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Shift4 Payments (FOUR)

Shift4 Payments is a leading provider of integrated payment processing and technology solutions, delivering a complete omnichannel ecosystem that extends beyond payments to include a wide range of commerce-enabling services. The company's technologies help power over 350 software providers in numerous industries, including hospitality, retail, F&B, ecommerce, lodging, gaming, and many more. With over 7,000 sales partners, the company securely processed more than $200 billion in payments volume for over 200,000 businesses in 2019.

Company profile

Ticker
FOUR
Exchange
Website
CEO
Jared Isaacman
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Shift4 Payments, LLC • FUTURE POS, LLC • Harbortouch Financial, LLC • Independent Resources Network, LLC • MSI Merchant Services Holdings LLC • POSitouch, LLC • RESTAURANT MANAGER, LLC • SHIFT4 CORPORATION • SHIFT4PAYMENTS FINANCE • S4-ML HOLDINGS, LLC ...

FOUR stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

5 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.02B 1.02B 1.02B 1.02B 1.02B 1.02B
Cash burn (monthly) 56.93M (no burn) (no burn) 1.83M (no burn) (no burn)
Cash used (since last report) 174.07M n/a n/a 5.61M n/a n/a
Cash remaining 844.13M n/a n/a 1.01B n/a n/a
Runway (months of cash) 14.8 n/a n/a 552.3 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
5 Aug 22 Nancy Disman Class A Common Stock Grant Acquire A No No 0 169,233 0 177,633
16 Jun 22 Jared Isaacman Class A Common Stock Buy Acquire P No No 31.6 27,728 876.2K 362,470
10 Jun 22 Karen Roter Davis Class A Common Stock Grant Acquire A No No 0 2,548 0 3,595
10 Jun 22 Donald Isaacman Class A Common Stock Grant Acquire A No No 0 2,548 0 16,992
10 Jun 22 Sarah Goldsmith-Grover Class A Common Stock Grant Acquire A No No 0 2,548 0 8,400
30.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 211 225 -6.2%
Opened positions 36 46 -21.7%
Closed positions 50 47 +6.4%
Increased positions 80 81 -1.2%
Reduced positions 63 73 -13.7%
13F shares Current Prev Q Change
Total value 1.92B 3.85B -50.1%
Total shares 87.86M 91.28M -3.7%
Total puts 510.3K 661.9K -22.9%
Total calls 2.74M 1.28M +113.3%
Total put/call ratio 0.2 0.5 -63.9%
Largest owners Shares Value Change
Jared Isaacman 30.19M $0 0.0%
Wellington Management 7.37M $243.75M +20.9%
MCQEF Macquarie 5.49M $181.55M -7.1%
Vanguard 4.74M $156.74M +5.5%
BLK Blackrock 3.58M $118.48M +1.1%
Durable Capital Partners 3.17M $104.82M +37.5%
Alliancebernstein 3.12M $103.21M +5.1%
FMR 3.02M $99.98M -3.0%
JPM JPMorgan Chase & Co. 1.82M $60.04M -10.9%
Jennison Associates 1.62M $53.43M +4.1%
Largest transactions Shares Bought/sold Change
Southpoint Capital Advisors 0 -3M EXIT
Wellington Management 7.37M +1.27M +20.9%
GS Goldman Sachs 563.93K -1.17M -67.4%
Citadel Advisors 1.25M +1.02M +433.5%
TROW T. Rowe Price 480.88K -894.93K -65.0%
Durable Capital Partners 3.17M +864.69K +37.5%
AMP Ameriprise Financial 926.11K -785.47K -45.9%
Royce & Associates 0 -584.99K EXIT
Nishkama Capital 0 -525.45K EXIT
MCQEF Macquarie 5.49M -419.43K -7.1%

