FOUR - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Shift4 Payments Fourth Quarter 2020 Earnings Call. [Operator instructions] I would now like to hand the conference over to your speaker today, Sloan Bohlen, Investor Relations. Thank you. Please go ahead.

Sloan Bohlen

Thank you. everyone fourth welcome conference XXXX to call. like to quarter ShiftX's earnings I'd

Commission profit I'd strategies, estimates everyone indicated not call. considered meaning of those promises on involve statements Factors gross bring statements related conversion and to to or that be we represent full of this should may or the high-growth with of from quarter SEC objectives; from forward-looking industry; could the forward-looking nor results, the the like annualized our Before with expressed achievements begin, be cause to made as goals perspectives statements financial results including X, Securities remind matters or These Securities Reform Rule and that COVID-XX differ call. contain to management's of date factors on XXXX. our regarding by the Exchange materially this of potential statements filed future in statements, merchants; filings statements year XXXX. other and XXXX results, gateway-only such fact ability vertical; of All performance, statements performance pursuant first cause and the acquisitions discussed of XXX(b)(X) management's Private any that guarantees, it forward-looking and our and this Any our us on December factors by implied unknown forward-looking are to to made including on to actual known risks, materially Risk XXXX within and important but achievements neither actual other uncertainties the forward-looking performance and the the financial our our impact do statements, different section the of of a call business financial Litigation and plans, on anticipated Act relate will the the outlook call their expected into this historical for

any do While in to even to views subsequent obligation if statements such some change. we update elect our may forward-looking at so to point cause we disclaim the future, events

non-GAAP the be we call, reconciled in Chief website Jared release, reference on measures which Company's measure to call addition, with may on are the earnings nearest at our the In our Investor Officer, GAAP to that, can also me which And found investors.shiftX.com. let Executive Isaacman. Relations turn certain this

Jared Isaacman

Thank you, thank morning good Sloan, and today. all and for us you joining

spare and like letter, restaurants issues the and and not incredibly performed circumstances very The exposure I'd fun shaped a shareholder challenging performance, as social to did for economic, agenda going and our Despite concluded to extraordinary of this and hotels, political you we're will our business initiatives road ahead. merchant the and my to through For bit save is the in team morning, take time impacted highlight well. highly payment of having some these of for we begin year. just And and these strategic points a we some XXXX To end, anyone. accomplishments. verticals trends the which mentioned, like the is at I stuff

and towards material This generated. year, revenue the it's best the and year But of the marks processed during shift most our of and merchants consecutive platform, we share proposition year-over-year economic KPI, volume value it every is they our winning during So mostly for the of using grew revenue the reinforces challenging including XXst the circumstances. number growth. compelling

base and fund our multiple completed of to balance market transactions inorganic to diversify capital our also organic and sheet, provide shareholders growth capital We strengthen initiatives.

ShiftXShop, our which which our and We we has greatly now great including expanded also TAM. Xdcart significantly the platform, two acquisitions capabilities completed eCommerce call eCommerce expanded

code owe QR growth and takeout, for like to several of and products which ordering ordering online continue released think delivery our feel products, payments generation and pandemic we'll given in mobile payments, our timely, partners our the we We were quite ordering these of they XXXX not the proud. the a also customers. based reasons, our and but post-pandemic the all employees, of new We also and make environment. curbside most performance support It's perseverance times these our software just during me challenging dedication that of to

quarter delivered fourth another to quarter As the circumstances. the specifically, given we reasonably strong

significantly time these so As October, end-to-end previously highest the November and QX outdoor not grew and the shared, conducive billion. on previous in We to COVID that month cold at this distancing social slowed to entirely requirements the volume attribute from XX% $X.X Despite dining. realities, in was to travel in we volume celebrated December. and weather which year then payment

grow the account people. industries to business some volume, Our technology, model, to is our merchant while of testament a serving hit importantly, hardest and our our ability most

some quarter So included mistake, that make no rough is really this a business conditions.

It's active volume end-to-end during which end-to-end merchant network into normalized adding which incredibly equipment. our for $XX.X growth and have spring. we those all less account, also growth of virtually resulted is the drove which quarter, base at forward growth continued to volume million This worth for quite up quarter-over-quarter. grew as While merchant growth fees, we we the levels, makes quarter, leased us all the normal below that a at nice revenue substantially This throughout is been for adjusted XX% is accounting XXXX. coiled prior gross which X% are change becoming optimistic look also X% EBITDA when that in anticipate in look merchants reinforcing a see we from ShiftX's XXXX tough year in operating in

XXXX. colder also very TAM. we different our capabilities significantly two and Each the in acquisition acquired online expanded trends. are our serving additional capable on our what capabilities color will dramatically declined became Taylor ShiftXShop and services. verticals accelerated in weather call, provide But to speak at and that we the But of businesses social unique has cases is market to noted resulting win uncertainty of the addressing our both increasing country. expanded clear in value innovation our will our meaningfully market serve and requirements COVID. we from as part December latter of stricter the exists I with And still continues merchants to distancing unique The announced, COVID a segments. previously across proposition some volumes the and to onset merchants as is As us of the across nonstop and range growing month-to-month that

across we For hope to industry a see model. perfect those of QX of categories. offer merchants the broad who range We our are story, you of to example you innovative a solutions as business new

sit us other payment these total providers. vertically advantage and versus to are shortly. than geographies technologies constantly at We still the Our looking talk is lower as industries advantages a an by acquisition our incumbency Taylor to and offer traditional lastly, competition. new don't for go about use ownership which And acceptance of far give a going beyond of payment solution evidenced cost often integrated and we VenueNext,

As and we and I and where our always merchants initial spoke at the the is philosophy our shareholders is going. last value about see ensure the we in is to direction call described IPO, inefficiency our in quarter's for letter to to positioned ShiftX incremental on puck my drive change

what months, during Las successes lots multiple neglected entertainment Raiders, partner recall legacy technology. our may was have for ShiftX force across a in first by Vegas vertical, official the we a XXXX, the in found you of history. supported as became vendors significant expensive venue pretty few So the payments Within and

a similar discuss Taylor and that in suited deliver us recent made is We to some again, shortly. why found in demanding will to stadiums, the problems most about well and This of VenueNext, our have venues. in solve complex other experience we're theme sports environments better excited talk and strength of serving so most commerce parks acquisition our which has fan

intent same and which the again now will Center It just ahead. volume believe announced of will payment eCommerce announced STAPLES contribute few and the platform we we parks ago just ShiftX meaningful note, we On in stadiums months the Xdcart months call was that using theme acquisition be years technology. a that We ShiftXShop. today incremental

for X having I it's at months recall of new growing and reiterating multiple as growth ahead. that of our over regard two some, was will is a more to layer a optimistic new strategy Our business. eCommerce of from yet business speak IPO for with in category a foreign minutes, entry ShiftXShop ShiftX. massive complex surprise I fees. industry quickly, observed to this with about operated the textbook perspective can't few We think our These like years, layers markets time that our go-to-market to is are worth will a eCommerce drive which I also when were and Taylor about Despite and an unnecessarily into believe but came I TAM a just road the time ago. are XX quite meaningful this largely ShiftX

back to healthy experiencing are a very volume with strong merchants to growth XXXX. Our start

in core win our markets to new also We continue and exciting enter. verticals to share find

