FOUR Shift4 Payments

Sloan Bohlen IR
Jared Isaacman CEO
David Lauber Chief Strategy Officer
Bradley Herring CFO
David Togut Evercore ISI
Timothy Chiodo Crédit Suisse
Darrin Peller Wolfe Research
Dan Perlin RBC Capital Markets
Ashwin Shirvaikar Citi
Mike Colonies Bank of America
John Davis Raymond James
Matthew O'Neill Goldman Sachs
Priscilla Russo Morgan Stanley
Andrew Jeffrey Truist
Michael Del Grosso Compass Point
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to the Shift4 Payments Third Quarter 2020 Earnings Conference Call. [Operator instructions] I would now like to turn the call over to your speaker today, Sloan Bohlen, Investor Relations. Please go ahead.

Sloan Bohlen

Thank you, operator. I'd like to welcome everyone to Shift4's Third Quarter 2020 Earnings Conference Call.

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

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

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

Jared Isaacman

spend, challenging. that and thank remains reasonably had X% a card spend market Visa, down a pressure consumer factors, ShiftX prior quarter report spend at large. We're joining the is the morning consumer to backdrop from despite today. along that the economy as continues you at X%. to modest tracked COVID-XX, with a Including increase Year-to-date, strong credit still and Good overall is year. debit, pleased other us by for all trend

improvement this provides grew that earlier XX%. In of in and, solution, results a remains in stand differentiated uncertain. end-to-end shape that recovery the third year, creates the against our the the marks volume It's services. meaningfully While point our over as proof serves for demand quarter, our depths ShiftX that from just backdrop we which ultimately out a the by view,

XX% attributable volume both we've and gateway year-over-year. with in Year-to-date, period than up highest the grown XXXX. in been have for periodic In every fact, of with at end-to-end XX% we've releasing, except same merchant of more highlighting spirit was transparency end-to-end this October our worth end-to-end to conversions the it's May volume performance line boarded net April of merchants wins. the month that year-over-year, year, ever updates entirely the crisis. In is and our growth month This onset and count from new the the COVID-XX we

merchants. new the the solving capabilities constant to growth, pain attention this bolt-on turn go-to-market are Our results via still our world's or passion With quarter. best for that laser-focused points innovation for don't be We the drives of whether on strategies. let's disruptive that and sit grounding, technologies, this

mentioned as were end-to-end highlighted was from our up our third quarter results by payment release billion, strong, year, morning, in I reasonably volumes last over which of $X.X detailed before. this XX% As ShiftX's

address and the spent margin time I million our XX.X% bit speaking and with the now an volumes of during questions an in encountered Our a gross of or quite for have drove We quarter. quarter in discussions. of misperceptions to that growth and increased few we revenues less adjusted EBITDA network investors, in XX% fees resulted EBITDA would $XX.X like a

as The deliver important merchants is payment profit. strategy, could our story recognize and well. end-to-end highly in conversions is huge merchants us opportunity much believe, is we growth $XXX see that million solution opportunity ShiftX's incremental solution. that as converting our to only To big gateway-only in think we annualized competitive it's about and that as is in ShiftX's share market winning a those said, of and That is equally first gross aggregate, part to and new misperception be the clear, set

for new In pain turn, merchants. bring Solving merchants wins restaurant for in X into our ShiftX way, with partners, they, a just also about and investors. means the One solving pain space. run says is main is points the other these hospitality about merchant a and more misperceptions us that points really our lot software we

merchants and that restaurant second technologies. XX% volume on that that our of outside first note nearly The -- of is this, ShiftX we merchants for hospitality our overall end-to-end operate the and fall legacy To XX% space. is or

in incredibly discussed we've the market ShiftX of that the As so important are complex software multitude hospitality adjacent and a used in entirely and integrations special make previously, uncoupled verticals.

we the can customers build restaurant retailers, the our and that but found institutions, worked inside be care, health golf education courses, limit hospitality be hard more. we entertainment capabilities. not to the clearly advantaged and of specialty love verticals, our example, clear, have To in is position venues For

just are going we our we're talk reach in that fact, to into many new expanding a and about minute. In domains,

commerce most the merchants that there The across necessarily approach for depend are commerce. complex innovation servers. from to on-premise probably peers is pointing happening worth it's customers software multiple not emerging Second, cloud solutions serve. some the to ShiftX and basic our or of enterprise disruption technological on of the majority suites, spectrum more The of to vast out taking ranging merchants we is transferable simplify applicable

category and the announcement more is I history basic out X complexity be ambitions. to is and IPO philosophy with is our Pay. intelligence decades letter, merchant products. that pain founder larger payments and SkyTab diverse payments of seeking step each that are also our than, story technology say, merchants merchants software our ago over to success a payment grand journey. analytic led What go-to-market that points profitable crypto morning's require. products second just detailed is technology We've enablement QR provided ShiftX and is improvements of so would of our examples second commerce-enabling solving, towards result. in take the different pain may enterprise-grade are the different In we ordering merchants. and, array of I'd quarter how our quarter with our and and of overview and more more a and year ultimately, to model problems talk this why a valuable growing our or on pivots best-in-class M&A remarks. grown business as and Instead a one points years, Our lot solutions allows to we've and of and On has began further These of much set has, far call, in advantage those to a encourage technology opportunities operate differentiated about a to developed that earnings today process where strategy, much order that I ShiftX organizational which going, major thought as is listen What ShiftX explained peer-to-peer to new such contactless like very repeating earnings my and about story,

For and operated a single example, as just brand largely X a hotel. a for years payment work single ago, we provider with software didn't

to hotels of for stadium last brands During payments the prior X/X the are and discussions a roughly and have with League didn't software many venues last of around country. announcement quarter, in single Raiders our dozens we U.S. quarter We the now powered the in Major

the touched before, didn't solely on but own out a experience sometimes X our pleased level. commerce as to announce conversions, big global gateways. DNA. we're the ShiftX milestone evolutionary And I opportunities a steps is and mission on on any to we years Our gateway core next performance is taking deliver unified in Seeking incorrectly measured ago, to

us Xdcart Our it as acquisition is incredibly another high-growth of exciting vertical. brings yet

with across over strong with revenue globe. payments. highlight XX,XXX wanted that some and web stores portable to points It's think not high-level it's those acquisition textbook the to model platform is e-commerce attractive and understand. economics to a I familiar, platform capable a an I a ShiftX easily that will that's worthwhile a highly For Xdcart brand powering be

