Shift4 Payments (FOUR) 9 May 242024 Q1 Earnings call transcript

Greetings, and welcome to Shift4 Q1 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Tom McCrohan, Executive Vice President, Investor Relations. Please go ahead.

Thank you, operator. welcome first and conference XXXX everyone, call. morning, to quarter ShiftX's earnings Good the Jared Strategy today Executive me Officer. call With on are Disman, Chief Lauber, President Nancy Officer; our Isaacman, and and Chief Officer; our Financial Taylor Chief ShiftX's

webcast simulcast is Investor the account formerly which as on which X being our Today's call can Relations at Twitter, through Twitter be Spaces, @ShiftX. found This investors.shiftX.com. of our be is website, on call section can also corporate accessed being known

Our posted quarterly results other IR shareholder letter, quarterly and results materials financial quarterly our have related website. to to all been our

of call not risks, important many today guarantees Our actual uncertainties include are performance, factors. future These result and our statements materially materials certain earnings of differ results and forward-looking and could statements. a as

and concerning most available section those Forms and the is reports Investor on website. the website of XX-Q, corporate factors you information SEC's in which Relations recent Additional our our can on find XX-K

on any and quarterly financial For non-GAAP in letter. shareholder this information are call, available reconciliations GAAP today's measures related the discussed

call let let me over -- Jared? that, me call turn to With Jared. the

Thanks, Tom.

an to a letter, So know lot was already our and very awful discuss us there's if busy earnings then for today. this quarter, you've reviewed already you

So we wrapped up a strategic review.

win record very and our strong results ticketing our synergy-rich reasonably numerous into acquisition, flow. coveted to free enterprise and new cross-sell We announced expansion cash merchants. priced some a geographic most continue of the delivering alongside of stadium We customers. We and added and SkyTab thousands attractively we continuing wins,

cadence our and capture done only could business. the We're the quickly. probably right growing think very have I diversifying better is So we obviously help analysts of seasonal thing

balance guidance, reaffirmed we the with help have quarterly So the flow it EBITDA our to year. we and basis broke out free for cash of a and positively on and largely revised that,

it on break like just expand down So it and and point lot, said by I'd a to point. I

like respect personal my with on review, was multiple line matter. strategic than of and encourage the to my there trading interest strategic complete to would you bottom read I price. offers present higher you'd our take materially is the lot a the So if letter shareholder formal But

It that is clearly others the shown a obvious should also available, case. be and option to usually go-private that have be

However, the my I, want of alongside And my strategic aligned of to completely go-private presents option be clear complexities shareholders. course, always offers. the interest with competing rest fellow

price And process an business. as we the result, a offer the we the be shareholder obvious continue our kept it reviewing will trajectory going that progressed, never could up. I this And as very to So expectations presentation, strategic quarter's even why big more properly now review of rightfully after wins. record didn't value some accept imagine

So we very on we which some we world, in the but will talk partnership have I shortly, about that wins. vertical the many world, full go a single the is alongside big with And that of Foxwoods, to signed did and casino the we'll one operators soon. largest developing of properties note, the largest in more by follow. more major over deliver list one casino

nearly represents system QX, increase installs further XX% a X,XXX with growth SkyTab in quarter-over-quarter. Our accelerated which

City the our stadium in for momentum continued champions, wins have world ticketing entertainment NFL Chiefs. We sports notable including Kansas and and vertical, the

international which Albania, and markets, followed in later a acquisition We speak I'll We remarks. including in and several strategic the customer into bit this several to quarter of African new Mongolia, also very prepared important Revel, Maldives. soon announced countries, our the Fiji

for the the very the met well expectations this set stage our And year. the associated results of from balance all and

gross revenue payment profit and So XX% end-to-end in growth network XX% we in in volume, generated XX% growth gross fees. growth less

EBITDA, adjusted year-ago XX% of basis generated our representing the points quarter. versus growth also corresponding expanded $XXX as to year-over-year million XXX XX% margins We

of points both drag are the we expanded, Naturally, margin from drag the and to Appetize as expansion nearly Our contribute Finaro, targets. basis our for XXX that the of realized, operating quarter. our disappear expect which despite to synergies ongoing margin acquisitions and margins negatively by margin impacted

importantly, of most we Perhaps, versus is million ago. free generated cash which year $XX.X flow, adjusted XX% a up

approximately stable, coming spreads blended Our considerable basis points, also volume remain XX in growth. at despite

analyst and community area typically represents cadence XXXX our mentioned can the -- can seasonal is seasonally helping pattern. we an that followed earlier, we the has slowest of of the business. better As year, improve QX which model the quarter

last over XXXX. of Now if of QX the recall, from growing QX year benefited you an Omicron-depressed

So makes modeling we and which we know quickly, are also that into challenging verticals diversifying growing new aside, times. at many

help providing the we with and for conversion. of year balance to to are the positive to quarterly So include free flow that, guidance EBITDA cash revisions

have does visibility great recently not and but discipline expense well the growth Our organic include accelerating account efficiency as guidance into announced for acquisition, does gains. we as that the

I into M&A more include recent From well intend usual the internationally insights our double-click as activity. here, by to provide as progress vertical to our

starting with primarily is once our and core, retail, to composed again contributed our restaurants, Now hotel specialty growth. reminder, which, of meaningfully as a

software integration advantaged win industry-leading coverage. geographic intelligence ever-expanding including with tools uniquely are XXX-plus hotels We library, and to and our resorts business strong

partners. both a our that includes have and sales and powerful very restaurants, authorized distribution team With network we direct growing

We cost lower only as more have delivers We effective for we capable our strategy, we scale. table Toast restaurants believe service lower-cost service and modern servicing the and really of in as development go-to-market customers. cloud are overall of a turn further at a offerings advantaged see and POS which SkyTab

a Hospitality with restaurant the X independent XTop a the restaurant throughout and to of Diverse across Southeast. and locations restaurants, brands Pizza SkyTab as XX professional with new multi-concept company We restaurant management signed chains many U.S. Concepts, concepts; signed Canada; chain with Now Group, such with platform records notable installations. specifically a our pizza and Twist, group growing with we set Indian-inspired locations

Wine in Key Street located West Bar We Cafe Vessel, Las infamous Vegas in from also the across signed locations in Saloon Breath Mid-City, in the Summerlin; League and which Orleans; recently historically the X Florida; & with directly and New Hog's years award-winning celebrated XX University, in Union business. Yale street Church Lutheran purposed Grape Café

system our U.S., accelerated approximately the the with production installs recent SkyTab In during X,XXX quarter.

