Overview

• Payment technology provider's Q1 gross profit rose 54% yr/yr to $370 mln

• Q1 net income reached $12 mln

• Company attributed results to resilient operations amid volatility and global travel impacts

Outlook

• Shift4 Payments leaves full-year guidance unchanged amid current market volatility

• Company introduces quarterly guidance to address seasonal trends post-Global Blue acquisition

• Shift4 Payments says competitive dynamics remain largely unchanged across major verticals

Result Drivers

• INTERNATIONAL EXPANSION - Co said worldwide payments based revenue grew 51% yr/yr, with strong customer adds across Europe and early success in luxury, fashion and cosmetics

• VERTICAL GROWTH - Shift4 Dine product grew active merchants by over 40% yr/yr, and resort customers remain strong in hotels

• DIVERSIFIED REVENUE STREAMS - Co said revenue streams are well-diversified and ability to drive sustainable, profitable growth has never been greater

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Shift4 Payments, Inc is $60.00, about 39.9% above its May 6 closing price of $42.88

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

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