We again. I you personal call I compelled invest have a affords And capital a the position while action. for all ability to of growth right impressive share feel also to us in that the I now which an project thank have mic, accelerants, to and

who first campaign, made dreams. to year, think which this it, over can very on know, personal And all significance may achievement but more Taylor let couldn't live ambitious fundraising of be don't our I inspirationX.com us a And to more. command that, my Hospital, Taylor? learn to urge that to visit will Jude with my and Children's discuss turn reflecting help wildest fortunate As a quarter even for later results of all in donation. call all to get began fourth reason We detail. mission in dreams. Research some children the out the me for would And I childhood to that the you mission. operating am you It's beyond to you St. this still consider space on about co-pilot a the civilian chance their I

Taylor Lauber

going provide in quarter to you, to an update additional Thank I'm detail morning. give and fourth seen also on take the then to and some volumes what Jared a minute on good to date XXXX. we've

of a snapshot give reasonably a on season. the quarter had the throughout monthly the holiday the all pandemic to impact included end-to-end we sense for pronounced you First, volume

York when X Texas than base by to core impacted merchant proposition and mentioned in brands travel power branded in quite New large clear the as in the to Hotels time at including this restrictions larger positive several decelerization active XX% the does continues capacity, considering pleased history and was a including This be our highest ShiftXShop. that represented in and large of of leaders ability operating are our isolated for We hotel that December. our despite represented our reinforces typical we in states Jared activity account grow note the want February. a competitive platform. occurred year. without pace as Sonesta XX% the states this sequential many weeks exceeding acquired were example, the X volume increase a X% our of quarter. QX our merchants merchant report to during power to the X Xdcart nearly we heavily during like this advantages during that groups, from of their impact not days These and to January, our California do period. at several percentage are payment occupancy trends now than value many less growth COVID and and last reflect to a markets. of end-to-end volume prior volume won just are I acquisition, have

reposition what As a business we the highly of believe disruptive we've used to since the time strategy. is acquisition the go-to-market majority for

branding yet for. The force store driving was largely still enterprise a web ShiftXShop, launched merchant the that rich BXB as recall, in actually processing. platform this as feature We've on recently and is third-party marketing Xdcart XXX for a payment and more platform charge entirely Competitive behind and any you third using This on rely investment revenue. reliant vendor features SaaS parties were a yet which builder, platform paying and merchants billions sending volume per dollars simply to of exercise. free the for for much payments. If was isn't payment platforms and mature ShiftX this volume another month

created and to also process We intuitive is that payments second platform repackaged highly enablement the to it make none. a

process. success increased the brief for our Facebook this cost integration the year owned our fraud we've accomplished also We count XX% in of X,XXX On integration no note, early ShiftXShop, merchants. introduced first also We've extra measure goals since in at and integrations and which Instagram for is the appropriate that we've operated branding the detection web number time, we of the by and and of or to acquisition, stores think ownership. way roughly many

among grow. we an pre-acquisition and ShiftXShop mistake, exciting end help double and of for merchants this we believe roadmap best site we the successfully count to continue this platform eCommerce no impress that have believe them world, also the in can will the believe will year. We Make compete businesses the by

While fourth broader masked the the set ShiftX quarter the of upside potential quarter, in when depressed volumes what are is began. real is the has across a that merchants

pace on spend in uncertainty our expanded growth there's recovery that should While the economic compound activity and consumer given 'XX, is of our share. recovers

be stack be proven and a and applications NFL, Francisco technology to best-in-class of power including it some an as over ordering and full win to sporting of evolved in-seat a including a towards partnering mobile the Their provider enthusiasm of more also this verticals, have an overview will in only an our Center including will application mobile We've The and channel providers is close entirety solution now our envisioned the of also competitive. stack in Los We offer story providers. acquirers is of solutions previous STAPLES marquee successfully calls, VenueNext acquisition discussed but in began as for with won turn incredibly theme major these MLB, category, and I a beyond VenueNext. of solution web technology end class and these in at to point-of-sale incremental should venues. you and TAM largest wanted volume merchants quickly streamlined But with gateways, was Their mobile approach chart believe world several believe adjacent our the concessions. XXers entertainment payment took San hardware integration of been just which website that We our familiar every Before providing far savings. will ceded NBA, the app, billion Brad, in merchant two $X.X VenueNext the ordering solution the a to into and transactions, X how technology competing We parks. have the months included of of I growth point-of-sale and for And the to by a applications by ago. and MLS, that track nation's best-in-class included that transaction through XXXX. since published ordering summary VenueNext IPO, on a our by now, $X very billion has to to illustrate you VenueNext has doubled of clients. was our NHL Angeles. sports

to Now Brad I'll walk over hand financials. call through you the our to

Bradley Herring

Thanks, Taylor.

gross makes merchants year. conversions. of by variance last other in our by quarter same gateway Net modest gateway fees, processing XX% spoke year-over-year streams processing less continued it our from on net revenue As revenue sources by our fees in quarter. to up revenue model. gateway network compared Growth to Jared million up the prior revenue period due in ongoing up mentioned and in was increase our year, a less over reasons we COVID-XX revenue SaaS spread driven now represents network a offset to last for and XX% Taylor X% X% and based This impact the the generated convert XX% the monetization of for to $XX.X and increase to. was and the just revenue release, The of in net gross revenues, declines efforts processing driven share was hospitality wins our nonrecurring continued

on lower to Our due mix. while in the was basis normal than interchange for the net points, at card shifts XX remains quarter spread spreads approximately levels

prior If accounting on points, comparable X% was year. to basis this EBITDA for in adjusted year. reported XXXX, prior leases in equipment spread approximately We over consistent fourth XXX million apply XX% a interchange the Specifically, the for than we $XX.X quarter. of increase quarter lower the our represents treatment

points treatment additional This points COVID by impact again, results network continue volume acquisitions. from EBITDA leases. our as the quarter, scale. years, XX% we to fourth of EBITDA fees, represent from back less represents announced well against equipment a the basis quarter third applying increase portion quarter, Our adjusted of of the slowdowns basis adjusted consistent Compared related to revenue prior XXX as due XXX an declined margins to benefit gross margin the of in recently

update and Next, let capitalization me liquidity a give quarter. you our as busy very on an we had