This Our free last cloud-based, of feature-rich is and resonate we to the with restaurant our SkyTab low-cost which SkyTab April, solution platform AI POS and Intelligence, In website analytics a restaurants. quarter. launch Business continues reporting that launched customers. builder follows to is

restaurant is excited POS there don't presentation, prefer service. We've lower more a companies released many modules to there shareholder our charge and any We overall is of out in for that pay a as we modules, them. and for of don't indicated instead cost believe

believe comparable current we offering value in of rate, are solutions. installs POS most the So the SkyTab our SkyTab our is proposition we on system extremely offers of with At pace a market competitive that for compelling XXXX. XX,XXX ownership that the QX of versus goal total note, on cost exceed run to

walking restaurants, product United in and team distance continues the and outside London's Theater. West and Prince Now within the up POS States, End sign within awareness to Ireland our Suvlaki, to the in located Edward including new is the Kingdom United building SkyTab

limits. London outside just Restaurant of Ram's signed also city We

Spain to customers, product M&A confidence international And goal hotels investments strides, Hut Further, new the really and in Europe inspires year-end. the these XX,XXX Portugal. to Canada we in strategy organic online and -- excited been ordering alongside our awarded sign restaurant are have hotel early in and our for before Pizza specifically

a of operators record world major a turning the one quarter the the hotels. North largest my world, with later year in America, partnership to earlier casino signings. we We the largest properties is the to developed in this had casino remarks, that well in Now of as we to alluded as speak largest plan signing one which And prepared Foxwoods. single to of as in

Native Casino hotel Ho-Chunk also located Wisconsin. chain We in signed American a Hotel,

In restaurants Florida's dude casino of Gulf X-star Ranch Acme We addition hotels The a these Creek, and gateway Hospitality, quarter which award-winning throughout and and California. an luxury we signed Rock operator spa to a of multiple ranch; wins, is Sunseeker rated Coast; at conversions. several Montana-based Resort on major had record

in upscale New Tropical in Street; which Oregon's Golden, Inn, is located Mountain which Central landmark an is historic The resort Hudson located resort collection a Mountains; River and Savannah's Valley hotels Mohonk Hotel, Colorado; House, located in & and in Beach Brasada hotel boutique the Taproom York also State. historic Hospitality, Key; Eddy Cascade River Resorts, a national in the of a Street We of boutique signed Siesta located

city the on Canadian [ mountains Our a Hotels, the resort that's hotels, Lac operator Halcyon is of spa we which British the And Columbia; golf in Le a is well. multiple Canada Mountain, and Springs Fairways Jeune hotels; located located in resort capital beautiful hotel expansion which shores ] which is an going a Coastal Victoria; including the Jeune, Hotel Lac (sic) is Le of Resort, the into the Hot also Canada. on of of signed in which is Coast

is is European for brand hotel with In Europe, development U.K. building we a Europe of throughout locations pipeline Leonardo business prospects signed the very and also Hotels, European our which And hundreds very, quickly. in

in signed is Sonoma Ledson retail, Stover, the generation family celebrated a we which which XXXth its Now fifth in of Russell located Winery, winery and Valley. anniversary; specialty just owned heart

processor payment Goodwill their Industries, serve we'll new for which with in Goodwill relationship our expanded opened X also Puerto a primary and stores, as Rico. We

and banking Luxplus; agreement merchants Europe's PayPal, network, In Cash online through Atlante; OneMoneyWay. payments digital for a and as to Europe retailer, such in platform, card-acquiring digital partnership Venmo Europe, payments We're in a wallets into we beauty with App entered for also accept services the EV enabling process POS. Southern to charging provider an card-present

of dental We couple is the online Spain entered a in and Fabrick, Italy, which PSPs, is and as of Tours, Danish Bravo which agent Payter a to card-acquiring Sweden's provide partnership a European well a agreements agreement the hundreds U.K. and service merchants as with services network of travel Netherlands, into signed DentFriends, which clinics; for

to verticals. new Moving on

clients platform. customers we sports migrated in entertainment, ShiftX Appetize add our and volume with the to Now VenueNext onto and successfully continue ticketing existing

were and we awarded ticketing the Sox the the Chicago So Chiefs, White City Vikings. from Minnesota Kansas

the existing Now upsell an stadium ticketing and to Sox customer. Vikings White a represented

of Nebraska, home of converted for Center, Mavericks we will Airlines University the Utah powering platform, which the also of our signed of and and University to partnership University our be Oklahoma, the the Dallas via also Paciolan. of with Dallas last Stars, American We ticketing and

Yankee recently all customers. also of at Convention event payment highlighting which including centers, that from signed was We Boston also Center, convention the processing conversion an Appetize. hosted largest several Appetize one We agreements legacy of with our investor Stadium, installations were a VenueNext

approximately to we League into roster Baseball, customers. teams Minor League ticketing XX ShiftX stadiums, concession League additional and Minor Baseball XX Minor are our in increasing with Now entered that deals Baseball total

and really Barcelona Camp partnership And we deploying announce Exeter alongside excited our City. FC with stack stadium, their Barcelona European wins, X includes to new comprehensive FC technology are payment famous stadium Spotify including strategic the to iconic Nou. And

business were we the powering I about to Super often wins remind growth organic The of investors venues or Stones. alongside the I at the best the other of we about revenue mean, asked Rolling dozens now the major acceleration to when coolest just I Bowl from the that just experiences are profile literally about talked every literally quarter. think

for somehow of merchants commerce-enabling fit are $X.XX providing are less solution their It's we business. we were a because caliber the the selecting of is expensive. because these best ShiftX And fraction not

verticals new So with continuing nonprofits. on to

first Giving lead quarter XXX%. Block in which seeing seasonal excess in transaction up of be where fact, The low, quarter-over-quarter, year-over-year and are, The we will donations volume to growth actually we should estimate a

through Frances Foundation change to entered notably The on immigrants. And to power Mission Foundation the screen. a inspiring the Xavier We story meaningful Cabrini, patron into big Cabrini saint continues crypto of her with St. embodies the Mission collaboration spirit Cabrini of resonate philanthropy.

