Shift4 Payments Inc (FOUR) 2022 Q1 法說會逐字稿

Hello, everyone, and welcome to the Shift4 First Quarter 2022 Earnings Call. My name is Charlie and I will be the coordinator for today's call. (Operator Instructions)

大家好，歡迎來到 Shift4 2022 年第一季度財報電話會議。我叫查理，我將擔任今天電話會議的協調員。 （操作員說明）

I'll now hand over to your host, Thomas McCrohan, EVP of Strategy and Investor Relations to begin. Thomas, please go ahead.

我現在將交給您的主持人，戰略和投資者關係執行副總裁 Thomas McCrohan 開始。托馬斯，請繼續。

Hi, good morning, everyone. And thank you, operator. I'd like to welcome everyone to Shift4's earnings conference call for the first quarter ended March 31, 2022.

嗨，大家早上好。謝謝你，接線員。歡迎大家參加 Shift4 截至 2022 年 3 月 31 日的第一季度收益電話會議。

Before we begin, I'd like to remind everyone that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including: Statements regarding management's plans, strategy, goals and objectives; the expected impact of COVID-19 on our business and industry, including with respect to economic recovery, increases in vaccination rates, the reopening of the country and any volume recovery by us; gateway penetration and spend seen by our gateway merchants expectations regarding new customers; acquisitions and other transactions including Finaro and The Giving Block and their anticipated financial performance, including our financial outlook for the year ended December 31, 2022; and the anticipated impact of each of the Finaro and The Giving Block acquisitions on our adjusted EBITDA and end-to-end payment volume for the year ended December 31, 2023.

在我們開始之前，我想提醒大家，本次電話會議將包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。本次電話會議上做出的所有與歷史事實無關的陳述都應該是考慮的前瞻性陳述，包括： 關於管理層的計劃、戰略、目標和目標的陳述； COVID-19 對我們企業和行業的預期影響，包括經濟復甦、疫苗接種率提高、國家重新開放以及我們的任何產量恢復；我們的網關商家對新客戶的期望所見的網關滲透率和支出；收購和其他交易，包括 Finaro 和 The Giving Block 及其預期財務業績，包括我們截至 2022 年 12 月 31 日止年度的財務展望；以及 Finaro 和 The Giving Block 收購對我們截至 2023 年 12 月 31 日止年度的調整後 EBITDA 和端到端支付量的預期影響。

These statements are neither promises nor guarantees, but 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 factors discussed in the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2021, and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made on this call. Any such forward-looking statements represent management's estimates as of the date of this call.

這些陳述既不是承諾也不是保證，而是涉及已知和未知的風險、不確定性和其他可能導致我們的實際結果、業績或成就與任何未來結果存在重大差異的重要因素。我們截至 2021 年 12 月 31 日止年度的 10-K 表格年度報告的風險因素部分中討論的前瞻性陳述因素所表達或暗示的業績或成就，以及我們向美國證券交易委員會提交的其他文件可能導致實際結果與本次電話會議上所做的前瞻性陳述所表明的結果存在重大差異。任何此類前瞻性陳述均代表管理層截至本次電話會議之日的估計。

While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so if and if subsequent events cause our views to change. In addition, we may also reference certain non-GAAP measures on this call, including adjusted EBITDA, free cash flow and adjusted free cash flow, which are reconciled to the nearest GAAP measure in the company's earnings release, which can be found on our Investor Relations website at investors.shift4.com.

雖然我們可能會選擇在未來的某個時候更新此類前瞻性陳述，但如果後續事件導致我們的觀點發生變化，我們不承擔任何這樣做的義務。此外，我們還可能在本次電話會議上參考某些非 GAAP 指標，包括調整後的 EBITDA、自由現金流和調整後的自由現金流，這些指標與公司收益發布中最接近的 GAAP 指標相一致，可以在我們的投資者網站上找到關係網站 investors.shift4.com。

And with that, let me turn the call over to our Chief Executive Officer, Jared Isaacman.

說到這裡，讓我把電話轉給我們的首席執行官賈里德·艾薩克曼 (Jared Isaacman)。

Thanks, Tom, and good morning, everyone. We got a lot to talk about today, so let's begin.

謝謝，湯姆，大家早上好。今天我們有很多話要說，所以讓我們開始吧。

We reported reasonably strong first quarter results this morning, including nearly 70% year-over-year and then volume growth, and a corresponding growth of 53% in our gross revenue less network fees, driven primarily by continued share gains in our high-growth core. As we discussed in early March, when reporting our 2021 year-end results, the Omicron variant began to impact our volumes in December of last year and really continued to do so into 2022. By the end of February of this year, Omicron appeared to be behind us, and we once again began hitting new record levels of weekly end-to-end volumes.

