NYSE$FOUR

Shift4 Payments Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$215M

Previous: $194M+10.8%
EPS (adj)

-$0.09

Previous: -$0.58+84.5%
End-to-end payment volume

$7.1B

Previous: $5.9B+20.3%
GRLNF

$87.7M

Previous: $79.7M+10.0%
Adjusted EBITDA

$28.7M

Previous: $24.5M+17.1%
Adjusted EBITDA margin

32.7%

No prior period
Capital Expenditures

-$2.6M

No prior period
Free Cash Flow

-$7.6M

No prior period
Net Income

-$5M

Previous: -$22.6M+77.9%
Operating Income

-$4M

Previous: -$9.3M+57.0%
Gross Profit

$51.5M

Previous: $46.6M+10.5%
Cash & Equivalents

$329M

No prior period
Total Assets

$1.12B

No prior period

Revenue & EPS history

Shift4 · Revenue · Quarterly

$215M

Q3 2020+10.8%vs Q3 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

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.

Tailwinds

  • 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.

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 Q3 2020

Historical avgQ3 2020

+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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