First, at of $X proceeds rate carry annual a the successful a notes our which million end due XXXX approximately offering million were expense. in The that X.XXX%. interest of previous saves entirety the of of completed off of October, term are us and we offering the to of $XXX loan pay coupon in facility, used senior

establishes us forward. of capital the public debt an in that going additional offer participation Additionally, will ShiftX's markets, offering which source

December, original zero million highly Second, in that upsized $XXX notes we $XX.XX of XXXX. due offer a The effectively per and convertible with million are of of coupon share. deal $XXX conversion offering in completed was a rate price and successful of an from amount

X.X million share. Finally, partners. shares exclusively in per Searchlight completed shares December, by offering at a sold secondary equity $XX.XX we priced were These

'XX to adjustments will XX-K be take to within even revisions a and and impact activities facility. disclosed As noncash restructured changes of reflect of with geography ended capacity sheet on capacity our I and primarily revolving financial to capital cash an These QX our revisions result $XXX available and P&L. in Subsequent mention our minute a and quarter, our the in increased some $XXX.X previous filing. raises, million balance $XX.X the million. these its we've of want to revolver end we in that XXXX the credit XXXX million

these revisions EBITDAs that on While reported net cash have there revenues should is impact, or an it income zero immaterial our noted flows. be effect net

discuss to outlook. Finally, our I'd like

volume to to we returning by trends the we of variability variability because driven COVID. provided back of of With the in in more for quarterly will guidance XXXX, volume normal XXXX, guidance. significant half XXXX, shifting annual levels patterns be During

about few quarter. Let a first make me the comments first

As additional impact our and you've integration new largely eCommerce XXXX. certainly channels, we’ve integration increase the Xdcart. various in our recently place rebranding guidance treated the effort solutions related media will be That be These is TAM. seen of will a to a nonrecurring through as initiated a for our of our to effort in ShiftXShop expense here this financials. in merchant The QX isolated boarding eCommerce market activities to major drive across as leader our investments significantly said, will

full expect volumes to and Note has still be revenues We the excludes last between the billion $X.X billion, for fees between QX is to EBITDA are million. disclosed. between previously recovery any XXXX impact the sources gross related less I end-to-end that billion. network Gross integration what the $X.X already $XXX investments as and quarters, expected well year comments $XXX of be be between Adjusted revenue to million and billion $XX are be few expected to $XX uncertainty and curve. $XXX million remains million. of to expected to outlook lot $XXX while my this a Similar mentioned as been inorganic outside guidance there EBITDA

the operator While the the our the to parts suggests of months for questions. later XXXX of the let to QX volume in me temporary, results in are could was call a that, that With still X impact and largely near-term. COVID turn back there number the first numbers for slowdown moving

Operator

Wolfe Your Research. from of first Peller Darrin the [Operator question Instructions] with is line

Darrin Peller

question at at the moves, see stadiums now making, more eComm I even obviously it's congrats for as this on year point further good as after lot a and you're clearly, so think as us into look of Thanks ShiftXShop, When guys. IPO. -- we much we we than and expected strategic environment. in well these probably investments a the tough the a Hey,

besides you So the enough on talk out for all, just pricing that first maybe differentiation And guys there strategic you can be can material where actually you help right eComm little of have offer then Is when guys and us this year your if side, you more the there? you can are terms How run you done a through succeed? about, it? really of with that of tell now this next? first that the in build

Jared Isaacman

Thank you. morning. question. good Yes, Appreciate the

So be providing I don't integrated I to we different vendors software a that it should better solution. challenged to that surprising do continue we multiple and guess can that vertically first, we adding are complexity seek think job costs industries think by more out say, that just

conversion XX the the As years. business for we last been questions saying get year, growing strategy. X.X of lot only gateway awful an of in X towards end we’ve were last our payments part almost of we for about story gateway and years, But our in

an awful able win order opportunities you invest payments big of interesting expect forward. you of eCommerce, able to customers. So, expect And look kind kind spectrum we’re lot ultra entry kind growth substantial share version you lot type that of commerce. a hospitality that in in that us There’s if cover and spectrum to at these and months type between continue should back I them, we a SMB of into us with enterprise of inorganically the to and organically the of from complemented added a do continue has to full very of a in the to to eCommerce X go unlock ago, card-not-present both some to at address, behind TAM to would ShiftXShop going eCommerce find opportunity to if of lives then capabilities. that were our point kind of the

going the VenueNext. to that you in bit about us opportunity We then that’s market. pretty just a how big love And focus stadium a much talking for consider So space. be when lives little

But we do dissimilar exceptionally there that wow, remarks. Our actually environments as not mentioned is, this in with well. what learned is we to the it exposure recently to hospitality is Raiders Stadium, we rather our that

very at, restaurant different got area mostly we similar we our early the some an on it all environment more are announced And nightclubs. that with these multiple got bars, software take today, collaboration we have a should commerce end farther, integrated opportunity we’re not together, And coming merchandise this commerce together. you’ve that and in could good into began not accelerants is verticals in just applications as lot newer this just win current enabling U.S is put sales, you’ve that bring inside, stadiums we’re we’re entertainment Center software got you’ve based and attention this and in payments is was with Staples a was that to question journey we and You’ve VenueNext. ticketing, of And mentioned, is, big from done to. And hospitality then both clear, verticals could no, it’s it new This it’s then successes, of the we as wow, like, market towards theme in but sports offering. other benefit to like done? a of is capable a entertainment, it’s as because new it lot and I’d come an say venues. No, and large general parks the payment huge and think in solution already there’s geographies

Darrin Peller

Jared. really That’s right. All helpful,

a that Just and queue. us. margins guys you towards on revenues on But one quick the back to were above guided numbers I’ll turn

line. side, curious. it On just the margin more seemed in I’m

may items. guys. I beginning the Thanks of one-time missed, have an year, think something the in versus investments just mentioned but expense about you any I again,

Bradley Herring

Hey, Darrin. This is Brad.

flow some calls. that of previous a have One next acquisitions impact some there’s we up things also some And some about a couple of will in the is, do through investments over shore year we there up to of things. are of talked time well. as teed near-term So the

that we near-term. of see a to over see in kind in those the here next to. and acquisitions get acquisitions. margins bit those those But driven little couple you’ll previously of But compression you’ll guided as So quarters absorb the time, of going to us are numbers the back we that by digest

Darrin Peller

Got Thanks, guys. it. All right.

