false Q2 0001794669 --12-31 true false true true true true us-gaap:AccountingStandardsUpdate201815ProspectiveMember P1Y four:AccountingStandardsUpdateTwentyTwentyZeroSixMember P8Y P9Y P17Y P4Y P3Y P8Y P9Y P9Y P2Y P4Y P2Y P3Y P3Y P3Y 0001794669 2021-01-01 2021-06-30 xbrli:shares 0001794669 us-gaap:CommonClassAMember 2021-08-02 0001794669 us-gaap:CommonClassBMember 2021-08-02 0001794669 us-gaap:CommonClassCMember 2021-08-02 iso4217:USD 0001794669 2021-06-30 0001794669 2020-12-31 iso4217:USD xbrli:shares 0001794669 us-gaap:CommonClassAMember 2021-06-30 0001794669 us-gaap:CommonClassAMember 2020-12-31 0001794669 us-gaap:CommonClassBMember 2021-06-30 0001794669 us-gaap:CommonClassBMember 2020-12-31 0001794669 us-gaap:CommonClassCMember 2021-06-30 0001794669 us-gaap:CommonClassCMember 2020-12-31 0001794669 2021-04-01 2021-06-30 0001794669 2020-04-01 2020-06-30 0001794669 2020-01-01 2020-06-30 0001794669 us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassAMember 2020-04-01 2020-06-30 0001794669 us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001794669 us-gaap:CommonClassAMember 2020-01-01 2020-06-30 0001794669 us-gaap:CommonClassCMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassCMember 2020-04-01 2020-06-30 0001794669 us-gaap:CommonClassCMember 2021-01-01 2021-06-30 0001794669 us-gaap:CommonClassCMember 2020-01-01 2020-06-30 0001794669 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001794669 us-gaap:RetainedEarningsMember 2020-12-31 0001794669 us-gaap:NoncontrollingInterestMember 2020-12-31 0001794669 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001794669 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001794669 2021-01-01 2021-03-31 0001794669 us-gaap:AdditionalPaidInCapitalMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-31 0001794669 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-31 0001794669 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2020-12-31 0001794669 us-gaap:CommonClassAMember four:VenueNextMember 2021-01-01 2021-03-31 0001794669 us-gaap:AdditionalPaidInCapitalMember four:VenueNextMember 2021-01-01 2021-03-31 0001794669 us-gaap:NoncontrollingInterestMember four:VenueNextMember 2021-01-01 2021-03-31 0001794669 four:VenueNextMember 2021-01-01 2021-03-31 0001794669 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001794669 us-gaap:CommonClassAMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-01-01 2021-03-31 0001794669 us-gaap:CommonClassBMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-01-01 2021-03-31 0001794669 us-gaap:CommonClassCMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-01-01 2021-03-31 0001794669 us-gaap:AdditionalPaidInCapitalMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-01-01 2021-03-31 0001794669 us-gaap:NoncontrollingInterestMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-01-01 2021-03-31 0001794669 us-gaap:CommonClassAMember 2021-01-01 2021-03-31 0001794669 us-gaap:CommonClassAMember 2021-03-31 0001794669 us-gaap:CommonClassBMember 2021-03-31 0001794669 us-gaap:CommonClassCMember 2021-03-31 0001794669 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001794669 us-gaap:RetainedEarningsMember 2021-03-31 0001794669 us-gaap:NoncontrollingInterestMember 2021-03-31 0001794669 2021-03-31 0001794669 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001794669 us-gaap:NoncontrollingInterestMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassAMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassBMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassCMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-04-01 2021-06-30 0001794669 us-gaap:AdditionalPaidInCapitalMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-04-01 2021-06-30 0001794669 us-gaap:NoncontrollingInterestMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-04-01 2021-06-30 0001794669 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001794669 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001794669 us-gaap:RetainedEarningsMember 2021-06-30 0001794669 us-gaap:NoncontrollingInterestMember 2021-06-30 0001794669 us-gaap:RedeemablePreferredStockMember 2019-12-31 0001794669 four:CommonClassAUnitsMember 2019-12-31 0001794669 four:CommonClassBUnitsMember 2019-12-31 0001794669 us-gaap:MemberUnitsMember 2019-12-31 0001794669 us-gaap:RetainedEarningsMember 2019-12-31 0001794669 2019-12-31 0001794669 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001794669 2020-01-01 2020-03-31 0001794669 us-gaap:MemberUnitsMember 2020-01-01 2020-03-31 0001794669 us-gaap:RedeemablePreferredStockMember 2020-03-31 0001794669 four:CommonClassAUnitsMember 2020-03-31 0001794669 four:CommonClassBUnitsMember 2020-03-31 0001794669 us-gaap:MemberUnitsMember 2020-03-31 0001794669 us-gaap:RetainedEarningsMember 2020-03-31 0001794669 2020-03-31 0001794669 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-04 0001794669 2020-04-01 2020-06-04 0001794669 us-gaap:MemberUnitsMember 2020-04-01 2020-06-04 0001794669 us-gaap:RedeemablePreferredStockMember 2020-06-04 0001794669 four:CommonClassAUnitsMember 2020-06-04 0001794669 four:CommonClassBUnitsMember 2020-06-04 0001794669 us-gaap:MemberUnitsMember 2020-06-04 0001794669 us-gaap:RetainedEarningsMember 2020-06-04 0001794669 2020-06-04 0001794669 us-gaap:RedeemablePreferredStockMember 2020-06-05 2020-06-30 0001794669 four:CommonClassAUnitsMember 2020-06-05 2020-06-30 0001794669 four:CommonClassBUnitsMember 2020-06-05 2020-06-30 0001794669 us-gaap:CommonClassAMember 2020-06-05 2020-06-30 0001794669 us-gaap:CommonClassBMember 