Shift4 Payments (Shift4 Payments) Gross Margin % : 27.67% (As of Dec. 2023)

View and export this data going back to 2020. Start your Free Trial

What is Shift4 Payments Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shift4 Payments's Gross Profit for the three months ended in Dec. 2023 was $195 Mil. Shift4 Payments's Revenue for the three months ended in Dec. 2023 was $705 Mil. Therefore, Shift4 Payments's Gross Margin % for the quarter that ended in Dec. 2023 was 27.67%.

The historical rank and industry rank for Shift4 Payments's Gross Margin % or its related term are showing as below:

FOUR' s Gross Margin % Range Over the Past 10 Years
Min: 20.36 Med: 23.65 Max: 26.82
Current: 26.82

During the past 6 years, the highest Gross Margin % of Shift4 Payments was 26.82%. The lowest was 20.36%. And the median was 23.65%.

FOUR's Gross Margin % is ranked worse than
69.86% of 2628 companies
in the Software industry
Industry Median: 41.685 vs FOUR: 26.82

Shift4 Payments had a gross margin of 27.67% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shift4 Payments was 0.50% per year.

Shift4 Payments Gross Margin % Historical Data

The historical data trend for Shift4 Payments's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shift4 Payments Gross Margin % Chart

Shift4 Payments Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

23.71

23.18

20.36

23.59

26.82

Shift4 Payments Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															26.80	26.58	26.20	26.70	27.67

Competitive Comparison of Shift4 Payments's Gross Margin %

For the Software - Infrastructure subindustry, Shift4 Payments's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Shift4 Payments's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Shift4 Payments's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shift4 Payments's Gross Margin % falls into.

Shift4 Payments Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Shift4 Payments's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	687.8	/	2564.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2564.8 - 1877)	/	2564.8
	=	26.82 %

Shift4 Payments's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	195.2	/	705.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(705.4 - 510.2)	/	705.4
	=	27.67 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Shift4 Payments (NYSE:FOUR) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Shift4 Payments had a gross margin of 27.67% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Shift4 Payments Gross Margin % Related Terms

Thank you for viewing the detailed overview of Shift4 Payments's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Shift4 Payments (Shift4 Payments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Shift4 Payments Inc (NYSE:FOUR) » Definitions » Gross Margin %

Comparable Companies

MQ RPD PAGS DAVA APPN ACIW EVTC STNE PAYO FLYW MSFT ORCL ADBE PANW SNPS VMW FTNT CRWD PLTR SPLK

Traded in Other Exchanges

FOUR:Mexico

Address

2202 North Irving Street, Allentown, PA, USA, 18109

Website

https://www.shift4.com

Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The Shift4 Model is built to serve a range of merchants from small-to-medium-sized businesses to large and complex enterprises across numerous verticals, including lodging, leisure, and food and beverage.

Executives

Sarah Goldsmith-grover	director	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Nancy Disman	director	57 ROUND TREE DRIVE, MELVILLE NY 11747
David Taylor Lauber	officer: Chief Strategy Officer	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Jordan Frankel	officer: GC & Corporate Secretary	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sam Bakhshandehpour	director	THE NEW HOME COMPANY, 95 ENTERPRISE, SUITE 325, ALISO VIEJO CA 92656
Jared Isaacman	director, 10 percent owner, officer: Chairman & CEO	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Karen Roter Davis	director	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING ST, ALLENTOWN PA 18109
Searchlight Capital Partners Ii Gp, Llc	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Bradley Herring	officer: CFO	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 16109
Searchlight Ii Gwn Gp, Llc	10 percent owner	C/O SEARCHLIGHT CAPITAL PARTNERS, L.P.., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Donald Isaacman	director	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Ii Gwn, L.p.	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Kevin J. Cronic	officer: Chief System Architect	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Capital Ii Pv, L.p.	10 percent owner	C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Steven M. Sommers	officer: Chief Application Architect	C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109