Financial report summary

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Competition
FiservShopify
Risks
  • Substantial and increasingly intense competition worldwide in the financial services, payments and payment technology industries may adversely affect our overall business and operations.
  • Potential changes in competitive landscape, including disintermediation from other participants in the payments chain, could harm our business.
  • Our ability to anticipate and respond to changing industry trends and the needs and preferences of our merchants and consumers may adversely affect our competitiveness or the demand for our products and services.
  • Because we rely on third-party vendors to provide products and services, we could be adversely impacted if they fail to fulfill their obligations.
  • Health concerns arising from the outbreak of a health epidemic or pandemic may have an adverse effect on our business.
  • We may not be able to continue to expand our share of the existing payment processing markets or expand into new markets which would inhibit our ability to grow and increase our profitability.
  • Our services and products must integrate with a variety of operating systems, software, device and web browsers, and our business may be materially and adversely affected if we are unable to ensure that our services interoperate with such operating systems, device, software and web browsers.
  • We depend, in part, on our merchant and software partner relationships and strategic partnerships with various institutions to operate and grow our business. If we are unable to maintain these relationships and partnerships, our business may be adversely affected.
  • A significant number of our merchants are small- and medium-sized businesses and small affiliates of large companies, which can be more difficult and costly to retain than larger enterprises and may increase the impact of economic fluctuations on us.
  • Global economic, political and other conditions may adversely affect trends in consumer, business and government spending, which may adversely impact the demand for our services and our revenue and profitability.
  • Acquisitions create certain risks and may adversely affect our business, financial condition or results of operations.
  • We are subject to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security, and consumer protection laws across different markets where we conduct our business. Our actual or perceived failure to comply with such obligations could harm our business.
  • Our inability to protect our systems and data from continually evolving cybersecurity risks, security breaches or other technological risks could affect our reputation among our merchants and consumers and may expose us to liability.
  • We may experience failures in our processing systems due to software defects, computer viruses and development delays, which could damage customer relations and expose us to liability.
  • Degradation of the quality of the products and services we offer, including support services, could adversely impact our ability to attract and retain merchants and software partners.
  • Increased customer attrition could cause our financial results to decline.
  • Fraud by merchants or others could adversely affect our business, financial condition or results of operations.
  • Our ability to recruit, retain and develop qualified personnel is critical to our success and growth.
  • We incur chargeback liability when our merchants refuse to or cannot reimburse chargebacks resolved in favor of their customers. Any increase in chargebacks not paid by our merchants may adversely affect our business, financial condition or results of operations.
  • We expend significant resources pursuing sales opportunities, and if we fail to close sales after expending significant time and resources to do so, our business, financial condition and results of operations could be adversely affected.
  • There may be a decline in the use of cards as a payment mechanism for consumers or adverse developments with respect to the card industry in general.
  • Increases in card network fees and other changes to fee arrangements may result in the loss of merchants or a reduction in our earnings.
  • If we fail to comply with the applicable requirements of payment networks, they could seek to fine us, suspend us or terminate our registrations. If our merchants or sales partners incur fines or penalties that we cannot collect from them, we may have to bear the cost of such fines or penalties.
  • Certain key components are procured from a limited number of suppliers. Thus, we are at risk of shortage, price increases, tariffs, changes, delay, or discontinuation of key components, which could disrupt and materially and adversely affect our business.
  • Cost savings initiatives may not produce the savings expected and may negatively impact our other initiatives and efforts to grow our business.
  • Our operating results and operating metrics are subject to seasonality and volatility, which could result in fluctuations in our quarterly revenues and operating results or in perceptions of our business prospects.
  • Our substantial indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting our debt obligations.
  • Restrictions imposed by our Credit Facilities and our other outstanding indebtedness may materially limit our ability to operate our business and finance our future operations or capital needs.
  • Accelerated funding programs increase our working capital requirements and expose us to incremental credit risk, and if we are unable to access or raise sufficient liquidity to address these funding programs we may be exposed to additional competitive risk.
  • Our results of operations may be adversely affected by changes in foreign currency exchange rates.
  • New or revised tax regulations or their interpretations, or becoming subject to additional foreign or U.S. federal, state or local taxes that cannot be passed through to our merchants or partners, could reduce our net income.