我們今天上午公佈了相當強勁的第一季度業績，包括同比增長近 70%，然後是銷量增長，我們的總收入減去網絡費用後相應增長了 53%，這主要是由於我們的高增長市場份額持續增長核。正如我們在 3 月初討論的那樣，在報告我們 2021 年年底的結果時，Omicron 變體從去年 12 月開始影響我們的銷量，並且確實持續到 2022 年。到今年 2 月底，Omicron 似乎在我們身後，我們再次開始創下每周端到端交易量的新紀錄。

I'm also pleased to report that this trend has continued as we set numerous records throughout the month of April. It's also worth reinforcing that Q1 volumes included very little volume from our new verticals or much in the way of international or corporate spending, though we do expect to see gradual contribution throughout 2022. Our adjusted EBITDA came in at $44.3 million, which was in line with our expectations, and Brad will review our quarterly financials in more detail in just a bit.

我也很高興地報告，隨著我們在整個 4 月份創造了無數記錄，這一趨勢仍在繼續。同樣值得強調的是，第一季度的交易量包括來自我們新垂直領域的交易量很少，或者包括國際或企業支出方式中的大量交易量，儘管我們確實希望在整個 2022 年看到逐步貢獻。我們調整後的 EBITDA 為 4430 萬美元，符合預期符合我們的預期，Brad 稍後將更詳細地審查我們的季度財務數據。

Similar to prior quarters, I'd like to provide updates on each of the major components of our business, starting with our high-growth core. As a reminder, our high-growth core represents the payment opportunities we pursue primarily in complex restaurants, hospitality and specialty retailers. Shift4 has been growing at an accelerated rate in this arena by leveraging our 425 unique software integrations and other pain point solving technology to win share by migrating merchants off our gateway platform and on to our end-to-end service, as well as just net new wins in what is a very large addressable market. We believe we operate in the competitive landscape of few and we differentiate with our software integration and by possessing more links in the payments value chain to deliver a much lower effective cost of service to our customers.

與前幾個季度類似，我想提供我們業務每個主要組成部分的最新情況，從我們的高增長核心開始。提醒一下，我們的高增長核心代表了我們主要在綜合餐廳、酒店和專業零售商中追求的支付機會。 Shift4 通過利用我們的 425 種獨特的軟件集成和其他痛點解決技術，通過將商戶從我們的網關平台遷移到我們的端到端服務以及網絡，從而贏得市場份額，從而在這一領域加速增長在一個非常大的潛在市場中取得新勝利。我們相信我們在少數競爭環境中運營，我們通過軟件集成和在支付價值鏈中擁有更多鏈接來為我們的客戶提供更低的有效服務成本來脫穎而出。

Said differently, when merchants in our high-growth core use Shift4's end-to-end solution, we're able to offer them more capabilities at a lower cost because we no longer need to depend on a multitude of other costly vendors to attempt to achieve a comparable solution. So during the first quarter, we began -- we again organically grew our end-to-end payment volume faster than any of our peers, including faster than Visa and Mastercard, as we continue to take share in restaurants, hotels and specialty retailers. One proof point would be the 40% 4-year volume CAGR. Another would be that we grew through an unprecedented pandemic when our end markets have been quite impacted, and some continue to be impacted even today. Additionally, our volume is 288% of pre-pandemic Q1 2019 levels, along with gross revenue less network fees at 224% and adjusted EBITDA at 215% over the same period.

換句話說，當我們高增長核心的商家使用 Shift4 的端到端解決方案時，我們能夠以更低的成本為他們提供更多的功能，因為我們不再需要依賴眾多其他昂貴的供應商來嘗試實現可比較的解決方案。因此，在第一季度，我們開始——隨著我們繼續在餐廳、酒店和專業零售商中佔有份額，我們再次以比任何同行更快的速度有機地增長端到端支付量，包括比 Visa 和萬事達卡更快的速度。一個證明點是 40% 的 4 年銷量複合年增長率。另一種情況是，當我們的終端市場受到相當大的影響時，我們經歷了一場前所未有的大流行病，有些甚至在今天仍在繼續受到影響。此外，我們的銷量是 2019 年第一季度大流行前水平的 288%，同期總收入減去網絡費用為 224%，調整後的 EBITDA 為 215%。

This quarter, we signed a number of new resort properties and high-end restaurants, including the soon-to-be opened WAKUDA Restaurant at the Venetian Resort in Las Vegas and the Silverado Resort and Spa in Napa Valley, California. Our customers are moving to Shift4 to solve problems. So to be clear, merchants are largely not switching to Shift4 to save basis points in pennies per transaction, even though they usually do benefit from an overall lower effective cost of service. What they require is commerce solutions that enable them to better engage with their customers and patrons, such as QR codes or online ordering, mobile and contactless payments, business intelligence and more. That is why despite our continued move-up market, our net spreads have remained relatively stable over a multiyear period.

