Q2 2024 Shift4 Payments Inc Earnings Call Transcript
Key Points
- Shift4 Payments Inc (FOUR) reported a 50% year-over-year growth in end-to-end payment volume for Q2 2024.
- The company achieved a 41% growth in gross revenue-led network fees and a 38% increase in gross profit.
- Shift4 Payments Inc (FOUR) generated $162 million of adjusted EBITDA, representing a 48% year-over-year growth.
- The company successfully closed two acquisitions, Revel and Vectron, which are expected to deliver meaningful synergies.
- Shift4 Payments Inc (FOUR) has a strong pipeline of major enterprise resorts and has signed several high-profile clients in various sectors, including hospitality, sports, and entertainment.
- The acquisitions of Appetize and Finaro negatively impacted margins by approximately 250 basis points for the quarter.
- There is a noted drag on margins and free cash flow due to recent acquisitions, particularly Vectron, which will take time to realize its full potential.
- The company has observed a mild slowdown in restaurant sales, which could impact future growth.
- Shift4 Payments Inc (FOUR) faces challenges in converting legacy systems and integrating new acquisitions, which may temporarily affect revenue and EBITDA.
- The company has adjusted its volume guidance due to delays in European market expansion and a cautious outlook on consumer spending.
Greetings. Welcome to the Shift4 second-quarter 2024 earnings call. (Operator Instructions) Please note, this conference is being recorded.
I will now turn the conference over to Tom McCrohan, Executive Vice President, Investor Relations. Thank you. You may begin.
Thank you, operator. Good morning, everyone, and welcome to Shift4's second-quarter 2024 earnings conference call. With me on the call today are Jared Isaacman, Shift4's Chief Executive Officer; Taylor Lauber, President; and Nancy Disman, our Chief Financial Officer.
This call is being webcast on the Investor Relations section of our website, which can be found at investors.shift4.com. Today's call is also being simulcast on X Spaces, formerly known as Twitter, which can be accessed through our corporate Twitter account at Shift4.
Our quarterly shareholder letter, quarterly financial results, and other materials related to our quarterly results have all been posted through our IR website. Our call and earnings materials today
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