BigCommerce, like and trillion addressable winner-take-all business. have incumbents, a doing job. the But no Wix in Shopify, as been outstanding a Square, is First, such there's thing an market, really $X this and

approach of researching our fees our exhausting services the last decades, lot believe SaaS plans forego we to and believe models a landscape and that disruptive and customers time more the this way model, multiple setup monetize have Second, escalating services spend TAM payment SaaS owners choosing business are and We X add-on we is can and with and, premium a penalize with other aligned enormous competitors' unnecessary. the instead and the for really fees we customer-friendly frankly, relationship. an same through premium with and which relationship revenue

do our when so well, ShiftX. does merchants so And

over Beyond the you me needle this this be ShiftX family, the that, details above foundational the the the to acquisition member synergistic to an quarter let find with on call with Xdcart. And to and to points, materially. confident turn I'm will highly more of provide latest Taylor opportunity move

David Lauber

and good Jared, Thanks, morning, everyone.

current last for validate in of and that another well. these food we the merchant And every very in market. adding new all, lots quarter on. was power as other to of focus Jared's wins noted, we're continued our has Jared types new about and the our payments It's We pleased end-to-end as volume, report repeating because, XX% to worth competitive are third offering despite best from come quarter markets, merchants. Of stat a beverage growth the hospitality, ShiftX of strong point

gross board in lift per trend exciting in annual is our merchant. volume merchant payment continued the Another

QX, and opportunity merchants, a a for paired joined the amount a reasons, and created finer new integrations, growth leverage secure a Our that's is global of of in What current our includes an than win payment ownership. it huge ability some average common needs XX% merchant is a the larger for Again, you compelling is book. To within points result year-over-year our over simply, to base. the to threads to but ShiftX software attract feature pain of with partners overall desirable have beyond offering, gateway market Merchants an new and of connectivity, enhancement lower cost that the that the most and average expanding pandemic. Put than was to solve very are conversion of just volume years during a come X this who variety put constant it, a middle verticals our our we and ShiftX tells represents merchant as go larger in pandemic. ago. joining XXXX XX% per of on the substantially point merchant up drag

handle and to store basically that textbook operating industry market. of scroll Xdcart platform this The past further trend but as very use acquisition industry. the continue Jared Google of capabilities web Their Once as has that has objectively variety. to in more ability with accelerate to e-commerce to ShiftX, expect Xdcart among I'd dozens being built you'll like We explain cases platforms you them and we stores been expand deliver mentioned every a find synergies web best who a of compelling and our solution offering Over to possibility in further ads, paying our This the detail. surface in successfully each along competitive e-commerce gateways Xdcart. merchants apply the presentation. expertise in we These is been as vertical supports ranked the have been other end-to-end scratching we and just our is the quite on the omnichannel is, that to see highlighted revenue capability. base addition merchant payment time, our and already and part synergies. investments deliver add Xdcart XX to and great of synergies sending to of Slide vendor take course, their of offering way. what the deep volumes of multiple category-leading have offers obvious to the

by the We distinct quarter. industry model incumbents highly playbook this that, disrupt up are that multiple review seen just product industry Brad a our to from many are turn for. me financials gives that for these bundling already fact us processing for and merchants to only in catching With take the valuable opportunity to the payment it before. vendors an You've can payments using let advantage. and us over The

Bradley Herring

in to slides that Thanks, last earnings of be Taylor. many end will to Similar quarter, our highlight referencing I'll of speak metrics the the I'm tail to. material going

fees, the quarter. and continued revenues, revenue As mentioned QX. to XX% and other of we revenue the a increase variance and our in share in now XX% driven by in execution year merchants was XX% gateway growth million our revenue prior increase COVID-XX continued recurring network up by modest a up XXXX. makes for offset over in in less The $XX.X increase over gateway driven and of Net network to the by Growth XX% fees release, net processing was net full conversions. convert revenue the in processing end-to-end our and of from to impact wins onetime declines year-over-year year strategy our and hardware streams on due This revenue XX% generated gross sales our solutions. gateway represents less processing license hospitality a

year-over-year. adjusted of XX of basis we the if our spreads accounting QX EBITDA XX% applied regarding the relatively normal we EBITDA have XXXX, to our the current the Recall As We accounting previous our that anticipated of returned and of quarter, adjusted QX XXXX. current flat leases XX% at have would third the the $XX.X applied been approximately an we'd quarter quarter, finished QX. Similarly, adjusted just for would treatment reported earnings changed of equipment If had of to net more million increased to treatment at accounting increase points. from treatment over year. third leases from the prior levels in beginning equipment to EBITDA the quarter equipment related call,

represents scale XXX Compared consistent accounting initiatives. to make XXX less basis results quarter were by growth May the in cost to due basis, top increased the XXXX same against of this using decline margins of adjusted prior revenue a points basis, volumes. prior third On in EBITDA benefit as quarter line XX.X% and, fees. to again, Our a investments from continue accounting margin higher point year represented actions the basis and consistent of expanded the implemented gross adjusted EBITDA we from that network

on update me liquidity. give let you Next, and an our capitalization

proceeds, as equity raising completed a investment secondary as net as offering year, increased vectors. our our $XX.X in to pursue both which in First, ability of capital successful various we this growth in position September liquidity well million

of due million a $XXX loan offering XX, and October were to notes corporate These XXXX. off offering the carry of completed at on for used of proceeds our pay of a Second, notes senior The we amount successful that purposes. were the rate X.XXX% are facility and of coupon issued term that same general par. entirety previous

newly In public capital provide in the $X addition to established issued saving in ShiftX future approximately optionality notes million presence markets and annual interest expense, for debt the ShiftX's raises.

As of $XX.X At opportunities. and and very to in capacity positioned million strong, is and well number quarter organic cash actions, result revolving of our position had a pursue is both on $XXX.X today liquidity end, million facility. growth a of inorganic ShiftX our ShiftX credit

the Finally, I'd outlook upcoming to for quarter. our discuss like

of QX QX. seasonal As out coming QX we typically in experience call, mentioned a in we our earnings downturn

the COVID-XX of in sales a summer including normal this an school. to revised back into end our While pattern, same-store and many for industry said, anticipate impact return discussed of we guidance comes seasonal the and distorted Further, slowdown students are impact to QX QX acquisition. the move in on we still is we as follows. XXXX travel That as recently our has outlook

this range inorganic to and approximately between range up billion. results, XX% provided over volume attributed end-to-end our year to volume, with billion. sources. fourth revised from increase billion $X.X no approximately guidance This is of Consistent we prior $X.X of to now the represents $X.X $X.X quarter terms significant previously expect In billion with QX XX%

from $XX the to is and higher million, quarter to volumes gross revenue less reflects acquisitions. expect higher the which and million, $XX now XX% to of Turning approximately we range related previously range fees, network than $XX previous million to revenues modest the to fourth $XX mentioned million