our drivers nonprofit with partnerships integration of for others opportunities integration partners like the integrations charities. sector. first GivenGain These Outside efforts taken of process unlocking Give thousands We've individual such to our be organizations tens and the our steps nonprofits, relationships for and to major key success come Lively. as in of dwarf St. process Jude, to direct will these of with will

make such Giving via to fund stocks alternative Beyond our grants. traditional also share, market nonprofit Block advisory methods progress for processing credit and card organizations growing continue crypto volume, and as The we donor donation tremendous

relationship quarter, with the like Jewish fund Heart Catholic Association. Community our and the Foundation, This signed we American charities expanded large Charities the

devices are In Stadium. and at Stadium SkyTab And tech, our Cincinnati the Canyon site other now Canyon. we new signed Grand Reds aerial live we next tours locations, be with with mobile live will tour the Washington, gaming, for month, Sportsbook verticals we sexy Airlines, like travel, In National operator oldest first the gaming Grand seeing D.C. in providing BetMGM

We end across in locations year. live expect states this Sportsbook BetMGM to the of all be X by XX

SkyTab Palm states Springs. several to for casino new on floor devices are with cashless including experiences Arizona the at also clients the Morongo the enable being as integrated outside of Lotto.com such with Florida casinos passport various and more Separately, gaming technology online state Nebraska, we launching lottery. signed during in Casino gaming quarter,

sports with betting And social prime betting operating New was and lastly, Gaming, gaming signed an Jersey Ohio, games. follow. media We online Kentucky. actually site Ten blending And platform XX in and and and online sports currently casino-type sweepstakes soon Kentucky slot to

with during quarter, live the now Riches Rolling We processing is which also live ShiftX. on went

buyers their unified teamed platform, to back Pepperi pay. office a business-to-business up BXB powers platform Pepperi, e-commerce the way offer on for X,XXX convenient in countries. and to we merchants over tech, front XX In sexy over and commerce efficient more with

with payment have most the provides with strategic continue grow and into and our exciting, customer new countries expanded that We most we signed organically earlier. a to several processing I which VinSeeker, consumers vehicle agreement large very industry. the quickly Perhaps reports businesses in mentioned volume e-commerce history comprehensive

to also and at We've built but special personally undisclosed very restaurant international our partnerships, support EV EV an collaboration on locations. various charging concepts a domestic new including

integrations as over into the U.S.A. executing and strategy we and follow throughout a and those made mentioned bring our on Now services world so call, the internationally, markets our all strategic in are customer products then us that important all the successful to

have notable even all and tech providers sexy signed hotels, Canada. We restaurants, and e-commerce over Europe into

are XXXX achieving XX,XXX hotels confident restaurants We of feel U.S.A. we the in just in to international to our way goal exceed to in and on we pace are systems XX,XXX addition well our markets, goal on the signed

a acquisition M&A, growth especially this accelerate of quarter. announced a playbook just core very to synergies. a in distribution this acquisition And we've much respect accelerate customer This and deal the really our of with to go to will lower Taylor enhancing talent over restaurant vertical growth, alongside exciting Now further markets, bit. international a achieving in and our follows other in cost, vertical, Revel

been of from closing, the last explain with markets. in public lack like not we're the ShiftX It the that surprise always battling So years, after outperformance. to story in to appreciation those the time probably a for theory over much with way one few we've seems the familiar it's frustrated next our time and of try

it our or times, ideas that of at lack the X And or EBITDA at fastest-growing our that will good competitors be profile or always get that out or our slower-growing diversification vertical private valuation. ran profitability single of premium a players doubt, benefit competitors the X go the turn feels to those the that present

it advantages business. most the verticals, than of customers that and Meanwhile, profitability to the several else make writing affordable for faster improving the us best win, we profile anyone constantly about and easier the while in just have desirable growing more

finer grown while running note, to put it, our X.Xx continue hasn't especially EBITDA going To long-term those flow of tell ] a as, more economic than much machine prevail. yet. out quickly performance I being that with the cash a global we've [ But diversified to do to free yet, bet valuable, why on that And believe know and since Xx ShiftX And are us is quite ultimately, kicked weighing in better IPO. stories more against point and be backdrop don't I all a pandemic. on only

you certainly That a us read them call. of our all this Finally, from if couldn't further wins. you love on earnings, I we may think be truth. lot And celebrating the follow actually through only

We promote are obligated, defend many maybe and to more our so accomplishments. than companies, other

can But all assure day well, don't to time of things we inefficiencies. day and in shortcomings I we on the boardroom, spend do our you, our and

that our fuels focus of relentless our it's momentum. on much In believe fact, our inadequacies I so

And execute quo, always That the and delete and embrace our the and way. All need of urgency. to costly possible with we automate ownership, know the challenge ShiftX parts, to is this. status extent employees proceduralize old

will And Taylor. with that, it to over I hand

favorable morning, and you, operating Thank us. The reasonably current for Jared, good everyone. environment is

the headwinds roughly the flat year on quarter with began same-store a same-store we While year exited sales from merchants in sales, some ago.

seek help to helps save which technology around continue commerce helps streamline solutions that multiple steer also out The the Merchants uncertainty them persistent and spending towards actually vendors ours, eliminate experience. money. consumer like

can I'll from our about a moment. how perspective in a pulling advantaged capital business are we're at invest a and time in more back. many allocating also when talk are competitors capital We

on focused We of QX spent integration. M&A much

As and entertainment to Appetize our sports seen customers. in with resonating approach material, and well press is releases our recent earnings

As opportunity the and is at now host to ShiftX Jared technology mentioned, was Appetize a stadium. we recently using former Yankees' had our game, VenueNext investors a customer the and throughout which payments

complex when Our into ability a quickly delivers like we meaningful themselves. our M&A the one opportunities for technology environments that to and of is deliver reasons world-class in present this just decisively merchants move value way

