Allentown, Pa.-based payment processing company, Shift4 Payments Inc, sees a surge in their stock after their initial public offering
Shift4 is a payment processor for the hospitality industry that has become the toast of investors in recent times. The company handles the processing of payments for organizations in the hospitality industry. The categories of clients include hotels, resorts, restaurants, and other leisure-related businesses that were thought to be among the most vulnerable due to COVID-19 pandemic that led to lockdown restrictions and significant drop in travel demand.
Chief Executive Jared Isaacman told MarketWatch that the company had a “pretty good view” of the beginning of the economic recovery based on its payment data. This informed the decision to proceed with the offering.
“We weren’t surprised at all when we saw the jobs report,” he said of Friday’s numbers, which showed a surprise increase in payrolls. “That coincides with what we saw in our data for the better part of two months now.”
Shift4 has carved a niche for itself, serving businesses with unique payment-processing needsin the leisure market. Many of the company’s customers use multiple types of commerce software for their various arms, with Shift4 connecting payment-processing services to this software. The company is also in charge of online reservations for Hilton Worldwide Holdings Inc. and several businesses along the Las Vegas Strip. The company also serves smaller restaurants, helping some of them to adjust to the new realities of curbside pickup.
The company generated more than $731 million in total revenue for the fiscal year that ended in December, an amazing increase from the $560 million generated a year earlier. It also saw losses widen to $58.1 million from $49.9 million a year prior.
The majority of the company’s revenue comes from fees paid by merchants, namely including a processing fee that represents a percentage of volume. The company also generates subscription-based revenue from licenced subscriptions to its software and other technology solutions.
“Our revenue is recurring in nature because of the mission-critical and embedded nature of the solutions we provide, the high switching costs associated with these solutions and the multi-year contracts we have with our customers,” the company said in its prospectus.
The Allentown, Pa.-based company was founded in 1999 and according to Isaacman, it was the first company given the chance to ring the bell at the New York Stock Exchange after the physical trading floor had been temporarily shut down due to the pandemic.
For more business and financial news and the services offered by Ye Long Investment, please visit – https://yelonginvestment.com.
About Ye Long Investment
Ye Long Investment is an innovative professional financial services firm formed in September 2002. Headquartered in Hong Kong, the company specialises in holistic and individually tailored client-centred care for all of an individual’s financial needs, enriching the business ventures and personal lives of all clients by appropriately positioning and protecting what they have today, planning for what they want in their future, and preparing the path by which they will reach their goals.
Media Contact
Company Name: Ye Long Investment
Contact Person: Mr. Paul Wilkins
Email: Send Email
Phone: +85258199857
Address:Nexxus Building, 41 Connaught Rd Central
Country: HongKong
Website: https://yelonginvestment.com