XX% guidance $XX increase QX Lastly, represents million previous $XX an to which expect of our $XX to and of million. be we now adjusted approximately million, million EBITDA $XX between from

providing spreads on relates predicated QX a aware, end uncertainty, of is current we're perform The does especially the they deal and still As did and volumes of we all to as guidance as are there's additional at pandemic. to great imposed continuing the including, not or dining, to, With municipalities. be that not contemplate in limited COVID-XX but that governments unforeseen on commerce travel local back me additional cases restrictions by increases Jared. or said, let events, conversation could or the state over to turn it

Jared Isaacman

Thanks, Brad.

some closing want more colors and really get make we to Q&A, to around just don't stick comments, Q&A. part few I for Before after that a

realities. So want real-world customers as our to I that immune results, are the not to reiterate to our

we basis, but time conduct merchant-by-merchant Our to performance business. an not be up year-over-year, easy know, a all may on it's

adversity commerce. acknowledge Our on just thing. work impressive. but important future. the nice customers that we expired, in and going growth team after tirelessly want employees deliver built and levels our talk time shareholders machine where business I is ShiftX really our finding all do took but of going best possible. I'm are should And just in to to about to today walls a to also we're quite ShiftX hands let and high programs have not long engine, fortunate work enjoy contribution with we're not a a of overcoming persevere. really to and service finding but that really the and the We they're about it's the present, where its unprecedented government success sit to extra capabilities that ways the cares with stimulus to ShiftX small partners

more XXXX. for to plans And of the details Investor industry-specific our no it excited over Our in Q&A with acquisition just and I'd that, or puzzle. of portion like turn the operator early piece session. this is to already Xdcart Day boundaries, share borders one and for have big the have of geographic to ambitions We're that


first Instructions] line with comes Togut ISI. the Evercore [Operator Your question David from of

David Togut

quarter Good of growth through you the business? the how inclusion the the much to of guidance. talk increase fourth just the of see increase Could driven Xdcart versus by underlying the in is

Bradley Herring

mentioned and David, Xdcart QX. we Brad. to it's out guidance, there's to When I in Hey, in little our Yes. attributable volume statement, put no the

So did to guidance. significant. think It's digits, in It's single revenue, low it's not so include about When that volume we mid nominal. insignificant. is we the

David Togut

boards just you XX% quick in Got end-to-end merchant it. boards quarter us look the in those in how can volume the for quarter, growth much the when what's a from come as XXXX? we might have gotten third to in versus you And follow-up, dimension third QX and at

David Lauber

Yes, is in think Taylor. should customer to This the we sure. you you get in one any I that is contribution of board quarter tend What quarter. basically double the expect boards merchant that following a a time

Now That's average, seasonality is a effect. math. that's but of sort rough an there real

get So if the our maybe you just middle a the half us time assume and that install. in boarded a when benefit, of you you think about all ramp even quarter, little the less merchants to

usually, think talked June we about expect in about maybe then it bring back the to have X% quarter, following contributing of the I volume in So just comments merchants the month And to right, quarter, about that July. just our June around we second X% doubling. a in joined and

helpful. So hopefully, that's


with from the Your of next Timothy Suisse. comes Crédit question line Chiodo

Timothy Chiodo

on the I -- it touch to use and of attractive given months of you talked allocation, your customer -- capital mentioned the acquisition, when quarter, or be less. very, about bit X is times down Wanted at last a even really about most attractive period. doubling throughout how could own little so that sort the believe on payback very quarter asked we

that either extent future hardware, about FAR talked and software, be that the software, extending et could that over upon could implemented Maybe to potentially You better you expand via the it's strategy bonuses just that or or been cetera. potentially growth. little could drive bit implemented how a more the

Jared Isaacman

Jared question. Timothy. Isaacman Yes, for the sure, good here. Thanks

look end-to-end available towards done little we've our those what acquisition costs, But to to room more at things QR we consistent and there's find strategy we we've all a then order we in really customer the as make additional you'd is Pay the capital also or to powerful strategy allocation in strategies So third, we most capabilities available volume. terms that QR have I of then of definitely and growth. we with research to development to in acquisition unit during what of our now, customer, which X investing comparable like in And players the inorganic look think because, be payment rather drive just that discuss to think similar with we might whenever to really opportunities. some our in volume that set go in no code given been solutions at Xdcart how approach And to providing cost the I in could drive might we Xdcart remarks, those at works capability and e-commerce prepared of no well mentioned in right and similar very biggest our that's did well-known entirely make to cost order space line economics.

spectrum and I is drive have calls on The could it's the think a across in I to example to -- end-to-end simple But customer to every not platform. end-to-end allocating it check write our really used just to volume that oversimplification. order as we a capital know idea I an prior was move So, that might growth.

strategies use in also which the I'd been lift of with volume where strategies order very a responding biggest our some highlight, the can associated well. of say, seen Xdcart that's is bonuses growth. production we like in form the And of same to And from past end-to-end presentation the disruptive probably go-to-market the to kind today. in in those drive definitely partners, increased inorganic but has We've that it's it, single

Timothy Chiodo

Great. on And quick one attrition. a just follow-up related somewhat the is That really helps.

just had conservative given talk the attrition you better time. might a you just pretty base expected could to might relative in year, the I in of the at made those that bit have attrition earlier resiliency terms merchant how think little your been sense out time? which have than environment, out underlying perhaps things about So of and the Maybe had briefly at some how the assumptions turned played

David Lauber

sure. Yes,

the our been late you'd as So would and we've clue May because only our attrition pleased, as say of the recall, a pretty were those had on margin base. of expect. business, incredibly no around Jared the you even the call, profile any it IPO, forecast was resiliency discussions of sort I what prior mentioned of to to draconian with

to we've a week we to example. Just again, put in point of our make eye an be of what on got you for X%. stimulus But it want at issues because is bit look eclipsed with little on to to finer had to to negative, they're than pass would peak. highly lots to you sort a a that because that, we've disaggregate if on right, took merchants But probably our sort transacting more X%. it at can difficult history. that restaurants open dependent urban on if hotels given us prior of got the if judgment static in the today, in with It's what February now any are areas slow pool to like the merchants pool, the got about ever same that us week to inactive. transacting happens then and of be we've soon growth. we've a And at you funding merchants you keep through interacting during you'd basket things are travel, see of like And look given pandemic, in its remains I X% think that it seen business more than with that that X% seen that or positive And to you've and are you exact