2020-06-05 2020-06-30 0001794669 us-gaap:CommonClassCMember 2020-06-05 2020-06-30 0001794669 us-gaap:AdditionalPaidInCapitalMember 2020-06-05 2020-06-30 0001794669 us-gaap:MemberUnitsMember 2020-06-05 2020-06-30 0001794669 2020-06-05 2020-06-30 0001794669 us-gaap:NoncontrollingInterestMember 2020-06-05 2020-06-30 0001794669 us-gaap:RetainedEarningsMember 2020-06-05 2020-06-30 0001794669 us-gaap:CommonClassAMember 2020-06-30 0001794669 us-gaap:CommonClassBMember 2020-06-30 0001794669 us-gaap:CommonClassCMember 2020-06-30 0001794669 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001794669 us-gaap:RetainedEarningsMember 2020-06-30 0001794669 us-gaap:NoncontrollingInterestMember 2020-06-30 0001794669 2020-06-30 0001794669 four:VenueNextMember 2021-01-01 2021-06-30 0001794669 us-gaap:CommonClassAMember us-gaap:IPOMember 2020-06-09 2020-06-09 0001794669 us-gaap:CommonClassAMember us-gaap:OverAllotmentOptionMember 2020-06-09 2020-06-09 0001794669 us-gaap:CommonClassAMember us-gaap:IPOMember 2020-06-09 0001794669 us-gaap:CommonClassCMember us-gaap:PrivatePlacementMember 2020-06-09 2020-06-09 0001794669 four:IPOAndPrivatePlacementMember 2020-06-09 2020-06-09 0001794669 four:SeniorNotesDueTwoThousandTwentyFiveMember 2021-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2021-01-01 2021-06-30 0001794669 four:FirstLienTermLoanFacilityMember 2021-06-30 0001794669 four:AcquiredTechnologyMember srt:ScenarioPreviouslyReportedMember 2020-12-31 0001794669 us-gaap:CostOfSalesMember srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2020-04-01 2020-06-30 0001794669 us-gaap:CostOfSalesMember srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember 2020-01-01 2020-06-30 0001794669 us-gaap:GeneralAndAdministrativeExpenseMember srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember four:MisclassificationOfCostOfSalesInGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0001794669 us-gaap:GeneralAndAdministrativeExpenseMember srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember four:MisclassificationOfCostOfSalesInGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30 0001794669 us-gaap:CostOfSalesMember srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember four:MisclassificationOfCostOfSalesInGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0001794669 us-gaap:CostOfSalesMember srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember four:MisclassificationOfCostOfSalesInGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30 0001794669 srt:ScenarioPreviouslyReportedMember 2020-04-01 2020-06-30 0001794669 srt:RestatementAdjustmentMember 2020-04-01 2020-06-30 0001794669 srt:ScenarioPreviouslyReportedMember 2020-01-01 2020-06-30 0001794669 srt:RestatementAdjustmentMember 2020-01-01 2020-06-30 0001794669 srt:ScenarioPreviouslyReportedMember four:CommonClassAAndClassCMember 2020-04-01 2020-06-30 0001794669 four:CommonClassAAndClassCMember 2020-04-01 2020-06-30 0001794669 srt:ScenarioPreviouslyReportedMember four:CommonClassAAndClassCMember 2020-01-01 2020-06-30 0001794669 four:CommonClassAAndClassCMember 2020-01-01 2020-06-30 0001794669 srt:ScenarioPreviouslyReportedMember 2020-06-30 0001794669 four:SpaceExplorationTechnologiesCorpMember 2021-06-30 0001794669 four:SightlinePaymentsMember 2021-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2020-01-01 2020-12-31 0001794669 four:AccountingStandardsUpdateTwentyTwentyZeroSixMember 2021-01-01 0001794669 four:AccountingStandardsUpdateTwentyTwentyZeroSixMember 2021-06-30 0001794669 us-gaap:AccountingStandardsUpdate201813Member 2021-06-30 0001794669 four:VenueNextMember 2021-03-03 2021-03-03 xbrli:pure 0001794669 four:VenueNextMember 2021-03-03 0001794669 four:VenueNextMember us-gaap:CommonClassAMember 2021-03-03 2021-03-03 0001794669 four:VenueNextMember us-gaap:RestrictedStockUnitsRSUMember 2021-03-03 2021-03-03 0001794669 four:VenueNextMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001794669 four:VenueNextMember four:ProfessionalFeesMember 2021-04-01 2021-06-30 0001794669 four:VenueNextMember four:ProfessionalFeesMember 2021-01-01 2021-06-30 0001794669 us-gaap:DevelopedTechnologyRightsMember four:VenueNextMember 2021-03-03 2021-03-03 0001794669 us-gaap:TrademarksAndTradeNamesMember four:VenueNextMember 2021-03-03 2021-03-03 0001794669 us-gaap:CustomerRelationshipsMember four:VenueNextMember 2021-03-03 2021-03-03 0001794669 four:ThreeDCartAcquisitionMember 2020-11-03 2020-11-05 0001794669 four:ThreeDCartAcquisitionMember 2020-11-05 0001794669 four:ThreeDCartAcquisitionMember us-gaap:CommonClassAMember 2020-11-03 2020-11-05 0001794669 four:HospitalityTechnologyVendorMember 2020-10-16 2020-10-16 0001794669 four:HospitalityTechnologyVendorMember 2020-10-16 0001794669 four:HospitalityTechnologyVendorMember 2021-04-01 2021-06-30 four:PerformanceObligation 0001794669 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-06-30 0001794669 four:PaymentsBasedRevenueMember 2021-04-01 2021-06-30 0001794669 four:PaymentsBasedRevenueMember 2020-04-01 2020-06-30 0001794669 four:PaymentsBasedRevenueMember 2021-01-01 2021-06-30 0001794669 four:PaymentsBasedRevenueMember 2020-01-01 2020-06-30 0001794669 four:SubscriptionAndOtherRevenuesMember 2021-04-01 2021-06-30 0001794669 four:SubscriptionAndOtherRevenuesMember 2020-04-01 2020-06-30 0001794669 four:SubscriptionAndOtherRevenuesMember 2021-01-01 2021-06-30 0001794669 four:SubscriptionAndOtherRevenuesMember 2020-01-01 2020-06-30 0001794669 us-gaap:TransferredOverTimeMember 2021-04-01 2021-06-30 0001794669 