Shift4 Payments' founder and chief executive signaled that its days as a public company may be nearing an end in a letter to shareholders on Wednesday. FOUR stock popped on the news, though its third quarter revenue missed estimates.
The digital payments processor reported third quarter earnings early Wednesday.
"We are actively exploring strategic opportunities and alternatives that will reduce distractions and serve our company, employees and shareholders best," said founder and CEO Jared Isaacman in a letter to shareholders.
Isaacman controls more than 80% of Shift4's voting power and roughly a third of the company. Shift4 went public in June 2020. Analysts have speculated from time to time about Isaacman taking the company private.
On the stock market today, Shift4 stock popped 13.9% to close at 54,27.
Shift4 Stock: Tough Times For Fintechs
"I will acknowledge the market has not been kind to many in the fintech universe," Isaacman added. "At times it does feel like we are running hard and performing well, but the crowd cheering for us to trip and fall is louder than those rooting for our success."
Shift4 recently closed the $575 million acquisition of Finaro. It's a Pan-European e-commerce platform. It also purchased Appetize for $100 million.
"I believe we are one of the best capital allocators in the industry, despite understandable skepticism regarding M&A in general," Isaacman said. "Our track record is really unmatched over the last decade. We owe our investors transparency on why the deals we do make sense and will have incredible returns. But the days of apologizing for being good at M&A are over."
FOUR Stock: Expansion From Hotels, Restaurants
Allentown, Pa.-based Shift4 garners most of its revenue from customers in the hotel and restaurant industries as well as casinos. Shift4 has expanded into sports stadiums, airlines and charities, as well as food and beverage companies.
Meanwhile, Q3 adjusted profit rose 86% to 82 cents. That topped consensus estimates of 67 cents. Revenue climbed 23% to $675.4 million, missing Visible Alpha estimates by 4%.
Including Wednesday's gain, FOUR stock has shed 7% in 2023.
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