Operator

question from line Suisse. Credit the Your Tim next Chiodo of with is

Timothy Chiodo

a on really context and margins is the helpful. Thanks lot, Great. that

merchant on coiled number on So It up merchants being point around this cohort to you depressed give additions the a a lot that us the size the a context you well year’s some as which now, any of I the the as maybe volumes of levels. size XXXX quarter-over-quarter. mentioned data And your context there’s were of If really hotel spring for gets helpful, the those in merchant. of in earlier terms could would larger base very X% you the average relative of be guess, up there, COVID also coming super maybe to year-over-year, more level. these gave in around supportive the at vertical, of recent

Taylor Lauber

morning, Thanks for This the is Tim. Good Taylor. question.

size, because we of bought impact. out As use we XXXX during between there’s we a down sort question our lot see on the out the we closed, were usually implement quite much it of only the XXXX answer and And flat were of merchants the XXXX, -- systems like downtime at quarter, coming average try the across too to our not pointed end XX%. hotels, XX% tail then that spend lots way, To time over that COVID look your merchant that, to beyond in that of time a of frankly. own. Hotels gambit,

it So a but substantially in the bought state is discern higher, XXXX we average really normalized would that the say size that can’t you their merchant of levels. we from

Timothy Chiodo

the you. COVID exactly so That’s with level, the completely level, at, what was I Yes, type page. same you the more getting fully follow depressed more not there, -- normalized on

follow-up on a minor great. And XDcart. then Okay,

merchants that this pretty web from web ShiftX that stores context with just Could on a some get impressive. type of them existing a you adding those of X,XXX stores? X,XXX fully capability Were incremental So new context? pretty little net more quickly,

Jared Isaacman

Yes, sure. Jared here. I’m happy to answer that.

or call related and promotion the really, effort So the last that to wins it, and this rebranding almost undertook is share that over just so. largely all X we weeks

a customer, with. had frictionless more typically after hyper ShiftXShop but Hilton we or ready So that There really we for months getting do spent the things are lot terms debut a acquisition we of of type its first interact Hyatt onboarding of typical appropriate big customers type to the in as for really ShiftXShop. having that’s internally just X Xdkart the not say, a a for,

internally. maintain So in to from. growth the to to Xst, is the of a to a a And our then a with And continued around production last plus We we all enabling X,XXX only get that’s state came obviously for very a software February customers sign healthy it’s really half ShiftXShop platform ready just in really two even big weeks. probably highlighted week of that actually since. and means partners way. lot there And where up began

acquisition all, not that typical most eCommerce at web So store or the call other is the about there very out with excited one that other third-party is the players. that’s it we’re shop because areas of the enabling distribution,

and pretty that the kind and nearly mean, of the of customers a other XX% And really haven’t of This lot the size period highlighting existing pricing premium we short the and really by how quite about we’ve charge features I players the was capabilities tell, in disruptive increased and again, begun as innings early an for can in of actually either. lot sites really a we’re seeing platform the reacts. a fees you of market of of then, with base even to really time. the just pretty that. making So And awful model cross-sell available

Timothy Chiodo

you, Thank Jared. definitely. Yes,

for and now new lot all like a those of very taking enabled, distribution good. so third-party Thanks is both sounds So questions.

Jared Isaacman

you. Thank

Operator

the Citi. is Your next with Shirvaikar Ashwin from question line of

Ashwin Shirvaikar

and let are me the you for Jared, expectations an guys I Hey, a quarterly and in good good environment. very guess, recovery? to particularly tough revenues again, cadence with Brad, start economic you you. about of XXXX, regards asking net assuming with to speak Thank What job Taylor, EBITDA. with

Bradley Herring

take that. Hey, Ashwin, it’s I’ll Brad,

team probably that’s looking we So, time put the our kind of of we majority patterns. leadership guidance, at as where spent our the together

In of patterns the until fact, days. were looking up last we at couple

January, consider recovery. in Taylor full the seasonality, We more what to back which But out still between to be back of pace as expect just outdoor recovery there’s QX this mentioned started normal going numbers to probably year some going we a et to get of would is to going normal see talked pretty to to "normal". year. The really QX, be seasonality little year to to The come certainly think than to that question. we before boost kicked that’s seasonality of I a kind and merchants QX expect see We environment. It’s some signs that normal behave always is would I to see a XXXX still We us for a of to has dining, think off seeing spring you’re weather, going We the in a cold Some big about year are well still levels. cetera. in of think year since get XXXX. us February going are of right? pattern. more plus a a recovery lot starts to we curve start like business. recovery back normal getting QX boost plus But a would normally and and different because processing

Ashwin Shirvaikar

Got it.

revenue versus volumes. than outlook I end-to-end then in And net just The dig a our sort was revenue the net outlook bit higher wanted other to just question, Okay. estimate. of bit into little a

-- contribution could provide if to that breakout personal from that, what Jared for just I St. perspective, how I like subscription, some also note, a on gateway off, before say, a other yield, So wanted kind to you would appreciate just really be and inorganic maybe And great. you're of contribution, much doing a get Jude.

Bradley Herring

Ashwin. Yes, sure,

revenue. we're the goes you’re the into this to of ongoing And premise. revenue, it kind streams had talking always processing that our back we've IPO about shifting in talking about the us revenue net So how

stats in readings the year we're was now over of from my quarter, previous XX% the last mentioned that shifting XX%. One in I around

movement intentional, to bigger of an So our streams. a revenue bigger and as that is becomes net processing sure our that on very proportion make behalf, there ongoing

ways the then We conversions. gateways other have some driving will we targeting to revenue convert of looking We're always gateway different for the be at and And solution. to SaaS the end-to-end merchants streams. from those still

other do with we been the payments we back those model. we have and into acquisitions bit fees SaaS What where those morph little the model, have boosted a our into Now is, revenue that how lately the of are existing more back some exploring model. convert SaaS

as is recoveries think us that monetize. going recoveries processing of revenue to those continued which more becomes You're to are very in. I for to streams, going our be revenue That's continued trend, more right? these kick also So you're the where trends see and soon going helpful to a see net as going do

our the you about positioned book, Xdcart well. think our So part ourselves or of that's whether acquisitions I think of that's if back and we the recent the gateway really if And ongoing VenueNext. model, think of you forward book

Ashwin Shirvaikar

Got it. Thank you.

Jared Isaacman

Ashwin. Thanks,

Bradley Herring

Thanks, Ashwin.

