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Dec 31, 2020

Shift4 Q4 2020 Earnings Report

Shift4's Q4 2020 earnings exceeded expectations, driven by strong growth in end-to-end payment volume and gross revenue.

Key Takeaways

Shift4 Payments reported strong Q4 2020 results, with significant increases in end-to-end payment volume and gross revenue less network fees. The company demonstrated resilience and growth despite the ongoing pandemic, driven by its innovative solutions and strategic partnerships.

End-to-end payment volume increased to $11.4 billion.

Gross revenue less network fees rose to $88.5 million.

Adjusted EBITDA reached $35.5 million.

The company provided positive forward guidance, anticipating continued growth and profitability.

Total Revenue
$211M
Previous year: $202M
+4.4%
EPS
-$0.05
Previous year: -$0.354
-85.9%
End-to-End Payment Volume
$11.4B
Previous year: $7.9B
+44.3%
Gross Revenue Less Network Fees
$88.5M
Previous year: $62.9M
+40.7%
Adjusted EBITDA
$35.5M
Previous year: $19.4M
+83.0%
Gross Profit
$72.7M
Previous year: $50.2M
+44.8%
Cash and Equivalents
$177M
Total Assets
$1.41B

Shift4

Shift4

Forward Guidance

Shift4 anticipates continued growth and profitability, driven by increasing payment volume and strategic initiatives. The company expects to maintain a strong financial position and capitalize on market opportunities.

Positive Outlook

  • End-to-end payment volume between $12.4 billion and $12.7 billion
  • Gross revenue less network fees between $95 million and $98 million
  • Adjusted EBITDA between $37 million and $40 million
  • Capital expenditures of approximately $10 million
  • Depreciation and amortization of approximately $9 million

Challenges Ahead

  • Continued impact of the COVID-19 pandemic on certain industries
  • Potential fluctuations in payment volume due to economic conditions
  • Increased competition in the payment processing market
  • Risks associated with integrating acquired businesses
  • Potential changes in regulatory requirements