Shift4 Payments (FOUR) RBC FinTech Conference summary

Strategic priorities and growth opportunities

• Focus on cross-selling to a large U.S. customer base in restaurants, hotels, and stadiums, leveraging acquired software brands and next-gen products like SkyTab.

• Accelerating convergence of payments and software, especially in international markets where integration lags behind the U.S.

• Pursuing acquisitions with low customer acquisition costs to drive growth and efficiency, such as Appetize, Revel, and Vectron.

• Emphasis on return on capital and disciplined investment, targeting payback periods of 18 months or less.

• Utilizing reseller networks in Europe to overcome local barriers and expand distribution.

Acquisition strategy and integration

• Acquisitions like Vectron and Revel provide access to large customer bases and opportunities to monetize payments where previously overlooked.

• Integration playbook involves migrating customers to end-to-end processing and unified platforms, reducing inefficiencies.

• Appetize acquisition led to consolidation under VenueNext, shifting revenue from one-time hardware/software to recurring payment processing.

• European expansion leverages local resellers for market entry and customer support.

• Acquisitions are modeled with the expectation that initial revenue may decline before long-term growth materializes.

Product rollout and operational execution

• SkyTab rollout surpasses targets, with over 9,400 installations and a goal of 30,000, plus 10,000 internationally.

• Focused resources and leadership from acquired CTOs drive SkyTab's enterprise capabilities.

• International clients tend to be smaller, with higher debit and cash usage, but integrated payments are expected to command a premium as cash declines.

• Gateway conversions remain a significant growth driver, with streamlined processes and pricing strategies to encourage merchant engagement.

• Integrated solutions address restaurant demand for seamless experiences with third-party delivery platforms and cost efficiency.