us-gaap:TransferredOverTimeMember 2020-04-01 2020-06-30 0001794669 us-gaap:TransferredOverTimeMember 2021-01-01 2021-06-30 0001794669 us-gaap:TransferredOverTimeMember 2020-01-01 2020-06-30 0001794669 us-gaap:TransferredAtPointInTimeMember 2021-04-01 2021-06-30 0001794669 us-gaap:TransferredAtPointInTimeMember 2020-04-01 2020-06-30 0001794669 us-gaap:TransferredAtPointInTimeMember 2021-01-01 2021-06-30 0001794669 us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-06-30 0001794669 four:AnnualServiceFeesAndRegulatoryComplianceFeesMember 2021-04-01 2021-06-30 0001794669 four:AnnualServiceFeesAndRegulatoryComplianceFeesMember 2020-04-01 2020-06-30 0001794669 four:AnnualServiceFeesAndRegulatoryComplianceFeesMember 2021-01-01 2021-06-30 0001794669 four:AnnualServiceFeesAndRegulatoryComplianceFeesMember 2020-01-01 2020-06-30 0001794669 four:DeferredRevenueIncludingFeesMember 2021-04-01 2021-06-30 0001794669 four:DeferredRevenueIncludingFeesMember 2020-04-01 2020-06-30 0001794669 four:DeferredRevenueIncludingFeesMember 2021-01-01 2021-06-30 0001794669 four:DeferredRevenueIncludingFeesMember 2020-01-01 2020-06-30 0001794669 us-gaap:CostOfSalesMember 2021-01-01 2021-06-30 0001794669 four:AccruedExpensesAndOtherCurrentLiabilitiesMember 2021-06-30 0001794669 four:AccruedExpensesAndOtherCurrentLiabilitiesMember 2020-12-31 0001794669 us-gaap:OtherNoncurrentLiabilitiesMember 2021-06-30 0001794669 us-gaap:OtherNoncurrentLiabilitiesMember 2020-12-31 0001794669 four:VenueNextIncMember 2021-01-01 2021-06-30 0001794669 four:HospitalityTechnologyVendorMember 2021-01-01 2021-06-30 0001794669 four:MerchantRelationshipsMember 2021-01-01 2021-06-30 0001794669 four:AcquiredTechnologyMember 2021-01-01 2021-06-30 0001794669 us-gaap:TrademarksAndTradeNamesMember 2021-01-01 2021-06-30 0001794669 four:CapitalizedSoftwareDevelopmentCostsMember 2021-01-01 2021-06-30 0001794669 four:ResidualCommissionBuyoutsMember 2021-01-01 2021-06-30 0001794669 four:MerchantRelationshipsMember 2021-06-30 0001794669 four:AcquiredTechnologyMember 2021-06-30 0001794669 us-gaap:TrademarksAndTradeNamesMember 2021-06-30 0001794669 four:CapitalizedSoftwareDevelopmentCostsMember 2021-06-30 0001794669 four:ResidualCommissionBuyoutsMember 2021-06-30 0001794669 four:MerchantRelationshipsMember 2020-01-01 2020-12-31 0001794669 four:AcquiredTechnologyMember 2020-01-01 2020-12-31 0001794669 us-gaap:TrademarksAndTradeNamesMember 2020-01-01 2020-12-31 0001794669 us-gaap:NoncompeteAgreementsMember 2020-01-01 2020-12-31 0001794669 four:CapitalizedSoftwareDevelopmentCostsMember 2020-01-01 2020-12-31 0001794669 four:LeaseholdInterestsMember 2020-01-01 2020-12-31 0001794669 four:ResidualCommissionBuyoutsMember 2020-01-01 2020-12-31 0001794669 four:MerchantRelationshipsMember 2020-12-31 0001794669 four:AcquiredTechnologyMember 2020-12-31 0001794669 us-gaap:TrademarksAndTradeNamesMember 2020-12-31 0001794669 us-gaap:NoncompeteAgreementsMember 2020-12-31 0001794669 four:CapitalizedSoftwareDevelopmentCostsMember 2020-12-31 0001794669 four:LeaseholdInterestsMember 2020-12-31 0001794669 four:ResidualCommissionBuyoutsMember 2020-12-31 0001794669 four:DepreciationAndAmortizationExpenseMember 2021-04-01 2021-06-30 0001794669 four:DepreciationAndAmortizationExpenseMember 2020-04-01 2020-06-30 0001794669 four:DepreciationAndAmortizationExpenseMember 2021-01-01 2021-06-30 0001794669 four:DepreciationAndAmortizationExpenseMember 2020-01-01 2020-06-30 0001794669 us-gaap:CostOfSalesMember 2021-04-01 2021-06-30 0001794669 us-gaap:CostOfSalesMember 2020-04-01 2020-06-30 0001794669 us-gaap:CostOfSalesMember 2020-01-01 2020-06-30 0001794669 four:EquipmentUnderLeaseMember 2021-01-01 2021-06-30 0001794669 four:EquipmentUnderLeaseMember 2021-06-30 0001794669 four:EquipmentHeldForLeaseMember 2021-06-30 0001794669 four:EquipmentUnderLeaseMember 2020-01-01 2020-12-31 0001794669 four:EquipmentUnderLeaseMember 2020-12-31 0001794669 four:EquipmentHeldForLeaseMember 2020-12-31 0001794669 us-gaap:EquipmentMember 2021-06-30 0001794669 us-gaap:EquipmentMember 2020-12-31 0001794669 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2021-06-30 0001794669 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2020-12-31 0001794669 us-gaap:LeaseholdImprovementsMember 2021-06-30 0001794669 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001794669 us-gaap:FurnitureAndFixturesMember 2021-06-30 0001794669 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001794669 us-gaap:VehiclesMember 2021-06-30 0001794669 us-gaap:VehiclesMember 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2021-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2020-12-31 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2021-06-30 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2020-12-31 0001794669 four:OtherFinancingArrangementsMember 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2021-04-01 2021-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2020-04-01 2020-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember 2020-01-01 2020-06-30 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2020-10-31 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2020-10-01 2020-10-31 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2021-01-01 2021-06-30 0001794669 srt:MaximumMember four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2020-10-01 2020-10-31 0001794669 srt:MinimumMember four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember 2020-10-01 2020-10-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:CommonClassAMember 