  • If we cannot pass along increases in interchange and other fees from payment networks to our merchants, our operating margins would be reduced.
  • The conditional conversion feature of the 2025 Convertible Notes or 2027 Convertible Notes, if triggered, may adversely affect our financial condition and results of operations.
  • Failure to protect, enforce and defend our intellectual property rights may diminish our competitive advantages or interfere with our ability to market and promote our products and services.
  • Our existing patents may not be valid, and we may not be able to obtain and enforce additional patents to protect our proprietary rights from use by potential competitors. Companies with other patents could require us to stop using or pay to use required technology.
  • Failure to comply with, or changes in, laws, regulations and enforcement activities may adversely affect the products, services and markets in which we operate.
  • From time to time we are subject to various legal proceedings which could adversely affect our business, financial condition or results of operations.
  • The TRA with the Continuing Equity Owners and the Blocker Shareholders requires us to make cash payments to them in respect of certain tax benefits to which we may become entitled, and we expect that the payments we are required to make will be substantial.
  • Our organizational structure, including the TRA, confers certain benefits upon the Continuing Equity Owners and the Blocker Shareholders that will not benefit holders of our Class A common stock to the same extent that it will benefit the Continuing Equity Owners and the Blocker Shareholders.
  • In certain cases, payments under the TRA to the Continuing Equity Owners and the Blocker Shareholders may be accelerated or significantly exceed any actual benefits we realize in respect of the tax attributes subject to the TRA.
  • We will not be reimbursed for any payments made to the Continuing Equity Owners or the Blocker Shareholders under the TRA in the event that any tax benefits are disallowed.
  • Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our results of operations and financial condition.
  • The multiple class structure of our common stock has the effect of concentrating voting power with our Founder, which will limit your ability to influence the outcome of important transactions, including a change in control.
  • We cannot predict the effect our multiple class structure may have on the market price of our Class A common stock.
  • We are a “controlled company” within the meaning of the NYSE rules and, as a result, will qualify for, and intend to rely on, exemptions from certain corporate governance requirements. You may not have the same protections afforded to stockholders of companies that are subject to such corporate governance requirements.
  • Certain provisions of Delaware law and antitakeover provisions in our organizational documents could delay or prevent a change of control.
  • Because we have no current plans to pay regular cash dividends on our Class A common stock, you may not receive any return on investment unless you sell your Class A common stock for a price greater than that which you paid for it.
  • Our amended and restated certificate of incorporation provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for certain stockholder litigation matters, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or stockholders.
  • Our amended and restated certificate of incorporation provides that the doctrine of “corporate opportunity” will not apply against Searchlight, any of our directors who are employees of or affiliated with Searchlight, Rook, any of our directors who are employees of or affiliated with Rook, or any director or stockholder who is not employed by us or our subsidiaries.
  • We are subject to rules and regulations established from time to time by the SEC and the NYSE, regarding our internal control over financial reporting. If we fail to establish and maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results, or report them in a timely manner.
  • Future sales, or the perception of future sales, by us or our existing stockholders in the public market could cause the market price for our Class A common stock to decline.
  • Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk.
  • Our business depends on strong and trusted brands, and damage to our reputation, or the reputation of our partners, could adversely affect our business, financial condition or results of operations.
  • An active, liquid trading market for our Class A common stock may not be sustained, which may cause our Class A common stock to trade at a discount from the price which you paid for it and make it difficult for you to sell the Class A common stock you purchase.
  • If securities analysts do not publish research or reports about our business or if they downgrade our stock or our sector, or if there is any fluctuation in our credit rating, our stock price and trading volume could decline.
  • We incur significant costs as a result of operating as a public company.
  • Our stock price may change significantly, and you may not be able to resell shares of our Class A common stock at or above the price you paid or at all, and you could lose all or part of your investment as a result.
  • We cannot guarantee that any stock repurchase program will be fully consummated or will enhance long-term stockholder value, and stock repurchases could increase the volatility of our stock prices and could diminish our cash reserves.
  • Short sellers of our stock may be manipulative and may drive down the market price of our common stock.

Content analysis

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Positive
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H.S. sophomore Avg
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