Similarly, the integrated technically Finaro operationally business and into is ShiftX. now

find to hotels of and not all possible without will of capabilities via European have examples earnings the be material, who us restaurants, the in recently stadiums chosen which numerous acquisition. Finaro our You brought ShiftX would

M&A continue not expeditiously out working and the myths, integrations right, playbook from day Contrary is goals. knows new to the done ability do distract achieve is our closing these opportunities. to to popular everyone to of seek from When combined growth

revenue investing is expansion business. synergies, personnel, evidenced by parts the while deleting we've unlocking which the unnecessary includes margin in repurposing This and delivered

the the to to we in SkyTab platform merchants thousands In added in payment and ranging theme, and continued new largest also hospitality our SMBs product quarter. that invest enterprises from of

and us. capital opportunities to large products, distribution capital volatile create of network, allocation markets This combination for continues economic advantages a winning excellent

priorities: of across major innovation; repurchases; accelerate as allocate reminder, customer strategy, share four we noted and which M&A, a can dramatically with acquisition generally As previously acquisition; product Appetize. our the capital

letter EBITDA last this in our resulted this with deployed has over the out X the earlier. morning, last strategy years. X along adjusted this laid we Jared framework that In as over shareholder sevenfold Note capital growing growth years, our mentioned

While we work of also recognize track that is done. record, our proud never we are our

spend ourselves We how and are year on the for minutes we and a years ahead. will positioning we'll -- few

fun capital a products we To rest challenge. much still frank, done the pursue, which in is our we be allocation could more delivering see interesting the really There across Europe and opportunities be of reasonably than work to is world.

is like: pipeline we compelling M&A opportunities acquisition out enhancements, Our every full low customer flavor take of parts, in and capability et cetera. costs, geography the

We as one announced at make also we this million can to we equity our investments that current can't ignore Revel In you the for trading POS multiples. intention vein, of see we $XXX our comment easiest while will given And very and execute can't about before at excited morning. is playbook complete a our plans for a few closing, I well, need we length to business. the to talk we're this steps acquire

Should contribution substantial EBITDA a remainder the of close we you roughly the But million and year a in more by the anticipate XXXX. EBITDA during transaction growth when update all will transaction $XX again July would course, X, closes. the we of

ongoing a our us and have of we authorization to see buyer in In a frustrating. repurchase strategic attractive other highly million of in take value. an and implementing are larger as dislocation from XXXX, capital repurchase and which active equity recent equity current and multiples M&A our as has been an our plan advantage announced the our quarters, Similar at $XXX have allocation result of terms equity being to XXXX prevented priorities, review

so priorities with -- As always, mentioned and flow leverage growth short-, leverage as profitable also balance medium- our us long-term previously expect and to and also to free maintain this and you should cash the profile generation. I

turn our I'll over with discuss And call to that, results. financial Nancy the to

to We and free again deliver Thanks, another to cash growth, Taylor, solid strong margin line quarter conversion. in flow results and delivered while good ability our drive morning, expansion expectations, top demonstrating of continuing everyone. line with our

XX% grew Gross $XX grew QX fees Total $XXX year-over-year. volume less to billion XX% million. revenue of network

up XX%, quarter adjusted $XXX were EBITDA Our and the for margins was million, adjusted XX%. EBITDA

Finaro legacy Excluding the basis XXX and impact of businesses, expanded margins points. nearly Appetize the

quarterly convergence ticketing. Our momentum gateway monetization hospitality by results of new customers and restaurant contribution and across continued strength driven merchants, verticals, including verticals, of the from stadiums further large our our were and increasingly and enterprise

and spreads The the points, spread basis blended average for guidance our XX was in XX for with full consistent basis quarter with first line year to expectations points. our

months, diversified that of last for points and moved we has as the evolution the our verticals, and expect of over the a XX the certainly we While hold been business have XX XX IPO, floor to believe since approaching significant are basis we year. our of we to balance upmarket

and of that retail will this likely volume business worth specialty noting across is a be from remained outperformance. restaurant, function our deviation spreads It Any core the of stable. hospitality

than the Gateway conversion reflecting continued points of remaining revenue gateway of opportunity ahead currently of the decreased success us. the sequentially initiative. basis highlights remaining sunset our population in The gateway X less of quarter, This the magnitude represents spread.

driven Subscription same in last and in we success the having are the and compared vertical year, overall. XX%. other up by to SkyTab restaurant and period entertainment with SaaS was sports XX% was and revenue Restaurant part in up QX the

investors see also proposition. acquisitions to often This to Appetize from acquiring and of as signature and our that value of success blow converting QX up of revenue ShiftX was serves of software-only In million down that remind onetime our you'll our sequentially continued clients pivot a opportunity the Payments QX, and field revenue. and other $XX reflecting subscription revenue we the timing legacy model hardware good towards them total,

cost management, and strategic for impact growth. increased a general million XX% committed the of year-over-year completed the acquisitions to to while administrative expenses $XXX We disciplined investment in QX. continuing to by remain total approach driven highly QX, In

keeping in headcount in talent while of goal flat investing remains upgrades overall Our place.

operating across which the progressing We efficiency platform. of and will are drive scalability our further overhaul model, on our quickly

as of customary, our other has stock-based As $XX a the higher annual than expense of to compensation quarters, million been awards. reminder, is timing QX due in

points were to margins over adjusted expansion compared quarter XX%, XXXX. first basis QX representing EBITDA of XXX Our

acquisitions, actually previously mentioned of worth excluding but margins basis XXX impact points. I saying the nearly As expanded again, just

remaining the on our We synergies, efforts scalability and the margins implementation that have of new further to enhance horizon, the technology, improve many conviction to streamlining operations. opportunities internal of M&A ongoing including high on AI business are utilization still throughout systems

Our free flow cash XX%, representing adjusted conversion cash well million, an $XX guidance. adjusted free of above current quarter was flow the full our year in