Operator

line the O'Neill Matthew Sachs and Company. from is with of question Goldman next Your

Matthew O'Neill

taking for Thanks gentlemen. could a on morning, just questions. the hoping good bit my Hey, tiny was dig I Yes. acquisition. in we more

is in on what will And VenueNext, just contribute? for back is accruing years, of normal on similarly, then environment? in to ShiftXShop more out is, was is curious the it completely soon? the it volume example, I like for of a converted? I same the to either guess way all end-to-end what was appreciate So was if be this you're I maybe expecting XXXX that pre-COVID if Or VenueNext, there kind but kind or year now, point for is it frame curious now any for Xdcart And guidance rebranding? So as the end at some question it following I

Taylor Lauber

second Yes. to which It question I'll easy. platforms take the questions. answer compatibility for first, payments Hey, ShiftX. payments are both Yes, Matthew, from Taylor. able -- regard a With via it's is Thanks actually relatively standpoint. was your

the payment an ShiftXShop As gateways. to integrated we on numerous it think I platform, call, mentioned, earlier

that of end like one us acquisition of some forward, was partner we're method was and this the that up most is any effort. the to the to that payment partners full considered have customers. through we for the boarding. clearer was So And It's VenueNext, them that with in the that the venues this would software the all top is a this own application prop an thrilled States as transaction a world phenomenal long in November into week we're XXXX. with that midpoint demanding United in its a right, of partner gave that coming new preferred confidence much mentioned, winning its we about. pricing in make mean, the value the of about of our I from shops a

a so by terms in year laid And sort $X billion of end XXXX we out expectations, target. of

the sports suite. that's other and the share has gateway, to model entertainment that's I a tool you're win a partner, reality been to not famous bring in this think an yet a able sometimes terribly software disjointed. market. is, And incredibly to you portion a you sales in got integrating significant somewhat bring of got Meaning with rapid rate

past So the set to we to for it be far goals mobile the guidance. And incredibly stadiums, right? in verticals, put we'll a categories is a out theme that. country. adjacent of think things. we that exists surpass optimistic performed able of that in but But lot has first across our We This about like and in also conservative largest incredibly when demand the shareholders merchants parks application its in well a technology we're other see already can different have. and is lots you the resorts It

cross-sell and won work just verticals STAPLES that's for emerging incredibly do excited that the the multiple a the the was deliver an ability yes, also vertical across to to not year. into and payments with out how are we we ShiftX, ability us, technology So best-in-class but went last Center for vertical

Jared Isaacman

Jared and Yes, here.

couple to of any really which But of on is from be on in gave go in we down there's why sense years. some we of comments contribution layer here. volume next some into into Taylor's specifics, would didn't where more the to a because drill expectations, to Just thought and of specifics, lot want set VenueNext going of we end-to-end the to terms we wanted a

is First, this business, fast. very again, growing very,

obviously, put Those entertainment last XX presentation and the over essentially at look months. logos. the team recognizable out, sports venue accumulated we of, you were If there's a lot

Taylor's is right, So well that's of incredibly doing this everything. kind charging full in own for point, freight to technology its

have when points, past our type you growth. approach you're lot with combine So some we those of those to of of eliminate just payments accelerate going and a integrated experience only that pain models

what a is may providing in point bullet win point some we see looks to and I see the second, environment. of itself. So that like. Taylor's on And this have to get our regulated to like presentation then just overlooked think kind of probably that is gaming the adjacencies, within right VenueNext We

that happening also VenueNext, itself of very, already come if that in whether it because or betting predict look made fantasy, app, at really our are And it's very So, these is with rate. at a the in other it's it's type you is some opportunities sports some hard fast of wicked conversations relationship growing together. to

some we idea least vertically bring at that past. of with us quarters refine to set want the kind to we going the integrated in as the kind expectations So that we're prop well done together just that's of in ahead, value for initial it

would I expect updates more So the in future.

Matthew O'Neill

lot everyone. Got it. Understood. a Thanks

Operator

Your Raymond next James. Davis from of with line John question is the

John Davis

expectations, Hey, with volume COVID XQ a corresponding of Good in your revenue yet on morning, hit initial the a hit fell in to outlook. minute. XQ guys. I the short spiking Obviously, the to cases revenue bit just want lockdowns, you're for quite able still

perspective what just your a came XQ in in from kind revenue of expectations? So than better curious initial

Bradley Herring

see merchants. the I'll to that. decline it's John, just about to spread grows, expect as impact We've Brad. size merchants kind right? certainly the volumes that take those from that larger well. expectations, average this previously purely When it pull talked We've about on starts Hey, merchant as talked spread mix Yes. based an we on back, larger had of soon,

larger to So with come ahead given were expectation see, the we to expecting basis for I of what for a merchant board. on see we what coming is points mentioned pattern have we slightly spread which the quarter. in the That's quarter, did would why see XX base expected over is

John Davis

was the Okay, modeling? even February rate on trends, XQ about think us January think Can just with a sense exit year-over-year help we great. on And up what to year-to-date is as then Or XX I basis? you give us encouraging. a

Jared Isaacman

second of X February what that strong that exponential even our in and rate you really was history at optimistic. comping starting the if you're days was really a with during wanted basis X Yes, of get particular, February, on it you back because really just month. We best of the X This shy sure. pre-pandemic highlight February year-over-year March. exit it. the February incredibly And sort to rate, And we to in XXXX. interesting weeks. up strong. were where of half But was phrased And look area days an the pretty incredibly growth, into exit a the X%. drove that's really early be up that is that's a idea of

out of in right? I think from same positive takes months. what's long-term guidance that about few I important trends as incredibly to It pandemic about should understand the the no we're suggests just Brad, yet pre-IPO, seasonality is, heard And And recovery there's weeks. told think you XX the last have seeing our would you that. we really drive that

country. So it's it's no portions at significant across merchants Texas, like mentioned, also, the just of a when And country had as was time really the power. occurring

So there was like no contribution of volume.

what and say looks we're enough early can't I we're exiting So March it optimistic. February where incredibly about like.

John Davis

Brad, 'XX? one. final Okay, And great. outlook one then for CapEx just

Bradley Herring

of what the Yes, acquisition focus that is $X the biggest obviously which we per we you're capital see to cost, me going CapEx I our on. -- things about in think quarter run million a deployment typically excuse one

we've think over going we such opportunity some to merchants. think our of XXXX. I'm rates thinking talked XX% in the that. increase a of customer exit increasing about to significant you're creep We to as costs payback new gradual But board we X% because the acquisition see probably I shorten a periods

John Davis

Okay, great. Thanks, guys.

Operator

Truist Your line with next Jeffrey the the from is question Andrew of Securities.