Wolfe question Peller line comes Darrin Research. the of Your next with from

Darrin Peller

and guide we which really it And really, macro November, look sure, year-over-year than quarter good think, for October. first implies the which more we for onetime seasonality you when the this -- obviously restaurants comps? you of mind think So guide, traditional you trends we question was go. that how anything some at of But I verticals. decel And the compares I you really be into X to it your those were then anything December, or a you expect October with is shows had I'd your volume, success guys, you percentages I but that fourth just shows, that's else. just to moving XX% or curious keep core in to should importantly, of before more just there showing is then are that we've assume in hospitality. guys making uncertainty good sort and know volume areas that hear outside trends talked of where mentioned about beyond all, past XX% had

David Lauber

This Taylor. Thanks. I'll sure. those. is Yes, address

just not much find it this of you're we at really from the year-over-year, had the far you cautiously think out guidance October, in just is better. like provide. we've seasonal but higher that also well you'd turned year for in that example. other environment for us so But to the I basis, like November in October theme months a not if typically XXXX, expect seen any going continued up history. and a Company's have that we're to optimistic trend look we in just even on would down high-growth September, a than

be very about call get see guidance say. So it's somewhat the trying terms did would same I trends And we gives positive around the we shifting pause euphoric us going on then us in like shift, too our meaningfully, way all mix your question in I to to day. feel on defending of But in to every the we've we're in the -- data much got points. say decent QX news that

I as You'd XXXX in about decline XX% probably restaurants the see know, or don't compared XXXX. a contribution now to, from and hotels

less doing you've Some us hotels because bit is a well. fast-growing been of vertical have for that got a depressed little although volume, hotels as very

it's and bread-and-butter that happen and they key their almost working partner up us us a so as to hotel a I message well. that and they outside software then think into they into that -- have point or to market, got but the and main many were merchants with the bring want we brands street, restaurant is of to sell

think So highlight important we in themes into seen pretty that I base. it's our worth it's and just giving consistent because to more questioning, clarity thought just we've merchant

Darrin Peller

Yes. data. That's All right. helpful

follow-up on mean about it's this a focused like it on a curious, of although be this keep be I'm whatnot. talked around with seems moving address I'd please quick of is of that more me strategically, have the my you merchants? sizes if really little does pivot Just yield correct maybe should that, guys or whatnot. always medium-sized and you'd in mean, the And into if SMB, Xdcart. enterprise, all is more from bit small ranges both I side I and and wrong and larger more mind Or we that? pretty But

Jared Isaacman

it's a question. great Yes,

So again. here Jared Isaacman

general more But of were period step e-commerce towards And we've in end find say, there, taking a platforms. capabilities, view wouldn't So time like dominant you the back providers. did commerce really in more across doing which Weebly to other a entering we line And matrix probably been platform or platform a what global e-commerce web includes longer a some like of Plus into with, just be research Square business of market we would towards research actually, you'd more Shopify in almost BXB competitive the a the a on on than a most respect. what just doing -- and find really, terms that platform. unified the for X the specifically and even Xdcart scores I the every lot in like the the topic, is would of upper in a think big store for think top evolutionary

SMBs the historically based to small things is kind the go-to-market is found unique BXB and way within much the that online capability and all too really a competitive like and said, up because set simple the they've from just on the going way success really judge platform e-commerce which is totally need like pretty get the website selling spectrum wouldn't landscape. I today where across I So of capabilities, to, how


of from Perlin comes Capital the RBC next Your question Markets. Dan line with

Dan Perlin

had a the question also I acquisition. around

terms different in to head of on funnel maybe your those think, additional about, I geographies point. this into get taking from opportunities acquisition there maybe And wondering of might talked through at kind and, geographic I'm You geographies perspective. specifically, you of kind opportunities just where this where more be a is

Jared Isaacman


this. So Jared Isaacman here on again

shared and some of one statements go there lot one But the we read made I awful of was you in So prepared between our is lines, the the if puzzle. of in of earlier. kind piece Xdcart an remarks that

if a some already merchants piece the payment international the there's look all the of at you is really you'd array There just to But no is there's that base customer over pretty globe cross-border some of question of So platform. again, one capability. find diverse where puzzle. Xdcart, it optimization current the

So nothing has to in changed our commerce have a ambition terms platform. global of

the entirety whether the planted puzzle, them it's but of customers and piece brands all deliver over specialty our currently If look the to and I'd the But we at hotels, an in that who U.S. you flags their at same have a the they're in the not are, world, story. look restaurants, have again obligation do capabilities those retailers, Xdcart the follow as the key as we

of direction in set. have will to the broader to order kind going in tuned stay kind of we're that guys opportunity terms You solve of

Dan Perlin

these Understood. joining with XX% ago. a mix I than you mean, you volume keeping If think I merchant, was the said some larger ask opportunities? this I In get size that's play magnitude is And Are the changing, difference that large-scale a alluded of multiple per from of these statistic year a and sheer follow-up software then these coming I better try meaningful. the average want to following around what Are sense just just are earlier? and that pretty there aspects where that's I shift merchants said your that on into merchants? typically today, that could conversation you have year-on-year. XX% to a just think resorts are the

David Lauber

that. is This sure. I'll Yes, Taylor. address

those is does if Just to the was have The is in year we It constant right? fast is statistics. year therefore, software ShiftX's us look we're the XX% X-year And story month you'd at software or of period. merchants. this definition, today, given merchant XXXX, that XX% that company quarter, and more any sophisticated in a actually you one ago delivering today, are is merchant we in more forward evolution, merchants. you Back book average sophisticated had the to different larger dozens, measurement brand have looking actually bringing more in the average are typically, find founded. by volume. would more The us merchants adopting you merchants do an XX% period. It's And a and merchants And that over over quarterly QX. found just a a our than volume transacting, X in clarify that what simply

capture revenue each next is revenue any those If three operating single merchants because that restaurant bigger gets the -- case, It you it. an look every we it be those years than course a hotel. to hotel, we independent would centers have be in the golf in center a In merchant ago. had lobby. average might might of It from operating at interesting XX% are


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

Ashwin Shirvaikar

underpenetrated, solid base pace ask Jared, clients, asking the Might continue you perhaps, heading pulling of conversions. very does seasonal we sort do that on pattern before? again. you you kind not into pull? of so convert as stuff a conversion? assumed some when of a want than that is kind of Or And that Congratulations. kind to I'm have have in picked more Has up quarter well? look forward? to conversions, the of see because conversion Taylor, of good so about your still might pace Brad, very, here lumpiness can it they're that I year-end, to at wanted even

Jared Isaacman


great Ashwin, question.