2020-01-01 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:CommonClassAMember 2020-12-31 four:Day 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:DebtInstrumentRedemptionPeriodOneMember 2020-01-01 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:DebtInstrumentRedemptionPeriodTwoMember 2020-01-01 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember four:Shift4PaymentsLLCMember 2020-01-01 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember four:Shift4PaymentsLLCMember 2021-01-01 2021-06-30 0001794669 four:FirstLienTermLoanFacilityMember 2019-12-31 0001794669 four:FirstLienTermLoanFacilityMember 2021-01-01 2021-06-30 0001794669 four:SecondLienTermLoanFacilityMember 2019-12-31 0001794669 four:SecondLienTermLoanFacilityMember 2021-01-01 2021-06-30 0001794669 four:FirstLienTermLoanFacilityMember 2020-06-01 2020-06-30 0001794669 four:SecondLienTermLoanFacilityMember 2020-06-01 2020-06-30 0001794669 four:FirstLienTermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001794669 four:SecondLienTermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001794669 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0001794669 us-gaap:RevolvingCreditFacilityMember 2019-01-01 2019-12-31 0001794669 us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember srt:MinimumMember 2019-01-01 2019-12-31 0001794669 us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember srt:MinimumMember 2019-01-01 2019-12-31 0001794669 us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember srt:MaximumMember 2019-01-01 2019-12-31 0001794669 us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember srt:MaximumMember 2019-01-01 2019-12-31 0001794669 us-gaap:LondonInterbankOfferedRateLIBORMember us-gaap:RevolvingCreditFacilityMember 2019-01-01 2019-12-31 0001794669 us-gaap:BaseRateMember us-gaap:RevolvingCreditFacilityMember 2019-01-01 2019-12-31 0001794669 us-gaap:RevolvingCreditFacilityMember srt:MinimumMember 2019-01-01 2019-12-31 0001794669 us-gaap:RevolvingCreditFacilityMember srt:MaximumMember 2019-01-01 2019-12-31 0001794669 us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-03-31 0001794669 us-gaap:RevolvingCreditFacilityMember 2020-06-01 2020-06-30 0001794669 us-gaap:RevolvingCreditFacilityMember 2020-12-31 0001794669 us-gaap:StandbyLettersOfCreditMember 2020-12-31 0001794669 us-gaap:RevolvingCreditFacilityMember four:FirstLienCreditAgreementMember 2021-01-29 0001794669 us-gaap:LetterOfCreditMember four:FirstLienCreditAgreementMember 2021-01-29 0001794669 four:FirstLienCreditAgreementMember 2021-04-01 2021-06-30 0001794669 four:FirstLienCreditAgreementMember 2021-01-01 2021-06-30 0001794669 us-gaap:RevolvingCreditFacilityMember four:FirstLienCreditAgreementMember 2021-01-29 2021-01-29 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember srt:MinimumMember four:FirstLienCreditAgreementMember 2021-01-29 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember four:FirstLienCreditAgreementMember 2021-01-29 2021-01-29 0001794669 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-29 2021-01-29 0001794669 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember 2021-01-29 2021-01-29 0001794669 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-29 2021-01-29 0001794669 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:BaseRateMember 2021-01-29 2021-01-29 0001794669 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember four:FederalFundsRateMember 2021-01-29 2021-01-29 0001794669 us-gaap:RevolvingCreditFacilityMember four:LondonInterbankOfferedRateAndAlternateBaseRateMember 2021-01-29 2021-01-29 0001794669 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2021-01-29 2021-01-29 0001794669 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember 2021-01-29 2021-01-29 0001794669 us-gaap:RevolvingCreditFacilityMember 2021-01-29 2021-01-29 0001794669 us-gaap:RevolvingCreditFacilityMember 2021-06-30 0001794669 us-gaap:StandbyLettersOfCreditMember 2021-06-30 0001794669 us-gaap:CommonClassAMember us-gaap:IPOMember 2021-01-01 2021-06-30 0001794669 us-gaap:FairValueInputsLevel3Member 2019-12-31 0001794669 us-gaap:FairValueInputsLevel3Member 2020-01-01 2020-06-30 0001794669 us-gaap:FairValueInputsLevel3Member four:EarnoutPaymentsMember 2021-01-01 2021-06-30 0001794669 us-gaap:FairValueInputsLevel3Member four:EarnoutPaymentsMember 2020-01-01 2020-06-30 0001794669 us-gaap:FairValueInputsLevel3Member four:ChangeOfControlMember us-gaap:CommonClassAMember us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001794669 us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-06-30 0001794669 us-gaap:FairValueInputsLevel3Member 2020-06-30 0001794669 us-gaap:OtherNoncurrentLiabilitiesMember 2019-12-31 0001794669 us-gaap:OtherNoncurrentLiabilitiesMember 2020-06-30 0001794669 us-gaap:FairValueInputsLevel3Member us-gaap:RestrictedStockUnitsRSUMember us-gaap:IPOMember 2020-01-01 2020-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-06-30 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-06-30 0001794669 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-06-30 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-06-30 0001794669 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-06-30 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0001794669 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-12-31 0001794669 four:ConvertibleNotesDueTwoThousandTwentyFiveMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-12-31 0001794669 four:FourPointSixTwoFiveSeniorNotesDueTwoThousandTwentySixMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-12-31 