Shift4 Payments, Inc. (NYSE:FOUR) Q4 2023 Earnings Call Transcript
Shift4 Payments, Inc. (NYSE:FOUR) Q4 2023 Earnings Call Transcript February 27, 2024
Shift4 Payments, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings. Welcome to Shift4 Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Thomas McCrohan, Executive Vice President, Investor Relations. Thank you. You may begin.
Thomas McCrohan: Thank you, operator. Good morning, everyone [Technical Difficulty] Executive Officer; Taylor Lauber, our President and Chief Strategy Officer, and Nancy Disman, our Chief Financial Officer. This call is being webcast on the investor relations section of our website, which can be found at investors.shift4.com. Today's call is also being simulcast on X Spaces formerly known as Twitter, which can be accessed through our corporate Twitter account at @Shift4. A quarterly shareholder letter, quarterly financial results, and other materials related to our quarterly results have all been posted to our IR website. Our call and earnings materials today include forward-looking statements. These statements are not guarantees of future performance, and our actual results could differ materially as a result of certain risks, uncertainties, and many important factors.
Additional information concerning those factors is available in our most recent reports on forms 10-K and 10-Q, which can be found on the SEC's website and the investor relations section of our corporate website. For any non-GAAP financial information discussed on this call, the related GAAP measures and reconciliations are available in today's quarterly shareholder letter. With that, let me turn the call over to Jared. Jared?
Jared Isaacman: Thanks, Tom. Okay, so we made a lot of progress in 2023 and I'm really pleased with how the year has ended. Every quarter we delivered consistent growth, record KPIs, expanding margins and free cash flow. Last year completed three synergy rich acquisitions, Focus POS, Finaro and Appetize. We successfully unified our sales team around our flagship POS system, which is SkyTab and installed over 25,000 systems and we also signed many notable hotel brands. We began processing for large ticketing partnerships and made investments in internal systems, AI and took big steps on our geographic expansion journey with hotels and restaurants now processing in Europe and Canada. That was all last year and I expect 2024 will be even more dynamic.
Turning to the fourth quarter specifically, we could -- we did close on our long-awaited Finaro acquisition, but we also had our hands full with many enterprise go-lives and especially in the sports and entertainment vertical. And other than a few enterprise deals getting delayed and some timing nuances with our gateway migrations, we really delivered a reasonably strong quarter. On that note, our Q4 results were largely in line with our previously provided quarterly guidance. We generated 55% growth in end-to-end payment volume, 31% growth in gross revenue, 33% growth in gross profit and 35% growth in gross revenue less network fees. We also generated $136 million of adjusted EBITDA, representing 44% year-over-year growth, as our margins expanded 320 basis points to 50.5% versus the corresponding year-ago quarter.
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