Andrew Jeffrey

in side that's of morning. how that ISV the to function on of from the channel inference fourth in conversions. the of with channel, contributes Appreciate about on I there I you Maybe doing of wonder comments your Jared, little little on which XX% versus COVID. suggests you're My I outperforming, taking in a is bit assume about the -- by the volumes the good end-to-end some sense a little that a recovery a gave Hi, bit channel. growth the because could and a you questions. assume update bit leverage you January other channel really you're comment elaborate quarter the direct to seeing just growth if can

Jared Isaacman

it's wins, first, or conversions, net mean, gateway I our aligned I'd originate production, through customer Well, pure new all almost just an partner. software whether say of

mean, in -- do software work partners. model. the with in collaboration So, team, they work but our and We our have direct is I that they

the the virtually everything we've in ISV of the transactions business, the over our So which been coming an restaurants retail. it's of from the today, last few and performance on quarters and even say of complex all as all that our almost for channel update because into terms sharing XX% core of is more elements of are connected is hospitality, software. us, I would focus

and direction. gateway at new net the mix conversions XX% between production about rather wins in is So each still consistent

you volume the what single a think in realities a us more environment. stadiums, out contributed X which of and like what vendor virtually complexity at solution we certainly and literally cutting there STAPLES, the really even taken announced zero was The started in cost to to see have be accelerated February. continued -- [technical this to I that's months we've and here multi point Stadium of migrate has is just recently a which recent Raider with are just a the the it continuing And of only interest and eCommerce, last plan ShiftXShop, and to of lot focus to it into event spent was customers terms of Merchants that acquisition of of integration impact the vendor in able difficulty] in caretaking. a which we've size our given board pandemic.

the that watering early result March weeks have numbers of seeing, that already of in Taylor growth eye like rather is of all focus last and couple of the that the shared, all been a So restaurants. February hospitality our on and we're

Andrew Jeffrey

Okay. helpful color. That’s

the you've over Jared, the you the driven And drive in eCommerce the And So maybe think economics are of subsidize, you done now bit I about time good returns, little of and guess selling? the things innovative industry. vertical sounds talk growth. I how you that it model, and -- can about around the like then, as that ShiftX, ShiftXShop a front a when pricing and pretty lot groundbreaking end

Jared Isaacman

it's question, going is How industry able a of and ShiftXShop and how mean, largest lot on ShiftX of couple are entirely Well, good it Yes, heavily be and some fees go-to-market kind in to a monetize the SaaS completely I payments? of we I of dependent premium there's right? giants think factors are there. to certainly forego -- that seems through a

already that much and the need fortunate invested don't road buy years quite to capabilities as invest in over were ahead. lot we very that of asset to quite had in the we heavily a First, features an

factor. capture meaningfully we're own is to of the be that spreads line. which are monetize able bit does that payments, for to with us a all into parties, greater different, bottom payment that to It even fact from means that's do So more a the that because infrastructure that's allows we one to Two, pretty our going the own the will customer contribute margins. eat important, payments, off behemoths little their some of out other relationship in way there related third which super on depend it

focused this. pretty on are we So

at buying investment ongoing I capability it fully as that different having it, has -- to as is turn ShiftXShop even help inorganic We customers card lot rebranding that then an serve for very with restaurants. from that shops, pricing more to type merchant important fund core. expect smaller think There to Xdcart disruptive doesn't and just various what present a means a self kind something are direct retail to end else I our through story into of a internal the model. and looked is and a initiatives. is

of looking dealing with different of the these utility. our the incorporate enterprise we're hotels, those We as are part move account things to wouldn't up of e-restaurants And we're a be we're absolutely features will you're certain And acceptance of for going into needle and greatest long-term because how ShiftXShop. and with crypto all our kind than offerings. some necessarily market roadmap audience traditional things where taking capital with at

Andrew Jeffrey

Super helpful. Thanks.

Operator

America. from is Jason of of Kupferberg the question line with next Your Bank

Mike Colonies

for Good Hi. in This filling is Mike guys. Jason. morning,

margins. on quick a follow-up Just

implied the at to look around upper XX.X%, the margins believe expecting you'd guide of margins we been EBITDA at I adjusted approach if midpoint So XXs the of the the by of end XXXX.

Now this Or be recent back how about the both first sounds investments we lower half as you be integrate exiting two margins like or to step some think year? you due this the talked still in slightly the should up the about? should the It is than there acquisitions. pressure could year of in perhaps in case? margins But the quarter Thanks.

Bradley Herring

Yes. Hey, you're Sure, this right. observation, Mike. good is Brad. and Very exactly

think We are mid first year, in at of expecting how right, the the the the XXs. But about was to midpoint evolve or full going year over course guide the quarter two. that's the

of digest get year. the we certainly those as little accelerate acquisitions half the lower, mentioned these some of bit a will and be we would we As into they back

So the for the XXs the guide of the high year back changing. in half not is

Mike Colonies

Great, thank you.

Operator

line Sandler of Piper is Donat with question Your next from the Chris

Christopher Donat

XXXX. end-to-end volume guidance for the one Thanks gentlemen. questions. on morning, my Good for to taking ask Wanted

to point any material your in this Just volume that is at VenueNext from confirm, 'XX there acquisitions? the coming immaterial and is from guidance? Or ShiftXShop

Jared Isaacman

second following. signaling, of into It's on in the and of we're potential desire businesses, largely what quarter the the sort next strong margins signaling is assets half we're quarter, really with incredibly to bit over back a immaterial. these first little I commented and mean, and and strong Brad year invest

Christopher Donat

And comment your several letter, -- strategic opportunities. Jared, that shareholder the in you you're pursuing in then, Okay.

got plans Just had going incredibly you XXXX ShiftXShop busy and you other you're with an an and acquisition, curious some also. a where VenueNext with imagine then of then have to time you're allocating the I there lot your and activities busy XXXX. incredibly

you're putting this Just trying to understand your focus year? where

Jared Isaacman

is, don't need and awful answer sleep. we're the lot above of all you the an just Well, doing of

I awful an in lot just -- have an well, of be spent to say, first, team, have time we've clear. incredible we So like,

probably our earnings QX if investing talent. you we we're to in discussions, going of I think calls, replay said, and our be QX some

we going time. plans through some As to lot take because do get advantage of in it available market, the going of in at see integration own the a opportunities market are competitors and merger the becoming these we to intend do of we're talents same big their our

going And have the talented I a great right are of team roadmap as here. focused on have ShiftXShop moving look the going really like. So because gave obviously that things and there's people day-to-day to now. that's on a perspective, we that good some needle. to some very that what much works we a we lot And things hints in some the are of And from -- what's is

and depressed As specialty share mentioned, pursuing all in coming the actually. we largely seeing win is very a restaurant today. interesting But in market we're that the ahead. performance customers also strategic opportunities And -- very, very have will journey continue from directions, in from there retail we're a the of to are couple the other hospitality

available, pursue these So certainly other the opportunities worth it's our exceptional and day-to-day all is I things do answer a pretty time rate. they're think at the to while

now philosophy the I think anything. up that's yes, is not we're So to right going pass

Christopher Donat

much. Thanks Okay, got very it.