0001794669 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-12-31 0001794669 2021-07-01 us-gaap:SoftwareServiceSupportAndMaintenanceArrangementMember 2021-06-30 0001794669 four:FounderMember four:AircraftServiceMember 2021-01-01 2021-06-30 0001794669 four:FounderMember four:AircraftServiceMember four:AccruedExpenseAndOtherCurrentLiabilitiesMember 2021-06-30 0001794669 four:FounderMember four:AircraftServiceMember four:AccruedExpenseAndOtherCurrentLiabilitiesMember 2020-12-31 0001794669 us-gaap:GeneralAndAdministrativeExpenseMember four:FounderMember four:AircraftServiceMember 2021-01-01 2021-06-30 0001794669 us-gaap:GeneralAndAdministrativeExpenseMember four:FounderMember four:AircraftServiceMember 2021-04-01 2021-06-30 0001794669 us-gaap:GeneralAndAdministrativeExpenseMember four:FounderMember four:AircraftServiceMember 2020-01-01 2020-06-30 0001794669 us-gaap:GeneralAndAdministrativeExpenseMember four:FounderMember four:AircraftServiceMember 2020-04-01 2020-06-30 0001794669 four:ProfessionalFeesMember 2020-04-01 2020-06-30 0001794669 four:ProfessionalFeesMember 2020-01-01 2020-06-30 0001794669 us-gaap:AccountsReceivableMember four:FollowOnOfferingMember 2020-01-01 2020-09-30 0001794669 us-gaap:AccountsReceivableMember four:FollowOnOfferingMember 2020-01-01 2020-12-31 0001794669 2021-02-28 0001794669 four:SeptemberTwentyTwentyMarginLoanMember 2021-01-01 2021-06-30 0001794669 four:CommonClassAAndClassBMember four:RookHoldingsIncorporationMember four:MarginLoanAgreementMember srt:MaximumMember 2021-03-31 0001794669 four:MarchTwentyTwentyOneMarginLoanMember 2021-01-01 2021-06-30 0001794669 us-gaap:CommonClassAMember four:VariablePrepaidForwardContractMember 2021-03-01 2021-03-31 0001794669 four:VariablePrepaidForwardContractMember 2021-03-31 0001794669 us-gaap:CommonClassBMember four:VariablePrepaidForwardContractMember srt:MaximumMember 2021-03-31 0001794669 four:NonconvertibleRedeemablePreferredUnitsMember 2021-01-01 2021-06-30 0001794669 four:NonconvertibleRedeemablePreferredUnitsMember 2020-04-01 2020-06-30 0001794669 four:NonconvertibleRedeemablePreferredUnitsMember 2020-01-01 2020-06-30 0001794669 four:CommonClassAUnitsMember four:SearchlightCapitalPartnersLimitedPartnershipMember 2021-06-30 0001794669 four:CommonClassAUnitsMember four:RookHoldingsIncorporationMember 2021-06-30 0001794669 four:FormerEquityOwnerMember four:CommonClassBUnitsMember 2021-06-30 0001794669 us-gaap:PreferredStockMember 2021-06-30 0001794669 us-gaap:CommonClassBMember 2021-01-01 2021-06-30 0001794669 four:Shift4PaymentsIncMember 2020-12-31 0001794669 four:RookAndSearchlightMember 2020-12-31 0001794669 four:Shift4PaymentsIncMember 2021-01-01 2021-06-30 0001794669 four:RookAndSearchlightMember 2021-01-01 2021-06-30 0001794669 four:Shift4PaymentsIncMember 2021-06-30 0001794669 four:RookAndSearchlightMember 2021-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember 2020-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember 2020-06-01 2020-06-30 0001794669 us-gaap:RestrictedStockUnitsRSUMember 2020-12-31 0001794669 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001794669 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember four:RestrictedStockUnitsNotSubjectToContinuedServiceMember 2021-01-01 2021-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember four:RestrictedStockUnitsInConnectionWithVenueNextAcquisitionVestingAtAnniversaryDatesMember 2021-01-01 2021-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember four:RestrictedStockUnitsInConnectionWithVenueNextAcquisitionVestingAtAnniversaryDatesMember srt:MinimumMember 2021-01-01 2021-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember four:RestrictedStockUnitsInConnectionWithVenueNextAcquisitionVestingAtAnniversaryDatesMember srt:MaximumMember 2021-01-01 2021-06-30 0001794669 four:TwoThousandTwentyIncentiveAwardPlanMember us-gaap:IPOMember four:RestrictedStockUnitsAndPerformanceBasedRestrictedStockUnitsSubjectToContinuedServiceMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember four:CommonClassAUnitsMember 2021-01-01 2021-06-30 0001794669 four:RestrictedStockUnitsAndPerformanceBasedRestrictedStockUnitsMember 2021-06-30 0001794669 four:RestrictedStockUnitsAndPerformanceBasedRestrictedStockUnitsMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassAMember four:LimitedLiabilityCompanyInterestsMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassAMember us-gaap:RestrictedStockUnitsRSUMember 2021-04-01 2021-06-30 0001794669 us-gaap:CommonClassAMember us-gaap:ConvertibleDebtSecuritiesMember 2021-04-01 2021-06-30 0001794669 four:LLCInterestsConvertIntoPotentialClassACommonSharesMember 2021-01-01 2021-06-30 0001794669 four:LLCInterestsConvertIntoPotentialClassACommonSharesMember 2020-06-05 2020-06-30 0001794669 four:RestrictedStockUnitsAndPerformanceBasedRestrictedStockUnitsMember 2021-01-01 2021-06-30 0001794669 four:RestrictedStockUnitsAndPerformanceBasedRestrictedStockUnitsMember 2020-06-05 2020-06-30 0001794669 us-gaap:RestrictedStockUnitsRSUMember four:NonEmployeeDirectorMember 2021-01-01 2021-06-30 0001794669 us-gaap:RestrictedStockUnitsRSUMember four:NonEmployeeDirectorMember 2020-06-05 2020-06-30 four:segment 0001794669 four:ConvertibleNotesOfferingMember four:TwoThousandAndTwentySevenConvertibleNotesMember us-gaap:SubsequentEventMember 2021-07-26 0001794669 four:ConvertibleNotesOfferingMember four:TwoThousandAndTwentySevenConvertibleNotesMember us-gaap:SubsequentEventMember 2021-07-26 2021-07-26