Isaacman Jared here. So

any And like pandemic, XX% at think share because try month, generic I business. our we skewed comes utility our ShiftX you're and more wins on to a new towards to we conversions. probably have there's up once powered incumbency continue the that that the a significant gateway, and speaks in like it's that statement net in the no from throughout taking we XX% production make conversions, are given question while just first, So of just advantage

have run. All been of the wires

the established. of have All been devices

capture value So changing -- the merchant to as that simple continue business. proposition, as power a be we our consider wants when and it of can number a customer end-to-end

payments already So that's at to conducive to codes, and that, as like physically out isn't site, imagine, a -- bringing established consideration out giving button if the contactless a restaurants resistance to going Pay super an It's we environment least of not of rip or or push that. other has is QR you devices products. business natural to out, attractive the QR hit install choice, were on we're able to when a multitude and relative path third and what's experience can as where that environment the and somebody complete rip certainly be this to hotels and call or come just and replace, with contactless to which the an been platform SkyTab that's new other a do not to new what parties

the shouldn't gateway like distinct conversions their or kind up quarter So considerably without pull to months change throughout And contributed there, in new but our an to of December. from operational about from to was benefited October's don't the considerations win be it anything I through that in that, recent already advantage. it's we're a completed some even migrations ahead. that of Separate you just and a mean, to last forward we incredibly conversions, migration anything QX course, came pretty and net doubt, and customers really think portion continue other Link and because the of the Merchant QX when year. Customers we performance. I right software-only gateway in anticipating make business, these pretty year, into that's performance of and into considerations reading strong

Ashwin Shirvaikar

relatively to There a specific as bit sizing at remind March parts you're were of asking XQ year's or seasonality for the put not I'm the ahead. newly public impact last Got and you And But 'XX public XQ. Merchant peak of it and just outlook of it. drop a kind a of we quarters like little company, newly the XQ us moving or and lot in to this can talk a Got about the year's XQ Link? of it. company that. final modeling anything since point on

correct. to want just I get modeling the So

Bradley Herring

of Yes. Hey, Ashwin, moving parts. exactly right, Brad. And are a it's you're there number

of did Merchant So let's in for of in a Link as Link kind you full first get bring 'XX. Merchant know, ahead quarter we because,

monetize, like from synergies So in of a substantially that remember, of full a has cost couple of One we already we've quarter. about, that. terms be But talked things. comp a a that is will business the of changed pretty lot did

to QX -- obviously, synergies in year. of different look Merchant or did cost costs associated than the Link going going are So the very last with forward, they

component stream it. Link that we've as that of revenue other converted in The intentionally worked is kind of Merchant we've on

respect going this, when to So those little trends you're harder thing But with and hospitality of the hospitality gateway another some the in end-to-end. over bit we continue convert obviously to hit has is as the mentioned been to a that see about statements to decline bev to than my food I earlier we time talked consider the revenue side, stream. gateway

QX, year, bit of of I weather that as normal as being tested of see, little With patterns forward. respect spike mentioned QX, are a state typically that of in in right continue provided have I my now. It a to other see modeling that There's QX something back lot a holiday weather going how kick to dynamics. even changes the forward. seasonality, different mentioned, in was to obviously into just place, our and quarter QX in continues continues and historically consider. and kind some normal the typically abilities as normal open been to nuances Taylor move as states, This next some But QX, to of as going a how pattern for just into to driver a year, decline might generally higher So the spike lower a anybody you pattern bit always volume takes that's in QX see season. thinking But a bit That you're get that first into influence merchants' this little year the we guidance of of seasonality to QX of out. you'll speaking that's QX. about and do I'm and do QX, as of we people's volume, fall-off business. early QX, seasonality of abilities kind as still for also and statement again, people a kind by


Mike comes line from Colonies Bank with of America. question the of next Your

Mike Colonies

and you've I that Raiders the know entertainment sports quarter. this announced Can you of you and made And additional what win vertical quarter you generally last of able are this you. what And in the to this last to like? share space? the pipeline looks are wins with any follow-up the capture relative a that mentioned for better you to in spreads And key currently some become others? that, nice more competitors quarter, a a focus vertical has as then

Jared Isaacman


for question. Isaacman here. the Jared Thanks So

And and number the there's top an other. most that's to that who side, all degree X are right say solutions, all side, where we X to landscape, player line vendor handheld the conference of the the layers, endless release pointing mouths players X like really top authorized a they're look most complexity competitor the X I'd is had don't players X think feed. with the the on effective on X of software, the of are of landscape value Because into ShiftX's we're or multiple really which to at vendors plays merchant healthy. and could contributes gateway strength predominant and greater on tell question. on to service. of Interesting proposition, pipeline additional or deliver or layers the competitive to and we X there vendor a wins, predominant It each eliminating So the about when calls been really cost X any really of fingers cost players is but lower acquiring you on contactless I names some.

that the shake solutions bundling of choke, to throat hand one one to So ShiftX's well in multiple value give together received proposition market. is pretty to

of they're of terms probably I'd of fair a that amount customers, the see on it's that multiple In say hospitality line we with enterprise volume, the out, shake centers. in across those where the what spreads more spectrum. revenue have different

the definitely, profitable Yes. the market. is such relationships, certainly, why there's market we've which -- interest So in taken

was that hopefully, So helpful.


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

John Davis

to just a on bit. Jared, little wanted hit M&A

call, is think the been internationally, focus this the acquisition. Xdcart more I with there's first obviously,

you Is U.S.? international more any opportunistic? you expand forward, Is you expect something U.S. Or think or should in there it And sense would want outside more focus makes that the need outside help that are are the M&A? to we then do you that? shifting the that there Going you capabilities U.S.? you

Jared Isaacman

to Yes, X us. M&A. sure. That's been should of the Good question. you very big last active years. a in say how us expect Well, be with over first, I'd lot value XXXX for we year general, was delivered a

now applications, is including and specialty hospitality, platform. entry which other store it domain entirely, you integrated we the back and our integrate number If strategy, XXX e-commerce of software. software payment to now of the in was across of one integrated bev, And and that into was go X had and we piece new restaurant our extent ago, to the some years adjacencies, of And prepared with space. different retail pursue comments we web a remarks, food we our in to an a

we're as that every do an because been in should that I think case pretty these So transactions we've at highly basis, you good to synergized they've accretive. expect mean, done us And like on deleveraging, it. a I to continue organization,

we're down we double In very customers our of you have layup, a healthy number that migration as International of setting could verticals certainly sites, order in opportunities. a areas It's there. our pipeline. at There's where current accelerate triple really the modeled. be down that terms certainly to capabilities end-to-end looking or to a gateway is within because of most of could we're

say, other in specifically, as in target opportunities a this. we've there the as any So than time -- I terms in us. one probably, And wouldn't excited been active anything front long one actually thing of I'd in we're of in very we're