Operator

Point. Grosso of question is Michael Del Compass with next line Your from the

Michael Del Grosso

in merchants a shift of of tech pretty those think investments a cetera. your a I into morning, of of a some for merchant ask long XXXX. been a integrations. has I Thanks for in know year taking question really et significant those And merchants gateway gateway question. guess about conversion around converted? But to. how guys. if some I bit then, just I mean, they -- Good longer a platforms, little XXXX that opportunity to you're transformative over was to terms is year expectations the much for my wanted for I wanted term link, volume legacy

what those they going the merchants already? if thinking Thank So what to across you line, are are it's your XXXX? converted you. And around take to expectations get haven't

Jared Isaacman

is gateway That end-to-end and really consistent environment our market. And the new who to customers XX% multi come rather today vendor are share are I customers through we adopting that platform continues from all consistent the on that from our so then pure largely of for complexity solution. still average as the just as that and our think And wins our that's Yes, are shedding ahead. years existing mentioned, good cost in XX% planning even taking the through joining the net question. production

in We that continue gateway a There's of to consistent goes very make that assumptions. on world. type lot

a all our Radisson, a that clubs, membership different that gateway we we've carrots, Similarly, is ISV, endorsing. had actively existing another said to You will, you which make ISV XXX that gateway their nice a all ISVs, that's more surge. you customers. X gateway the a Jonas partners started lot created they the to always if customers, their are which they're of kind locations gateway And plus the today. that our weeks, brand Club, actively and problems enterprise available it is for the one that end-to-end gateway our I'd that just click like at hospitality have on started lot ago, move of platform, have for in incentives we of our influenced and say, of of big migrations golf we've our to and solved as endorsing customers, of customers, an customer, years time, we different long problems than they And In times. the call solve customers X last,

of type continues just this to will to it goes as and continue happen forward. thing So happen

solutions connectivity one years is think making I the X available if that competitors, year gateway longer thing. a that just should away, we're our offer are payment even model anymore? not don't just you integrated some offer gateway, the growing that mentioned it questions fastest is no even essentially or that of if look a on strategy will, a we ourselves, that I is a all. start because is to and the type at market, you Or go that really good at they to X the in being of year service. going asking this And are legacy and or type next what and But

not not First Shopify out Clover growing punitive or another have Fiserv's global obviously, Toast, if not has gateway player product fast does costs gateway gateway have or else very a used restaurant a have a ship Square does option. to some does for merchant option. payments provider. or a Data anyone option there.

might to longer And lot So the that in in that time, first also value, really our from right gateway the But at available well with that and end-to-end now want love it some approach we customers of would point incentive we volume we're us no really certainly such carrot to we making been kind of the gateway that's migration. would pull platform. is that serving even is so, product with ourselves features required. to doing forward that certainly a expect ask

Taylor Lauber

little about job of important worth end-to-end tonnes joined of shortly the pretty of it's but pandemic thereafter. from bit, did There But throughout, I towards growth migrated. I merchant end revisiting Merchant the And steadily Merchants of still volume. single commenting acquisition the platform a business like worth it. emphasizing normalized that is given We think not think that's Jared, Link note, a XXXX. feature hit to our who's bought very merchants think us past acquired I have on the the potential a inside it's good there. has the do already that worth month we because a

during potential as all of this already phenomenal our is So that we us merchants but the comments, pretty well. volume have of joined sort those inside allude to tried to

Michael Del Grosso

just acquisition. thinking of helpful that forward? speak, size strategic you I room, dry capital for That's $XX in so or $X that you completed the allocation. and a Is billion mean, Or you elephant options have, color. M&A I the powder in follow-up thanks. think are forward? the Okay, of million some guys should on so we is about expect the My nearly going going to Jared, deals that is how

Jared Isaacman

market. do us that's now. affords to not of continue to just been and large in of and pipeline even of I ball like we could said one, Yes. small significant we're VenueNext don't unlock do. find cash look you're we lot can have right right And people us weigh say works very expecting talking were well a fourth there's too, of this to when about for gems, such time And a certainly Taylor Xdcart, deals pressured deals we're And at what do them has like on there, very options feel can I'd before, anything thing, something like obviously, we us we to is then a to should an full fortunate the in we've at really in mean, this position a size have but that at that quarter profile in If Taylor, to awful terms really the like, a we too. or can feel One that lot you're rather fair now. where we transformative, going rather that least a that smaller do playing to amount want a be of VenueNext know three going that, value, Xdcart, lot that looking total like in. investing similarly of a we've of kind if and

disciplined things on going like about and continue And get allocators tend can of making So Taylor, influence been history about to…? the all I we've the throughout think rather our you wrong to excited our that's to the not go thing think whole decision if of the want moment. really shiny to ahead. capital. road We that necessarily

Taylor Lauber

said. well Yes,

those I both the just the grow require The can. and of through And a our VenueNext, on we'd world we both integrated customer like business affords long an is that. theirs the help to as long extent a do There the the that to ability model. watched love pretty with transactions also than but you keep table of to line completely as the side get party have directions. vertically exponentially incredibly that handful And love environment we Xdcarts one tell that always I that the us other in think, really a they done, complicated, Jared, well. or summarized transformative like of to there's book opposite ends keep on helped it to they're a we'd more we'd there's can optionality grow those.

of are plug those And as love both frankly department strategy they possibly than for or new so those access a of can. like do quite did, taking to verticals we we transactions can it. the extent us there we to And We'll more handle, give the many as those resumes.

really pipeline. yes, open So keep we a

to us, the end, On coming frankly. small quite they're

Jared Isaacman

Yes, kind I'd that in giving. is in interest one of we've an the terms new really in thing charitable area last add of taken, quarter as of

the collaborating think there. kind and following. charitable that giving, has lot as support now awful St. enlightened exposure Hospital we've technology philanthropic an of it industries that an games, the for Children's us really There's in live payment quite has that InspirationX on there's and had Research Jude actually actually to with and video enables the I that stream donations

quite things enlightening rather we more something attention that ahead. turn just think will give as been I have focus our a probably on that that be few bit a us actually little the towards months some will in there's So that to

Michael Del Grosso

Understood. Thank I you. appreciate you my taking questions.

Operator

line with the question is Stanley. next of James Your from Faucette Morgan

Priscilla Russo

is Russo on This Priscilla James. questions. for Hi. quick Two

so a in there dynamics talk this merchants So alternative or far have about year? RFP/competitive for -- early the payment you've coming of on decided platform. talked yourself Is you on about the -- particular verticals as providers, on number Can such deals that to the hotel look XXXX?

