Payment Processing and Technology Solutions - Shift4 Payments achieved a leadership position in the U.S. payment processing industry based on total volume of payments processed, with no single merchant representing more than 3% of end-to-end payment volume in recent years[24][27] - The company's revenue is primarily derived from merchant fees, including a processing fee charged as a percentage of payment volume or per transaction, and subscription revenue from POS software and other technology solutions[28] - Shift4's payments platform integrates with over 500 software suites and supports multiple payment types, including credit, debit, contactless cards, mobile wallets, and alternative payment methods like Apple Pay and Google Pay[31][32] - The company's technology solutions include SkyTab POS, VenueNext, Lighthouse, SkyTab Mobile, The Giving Block, and Shift4Shop, designed to streamline operations and enhance consumer engagement[35] - Shift4's proprietary gateway supports multiple methods of mobile, contactless, and QR code-based payments, along with full eCommerce capabilities[29] - The company's software partners benefit from a single integration to a global end-to-end payment offering, proprietary gateway, and a robust suite of technology solutions[24] Distribution and Integration - Shift4's distribution network includes thousands of software partners and regional sales hubs, with no single software partner relationship accounting for more than 8% of end-to-end payment volume for the year ended December 31, 2023[37][38] - Shift4's Marketplace enables seamless integrations with third-party applications, reducing vendor reliance for merchants and simplifying workflows[36] - The company has over 500 integrations with market-leading software providers, enabling ISVs to sell comprehensive payment solutions to merchants[42] Security and Compliance - The company's payments platform is designed to be integrated, reliable, and secure, with PCI-validated P2PE tokenization and EMV-ready solutions[34] - The company must adhere to the PCI DSS (Data Security Standard) for processing debit and credit cards, and failure to comply could result in financial penalties or liability for fraudulent charges[60] - The company is subject to evolving privacy and data protection regulations, including GDPR, which imposes strict requirements on data processing and could result in penalties of up to 4% of global annual turnover for non-compliance[63] - The company is subject to the Payment Card Industry Data Security Standard (PCI-DSS), which imposes strict compliance obligations for securing cardholder data, with potential fines and operational disruptions if standards are not met[125][126] - The company is exposed to risks from ransomware attacks, which could lead to operational interruptions, data loss, reputational harm, and potential fines or litigation[123] - The company is subject to various privacy and data protection laws, including the EU GDPR and UK GDPR, which impose strict compliance requirements for handling personal data[131] - The company may face increased costs and operational challenges due to compliance with evolving data protection regulations, such as the California Privacy Rights Act (CPRA)[130] - The company relies on the EU-US Data Privacy Framework (DPF) and its UK Extension for transferring personal data from the EEA and UK to the U.S., alongside standard contractual clauses and other mechanisms[132] - Non-compliance with GDPR could result in fines up to €20 million/£17.5 million or 4% of global annual turnover, regulatory investigations, and reputational damage[134] Acquisitions and Expansion - Finaro was acquired on October 26, 2023, providing integrated acquiring and payment processing services to merchants in Europe and the UK through Credorax Bank Limited, a licensed credit institution in Malta[40] - Finaro's gateway services enable merchants to accept omni-channel payments globally using multiple payment methods and currencies, including hosted payment pages, anti-fraud services, and token management[42] - Finaro supports large enterprise relationships across thousands of locations, including stadiums, arenas, resorts, and airlines[42] - Expansion into new markets, including international operations, faces risks such as regulatory compliance, competition, and lack of experience, as seen with acquisitions like Finaro and Online Payments Group[142][145] Intellectual Property and Patents - The company holds 46 issued U.S. utility patents, 3 Canadian patents, 1 Mexican patent, and 8 European patents related to proprietary payment technologies[51] - As of December 31, 2023, Finaro has 11 pending U.S. utility patent applications, 6 pending European patent applications, and 5 pending Chinese patent applications[51] - The company relies on trademarks, trade secrets, and patents for competitive advantage, but faces risks of infringement and litigation[191] - Existing patents may not be valid, and the company may face challenges in obtaining and enforcing additional patents[195] - Changes in patent laws or interpretations could diminish the value of the company's patents and increase competition[196] Employee Programs and Culture - The company employs 3,030 employees globally, with 1,988 in the U.S. and 1,042 outside the U.S., and none are represented by labor unions or collective bargaining agreements[69] - The company introduced the 4WELLNESS program in 2023 to promote employee well-being and foster a holistic approach to health and wellness[72] - The company increased its 401(k) plan company match from 3% to 4% of salary, effective January 1, 2024, as part of its comprehensive compensation and benefits programs[73] - Employees performed approximately 3,500 hours of community service in 2023 through the paid volunteer time-off (VTO) program, a 135% increase from 2022[76] - The company launched the Veterans@Shift4 Employee Inclusion Network in 2023 to connect veterans and their families, supporting diversity and inclusion initiatives[79] - The company utilizes a third-party vendor for monthly performance check-ins between employees and supervisors to ensure continuous feedback and alignment with objectives[81] - The company expanded its learning and development offerings in 2023, including management training, onboarding programs, and tuition assistance, as part of its Shift4 Way culture initiative[82] - Shift4 launched the Accelerating Leadership Academy in Q3 2023, reaching over 200 employees with a self-paced leadership program[83] - Internal Learning and Development transformed in 2023 to improve efficiency, focusing on competency-based learning paths for 2024[84] - Shift4 provides a robust online learning platform and tuition reimbursement program for employee professional development[85] - Shift4 is committed to a holistic human capital program to cultivate a knowledgeable workforce for global connected commerce[86] Financial and Regulatory Risks - The company is subject to U.S. federal, state, and local regulations, as well as international regulations, with increasing exposure as it expands globally[53] - The Dodd-Frank Act impacts Finaro's operations, particularly regarding debit interchange transaction fees and consumer financial product regulations[54][55] - Proposed changes to interchange fees by the Federal Reserve could decrease the base component from $0.21 to $0.144 per transaction and the ad valorem component from 5 to 4 basis points[56] - The company is subject to various payment network rules, including those of Visa, Mastercard, and others, and must comply with their requirements to avoid fines or penalties, which could impact its business operations[59] - The company is subject to economic and trade sanctions administered by OFAC, which restrict transactions with specified countries, governments, and individuals[188] - Anti-money laundering and counter-terrorist financing laws apply to electronic transactions, requiring data retention obligations in certain jurisdictions[189] - Non-compliance with regulatory laws could result in significant financial penalties, reputational harm, and changes in business operations[190] Cybersecurity and Data Protection - The company faces significant cybersecurity risks, including potential breaches of IT systems and confidential information, which could lead to reputational damage, financial penalties, and legal liability[119][121][122] - The company collects, processes, and stores sensitive business and personal information, including credit/debit card numbers, bank account details, and social security numbers, which is also handled by third-party partners[120] - In 2023, the company was frequently targeted by phishing and distributed denial-of-service (DDoS) attacks, though no material incidents have occurred to date[122] - The company relies on third-party service providers for certain functions, and any cybersecurity failures by these providers could adversely affect the company's operations and reputation[123][126] - The company maintains cybersecurity insurance, but coverage may not be sufficient to address all potential claims or losses from data breaches[123] - The company's remote and hybrid work arrangements increase cybersecurity risks due to vulnerabilities in non-corporate and home networks[122] Economic and Market Risks - The financial services and payment technology industries are highly competitive, with rapid evolution in user needs and disruptive technologies, posing risks to the company's ability to differentiate and compete effectively[101] - Competitors may integrate competing platforms or features into their products, undercut prices, or offer services not provided by the company, potentially harming its market position[102] - Global economic, political, and other conditions can adversely affect consumer, business, and government spending, impacting the demand for the company's services and its revenue[103] - Rapid technological changes and new payment methods could place the company at a competitive disadvantage, reducing the use of its products and services[104] - Declining economies and low consumer confidence may result in decreased spending by cardholders, affecting the company's revenue[105] - The U.S. inflation rate was 3.4% for the twelve months ended December 31, 2023, which could increase expenses and necessitate price increases, potentially reducing sales and customer satisfaction[108] - The company uses artificial intelligence and machine learning tools, which may subject it to additional risks, including incorrect design, implementation, or reliance on poor-quality data, potentially harming its reputation and business performance[110] - The company relies on third-party vendors for critical products and services, and any failure by these vendors could adversely affect its operations and profitability[112] - Acquisitions involve risks such as valuation, integration, regulation, and due diligence, and may not yield expected returns, potentially leading to impairment charges[116] - The company may pursue strategic opportunities such as acquisitions, dispositions, and joint ventures, which could involve significant management resources and costs, with no guarantee of realizing anticipated benefits[118] Legal and Tax Considerations - The company is subject to various legal proceedings, which could divert management attention and result in significant expenses[202] - The company's principal asset is its 73.5% economic interest in Shift4 Payments, LLC, with $3.6 million in cash and $1.3225 billion in convertible notes as of December 31, 2023[203] - The company's ability to pay