5%
End-to-End Payment Volume
$7.1B
Previous year: $5.9B
+20.3%
Gross Revenue Less Network Fees
$87.7M
Previous year: $79.7M
+10.0%
Adjusted EBITDA
$28.7M
Previous year: $24.5M
+17.1%
Gross Profit
$51.5M
Previous year: $46.6M
+10.5%
Cash and Equivalents
$329M
Total Assets
$1.12B

Shift4

Shift4

Forward Guidance

Shift4 Payments expects Q4 2020 End-to-End Payment Volumes to range between $7.2 billion and $7.6 billion, Gross Revenues Less Network Fees between $88 million and $92 million, and Adjusted EBITDA between $27 million and $30 million.

Positive Outlook

  • Expects Q4 End-to-End Payment Volumes to range between $7.2 billion and $7.6 billion.
  • Driving Q4 Gross Revenues Less Network Fees between $88 million and $92 million.
  • Resulting in Adjusted EBITDA between $27 million and $30 million.
  • Gross profit is estimated to be approximately 55% of Gross Revenue Less Network Fees for Q4 2020.
  • Cost of sales is estimated to be approximately 45% of Gross Revenue Less Network Fees for Q4 2020.