Spyglass Investment Strategy Overview
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New Position: Shift4 Payments, Inc. (FOUR)
SHIFT④
Shift4 Meets Spyglass's Seven Core Investment Criteria
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Leadership position in secular growth industry
→ Shift4 is a leading provider of end-to-end payment solutions with market share across hotels, restaurants, and
stadiums
Results-oriented, entrepreneurial management team with long-term focus and proven track record
→ Shift4 is led by its CEO and Founder, Jared Isaacman, who started the business at the age of 16
→ Jared is the Company's largest shareholder and owns more than 30% of the shares outstanding
Sustainable competitive advantage
→ By integrating with a large variety of software solutions, Shift4 is able to position itself as the payment solution of
choice for complex merchant environments
Above-average long-term revenue growth
Net revenue grew from $253 million in 2018 to $728 million in 2022
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Above-average long-term earnings growth
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Adjusted EBITDA margins are over 40% and margins continue to move higher
Financially sound
Shift4 has $705 million in cash on its balance sheet and $1.7 billion of debt with an average cost of debt of 1.35%
→ Shift4 is FCF positive
Attractive valuation
→ Spyglass Base Case model suggests the potential for a 20% or greater annual return over the next five years
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