As a reminder, But fluctuations in deliver our due the operating our there in model a rates our of rate. seasonality the year-over-year confidence quarterly capital give improvement payments in be our the conversion will and to interest and deployment on of basis of timing to business, expansion conversion ability economics growth. unit the to our in us annual support

for million Net earnings income C net was diluted XX per Class income outstanding. $X.XX fully Class million and Diluted first or C was quarter share basis $X.XX. diluted and $XX.X average for Adjusted the A the share A was on shares for a $XX.X quarter. a on million

the And end approximately the Our quarter, million balance of liquidity. we have strong. $XXX of as of available remains sheet

cost a any has weighted and we December maturities XXXX. of Our X.XX%, indebtedness total have average until not do

net approximately leverage end was X.Xx. at Our quarter

maturities EBITDA expanding and afford being satisfy to our opportunistically free flow buy sheet, many cash balance strong without equity. year-end to strategic fund back Our stock growing options punitive priorities, and us XXXX

to guidance. Now turning

a tightening to and to year XX% range XXXX, range end-to-end full For now volume for representing $XXX of our billion, billion expect we XX% $XXX year-over-year growth. are guidance

range $XXX expansion includes basis adjusted million EBITDA XX of which midpoint, our $XXX adjusted range to now We the the in at million, representing expect end of EBITDA are of from points also be year-over-year to the and margin acquisitions. increasing drag low the

XXXX also free previously, flow adjusted adjusted for $XXX free yields of increasing the XX% flow from are guidance. of midpoint our our We which EBITDA adjusted conversion cash cash to year million full expectations XX% at

expectations revenue fees network network earnings gross of Our unchanged. expect organic to remain be we revenue mentioned on fees north gross less growth less XX%. our of for call, And last as

on XX providing breakdown on better of a be which annual Page our help the seasonality quarterly can our of business, impact our We guidance shareholder found of understand investors to are also letter.

call-outs to guidance. couple it of as A pertains our

factors XXXX our include continue at minute. second I not expect We that year full to stronger a we do any customary quarterly and guidance from half we And on will elaborate contribution in in a time. our to receive approvals, secondly, the update due guidance Revel. Once will

are several our guide. note There things to to relating

year. growth I like to highlight the several initiatives the half to would accelerating through back of First, that contribute

While these reviewing is emphasizing. should points featured numerous obvious the quarter, wins of worth each be simply by most it

installs system resorts go SkyTab after ahead each Many enterprise ticketing to our XXXX. the and major opportunities, accelerate and quarter, several each quarter, continue XX,XXX stadiums announcement. goal on of especially we featured are wins for schedule related of quarters the live

year. We are dollar expect particularly this in half won fortunate to have to that we the industry opportunities back hospitality of meaningfully the several multibillion contribute to

this quarter's Hotels confidence marks traction in XXXX and to including are early Leonardo year Europe. And in first announcement are both hotels the we able really restaurants, inspiring. offer our services Canada and across

to half been and Our visibility back quickly, strategic the into markets, that continues several of expanding year. Jared volume have e-commerce into customer with discussed, organically international strong we the new add

continue of peer headwinds to we confident note, April. spending, our end deliver have among very it's set. data out same-store growth in worth can our are consumer observed we which low we during been that The we in pointing contemplates have pleased best-in-class with that On sale guide modest recovery

in implies in growth several end Next, high spending both of well a weighted initiatives. our international as trends the appropriately expansion continuation of recent consumer our as guide

expanding in guide. legacy XXXX. finally, And impact of Appetize, guide Finaro impact midpoint are is of And to meaningfully our modest margins Revel the and in excluding implies expansion, the the of margin the reiterate, while not included

the us to that to position I generation macro uncertainty. back Jared, balance the incredibly and profitable want growth sheet, reiterate our environment turning Before current call of well cash for

me let the to that, With back turn Jared. now call

Thanks, Nancy.

one. This a was Okay. long

of a wins. So covered, of lot a lot good ground

or say were we X select we the X. from did X going Before from questions go our -- Q&A, analyst we to to

one So is first from Jared Block.

to near in From possible a to could valuation? that not Do acquired? Jared close one another, why see Was a the future? acquisition you did happen be it deal

is give full once this strategic There really that what have Jared, by has from thanks to kind play. letter go-private interest, a I my opening to And a anything I to be question. of that I interest. sidelined. note. strategic the shareholder you means tried play whole mean, lot of the perspective for the in dedicated was really

I rightfully, to reacted kept a all at they out market Committee over notes up what ranges, going come the knew price look, we month. about did expectations And Analyst looks and the way these do, Special last and because make And indicating think, wins. the that's the Board they way potential good determinations. price independent

I very acquisition letter in outlined my I a Look, executing results. of our on associated focused see We was the and plan. say, we're possible like, part to plan our on Do future? mean, the

That much mentioned at said, The someday. that point, no some have payments my running is that, make idea many make I grandkids a don't so and term, problems the idea frame create they go see looks problem frustration our business so to away. I long like. I competition for what time

Also in your that ones. the third [ think ], but you a of quarter just is real we've this taken questions, Mohammad quickly, good Christian row hitting I one have

Are execute SkyTab, been stadium, expansion during its cetera? outside how been challenges facing Has playbook ShiftX et expected? of expansion? you able any progressing, North as significant the the So to has America

a We Canada for it, including for sounded that's quarter, to have that's about Europe, never I never know. which point. don't several Leonardo complete though not number off of we've list I a specifically Hotels. attention even awareness quarter, it proof mean, we names draw could. mean, I'd I mean, I the I the rattled mean, and hundred our locations. in fantastic because before talked like XXX which wins Look, probably may is this everyone's

hotels pursue been Canada able Canada, until gateway have listed had never of in volume billions which in -- that But we billions we this or past we we've quarter of to up X.