Jared Isaacman

we of two them pretty be decisions, hotels were the of ShiftX there's kind more of the really by technology sizable have perspective that and customers a that that have a and is depressed properties of last some areas -- one which conversation, that few boarded at at made we actual from in the pretty boarded good their reinforces to which been opportunity over the the make and Taylor at actually afforded from a has essentially Every ShiftX -- we few times. that's to look use downtime the certainly years state. kind operating pandemic, the quite single mentioned infrastructure before has benefited point single today that last we quarters, customers every just as the a Well, would impacted one over

the from an of plus spring So your maybe the customers of paying hyper account in coiled we're just that we But don’t boarded to. RFP to please we -- like into as than numbers take doesn't say RFP. less be came on shared attention I'd year. those relationships ShiftXShop that that's And XX,XXX that any before, five specifically, going last effect and that to question

can payment and prior the it years, really compete really no position ourselves try would -- they would where one entire consistent served that's then vendors merchant validated gateway, payment the strategy We X was an thing over And was for for essentially really acquiring. so industry RFP an RFP in And for different have because and that's experience. So by that an do secure might complete and from RFP developed or merchants to that RFP RFP tokenization, our throughout four the hospitality an five there's certainly ShiftX do who for hardware, even perspective, payment a they or an history. PCI past to last being encryption. because else they have that

in was all far. really strategy with costs we've RFP a And the we migrated the ever result, vertically boarded a an of our XXXX, as because so have M&A eliminate with and to actually bundled unique. that recall without the we've provide a we're able we able seen our solution. Now our platform merchants do to to have created all needing lot RFP so to solution really and I to how can't a really for were single those and the market, kind vendors solution associated And services that differentiated it integrated of together

Priscilla Russo

just the be be one any to Is Perfect. not, that And the on admission then be to congratulations any proceed and with that that we you operations going actually management would day-to-day quick classification endeavor. the helpful? announcement. of Jared, follow-up. about there as and if as InspirationX thinking -- Should that ShiftX chance

Jared Isaacman

bit could the we few have, a as on sized a the just defense so that up I that benefit did to But responsibility really shed quite lucky one we're to joking we the give things a prior some CEO quite I other to to as awful that -- bit resigned to I before, fill. IPO. few of things was on I company of reasonably all are of CEO in continuing like organization. rockstar was too for very a ShiftX could am as before, things I'm the No, actually by and positions, having been and Taylor decade. look of last nights to mentioned interest, aerospace and talent quite Board Co-Founders a we've able weekends. of of I We structure I position, of free quarters up my team my focus investing well we had the the lot that InspirationX. a I actually kind as over open did an position important actually that adding to

of all have that have of any impact responsibilities. is my it doesn't with it Directors, of of So Board and are day-to-day of But, to appropriate various day-to-day expect course, this conversations I be don't my things governance the -- something contingency been any well these been responsibilities. discussed. discussed our impacting But

Priscilla Russo

again. congratulations, Well, Thank Perfect. you.

Operator

from of Markets. Dan with RBC Capital Your the Perlin final question is line

Dan Perlin

had XX% and And even a even would have guys of big embedded better XX%. guidance think me But along been I a margins, years gross for sneaking thanks today. in of fully in I out that's time profit goes the at in part Thanks, the that's with than IPO. the at all about story. that mix end expected we the the the shift appreciate this I in margin is question

other so that? what is lower. cost sales are Because just the incremental of wondering, that obviously of at XX% some And lot I'm also a number to drivers

And because shift you've other these occurring mix bigger then all profit think about a of how there Thank of gross throughout is the cadence rolled you. that's year? the we solutions do margin that So that in?

Bradley Herring

Hey products take strategy and rate. through to going we're really able we margin get proud of This that I It's how -- that. monetizing performance you're items gross spread part what Dan. we underlying this to when mean, think, all Brad. that be the of monetize I'll offer. big is those looks a services And some of why you comes back different expansion. spreads, hey, to our sorry, is I this actually We're think spread like.

spread So, that points seen just we've of that's right and a at why XX reported QX we basis historically.

landscape, kinds around not numbers. see look our you If competitive going to of those you're

that models we right? type the out proud thin gross and our components encryption, our are So gross lower of margin items, to end-to-end margin us all a way the as see, of monetize of going business, we're and competitors is that different XX% we bunch the shift think sales we that way spreads a allows to very of through that solution in be deployments, really equipment monetization to range. going So margins monetize of, these are our equipment the maintain

Dan Perlin

we Great. that about rate be half jumping go an the into we of do into back first like going half? seems as And rate, the when since lower it you. Thank off exit year you're how in materially the think to

Bradley Herring

XXXX? of rate Exit as

Dan Perlin

XXXX.

Jared Isaacman

XXXX.

I’m think about thinking I because look -- the quite second first versus bit different. margin half profiles a

Bradley Herring

I and to going see that. Yes, you're think

first the going in in QX. margins quarter the lowest there, seasonality expansions you're typically first because margin fourth first and there's factors some QX -- to to -- just quarter You're to is going going are our see quarters, be and see

really from the get going and high this expansion QX. curve are But are to get to should rates little to still focus factor increased we kind little as half, normal you're going bit into thinner, through certainly of be into a the we recovery back as scale going a we QX QX see with QX normal, talked seasonality us We've some about and to the be is of to that So QX have as in of QX pass going to back margins. and flow through heavier.

out XXXX, be exit the And time more to to the a think are seasonality higher are normal QX. curve. than going slightly But I pattern. little we are into got going going of you've So to be then we XXXX related be numbers is to they in recovery bit a the abnormality of get much objective by

Dan Perlin

it. Got

much. Thank guys Okay. you very

Jared Isaacman

questions. everyone. Well, the great appreciate thanks Really

this obviously, for lot on close giving appreciate is emphasizing through pride out proposition really just that some we in. ShiftX that the challenges -- of ShiftX time take value and that again business for us year morning, ShiftX. rapidly So some things and have everyone I'll end XXXX everyone operate of at We we here, grew all going to updates merchants. by the at not only hear because approach this a volatility, unique but turmoil of a our can

And In the addition, like ambition customers new we engagement more for and Cares. large markets like through important, in the applied our has ShiftX lay to groundwork to community our commitment DNA in ShiftX's been eCommerce. growth most never evident

appreciate, I have and for great day. again, Thank everyone's you So time joining a in.

Operator

participating. quarter This XXXX fourth call. Thank for earnings ShiftX you the Payments concludes

disconnect. now You may

Shift4 Payments (FOUR) 4 Mar 212020 Q4 Earnings call transcript