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from       to       .

Commission file number 001-39313

 

 

SHIFT4 PAYMENTS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

 

 

84-3676340

(State or other jurisdiction of incorporation or organization)

 

 

(I.R.S. Employer Identification No.)

2202 N. Irving Street

Allentown, Pennsylvania

 

 

18109

(Address of principal executive offices)

 

 

(Zip Code)

 

(Registrant’s telephone number, including area code): (888) 276-2108

 

N/A

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.0001 par value per share

FOUR

The New York Stock Exchange

 

 Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes    No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No

As of August 2, 2021, there were 47,233,491 shares of the registrant’s Class A common stock, $0.0001 par value per share, outstanding, 28,240,404 shares of the registrant’s Class B common stock, $0.0001 par value per share, outstanding and 7,422,140 shares of the registrant’s Class C common stock, $0.0001 par value per share, outstanding.

 

 

 


 

 

SHIFT4 PAYMENTS, INC.

TABLE OF CONTENTS

 

 

PART I. FINANCIAL INFORMATION

 

 

Item 1

Financial Statements (unaudited)

 

4

 

Condensed Consolidated Balance Sheets

 

4

 

Condensed Consolidated Statements of Operations

 

5

 

Condensed Consolidated Statements of Changes in Redeemable Preferred Units and Stockholders’ Equity/Members’ (Deficit)

 

6

 

Condensed Consolidated Statements of Cash Flows

 

8

 

Notes to Condensed Consolidated Financial Statements

 

9

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

29

Item 3

Quantitative and Qualitative Disclosures About Market Risk

 

43

Item 4

Controls and Procedures

 

43

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

Item 1

Legal Proceedings

 

44

Item 1A

Risk Factors

 

44

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

 

44

Item 3

Defaults Upon Senior Securities

 

44

Item 4

Mine Safety Disclosures

 

44

Item 5

Other Information

 

44

Item 6

Exhibits

 

45

Signatures

 

 

46

 

 

2


Table of Contents

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report, including statements relating to our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected growth, future capital expenditures and debt service obligations, the anticipated impact of the COVID-19 pandemic (and any variants of the virus) on our business, and our expectations regarding our filer status as of December 31, 2021 are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

 

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential”, or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to the following:

 

 

the ongoing impact of the COVID-19 global pandemic on our business and results of operations;

 

substantial and increasingly intense competition worldwide in the financial services, payments and payment technology industries;

 

potential changes in the competitive landscape, including disintermediation from other participants in the payments chain;

 

our ability to anticipate and respond to changing industry trends and the needs and preferences of our merchants and consumers;

 

our reliance on third-party vendors to provide products and services;

 

risks associated with acquisitions;

 

our expansion of our share of the existing payment processing markets or into new markets;

 

integration and interoperability of our services and products with a variety of operating systems, software, device and web browsers;

 

dependence on our merchant and software partner relationships and strategic partnerships with various institutions to operate and grow our business;

 

impairment of significant amounts of goodwill and intangible assets on our balance sheet;

 

failure to comply with the U.S. Foreign Corrupt Practices Act, anti-money laundering, economic and trade sanctions regulations, and similar laws;

 

our dependence on our interest in Shift4 Payments, LLC to pay our taxes and expenses, including payments under the Tax Receivable Agreement (“TRA”);

 

Shift4 Payments, LLC’s ability to make such distributions may be subject to various limitations and restrictions;

 

our Founder and Searchlight (each as defined herein) have significant influence over us, including control over decisions that require the approval of stockholders; and

 

those factors described in the sections titled “Risk Factors and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2020 and the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q.