front how is of really go -- So to market how traction of investments distribution up in our distribution I'd be across ramp SkyTab of Europe lot a middle kind to put the because game, into some is Really, go well. say going We we a out we going great. is in restaurants. get really SkyTab this we to the just year to of in some our around of guide. some put

from integrations for European the we able whether quick of that that's we're Oracle, of to accounted impact there. already Agilisys, ground MICROS, running Microsoft, have able to market, get just are But the have pretty third-party we hundreds kind immediate the

happy pretty now. international all, with in our right expansion all So

So go those two And X. questions thanks from analysts. we will for to the

first Instructions] Our [Operator question Wolfe comes from Peller Research. of today Darrin

growth regard was the it the conviction the force me having. look, sounded to Nancy, But the and ramping SkyTab's great -- the those the wins guidance, ramp guess, was see and the to It like all driving year you're obviously, with to of you've as new wins sounds that success. combined, with had I of it's progresses

on gave original you that conservatism Maybe how is room there be be have helpful. understanding the on changes maybe volume actual going much embedded do you the in Is the would appropriately? just timed guide implementations to for just then timing there new contribution reiterate, road anything business to what in is versus that -- the map are outlook? or from And

then but one quarter. be, it it's mid-XXs, XX% on the organic. as on you I'm a plus like if in And would still the or first can assuming just quick comment

very Yes. organic and there's XX% basis. full through reiterate a in was what in, yes, I really right mean, I'll reaffirming We that on And definitely to And year, prepared but strong. certainly, but in really are year these remarks. could jump absolutely in that still QX the we was that guys growth I'll acceleration my in line start. be expect

an we the I you every that one things think quantified about all level them think expect. to when just of would certainly said, Excel is Jared

on back there's lot behind they're the of we into that. detail about half, not words the think a when acceleration just the right? So page, So

works, the that time and we don't you right? with having talked wins featured we're you measurable. think wins, start about, the excess right, -- as SkyTab, -- and I ticketing And think XX,XXX know we on track the much that the right, we today, how that totally goal, spent I success toward The but

cash for additive through, certain timed so see around and course, unit quarter it's of quarter. fruition the after you months, And past coming these about forth they're teams. seasons as economic yes, and and we've on whole the incredible with to and flow, really go-lives XX you upping and the right? what positivity been That that's flow EBITDA around It's where see just talking our free guide

As are and on, and happening, we think those to those about Two half. boarding and in So Canada, right? able ago, hospitality hospitality are those and now bring moving absolutely back wins weren't Europe quarters forward actually ramping we with and right? live into contributing the

e-commerce bit move. think just we and we is something right? some just That's Jared a it, know time these -- the that have customer, little I it that of like think I launches talked -- can could move enterprise And you about strategic as about

delay So that been could a pretty mix issue because our have of have we we're good. sight has always installs, line always of but to going that

around I And it's than we had when planned -- the original think we and what that's we've ramp, gave conviction so our different not high why our guide.

little a just on mean, wouldn't in Yes. out trying bit unless quarterly simply do in things points I'm we to confidence it's mean, high we And kind I it. Jared of put, Darrin, here, those weigh to on it first, I had more. a break pretty basis.

We're posting motivated like pretty organization. We wins quarter. every a

things if proper the is and the we the set we off are that believe year. correct to want for So it cadence cadence likely,

confidence. So I'd a that should sign be that, say of

back right? Nancy's ramp just instantaneous, report of out of for to not last to this the everything probably terms and backlog, a It's X. the manufacturing list almost or well, In in as yes, right? it earnings point, like the it's liken many you quarters quarter's half, I X prior

because quarters how stadium several talking we wins of terms of much volume backlog and ticketing wins Maybe should is for posting we've now. been for about waiting in at of installation look billions

that things And the is some say they of of them, of go-live nature. June XXXX, might

X.X of BEI Hotel yet. is earnings It opened cover a hasn't years ago. our report

can that margin So get than previously. continues degree actually have greater would with the -- out grow, to of you you as backlog -- you forecast it can a

question think appreciate And wreck the the just blowing up in to her model, I revenue go direction. mentioned an the pivot the on remarks model on don't Nancy right side, failed and thing organic of that I'd acquisition your in about in the revenue order say we really will last to anyone lengths a -- people

on time, were freebies fees We and to our around through before fees for away we hardware acquired part of them we Appetize time new year, delete their business that parts the historic their SaaS or but payments. a year give just the said absolutely will we things at products, can revenue their or this over a monetize so to move

itemize in But move get around, arms five very most back steps should of we -- to out. direction. preferred legacy intentionally you forward that's for our know we've to tricky assume their from unless really it's like a perspective acquisitions So have I set it done analysts the been revenue

yes. Yes, great. That's

So it up. very sounds bottoms

helpful. really that's So

Just stadiums, see international, wins, on great both very to quickly, it hotels sides. the the was the

progress seems what's there in it's then know in the the still there having but near term? the is we maybe the you're term like long happening. pipeline Just -- your term? opportunity And that big, truly near Any is continuing --

Yes. -- here Jared on Darrin, I one. this mean

Canada really talk many and this in didn't started. as mean, wins I quarter. think Europe to expect about I last to be I we able quarter

some wins hotels, of laundry Hut we pretty I know rattled So long some but in Pizza pretty I off a I you pretty got I there, a list big big had operators. impressive mean, countries. couple mean, there were some pretty in there.

from had perspective. with good traction an amazing EV operators. ordering pretty That's We've online

where for So or yes, were, especially X I'd ahead we're say in terms we Canada, we of our and of Europe a ago. quarter thought plans

investments. we middle we some of -- we because need guide in Europe towards just kind I our the think why of our we'll to some it. year or this of ramp before, started in making That's It's up mentioned firepower distribution mentioned

The is Goldman from next of question Will Nance Sachs.

main this comfortable a the But just asked perspective ramp this the year Darrin realize I years? morning. an you implementation guidance about on getting back think this. Look, I'm finer in I it. about guess, point half what's the is with just can just focus from I put kind from different prior of

Because just back in XX% like XX%. consistently ticketing got like half, in the more and wins And I'm something chunky it's XX% is I revenue getting XX% a you've of the back of to half. to more and think these answer to stadium maybe been the pretty lot

of just wondering if year But a this different about kind I implementation understanding just for can of double was the schedule years people to help on you better in of kind prior that. what's get click versus sort

just then of Taylor invite call really Nancy it that would I'll and start Well, Yes. growing to and I backlog come in. go-lives.