本季度，我們簽署了一些新的度假村物業和高端餐廳，包括即將在拉斯維加斯威尼斯人度假村開業的 WAKUDA 餐廳和加利福尼亞州納帕谷的 Silverado Resort and Spa。我們的客戶正在轉向 Shift4 來解決問題。所以需要明確的是，商家在很大程度上並不是為了在每筆交易中節省幾美分的基點而轉向 Shift4，儘管他們通常確實受益於整體較低的有效服務成本。他們需要的是使他們能夠更好地與客戶和顧客互動的商務解決方案，例如 QR 碼或在線訂購、移動和非接觸式支付、商業智能等。這就是為什麼儘管我們的市場持續上漲，但我們的淨利差在多年內保持相對穩定。

Our above-market volume growth remains the best leading indicator of our ability to deliver solutions that solve the needs of our merchants, which increasingly requires integrations with disparate and complex software required in the demanding commerce environments that we serve. We understand that the payment ecosystem can be confusing from the outside looking in, and we sometimes hear from investors that they're unsure where we fit in the competitive landscape.

我們高於市場的銷量增長仍然是我們提供滿足商家需求的解決方案能力的最佳領先指標，這越來越需要與我們所服務的苛刻商業環境所需的不同和復雜的軟件集成。我們知道，從外部來看，支付生態系統可能會令人困惑，而且我們有時會從投資者那裡聽到他們不確定我們在競爭格局中的位置。

So I look at the market along 2 dimensions. From one axis, you have integrated and nonintegrated payment processors; and along the other axis, you have scale player versus niche player. We are a high-growth, scaled, software-integrated payments provider gaining share from low-growth scaled nonintegrated legacy acquirers. We're now approaching our 23rd year in business, having grown revenue every year throughout even the most challenging economic times. We have an excellent track record in finding verticals where our technology or expertise affords us a right to win, and then building on a value proposition that is both unique and differentiated. Our gateway with 425 software integrations is an example of a differentiated offering that affords us the right to win throughout our high-growth core.

所以我從兩個維度看市場。從一個軸來看，您擁有集成和非集成的支付處理器；沿著另一個軸，你有規模玩家與小眾玩家。我們是一家高增長、規模化、軟件集成的支付提供商，從低增長、規模化的非集成傳統收購方那裡獲得份額。我們的業務現已接近第 23 個年頭，即使在最具挑戰性的經濟時期，我們的收入每年都在增長。我們在尋找我們的技術或專業知識賦予我們獲勝權利的垂直領域，然後建立一個既獨特又差異化的價值主張方面有著出色的記錄。我們的網關與 425 軟件集成是差異化產品的一個例子，它使我們有權在我們的高增長核心中取勝。

So on that note, we acquired our first gateway in 2017. Our intention was always to offer our end-to-end payment processing capabilities to those merchants, and we've been very successful executing against that strategy. At the same time, we have mentioned to many of you over the last few years, it was never our plan to offer extensive gateway-only services indefinitely. In fact, over the last few years, very few new customers even elect to have that service when our end-to-end offering is clearly so compelling.

因此，在這一點上，我們在 2017 年獲得了我們的第一個網關。我們的意圖始終是為這些商家提供我們的端到端支付處理能力，並且我們已經非常成功地執行了該戰略。同時，我們在過去幾年向你們中的許多人提到過，我們從來沒有計劃無限期地提供廣泛的純網關服務。事實上，在過去幾年中，當我們的端到端產品顯然如此引人注目時，很少有新客戶選擇使用該服務。

As we mentioned just a few months ago, you should expect to see an acceleration of our gateway to end-to-end migration in the months and years ahead. Our gateway platform is the IP. It's the technology that enables the commerce experience including the software integrations, the point-to-point encryption, the tokenization and ultimately, the analytics and reporting. Despite that immensely valuable capability in a gateway-only environment, the lion's share of the economics are captured by the legacy merchant acquirer. Considering there are virtually no modern fintechs that embrace a gateway-only strategy, we believe we owe it to our shareholders to capture as much of the unit economics for all payment transactions made possible by our technology and through the software integrations we alone support.

