Shift4 Payments Reports 30% Revenue Growth to $3.33 Billion for 2024

Shift4 Payments, Inc. reported a significant increase in gross revenue for the year ended December 31, 2024, reaching $3.33 billion, a 30% jump from the $2.56 billion recorded in 2023. This growth was driven by a 51% surge in end-to-end payment volume to $164.8 billion and a 90% increase in subscription and other revenues to $340.5 million. The company attributed the stronger subscription revenue to recent acquisitions and increased SaaS revenue from its SkyTab solutions. However, network fees also increased by 22% to $1.98 billion, reflecting the higher payment volume.

Despite the rise in costs, the company's income from operations increased to $247 million in 2024, compared to $114.8 million in 2023. This improvement was partially offset by a $289 million increase in TRA liability, resulting from a change in the valuation allowance on deferred tax assets. Net income for 2024 was $294.5 million, a substantial increase from $122.9 million in 2023. The company's net income attributable to Shift4 Payments, Inc. was $229.6 million in 2024, up from $86.2 million in 2023.

During 2024, Shift4 Payments completed acquisitions of Eigen Payments for $115 million and Givex Corp. for $127.8 million, both intended to expand its customer base and geographic reach. The company also acquired a majority stake in Vectron Systems AG for $62.7 million. Furthermore, Shift4 Payments entered into an agreement to acquire Global Blue, a transaction expected to close by September 30, 2025, subject to customary closing conditions. This acquisition is being financed through a combination of cash on hand and bridge loan facilities.

The company's employee headcount increased to approximately 4,000 as of December 31, 2024, including approximately 800 employees added through acquisitions. Shift4 Payments also highlighted investments in leadership development, technology, and programs to enhance operational efficiency and employee engagement. The company's outlook includes continued expansion into international markets and a focus on converting gateway-only customers to its end-to-end payment offering. The company's Chief Executive Officer, Jared Isaacman, was nominated for the position of NASA administrator, and the company anticipates Taylor Lauber succeeding him as CEO upon Senate confirmation.

Shift4 Payments' 10-K filing also detailed numerous risk factors, including intense competition, economic conditions, cybersecurity threats, and regulatory compliance. The company's substantial indebtedness, totaling $2.87 billion as of December 31, 2024, was also highlighted as a potential risk factor. The filing included a discussion of critical accounting estimates, such as revenue recognition, business combinations, and impairment assessments, emphasizing the inherent uncertainties and judgments involved in these estimations.