John Davis

just gateway then And conversions. on Okay.

you from just your guys there? kind Any volume today progress, or other in I last number kind of be is came conversion of quite at conversions Any of a you to the I'm you stat or a the be year where from that maybe track can where thought volume think going you you volume percentage quarter, stand us thought, to mix? you give were gave where update count standpoint of not may merchant a assuming ahead. probably beginning the merchant versus and count quarter. or from

would any helpful. be Just commentary

David Lauber

stat update is fact And it we address only what of from that. was gateway because I'll call. migrations, time at that think Taylor. in time. our the reiterate end-to-end put a didn't that That gateway volume you is a frame the was is It's all. a migrations we mentioned, to that. didn't last coming total the didn't migrations Jared at years gave was That we the that misinterpreted XX% this which I during So quarter. when that just stat think all but time We ago, about three on wasn't powerful have

the with normally time a volume the ton success do somewhat they your migration of now expect our things just correct to level where to gateway mid-count I sort only number So at to win. had the on our migrations. you a have merchants site in would conversion, or to be And you're we what daily But would contribute expect a number average, had we've pandemic. the contribution in like because we at given of non-gateway say contribute that quarter healthy But because a so a speak, is gateway per net new migrations you higher thesis updated than those contribute than more haven't to that. volume this would that of isn't volume hotels, like healthier

Jared Isaacman

more just with Jared And Yes. bit hey, bit here, to a on a layer specificity.

mentioned then to were and contract. wins a e-commerce some net That One they of we a net challenges added the because really they they which several on existing The conversions from signed road on if new score acquired was gateway new accurately sure win non-deal is which have, from was not being never this Store shows, great at new the we example. able of became gateway of were on maybe QX UPS wins. previously, I'm gateway. population call, but MIDs, I the net means Merchant Then the they the conversion thousand time our Link, customers, and a the

better throw about from, when is volume who a has we've What like a a end-to-end in XX thousands volume You about restaurants the means said lot the if around imagine, where it marks volume question I look, you're which payments like, a where in already nearly bit XX% highly like the of pandemic, customers on than XX% doing especially and it, can little that XX%-plus from our we're October, the calculations. that's basis, really year-over-year talking with of for for is up volume growth been normalized end-to-end impacted and say volume company would we're associated of anyone can from comes years. talking coming from any hotels, are

major as conversions we Now but you gateway is being value component pretty winning in certainly definitely look have incumbency the a just We a considering referenced market proposition, a share towards previously. the that. I factor compelling of contributor think that should

that nothing So with I at would of you considering signal gateway our would there volumes. are of we say the that could disappointed conversions ever strategy, potentially progress that say things look the when effectiveness all is we or the


Matthew Your the Sachs. next question of comes from line with O'Neill Goldman

Matthew O'Neill

on I the don't asking that of the people Makes Xdcart lot acquisition. consistent to have but sense some just of mean a themes I about, was hoping been belabor us. to

mix of growth faster a card-not-present getting volumes. You're as well as e-com

presumably in is today of processed the this suppliers platform? that hence, guys details end-to-end for by of full of represents incremental your gateway own that you assume as safe less over an some the opportunity around far to and, more kind onto industry or convert is those ahead, just and volume payments take opportunity being ShiftX as lies As to stack it the other kind sort

Jared Isaacman

Yes. Hey, sure.

about to excited Isaacman but I Jared really excited. Xdcart, this we're here. I'm especially mean, Happy So take because, all

in encourage that -- you strong until store not acquisition. because nobody platform, various think, take this trajectories the ton is surprising you are question, ShiftX ecommerce a a the provider. from We acquisition. the synergies isn't there of our it. that on hitting look to have graphic volume measured billions, ever now with we included, claim shows a today, we If I No up which which stake that would that's payment growth we're and Xdcart acquisition, a see I'd to tried of is actually a certainly web that this at presentation in all

So there's the the as base migrate over about And going existing really, other absolutely think migration. to ShiftX. net billions gateway all would end-to-end you in in should is volume we're new that you to there business. just our within the that same certainly the to opportunity But respect

mean, this So Basically, to entirely order that in we underdog Xdcart, even climate. to through growth, type from attract XX,XXX they one I definitely as some have previously, payments, pay the one. right mean we from with XX,XXX tailwinds every all current space. store got not business And this, in set other bigger we totally of in businesses well, from punished million-plus as those approaching mention capabilities. add-ons pricing strategy, other unlock presence choose under players the and I an and of Like sell at order a might expect and the of perspective, customers we in of diligenced looking saying a this has these talked to players, especially with you'd an from is on of X e-commerce just costs the premium monetize But establishing that get lot their we're gain providers away fees a par about grows, customers it and web we're an start we've these think some can little escalating relationship they to to in the platforms, to to the more general capability this and I for goods, fees. the to forego SaaS of disruptive on we're that really mean or this underdog I -- here. relative sites biggest

our over a opportunity. the The customers is I migration platform just is potential one payment of pretty of existing mean it's the really part acquisition So extraordinary. kind of for is but to this what exciting meaningful,

Matthew O'Neill

end-to-end helpful. would -- lot understand follow-up opportunity discussing my really the I sort around be of to gateway existing conversions. the a I quantifying in just of guess complexities and of That's

You whole was. Store of how gave just multifaceted relationship kind The and the of example UPS that

you Are hoping of anecdotes do cost simplification? kind be kind X, couple you? the perspective, But share -- of those hospitality the to numbers, great. reasons, of and absent that names, eager So aggressively? of could their you kind and guess, a any comments pace they just you around coming kind any more presumably out them maybe these I and can to X voluntary? there of X any top just otherwise, are Are they're absent of maybe conversions. reaching And was Are or around of the I merchants any to so vendor what conversions, would from merchants

David Lauber

This Yes, I'll address is sure. Lauber. that.