 

Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

 

You should read this Quarterly Report and the documents that we reference in this Quarterly Report completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

 

3


Table of Contents

 

 

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

 

SHIFT4 PAYMENTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) (in millions, except share and per share amounts)

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

699.7

 

 

$

927.8

 

Accounts receivable, net of allowance for doubtful accounts of $12.8 in 2021 ($5.7 in 2020) (Note 3)

 

 

177.2

 

 

 

92.7

 

Inventory

 

 

1.6

 

 

 

1.5

 

Prepaid expenses and other current assets (Note 11)

 

 

14.8

 

 

 

11.5

 

Total current assets

 

 

893.3

 

 

 

1,033.5

 

Noncurrent assets

 

 

 

 

 

 

 

 

Goodwill (Note 5)

 

 

525.2

 

 

 

477.0

 

Other intangible assets, net (Note 6)

 

 

185.1

 

 

 

186.3

 

Capitalized acquisition costs, net (Note 7)

 

 

32.8

 

 

 

30.2

 

Equipment for lease, net (Note 8)

 

 

47.2

 

 

 

36.6

 

Property, plant and equipment, net (Note 9)

 

 

17.5

 

 

 

15.1

 

Investments in securities (Note 1)

 

 

29.5

 

 

 

 

Other noncurrent assets

 

 

0.5

 

 

 

0.6

 

Total noncurrent assets

 

 

837.8

 

 

 

745.8

 

Total assets

 

$

1,731.1

 

 

$

1,779.3

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Current portion of debt (Note 10)

 

$

 

 

$

0.9

 

Accounts payable

 

 

116.4

 

 

 

60.6

 

Accrued expenses and other current liabilities (Note 11)

 

 

36.2

 

 

 

30.1

 

Deferred revenue (Note 3)

 

 

12.0

 

 

 

7.8

 

Total current liabilities

 

 

164.6

 

 

 

99.4

 

Noncurrent liabilities

 

 

 

 

 

 

 

 

Long-term debt (Note 10)

 

 

1,117.6

 

 

 

1,005.4

 

Deferred tax liability (Note 13)

 

 

0.6

 

 

 

2.8

 

Other noncurrent liabilities (Note 4)

 

 

2.1

 

 

 

1.7

 

Total noncurrent liabilities

 

 

1,120.3

 

 

 

1,009.9

 

Total liabilities

 

 

1,284.9

 

 

 

1,109.3

 

Commitments and contingencies (Note 16)

 

 

 

 

 

 

 

 

Stockholders' equity (Note 18)

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 20,000,000 shares authorized at June 30, 2021 and December 31, 2020, none issued and outstanding

 

 

 

 

 

 

Class A common stock, $0.0001 par value per share, 300,000,000 shares authorized, 47,215,604 and 39,737,950 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Class B common stock, $0.0001 par value per share, 100,000,000 shares authorized, 28,240,404 and 30,625,857 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Class C common stock, $0.0001 par value per share, 100,000,000 shares authorized, 7,422,140 and 10,188,852 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

601.3

 

 

 

738.3

 

Retained deficit

 

 

(306.7

)

 

 

(278.7

)

Total stockholders' equity attributable to Shift4 Payments, Inc.

 

 

294.6

 

 

 

459.6

 

Noncontrolling interests (Note 19)

 

 

151.6

 

 

 

210.4

 

Total stockholders' equity

 

 

446.2

 

 

 

670.0

 

Total liabilities and stockholders' equity

 

$

1,731.1

 

 

$

1,779.3

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

4


Table of Contents

 

 

SHIFT4 PAYMENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) (in millions, except share and per share amounts)

 

 

 

Three months ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gross revenue

 

$

351.0

 

 

$

141.8

 

 

$

590.3

 

 

$

341.2

 

Cost of sales

 

 

272.9

 

 

 

110.2

 

 

 

460.4

 

 

 

266.2

 

Gross profit

 

 

78.1

 

 

 

31.6

 

 

 

129.9

 

 

 

75.0

 

General and administrative expenses

 

 

51.7

 

 

 

88.3

 

 

 

105.2

 

 

 

109.4

 

Depreciation and amortization expense

 

 

15.5

 

 

 

10.4

 

 

 

30.9

 

 

 

20.9

 

Professional fees

 

 

3.5

 

 

 

1.2

 

 

 

9.7

 

 

 

2.9

 

Advertising and marketing expenses

 

 

2.5

 

 

 

0.8

 

 

 

22.6

 

 

 

2.1

 

Restructuring expenses (Note 4)

 

 

 

 

 

0.1

 

 

 

0.1

 

 

 

0.3

 

Other operating (income) expense, net (Note 3)

 

 

 

 

 

(12.4

)

 

 

 

 

 

(12.4

)

Total operating expenses

 

 

73.2

 

 

 

88.4

 

 

 

168.5

 

 

 

123.2

 

Income (loss) from operations

 

 

4.9

 

 

 

(56.8

)

 

 

(38.6

)

 

 

(48.2

)

Loss on extinguishment of debt (Note 10)

 

 

 

 

 

(7.1

)

 

 

(0.2

)

 

 

(7.1

)

Other income, net

 

 

 

 

 

0.2

 

 

 

 

 

 

0.1

 

Interest expense

 

 

(6.3

)

 

 

(11.7

)

 

 

(12.8

)

 

 

(25.0

)

Loss before income taxes

 

 

(1.4

)

 

 

(75.4

)

 

 

(51.6

)

 

 

(80.2

)

Income tax benefit (Note 13)

 

 

5.9

 

 

 

0.6

 

 

 

5.1

 

 

 

0.3

 

Net income (loss) (a)

 

 

4.5

 

 

 

(74.8

)

 

 

(46.5

)

 

 