volume the by data. moving merchant been certainly average have We for up as market demonstrated

our it's one in report. I periodically we slides put the think earnings of that

for verticals, -- mentioned And like really of done certainly that and been are stacking X but e-commerce. in visibility move We've have diversifying resorts before, complex and just ago quarters go-lives, I are there start to more into nothing upmarket that we stadiums we kind stadiums and up. our and good announced they hotels go-lives. backlog and

when go the And have out, is you frankly, more dates backlog the bigger the forecasting live. largely start customer-driven margin grows, they'll when you which

in or it's shift have visibility just you years these think sense the on. and into turn the greater -- just is being more when So verticals, of it greater big of they'll last of couple part the -- over fact a mix a I just new you have

when Also, seasonality a these perspective, of I are of mean, ticketing, lot a more a leisure in half the in and of travel the from play do season, lot second just they seasonally or Nancy the are year. football Taylor?

to I prior thing different acquisitions, kind So helping synergize continuing topic back would say revenue as do slightly the on one we The of of that, are are we those year. tack just right? synergies a is half to

when. Also a and it's that's where moving visibility have that who's of our since we complete gateway, example -- of initiative, great

will So help the conversion definitely monetization. there both process from

sticks, getting and about carrots As you more guys slightly to moving talked those end. it's We're know, to conversions end working. we

I we have similar visibility that, would happen. are say, to to when ticketing, going So to moves those

maybe just rewind that's point, prior numbers. on of all the a little It I the And last more wondering kind to that in of follow-up, bit a like a could you there Nancy, sounds impacting deal on bit last it. unusual a I just if just was the details. how was gateway quarter. quarter. helpful appreciate update Got us actually, the

quarter coming the revenues again. sequentially mentioned gateway this you know down I

in to getting kind of converted deals. those net process the standard end-to-end the about rates the volume that would us typically of remind take we just so And revenue the expect up

And that is the it just the of that I guess, maybe I are roughly, did repapering delta of, at the significantly lower guys guess, spreads -- on context just you over for what some franchisees? initially? And come course closing

sure. franchisees Taylor. got we've the is spread. whereby contract in we we having last with involved with dynamic relationship. a few direct on effectively a hit that different been quarter, detail that Yes, described is a that a and Actually, this higher can I'll which It's basis opportunities

this would that determine -- undermonetized, of in we that it's today a would as kind paying way end-to-end represents is designate meaning spread. volume we our lower we financials The itself have

relationship we expect to provide be evolve However, able more will et the we them the way services, franchisees contract the to is cetera. directly, that with

institutional perspective but medium-sized in while more to again, relationship of businesses that half of it out. one something you the So attack to sort where starting spread regard, take enterprise year. which at stability of also a area the -- of see. to it's to one that we're effectively spread, back that roll to once. on with rates, contract revenue burden the all This the a Nancy we that takes Again, locations is activity -- thousands for alluded in franchisees can level small- not kind of closer what more to a an are us large for was comfort It's and of the can alluding of from

Got it.

is not it repapering. multiyear So thing. benefit, the an It's a in-year

get try It's specific also to than from as time. it We -- can as that. gets also competes locations. time I we to want And new fast net thousands don't of be to business hard. more with it

So...

from is question UBS. Timothy Chiodo of next The

the letter. billion $XXX $XXX the want It's on opportunity the end-to-end to had shareholder last figure believe about the funnel. left. At billion touch the undermonetized in total I update, volume I that's gateway

billion. $XX Software was another

$XXX just bit hoping little could opportunity. end-to-end a elaborate us pretty I bridge expand to the you just and that was large funnel and total billion around

sure. Yes,

really the allocation, in we put because this a strong think we competency as it's about talk there about of believe a deploy. a well. differentiator. there's So slides those lot It's core been our capital one We how dollars of I'll hit two do business. We

terms as fundamental our makes product And acquisition ton customer allocated, math of buybacks, quite costs, in the that et actually stock be get as long sense. a we're M&A, I development, of think cetera, agnostic dollars how

and And so opportunity presented total to track dollars over been we that record what of has the illustrate kind what few dollars our those tried deployed the past years of in terms exists. have

every So of all That base as monetized the those go that Appetize quite we but that as transactions payments well. dollar opportunity. And has otherwise POS, a Focus gateway volume isn't portion a gateway like was I think we've had and towards of we've the called $XXX all that volume out we've daily measurable but incredible things it's volume, an billion, can cited attack, that regularly. and M&A deployed hasn't presented opportunities

our gateway just So you we Again, laid clear, existing $XXX can consider is be a very population portion to billion. that that of out.

customers inside billion, cetera. Appetize of announced page What's is $XXX can after that not of in that the transaction You et that the just we inside consider that.

as employee, stock is sense. company dollar. for a a to a back an to the as product, buy or of to long another hire dollar returns our Again, we just why we what way to we allocate for when are deploy agnostic we sense give look So we capital we make tried that investors to build own to buy do, whether the a ton

excited and some meet buyback, to the return objectives. really we found in that see dollars, opportunities of that they be gives hopefully, And today confidence form Revel a we two ones that those us and should interesting invest when investors announced large they stock

one, a a the years there quick able I Perfect. sales you're The you know did to update. brief, XXX few back that force. when year, if the just in-sourcing, was or direct numbers last

reseller. the direct folks You likely other sales had some in-house, plus

that was So a U.S. number.

and direct of you in sales Europe? there distribution in and one, just, touch where Europe sits then the of hiring for update that much for size both has on the in been Can terms the how indirect, U.S.,

it, you of mentioned that But I if to you could just And partners appreciated. numbers then would questions some that which back? you distribution be recognize how have, few many put those them a

start of the U.S. Jared time the a European force. reverse opportunity. actually on I'll let and spending lot Yes. We've sales cover been in

largely of Our that in U.S. European of early-stage small the force that software we've very incredibly consists Europe, handful a number also earnings sales of up folks wins this install the today had disproportionate you partners then a a sales that handful talented the throughout put plus in and stack. see Finaro former systems team, of

regard our We we'd to pretty distribution. it got be means it strong by is at force for but scale means sales plans to We've in and with the like are Europe, ambitious European by to we'd like where no be. no

the want you do Jared, on comment to U.S.?

