Shift4 Payments, Inc. (NYSE:FOUR) Q4 2022 Earnings Call Transcript

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So, for sure, we’re going to get an annualization benefit of the in-sourcing. But from there forward, there’s just lots of room across every piece of the business to kind of optimize is the way that I would say it. And the investment for growth I think will come alongside these tuck-in acquisitions or partnerships that we — the ones that we’ve announced and the ones that have come in the coming years. So, I feel very confident. And you could tell from the EBITDA guide that we feel pretty solid about that. And look, you know is the Shift4 way that we always like to kind of beaten these expectations. So, I would just say there’s room there for us to make the investments that we need.

Jared Isaacman: Yes. And I guess, just to layer on a little bit on that point. With every initiative, I was kind of trying to make this point in Q4 of last year when we were interacting with a lot of investors. It’s like virtually everything we are doing right now has a margin and has an efficiency benefit, which then translates into margin and free cash flow. So, just to give you an example, right now, is actually more labor intense for us to support a gateway customer than an end-to-end. So, when we’re — every day that goes by, we move more customers from our gateway to our end-to-end platform, it makes things easier on our support resources. It’s so much different than where we can handle the situation and to end versus trying to get a conference call going with I don’t know, Bank of America, First Data to try and trouble through the situation.

Every SkyTab POS system that goes out right now is like 3x or 4x easier to support because it’s cloud-based, than all of our legacy POS systems. Actually, we caught fair criticism for the first couple of years as a public company. They have a lot of Windows-based POS software is in that previous generation, yes. And they’re like more labor-intense to support. So, like every day that goes by, more SkyTab POS systems come in, like we are able to more efficiently support probably the most labor-intense portion of our customer base, which is small restaurants. Last, our diversification into new verticals, stadium. I mean a single stadium that may be hundreds of millions a year in volume can be covered by, let’s just say, one person with half their time versus that same person might have to cover thousands potentially of restaurants that are calling multiple times, you need a lot of people in order to manage the number of inbound calls on that.

So, the point is like there’s areas of the business that are able to operate more efficiently, and that frees up resources for us to make investments in areas like product of R&D finance for sure as we continue to expand internationally. Moving on to the first part of your question is like just general excitement, how big the opportunity for internationally, it’s huge. I mean, I think — I hope most people took a look at some of the numbers that got released on strike only helped. I mean you’re talking about like $800 billion in volume growing at an extraordinary rate. I mean, even adding these numbers take margin aside. That’s a lot of volume growth. What that is right there is integrated payment 3.0 or commerce-enabling software anywhere in the world and making like you here on some of the largest enterprises in the world.

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