Shift4: 30% Revenue CAGR In Next 3 Years

Summary

• FY23 witnessed significant growth in end-to-end payment volume, subscription revenue, and total revenue, driven by increased merchant adoption in new verticals, strategic acquisitions, and the next-gen SkyTab POS system.
• Shift4 achieved impressive growth in gross profit and gross margin, outpacing revenue growth, and thus, profitability. Continued margin improvements are anticipated in FY24.
• Shift4's current premium valuation is justified by its demonstrated self-sustainability, superior growth trajectory, and improving margins.
• Shift4 is expected to grow revenue at 30% for the next 3 years.

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Investment Thesis

Shift4 (NYSE:FOUR) presents an intriguing investment opportunity supported by its strong financial performance, innovative solutions, and strategic acquisitions. With a solid track record of revenue growth, margin expansion, and efficient cost management, Shift4 is well-positioned for sustained growth

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.