Shift4 Surges In Subscription, Payments Revenue Despite Falling Short Of Q1 Expectations

Zinger Key Points
  • Shift4 Payments' Q1 gross revenue rose 29% to $707.4M, missing estimates; adjusted EPS of $0.54 also fell short.
  • Payments revenue surged to $655.1M; subscription revenue grew to $52.3M, up 45% Y/Y.

Shift4 Payments, Inc FOUR reported fiscal first-quarter 2024 gross revenue growth of 29% year-on-year to $707.4 million, missing the analyst consensus estimate of $755.6 million

Adjusted EPS of 54 cents missed the analyst consensus estimate of 62 cents

Payments-based revenue improved from $511 million a year ago to $655.1 million.

Subscription revenue was $52.3 million, up from $36 million a year ago.

Gross revenue minus network fees improved to $263.7 million vs. $200 million a year ago, up by 31.9% year-over-year.

Also Read: Shift4 Payments in Acquisition Spotlight, Fiserv and Amadeus Poised for Billion-Dollar Bidding War

End-to-end payment volume climbed 50% year-over-year to $33.4 billion. Adjusted EBITDA improved 36% year-over-year to $121.7 million. The margin expanded by 100 bps to 46%.

FY24 Outlook: Shift4 reiterated gross revenue minus network fees of $1.3 billion – $1.35 billion.

The company expects end-to-end payment volume of $167 billion – $175 billion (prior $167 billion – $183 billion).

It projects an adjusted EBITDA of $640 million – $675 million (prior $635 million – $675 million).

In April, analysts expected Shift4 Payments to gain from the $30 billion settlement Visa Inc V and Mastercard Inc MA settlement to restrict credit and debit card fees charged to businesses.

Price Action: FOUR shares traded higher by 3.59% at $60.82 at the last check Thursday.

Now Read: Breadking Down Shift4 Payments, 14 Analysts Share Their Views

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