taxes and expenses depends on distributions from Shift4 Payments, LLC, which may be restricted by debt instruments and contractual obligations[203] - Shift4 Payments, LLC is obligated to make tax distributions to holders of LLC Interests, including the company, which could be significant and may require borrowing funds if insufficient cash is available[204] - The company is required to make cash payments under the TRA equal to 85% of the tax benefits realized from increases in tax basis, utilization of tax attributes, and other tax benefits[205] - The TRA payments to Continuing Equity Owners and Blocker Shareholders may exceed actual tax benefits realized and could have a substantial negative impact on the company's liquidity[208] - Payments under the TRA are not reimbursable if tax benefits are disallowed, potentially resulting in excess payments that could exceed actual tax savings[209] - The company may be subject to a 1% excise tax on stock redemptions or repurchases under the Inflation Reduction Act of 2022, unless exceptions apply[211] Merchant and Partner Relationships - The company's merchant base is highly diversified, ranging from small local businesses to multinational enterprises[24] - A significant number of the company's merchants are small- and medium-sized businesses (SMBs), which are more difficult and costly to retain than larger enterprises and are more susceptible to economic fluctuations[150] - SMBs are more susceptible to adverse economic effects, and adverse changes in the economic environment or business failures of SMB merchants may have a greater impact on the company than on competitors[151] - Degradation in the quality of the company's products and services, including support services, could adversely impact its ability to attract and retain merchants and software partners[152] - Dependence on merchant and software partner relationships is critical for business growth, with potential risks from contract terminations or partner failures[148] - Increased customer attrition, including transfers of merchants' accounts to competitors or unsuccessful contract renewals, could cause the company's financial results to decline[156] - Fraud by merchants or others could adversely affect the company's business, financial condition, or results of operations, particularly if the company is unable to effectively manage risk and prevent fraud[157] Operational and Financial Risks - The company's business is vulnerable to natural disasters, adverse weather events, and other catastrophic events, which could have a material adverse effect on its business, financial condition, and results of operations[153] - Health concerns arising from epidemics or pandemics, such as COVID-19, could materially disrupt the company's business and operations, particularly if located in the U.S.[154] - The company incurs chargeback liability when merchants refuse to or cannot reimburse chargebacks resolved in favor of their customers, which could adversely affect its business, financial condition, or results of operations[160] - Card network fee increases may lead to merchant loss or reduced earnings, with potential regulatory scrutiny impacting margins and competition[165] - Discontinuation of debit card usage fees by card issuers could adversely affect revenue and margins in certain markets[166] - Reliance on limited suppliers for key components poses risks of shortages, price increases, and supply disruptions, impacting product availability[167][168][169] - Goodwill and intangible assets account for 56% and 53% of total assets as of December 31, 2023 and 2022, respectively, with potential impairment risks[170] - Total principal debt outstanding as of December 31, 2023 is $1,772.5 million, including $690.0 million of 2025 Convertible Notes and $632.5 million of 2027 Convertible Notes[171][172] - Revolving Credit Facility had $100.0 million remaining capacity as of December 31, 2023, with potential interest rate risks[173][174] - Accelerated funding programs increase working capital requirements and expose the company to incremental credit risk[178] - Foreign currency exchange rate fluctuations may adversely affect non-U.S. revenue and profit, with potential hedging limitations[179][180] - Potential tax regulation changes, including OECD's 15% minimum global corporate tax rate, could reduce net income[181][182][183] - Inability to pass interchange and other fee increases to merchants could reduce operating margins[184] Technology and Innovation - The company uses open-source software, which may expose it to claims and require costly modifications to proprietary code[194] - IT system failures, including software defects, viruses, or cyberattacks, could damage customer relations, reputation, and expose the company to financial penalties and legal liability[138] - Payment processing platform scalability challenges may result in longer processing times or downtime, potentially affecting business operations[139] - Integration challenges with operating systems, software, devices, and web browsers could degrade product functionality and adversely affect business performance[147] Leadership and Governance - Jared Isaacman, CEO and Chairman, has extensive leadership experience in the payment processing industry[90] - Nancy Disman, CFO since August 2022, brings over 20 years of financial leadership experience[91] - Taylor Lauber, President and Chief Strategy Officer, has a strong background in finance and strategic projects[93] - Karen Roter Davis, Board member since 2021, has over two decades of experience in technology and venture capital[96] - Jonathan Halkyard, Board member since 2020, has significant experience in finance and hospitality industries[98] - Shift4's annual and quarterly reports are available free of charge on their investor website[88]