our out consolidation, like population. is drumbeat in gateway ShiftX a that vendor think the to constant I the terms of cost from for very savings and benefits

different for different it think differently times I merchants. at resonates

It money going it's that way, in me that for I of how you pretty idea different what analyzed at I've a it and happen, our very means automated tell at we've is flow sort as lead save it creates of does resonate, to into So that passive to that what going, they least I organization times. means. can keep e-mails, it example, reacted creates, sort can a and thing this conversions constant as with mentioned, the

them. and is the them like get getting start might really in when back in their they But of they middle obviously they be the base, staff come furloughed, You hotel imagine those the to can would to react not and resonate that e-mails, a population if pandemic. well

applies Jared So underlying version merchants every or an of strong success, a single from specific pay gateway merchants, tackle would We'll but software lot having software relationships. that then software it's example, are whether reason venues just A with space. particular that population upgrade it. a is chain interesting really, think that we I or seeing that it the owns compelled and for on Where a REIT a a an about opportunity. be those it's in success our hotel benefit lot would you of hotels, really don't underlying lot large on bringing say where that partnering sit. to costs lot we've And a believe more individually. nuances, entertainment with We're when a of as -- back associated to and that mentioned, be analyzing current is post-IPO our of want we'll And software the might tackle the us is platform. merchant that us sports current to time already separately, spent and an of gateway into company is they're having the

code follow-up is one Research it monthly O'Neill implied that Casey right? to see at That's benefit move QX. just Or of compels monthly earlier Got And material comps merchants call We in Goldman on December. happens squeeze a Matthew there's you any just ways. Division to the all Sachs and pocket another a want explicit set to bunch for to November it. I'd a about don't time. say that different different theme migrate radically. that out? the of the it say a talked point one that to if of a Analyst Really sort on there happen compels I'd time. they nothing example, QR I feature So growth don't bunch out Darrin's basis? you there Were in - any question just mind, around particularly in Research Inc., Group, helpful. - push

David Lauber

I No. meaningfully December. that a you'd with slower, is think October and marked QX you'd seasonally seasonally What higher by a lower is November typically and find that's find

fact December. the because was we the of And uncertainty, great so that I ignored month we guidance especially provided, there's increased a October sort that around like in think just something

why there's expect up, a telegraph of lot think too I but to reasons that. you'd soon compelling be spending probably it's to

confident of consistent public. and how you in we're growth recovery you confident in since So contribute all, really the any very going to but macro with to off there's boards, our telling much we're growth be being muted provided basically QX, there the we're we're we've ever We're machine, in would environment, we're telling in guidance uncertain that. so merchant

Jared Isaacman

these lot And if we X Yes. guidance mean when you And we read I -- you and to here. information management you still hearing, public new around results conservative new as were the Jared the business. that I into a as we think answer just could for -- our much going management first to the we're really gave new have trying QX as confidence the month back a give operating possible public a QX based team is same be approach of we we're actually as just pretty as to things, especially, or while company, provided is QX new on company go a team at QX, time. as the and in to probably


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

Priscilla Russo

This is Priscilla on for James.

by how quarter. And Just or much the quarters? bps much wanted was XX was on to rate. that? to we much of around base trends of out over How couple it I called this of believe card-not-present should how that uplifted you touch -- expecting that like that was there anything the next normalize take that be

Bradley Herring

shift significant -- between Brad, present. Hey, There that. this wasn't not I'll over Priscilla. previous a present and quarter is from take

stabilized going see walked a that average minute QX. degree. merchant like points always happens, size to But as size of to We've of per us -- a cliff kind going increases, XX about come of out we're basis spreads kind So certainly merchant se. that through to is to this certainly the ago, Taylor talked as start down it's not off fall some coming

the maybe QX, going think forward to basis by to coming basis that quarter place to we at But forward, X when conversions number -- in 'XX continue and lower into will these we new until a of our we as likely we expectations 'XX, on X what is starts number well out rates. merchants is came point it look So until where drop that continue stabilize. not even XX the as to into going the move stabilization to are be that take points

Priscilla Russo

plan. repayment your growth. and your touch all to strategy regarding the allocation the on you're again But Perfect. pace rate repayment changed inorganic gone has you've side, since on the dealing how debt organic base then capital and the on at Very debt just of clear with wanted public? And

Bradley Herring

paying so. When if will to out X.X% in do makes sense that I we I options foreseeable mentioned, what Brad. I the certainly I'll debt cost is know this play certainly deploy for capital. obviously terms reduced rate. in to in Hey, like answer We're mid-Xs our see with we of looking our We've debt that the would down now, do say one interest that at don't again. us, cash, no. I an future.

about So not IPO ratios. talked from changed we the are plans the repayment debt from likely what


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

Andrew Jeffrey

if new color merchant -- legacy even those little break granular really on helpful. conversions are those down well more as that through, and enhancement? the as technology more can gateway on I'm adds Jared, that you're the and merchants new you I between is where partners, bit get point-of-sale a is the net are those operating maybe wonder our merchants the ShiftX on and providing sorry, operating signing growth or

Jared Isaacman


trying thanks. that here. just think through. I'm to So Jared

just I that's So of them new terms conversions how understand complemented system then between new a technology. a adds. net and asked make breakdown from sure ShiftX in And and by using versus many the adds gateway there, to point-of-sale you -- legacy it, question of for are

just You wouldn't clarifying that? mind on

Andrew Jeffrey

trying versus the POS, simplest Yes, of Jared, way way gateway think is guess, other more convergence, maybe just or systems easier more much point-of-sale add XX% a split about -- of the exactly. about of outside merchants your you I you as on to merchant get traditional it. that growth, how it of think the to I is -- apart if to I'm legacy sense running

Jared Isaacman

think understand. I mean, nothing say right I'd screams that statement healthy nonintegrated and might -- be question there Like totally just the is a but this where Ingenico like to is it's terminals. everyone start, from Well, real your ShiftX's going, story Verifone for about I not or

by is we're So that's connecting everything I some like XX% into boarding large, a platform and piece onto our mean, of statement. that software.

So customers of to gateway -- the adding end-to-end, I'm sort gateway, software. migrating whether absolutely those XXX%, customers are from customers mean I new we're sorry, integrated or on some -- which the to

no a that's assuredly with that story almost sort about software. to be software. question. payments is our reseller connecting to systems be which be not new hotel net conjunction or point-of-sale adds, that software. be in of an and entirely software comes in systems within the be it ISV management question, the who going when different us. could created a the or implemented could partnership some the with is property that platform The it could could talking This to installed story or who in software-driven value-added That's without restaurant the Now it system, sale really is could And be ERP

much from giving our product, that customer? Now it's sales it much Pay away XXX%. process, or how many or -- our decision was nearly technology including influenced how or or payments online those SkyTab like and like say of the how of the as no I'd -- QR the or contactless ordering cost part business intelligence at

every our some boards consistent example platform. solving in end-to-end is in pain always every customer we're for when partners and mean a So, our that merchants points I transaction.

no include might that be that always ShiftX entirely every form sit-down order payment have other connectivity of almost may payments about that like a QR of varies or not Rock bundle customer. lot and restaurant at vendors integrated were Raiders for -- any but fees -- a technology like dining, to have different That's sale. What recent some selling multitude with code-based deal. some and able nature. goods to announced, little So a I Raiders stadium Virgin, technology or a even matters of mobile we the But by form what a than costs Hard otherwise of handheld almost or the we're mean that been our would cares something it's stadium bundling with at a and or was to wins provided additional we've of in a in be cost consistent payments there

