NYSE$FOUR

Shift4 Payments Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Shift4 exceeded expectations in all key performance indicators and grew end-to-end volume despite impact from the COVID Omicron variant.

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%.

Headline financials

Total Revenue

$402M

Previous: $239M+67.9%
EPS (adj)

$0.15

Previous: -$0.13+215.4%
End-to-end payment volume

$13.4B

Previous: $8B+67.5%
GRLNF

$149M

Previous: $97.5M+52.6%
Adjusted EBITDA

$44.3M

No prior period
Adjusted EBITDA margin

30.0%

No prior period
Capital Expenditures

-$1M

Previous: -$700K-42.9%
Free Cash Flow

-$8.5M

Previous: -$33.5M+74.6%
Net Income

-$7.5M

Previous: -$32.8M+77.1%
Operating Income

-$11.7M

Previous: -$43.5M+73.1%
Gross Profit

$84.6M

Previous: $51.8M+63.3%
Cash & Equivalents

$1.19B

Previous: $845M+40.7%
Total Assets

$2.43B

Previous: $1.81B+34.5%

Revenue & EPS history

Shift4 · Revenue · Quarterly

$402M

Q1 2022+67.9%vs Q1 2021
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+3.7%

Avg return

Earnings day

+4.6%

Avg return

5 days after

+5.2%

Avg return

30 days after

61%

14 / 23 earnings

Positive

+21.7%

Q4 2022

Best reaction

-17.5%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.1%-4.9%-11.3%
Q4 2025-15.5%-13.0%-22.5%
Q3 2025-1.0%+6.3%+2.6%
Q1 2025+12.8%+3.4%+16.2%
Q4 2024-17.5%-22.8%-29.5%
Q3 2024-3.4%-7.5%-4.2%
Q2 2024+12.4%+19.7%+19.2%
Q1 2024+2.9%+0.6%+15.3%
Q4 2023+18.0%+14.8%-9.2%
Q3 2023+16.5%+23.5%+41.4%
Q2 2023+1.1%+1.7%-9.4%
Q1 2023-10.8%-6.4%-0.3%
Q4 2022+21.7%+26.7%+27.8%
Q3 2022-0.4%+17.8%+13.4%
Q2 2022+10.7%+12.6%+5.6%
Q1 2022-1.0%+0.6%-9.9%
Q4 2021-7.2%-16.5%+17.6%
Q3 2021+14.4%+20.8%-6.3%
Q2 2021+4.9%-1.0%-0.3%
Q1 2021-8.3%-12.2%-0.2%
Q4 2020+12.8%+15.1%+22.5%
Q3 2020+0.9%+11.1%+15.8%
Q2 2020+12.5%+15.1%+25.7%
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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