Shift4 Payments (FOUR) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results, exceeding financial KPI goals, with gross revenue up 30% year-over-year to $827.0 million and end-to-end payment volume up 50% to $40.1 billion.

• Net income rose to $54.5 million, with adjusted net income at $89 million ($0.96 per share), and adjusted EBITDA reached $162.4 million, up 48% year-over-year.

• Closed acquisitions of Revel and Vectron, expanding international reach and product capabilities in restaurant, retail, and European markets.

• Continued organic growth with significant wins in hospitality, restaurants, stadiums, and new verticals.

• Board authorized a new $500 million stock repurchase program in May 2024.

Financial highlights

• Q2 end-to-end payment volume grew 50% year-over-year to $40.1 billion.

• Gross profit increased 38%, and gross revenue less network fees rose 41% to $321 million year-over-year.

• Adjusted EBITDA reached $162.4 million, up 48% year-over-year, with margins expanding 240 basis points to 51%.

• Adjusted free cash flow was $76 million, up 18% year-over-year.

• Cash and cash equivalents at June 30, 2024 were $205.0 million; total debt outstanding was $1,772.5 million.

Outlook and guidance

• Full-year 2024 end-to-end volume guidance tightened to $167–$172 billion (53–58% growth).

• Gross revenue less network fees expected at $1.35–$1.38 billion (44–47% growth).

• Adjusted EBITDA guidance raised to $662–$689 million; adjusted free cash flow conversion reset to 59%.

• Management expects continued growth in end-to-end payment volume and revenue, supported by recent acquisitions and international expansion.

• Expect a stronger second half of 2024, driven by backlog, cross-sell, and seasonality.