Shift4 Payments (FOUR) Baird 2024 Global Consumer, Technology, & Services Conference summary

Business overview and market positioning

• Operates at the intersection of software and payments, focusing on delivering integrated commerce experiences for merchants and consumers.

• Holds strong positions in table service restaurants, hotels, and stadiums, with about 40% market share in major US hotel brands and 75% in US stadiums and entertainment venues.

• Specializes in complex environments requiring multiple software integrations, differentiating from simpler, SMB-focused solutions.

• Expanding internationally by replicating the US integrated model in markets where software, payments, and hardware are still fragmented.

Growth strategy and financial performance

• Achieved approximately 50% CAGR in volume over the past four years, driven by adding new customers and increasing average customer size.

• Focuses on acquiring software companies at reasonable valuations to integrate payments, enhancing both revenue and customer value.

• Maintains profitability and expanding EBITDA margins, with a disciplined approach to customer acquisition costs.

• Leads with volume and payments before software, aiming for double-digit long-term growth through vertical diversification.

Vertical and product expansion

• Restaurant vertical remains steady, with a 20-year history and ongoing share gains through the SkyTab cloud-based solution.

• Hotel vertical benefits from ecosystem integration, attracting software partners and driving significant volume growth.

• Stadiums vertical saw rapid expansion, now holding over 75% market share and leveraging cross-sell opportunities.

• Recent acquisitions, such as VenueNext and Appetize, have strengthened presence and operational capacity in stadiums.