(79.9

)

Net income (loss) attributable to noncontrolling interests (b)

 

 

1.3

 

 

 

(73.8

)

 

 

(16.9

)

 

 

(78.9

)

Net income (loss) attributable to Shift4 Payments, Inc. (c)

 

$

3.2

 

 

$

(1.0

)

 

$

(29.6

)

 

$

(1.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A basic net income (loss) per share

 

$

0.06

 

 

$

(0.03

)

 

$

(0.56

)

 

$

(0.03

)

Basic weighted average common stock outstanding

 

 

46,297,553

 

 

 

19,002,563

 

 

 

44,492,680

 

 

 

19,002,563

 

Class C basic net income (loss) per share

 

$

0.06

 

 

$

(0.03

)

 

$

(0.56

)

 

$

(0.03

)

Basic weighted average common stock outstanding

 

 

8,151,747

 

 

 

20,139,163

 

 

 

9,075,667

 

 

 

20,139,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share: (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A diluted net income (loss) per share

 

$

0.05

 

 

$

(0.03

)

 

$

(0.56

)

 

$

(0.03

)

Diluted weighted average common stock outstanding

 

 

76,995,332

 

 

 

19,002,563

 

 

 

44,492,680

 

 

 

19,002,563

 

Class C diluted net income (loss) per share

 

$

0.05

 

 

$

(0.03

)

 

$

(0.56

)

 

$

(0.03

)

Diluted weighted average common stock outstanding

 

 

8,151,747

 

 

 

20,139,163

 

 

 

9,075,667

 

 

 

20,139,163

 

 

(a)

Net income (loss) is equal to comprehensive income (loss).

(b)

Net income (loss) attributable to noncontrolling interests is equal to comprehensive income (loss) attributable to noncontrolling interests, including the net loss for the period January 1, 2020 through June 4, 2020, the date the SEC declared effective the Company’s Registration Statement on Form S-1 filed in connection with its IPO. See Note 1 for more information.

(c)

Net income (loss) attributable to Shift4 Payments, Inc. is equal to comprehensive income (loss) attributable to Shift4 Payments, Inc.

(d)

For the three and six months ended June 30, 2020, represents basic and diluted net loss per share of Class A and Class C common stock and weighted average shares of Class A and Class C common stock outstanding for the period from June 5, 2020 through June 30, 2020, the period following the Reorganization Transactions and Shift4 Payments, Inc.'s initial public offering described in Note 1. See Note 21 for additional information on basic and diluted net income (loss) per share.

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

5


Table of Contents

 

 

SHIFT4 PAYMENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS’ EQUITY/ MEMBERS’ (DEFICIT)  

(Unaudited) (in millions, except units and shares)

 

 

 

Class A

Common Stock

 

 

 

Class B

Common Stock

 

 

Class C

Common Stock

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

paid-in

capital

 

 

Retained

Deficit

 

 

Noncontrolling

Interests

 

 

Total

equity

 

Balances at December 31, 2020

 

 

39,737,950

 

 

$

 

 

 

 

30,625,857

 

 

$

 

 

 

10,188,852

 

 

$

 

 

$

738.3

 

 

$

(278.7

)

 

$

210.4

 

 

$

670.0

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(32.8

)

 

 

(18.2

)

 

 

(51.0

)

Cumulative effect of ASU 2020-06 adoption

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(111.5

)

 

 

1.6

 

 

 

 

 

 

(109.9

)

Issuance of Class A common stock and fair value of equity-based compensation awards assumed in connection with VenueNext acquisition

 

 

325,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.5

 

 

 

 

 

 

12.8

 

 

 

26.3

 

Transfer from Founder of right associated with Inspiration4 seat

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.3

 

 

 

 

 

 

0.8

 

 

 

2.1

 

Exchange of shares held by Searchlight

 

 

2,000,000

 

 

 

 

 

 

 

(926,000

)

 

 

 

 

 

(1,074,000

)

 

 

 

 

 

6.3

 

 

 

 

 

 

(6.3

)

 

 

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14.0

 

 

 

 

 

 

 

 

 

14.0

 

Vesting of restricted stock units, net of tax withholding

 

 

46,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.4

)

 

 

 

 

 

(1.0

)

 

 

(2.4

)

Balances at March 31, 2021

 

 

42,109,580

 

 

$

 

 

 

 

29,699,857

 

 

$

 

 

 

9,114,852

 

 

$

 

 

$

660.5

 

 

$

(309.9

)

 

$

198.5

 

 

$

549.1

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.2

 

 

 

1.3

 

 

 

4.5

 

Exchange of shares held by Searchlight

 

 

3,152,165

 

 

 

 

 

 

 

(1,459,453

)

 

 

 

 

 

(1,692,712

)

 

 

 

 

 

7.9

 

 

 

 

 

 

(7.9

)

 

 

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.6

 

 

 

 

 

 

 

 

 

6.6

 

Vesting of restricted stock units, net of tax withholding

 

 

1,953,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(73.7

)

 

 

 

 

 

(40.3

)

 

 

(114.0

)

Balances at June 30, 2021

 

 

47,215,604

 

 

$

 

 

 

 

28,240,404

 

 

$

 

 

 

7,422,140

 

 

$

 

 

$

601.3

 

 

$

(306.7

)

 

$

151.6

 

 

$

446.2

 

 

 

 

6


Table of Contents

 

 

SHIFT4 PAYMENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS’ EQUITY/ MEMBERS’ (DEFICIT) (continued)  

(Unaudited) (in millions, except units and shares)

 

 

 

Redeemable

Preferred Units

 

 

 

Class A

Common Units

 

Class B

Common Units

 

Class A

Common Stock