NEW YORK & CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE: FOUR), the leader in integrated payments technology, has been selected by New York Yankees to power payments for concessions and retail sales at Yankee Stadium in the Bronx and George M. Steinbrenner Field in Tampa. Shift4’s end-to-end payment ecosystem provides a comprehensive technology suite with the hardware, software, and third-party integrations needed to support a high-volume venue like Yankee Stadium. This unified commerce solution sim ...

Shift4 Payments, Inc. (NYSE:FOUR) Q4 2023 Earnings Conference Call February 27, 2024 8:30 AM ET Company Participants Thomas McCrohan - Executive Vice President, Strategy and Investor Relations Jared Isaacman - Chief Executive Officer Taylor Lauber - President and Chief Strategy Officer Nancy Disman - Chief Financial Officer Conference Call Participants Timothy Chiodo - UBS Will Nance - Goldman Sachs Melissa Chen - Bank of America Dan Perlin - RBC Capital Markets Andrew Bauch - Wells Fargo Darrin Peller - Wo ...

For the quarter ended December 2023, Shift4 Payments (FOUR) reported revenue of $269.3 million, up 35.1% over the same period last year. EPS came in at $0.76, compared to $0.47 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $278.85 million, representing a surprise of -3.43%. The company delivered an EPS surprise of -7.32%, with the consensus EPS estimate being $0.82.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

The stock market is off to a solid start of 2024, with the S&P 500 (SNPINDEX: ^GSPC) index gaining more than 5% yea to date. Software giants are leading the charge thanks to the continued boom in artificial intelligence (AI) tools. But not every big winner is a household name, and some of the best buy-and-hold investments in today's tech sector are not so familiar.Three Motley Fool contributors with deep tech expertise sat down to share their best-kept secrets in the current market. Read on to see why they ...

Exhibit 99.1 SHIFT@ Q4 2023 SHAREHOLDER LETTER INVESTORS.SHIFT4.COM Forward-Looking Statements This letter contains forward-looking statements. Shift4 Payments, Inc. ("we," "our," the "Company," or "Shift4" Payments, Inc. ("we," "our," the "Company," or "Shift4") intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statement contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act o 1934, as amended. ...

Shift4 Payments, Inc. (FOUR) is slated to report its fourth-quarter 2023 results on Feb 27, before the bell.The company’s earnings surprise history has been impressive. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering a surprise of 25% on average.Q4 ExpectationsThe Zacks Consensus Estimate for revenues is pegged at $278.9 million, indicating 39.9% year-over-year growth. The top line is expected to have benefited from strength in payments-based revenues and subscr ...

Analysts on Wall Street project that Shift4 Payments (FOUR) will announce quarterly earnings of $0.82 per share in its forthcoming report, representing an increase of 74.5% year over year. Revenues are projected to reach $278.85 million, increasing 39.9% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's e ...

CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE: FOUR), the leader in integrated payments and commerce technology, will release its fourth quarter 2023 financial results before market open on Tuesday, February 27, 2024. Management will host a live conference call at 8:30 am ET to discuss these results. Conference Call Details Toll-free dial-in:       +1-877-407-0613 Toll dial-in:       +1-201-689-8051 The earnings conference call will be webcast live and interested parties can join the live w ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Shift4 Payments (FOUR) , which belongs to the Zacks Financial Transaction Services industry.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 34.08%.For the most recent quarter, Shift4 Payments was expected to post earni ...