Andrew Jeffrey

that helpful. Okay. of That's assume legacy those next-gen is is solutions, shift Have sort sort relatively merchants, whether well? be on software cloud-based the of as mix solutions they to seen And of safe constant? it versus that new staying you've

David Lauber

question. So, is This Taylor. great that's a

integrations software flavor, has to reluctant way versions the is that got those software suites. every the were latest to also over brand-new contextualize the years. the I upgrade gateway think it for merchants It's It's population got right? same of

it. So variety a wide have you of

a If migration, you it, in of little you'd software see the a like, of software. a wants Jared to call feature sort type middle less doesn't let's of isn't a as nature of of because And suite environment take by a in look every to talked about, gateway One just see at in a where works, merchant these we've QX like of advantage touch bit and a moment you'd set circle to ISVs. this got, their have rip-and-replace thing therefore, how XXXX, one brand-new is with pandemic. of mind time, very this more tight keep relationships adoption

to some merchant in an take migrates software later set get a from at version provides benefit point upgrade incentive they're a that who to end-to-end the will often So feature to of using of the or ShiftX to gateway very that time. advantage

of too the don't you up versus hung on want next-gen. I So concept legacy to get

you're merchant a than more in of you're our software. If one environment, operating probably piece

the because might software older Even an suite be a piece more Some might which that, with and really headache next a to of stadium, some little of reluctant see older upgrade brand-new. case POS of is great involved to be of of it like you're in that something a bit management like something that you'll VenueNext, is typically software. next-gen a a it

see flavor every it. you'll So of

I migrations think quarter, less see suite, to more take to this accelerate a completely a bunch environment, like move meaning bit software you a new that appetite it in software can thereon helps we and the gateway because current suite give little features. that of and


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

Michael Del Grosso

you of relates lower of Or lower about is versus on does then on counts to where obviously, of it action base? volume merchants' health due they much levels? spending the and is compare I were have are How the merchant And how to that a disclosure give, the taken that merchant potential transaction to overall way, you look there? reserves. level Have pre-COVID follow-up pre-COVID. that in website, by overall your any attrition question just great I the than kind kind If it's pre-COVID levels. and as

David Lauber

questions. Great

was disclosed with can doing our to same-store of of health, in then that I'll XX% regard reserve merchant merchants average quarter about same-store concept, address Brad and maybe second So and sort the during talk normal we about that QX.

there. you'd QX, bit of a if improvement an I at you look little see think

around see probably of You'd normal. XX%

marked So recovery, the normal merchants to for we the at I merchant. is term. operating think of a that returns looks our very like what but nothing optimistic volume are sustainable we're about that when the short think somewhat or sort end-to-end for And level in sustainable levels

in X% you of about take you have of to statistic transacting QX. that if If February, you that, is a put want attrition I gave, not it, transacting sort we in that to to would merchants that which quarter rate, it call seen lens expected like another we've the a to want be can

probably I as think going it's as that's to get. bad

come improvement online. I back think room for as there's hotels that like things in

on the XX% operating merchants operating is book, at up, the like that But are even So a merchants growth joined. even that merchants our not differential created about a I the average, XX%. those is that's we've you X%. to our at it, are up look don't across you that close call when entire think though And see full machine have their we're here, to down of in verticals really our And that health. stat October which that's in going necessarily at XX%, remain at month benefit of that

were Brad, October XX% class. were in And at it to a plus weight be pandemic, weren't of So reserves? we to want would you'd of expect their sense as consistent a if a our there how growth we build what end-to-end do punching about you to to volume with picture the February. or gives merchants all to expect more that month talk see to you seeing what If a like October

Bradley Herring

Hey, look at: I reserves quick. reserves is that always Yes. on X cetera. reserves just fees; to our is Michael, of two et ability There's backs, around charge and one reserves and collect exposure around real areas

got we them, into by as a the those. lot got we QX, call time paid for levels. had we of back to QX, pre-COVID obviously I'll So But through normalized attention those mid-quarter to,

prepaid mind keep also, So limited have we exposure really a in from perspective.

So those to, would levels. have back call returned it, significant I

Jared Isaacman

chargeback-related just Yes. immune relatively Jared of kind Brad We've hey, a that of point insolvency some And appropriate then nonexisting like the to kind that was that space back their hotels, And windows in here, in risk. just trips, made been like fortunate point virtually that could chargeback ago. was live passed the possible to is lot [fix] made. of normal a long I where on to March, our if Brad, consumers we there a April, credit mentioned, into exposure live Those running of among and even There that or was totally to had end of you're result. was a you like a credit Brad realm the where customers. a reserves hotels risk chargeback we as canceling of course, obviously then losses. May, incur period, lot of and as that refunds, it mean

Michael Del Grosso

of And revenue then follow-up or QX Okay. and ask if there. helpful impacts Have could the expectations cost that? anticipated accretion on acquisition related color. the or one provided That's just around any in I you impacts clarified from

Jared Isaacman


is which an a we EBITDA atypical previously here. basis, LTM we've platforms, within actually profitable and actually Brad, payment Jared I'd is from the Xdcart mean cost What accretive pretty associated that you very think that perspective. on taken is QX consideration So among our e-commerce mean, it I embedded business guidance, revenue touched I on acquired. with say, in an this acquisition. that is that I the

I to line capture maybe reinvest now, in of disruptive and drive of and a think little with the to before is at of QX what profits kind willing statement much we we're payments, how foregoing the is fees taking about looking go-to-market made it SaaS the of order approach to in bit we're growth. a in more business some

Brad, of in we've mean, I embedded relates anything as to in I if else to very Yes. conservative, very it add? terms assumptions conservative some taken we've QX what know, acquisition. this think I So don't you want there's

Bradley Herring

that's got think I No, it.


call I session. the now for closing question-and-answer our turn concludes over Jared This will back Isaacman remarks. to

Jared Isaacman

joining a world. I Yes, thank everyone appreciate you. call know the there's today. on I the going in lot

us forward ShiftX across for And in that giving by new continued your thanks interest does and challenging, of quite remain emphasizing time while your So and There's about to lot drivers look backdrop market ShiftX. organic in and growth, some of the again has both the verticals. we to many opportunities, the We've future. never now really a going Company how been sharing more those very against more is near positioned execute on. excited right

you good you. thank So all and well, stay have wish healthy, a I day.


Ladies today's you conference and concludes gentlemen, Thank participating. call. this for

You disconnect. may now