Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in volumes to 45billion,withgrossrevenuelessnetworkfeesrising40369 million [6][24] - Adjusted EBITDA increased 38% to 169million,withadjustedEBITDAmarginsat461.07 per share, reflecting strong performance [8][28] Business Line Data and Key Metrics Changes - Subscription and other revenue grew 77% year-over-year to 93million,drivenbysuccessinSMB,SkyTab,andfurtherpenetrationinthesportsandentertainmentvertical[24]−Thecompanyisfocusedonaddingnewmerchantsandexpandingshareofwallet,particularlyintherestaurantsectorwiththeintroductionofSkyTabAir[9][10]MarketDataandKeyMetricsChanges−Thecompanyisexperiencingstablevolumetrendsacrossallendmarkets,withaslightdecelerationattributedtoseasonalfactors[6][30]−Internationalexpansionisunderway,withsignificantgrowthinmarketsliketheUK,Ireland,andGermany,signingover1,000restaurantsmonthly[19][75]CompanyStrategyandDevelopmentDirection−Thecompanyisraisingitsfull−year2025guidance,reflectingconfidenceinexecutionandgrowthdrivers[6][29]−TheacquisitionofGlobalBlueisexpectedtounlock80 million in revenue synergies by 2027, primarily through bundling payment solutions [21][90] - The company aims to replicate its successful U.S. model internationally, focusing on software and payment convergence [18][75] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending trends, noting stability despite macroeconomic uncertainties [30][100] - The company has a proven track record of growing payment volumes during economic downturns, indicating resilience [22][30] Other Important Information - The company repurchased approximately 686,000 shares for $63 million in Q1 and continued repurchases in April [27] - Total indebtedness has a weighted average cost of 3.4%, with net leverage at approximately 2.4 times [28] Q&A Session Summary Question: How would you describe the competitive environment in international markets? - Management noted that the international opportunity mirrors the U.S. market evolution, with a lack of convergence among software, hardware, and payment solutions [36][39] Question: Can you touch on what you're seeing in the market more broadly into April? - Management indicated stable trends in same-store sales across various segments, with modest compression in restaurants and hotels [42][46] Question: Where are you on the synergy update from recent acquisitions? - Management highlighted successful cross-sell opportunities from acquisitions like Revel, contributing significantly to the SkyTab development pipeline [50][51] Question: What was organic and inorganic growth in the 40% GR LNF growth in the quarter? - Management stated that organic revenue growth is expected to be north of 20% for the year, with acquisitions providing noise in quarter-to-quarter comparisons [56][57] Question: Can you provide any color on the current revenue split between U.S. and international? - Management indicated that international revenue is still developing, with significant contributions expected from enterprise customers and SMB products [72][73]
Shift4 Payments(FOUR)2025-04-29 17:46