Shift4 Notches Record Volume As It Looks to Stadiums And Casinos for Future Growth

Shift4 Payments Inc. on Thursday reported record quarterly end-to-end payment volume and gross revenue as it notched what chief executive Jared Isaacman called a “strong first quarter.”

Stronger performance in the company’s core hospitality market helped drive end-to-end volume to a record $8 billion, with most growth coming from new and larger merchants, Isaacman said during an early morning conference call with equity analysts to discuss the company’s quarterly results. Gateway volume, at $150 billion in March, was “close to prepandemic levels,” Isaacman said.

“We boarded more hotels in the last nine to 12 months than in any previous period in our history,” added Taylor Lauber, chief strategy officer.

As a result of the strong performance, the company now projects end-to-end volume will reach between $44 billion and $46 billion for the year. At the midpoint of that range, that performance would represent an 86% increase over 2020’s $24.2 billion. Shift4 earns more on what it calls end-to-end volume, which it processes itself, than on gateway traffic, which it passes off to other processors. 

At the same time, new ventures are starting to click, the company reported. The e-commerce platform Shift4 Shop now hosts some 35,000 Web stores, up from 15,000 at the end of the year. The platform came to Shift4 in the company’s November acquisition of 3dcart. Another acquisition, that of VenueNext Inc., is also expected to pay off in coming months. The $72-million deal brings to Shift4 mobile-payment capability geared for stadiums, parks, and other such venues. Venues include Major League Baseball stadiums Petco Park, home of the San Diego Padres, and Nationals Park, where the Washington Nationals play.

It’s too early to forecast volume from VenueNext, said Lauber, but he added, “Early evidence from these parks and stadiums is that we’re seeing 90% of volume coming through the [VenueNext] applications. We’re tremendously excited, but it’s too early to put it in a forecast.” That contrasts with 10% before Covid-19 struck last year, he said.

The company also launched an investment arm called Shift4 Ventures, with Sightline Payments as its first investment. Sightline specializes in processing for casinos. “We are interested in fantasy sports, sports betting,” Isaacman said. “We are interested in having a seat at that table.”

For the quarter, Shift4 posted gross revenue of $239.3 million, up 20% year-over-year and the highest quarterly revenue number in the company’s history. Its net loss widened to $51 million from $5.1 million.

More volume gains are coming, Isaacman said. “We view the current landscape as ripe for numerous transactions,” he noted.