Yes.

had think I we guess, team. ago, our in-sourcing, years direct several hiring time the X so classes from distribution we've did We've that for increased. I almost

So size like the if it generally of something, the in XX% direct the we ballpark. seems team increase by or

in presence. where And then we mostly West kind have partners, a added additional we the Coast, lacked authorized just always direct of

and think our account to yes, to continue to team fair to So direct add I sales we'll just for demand. slowly headcount probably say it's more SkyTab

we with them think to And direct transactions, as the close. of look awesome and had for team, the both as sales an partners. the We're work transaction the business excited a synergies in comes series you about really to Revel M&A

Dolev The next of Mizuho. Dan question is from

interesting strong. the and the it? to can see very it for it Revel. strategic question quick very, of reiteration a a and have behind get of give growth Kind us organic expect to out rationale I Jared was acquisition. you the you see -- Taylor, sense what maybe to year, of Great very about the

I'm mean, looked or we to totally this. Focus to strategies mean, be I very is our Jared playbook. I similarly of all POS. Yes, off. apply this this kick mean, at Appetize happy should our here. to can I sure. Yes, this

have a mean, foremost, payment massive and first I cross-sell. you

is less history, purchase than Revel's familiar with it over once was the meaningfully if price valued We've announced that. at million. certainly So anyone $XXX

It an of a was organization time. intentionally customers, until couple that won it great afterthought an last built long But payments very overlooked really somewhat the software, years. for payments was good but of

them switch have pursue over So to the payments. ability existing customers, to you instantly,

our deleting parts. we've X it's adopted of Second, philosophies kind the Space again, that here,

two don't need restaurant products. You

with out lot do is same in -- capabilities take QSR to in that to as the Revel happens monster You're bring into Lithuania. [indiscernible] that you're the best them enterprise going of of development and to area the our same talent going team for be in and essentially over Vilnius, And a SkyTab.

get know sell to Taylor lot that value also Revel distribution wins, mentioned, has has you a already. their then partners And that have winning direct a product as a Europe lot in you a well. proposition, of product meaning, as for of authorized They salespeople

cross-sell. massive a got you've So

You've take got parts, offerings. so to duplicative product the delete out

You then and a you bunch have a lot talent, distribution. pick of of up

As regulatory Taylor the standard mentioned, process. going we're of kind just approval through

financial a X, perfectly July following the you EBITDA fine just assuming a we said well be its could get back already But an you transaction that's year, very annualize the of acceleration on half it of million that of with $XX that, was and own in can before year, that, sense it the right. ramp

that X, excited line. I Jared incredibly expect have to it this much as Yes. July over we're add, mentioned. summarized well. the be except get that don't Jared to to more than don't too one much And

Sakhrani Our come will from KBW. of Sanjay last question today

developing SkyTab. see of it's revenue over also I help could guess, the have time, I about contribution think revenue and SkyTab know a question customer. that days, just and on non-SkyTab a customer us but how a I versus you maybe you just early the potential maybe

wins, the I unit, to net is and new kind When exclusively is customers. that. today. this, SkyTab a important it customer didn't it's SkyTab adding our like we of looks with to start a I'll that exist Yes, in prior what dimensionalize book think ecosystem overwhelmingly ShiftX focused add on

on are kind lean have software over the upgrade opportunity, other choose should also time. of to that customers it, SkyTab We on to to restaurant we of pieces

these lift are giving us We a but will typically customers payments. SaaS get from that, already

kind And seen, other to earnings in vis-a-vis of this success, of evidenced market. strategy. you've remarks We've and our we seen price be as in SaaS with to competitors the as materials lots in attractive, SkyTab the prepared offering try very

lot nearest pricing, sell time, of you charge a opportunity Although although of over number we're room the move plenty we to need to of the competitors our a seeing see not do think customer, attract they when to modules about of and in brag the our in customers. base for to it there's ours current can do price that to are included the environment all

smaller little expect have versus of that averages in stadium, just kind the What they're than restaurants, from a than earn SaaS average we you component although smaller and typically at should top macro book of our a an bit a SkyTab higher spread what site significantly we is you a the it. and volume on hotel level earn in a

So terms a volume. revenue very, of of very attractive per contribution customer in the dollar

color know I Nancy, don't any you if to on more want that. give

Yes. just I within all the think that growth restaurant from SkyTab percentage alone SaaS about, was of just that. just components a it's And well that high reiterate. I talked in is XX%. would All that Taylor coming the excess very ramping. We said

it right would don't -- talk enhancement we you I it's market thing X also for cost is a year of giving our about the the low competitively generally every only is are within not is didn't in It just think module one we free say every We SkyTab. many to now customers. I -- charge and offering,

that year just impact have revenue, going half see term, of it's bigger near as bigger to certainly the to great SkyTab. going That's revenue, this -- trajectory. to So there's we this and lapping ramp SaaS the back start just you're in going

you should makes of Appreciate of about us just excited review. how But valuation if think from down it. a sort comments help Or sort trajectory think of on you trying dimensionalize sale. get maybe about were to sense the Jared. we're go would we you think the I and appreciate what just just -- I'm the the path here. what to strategic my And follow-up, all of

think a quite we've some pretty how for share our peers how to high-growth It's even there's because don't valued a really profitability relative kind of frankly, are some big valued today our profile. question, and, between tough time gap of we right, I been that

I mean, of think, behind the thing -- strategic it, were every they thinking I it. the out a to would I put higher the I on with those correctly. guess, things I is, during rationale analyst the ShiftX was at point almost And generally, thought I especially transact think might note where review, end and So you through

I so, higher, was that watch the when at it's for, But the under day it makes and on. higher some rightfully think, that think when kept those I hood a of think notes especially and if you there's evolution the note things are you throughout going look new strategic That review, that and going. certainly getting I every strategic of kind the direction hard the parties

where disagree didn't on valuation. a been top that I at we're certainly, that But ranges well would that, more end But have presently it's today. appropriate of of some the above those well,

That's the we today. all questions time have concludes conference. This for today's

at disconnect participation. may You lines you your this time, your and thank for