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

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Yes, we’re coming to that heavily. We’re going to follow an incredible customer on that journey, we’ll do it organically in some parts of the world, like we announced with Canada and the Caribbean. We’re looking at other markets now. We’ll do some one to many partnerships in some parts of the world, and we’ll deploy capital effectively to own rails in other parts of the world. And in doing so, like we’re going to first be able to compete. So, it’s not just adding the strike going for some of those huge multinational corporations, but we’re going to take everything that made us special in the US as one of the most competitive markets in the world and bring it into those new markets. It’s incredibly exciting. Like this is our journey to like $1 billion plus in EBITDA.

I mean that’s the march we’re on right now. So, I think it’s one you can ignore.

Darrin Peller: That’s really helpful. Thanks. Just very last quick follow-up is on SkyTab and the progress you’re making seem really strong on the location adds. Just maybe a quick update on the expectations for the year ahead.

Taylor Lauber: Yes, we thought it was fair to give you some sense of how SkyTab is moving because I think it’s such an important part of the distribution and sourcing story. The expectation is like I think both Toast and Chip we’re going to have — continue to have great years. And I’m sure both Toast and Chip will take our products into international markets. And we’ll go and clean up all those legacy terminals and Windows-based POS systems, and I think both enjoy a lot of success. What I don’t think we’ll do, I mean we’ll certainly give you insights in spreads and volumes. I don’t think we’re going to every quarter give updates on location count. I don’t think kind of — we tend to be way more upmarket than that. You’d rather have hypothetically 4,000, 2 million of your customers and 5,000, 800,000 of your customers or something of that effect.

But yes, I think it’s like looking at the competitive landscape, it’s a two-horse race for sure. And there won’t be a winner take off, both Toast and Chip were going to have a lot of success with our cloud-based products in the US and in other markets.

Darrin Peller: That’s great guys. Thanks again.

Operator: Thank you. Our next question comes from Andrew Bauch from SMBC Nikko. Andrew, please go ahead.

Andrew Bauch: Hey guys. Nice set of results and thanks for taking my questions. I just want to tail Darren’s international question there. In the context of the regulatory approvals needed for Finaro, I know that you’re not considering anything from Finaro in this guide, but given how important the international expansion and roadmap is the Shift4 story right now, is there any kind of changes to how results would shake out one way or another if the regulatory approvals were signed off today versus bleeding the third quarter or even beyond?

Taylor Lauber: I don’t believe so. The — as Jared mentioned during his scripted remarks, we have an arm’s length partnership. It’s allowed us to complete a lot of the technical work to service cost. So, we have — I think there’s been some comments around this previously. We have successfully made transactions on SkyTab by a combination of platforms on VenueNext as well. We do share a handful of customers today. So, while there’s modest improvement in economics from having in one quarter versus the next we’re not really thinking about it in those terms. So, we want to close it as soon as we’re allowed to just because it helps both companies operate with a clearer lens towards the future. But we’ve spent a lot of time together — the maximum the extent appropriate on working through these solutions.

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