正如我們幾個月前提到的，您應該期望在未來幾個月和幾年內看到我們端到端遷移的網關加速。我們的網關平台是IP。它是支持商業體驗的技術，包括軟件集成、點對點加密、令牌化以及最終的分析和報告。儘管在僅網關環境中具有巨大的價值，但大部分經濟份額都被傳統的商業收單機構佔據。考慮到幾乎沒有採用僅網關策略的現代金融科技公司，我們認為我們有責任為我們的股東獲取盡可能多的所有支付交易的單位經濟效益，這些交易是通過我們的技術和我們單獨支持的軟件集成實現的。

So this has been a topic on our minds from the day we acquired the gateways and something we believe is on the minds of our investors, considering the enormous and easily quantifiable opportunity that it represents. So first, before we get into the specifics of our initiatives, it's probably helpful to give an example on just how embedded our gateway-only service is across a large portion of the hotels, restaurants and specialty retailers across this country.

因此，從我們獲得網關的那一天起，這一直是我們腦海中的一個話題，考慮到它所代表的巨大且易於量化的機會，我們認為這是我們投資者的想法。因此，首先，在我們深入了解我們計劃的細節之前，舉例說明我們的網關服務在全國大部分酒店、餐廳和專業零售商中的嵌入程度可能會有所幫助。

For a hotel that is a gateway-only customer, Shift4 captures the online reservation and front desk check-in. Our standard technology encrypts the customers' payment credentials to a PCI-validated standard and tokenizes them, and then provides those tokens to a hotel operator to capture a holistic view of their customers' entire stay and adjust authorizations throughout the guest journey as they visit the lobby bar, the restaurant, the spa, the golf course and so forth. At checkout, we use the same token to submit a single card transaction.

對於僅網關客戶的酒店，Shift4 捕獲在線預訂和前台入住。我們的標準技術將客戶的支付憑據加密為 PCI 驗證標準並將其標記化，然後將這些標記提供給酒店運營商以獲取客戶整個住宿的整體視圖，並在客人訪問酒店的整個旅程中調整授權大堂酒吧、餐廳、水療中心、高爾夫球場等。在結帳時，我們使用相同的令牌提交單筆卡交易。

In this scenario, despite virtually the entire commerce experience being facilitated by Shift4 technology, the majority of the transaction economics accrue to legacy third-party acquirers, providing little functions that we could otherwise easily do ourselves. We view this imbalance as something that needs to be addressed and corrected at a faster pace.

在這種情況下，儘管 Shift4 技術實際上促進了整個商務體驗，但大部分交易經濟都歸於傳統的第三方收單方，提供的功能很少，否則我們可以自己輕鬆完成。我們認為這種不平衡需要以更快的速度加以解決和糾正。

Now of course, this has been our strategy for years to convert what is a large population of gateway-only customers to our end-to-end service, where we capture the entirety of the payment economics and provide a lot of value to our customers through additional technology products and services along the way. But to be clear, we are in an enviable position that we can implement specific tactics to encourage gateway-only merchants to take action and further accelerate the migration of those gateway-only merchants to our superior end-to-end offering. We believe there is an attractive risk reward to implement a new approach that will further accelerate these conversions.

當然，多年來，這一直是我們的戰略，將大量只使用網關的客戶轉化為我們的端到端服務，我們在其中獲取全部支付經濟並為我們的客戶提供大量價值在此過程中通過其他技術產品和服務。但需要明確的是，我們處於令人羨慕的地位，我們可以實施具體策略來鼓勵僅限網關的商家採取行動，並進一步加速這些僅限網關的商家向我們卓越的端到端產品的遷移。我們相信，實施一種將進一步加速這些轉換的新方法會帶來誘人的風險回報。

So how will we do this? So through a combination of changes, including pricing actions and operational changes that encourage gateway-only merchants to migrate to our end-to-end offering while also continuing to offer the same attractive incentives that have already proven to be very successful. So with no sign of our historic gateway to end-to-end strategy slowing, why make this change now? There is an important operational component to the strategy. By eliminating third-party connections, we free up technology and operational resources to focus on other important growth initiatives. We have almost 2,000 employees now and a large portion of them spend time maintaining connections that are dated, served to benefit our competition and do not help us deliver on our global commerce vision or help us win the next signature merchant relationship.

那麼我們將如何做到這一點？因此，通過一系列變化，包括鼓勵僅限網關的商家遷移到我們的端到端產品的定價行為和運營變化，同時繼續提供已經證明非常成功的相同有吸引力的激勵措施。因此，在沒有跡象表明我們通往端到端戰略的歷史門戶放緩的情況下，為什麼現在要進行此更改？該戰略有一個重要的操作組成部分。通過消除第三方連接，我們釋放了技術和運營資源，以專注於其他重要的增長計劃。我們現在有近 2,000 名員工，其中很大一部分人花時間維持過時的關係，這些關係有利於我們的競爭，但無助於我們實現全球商業願景或幫助我們贏得下一個標誌性商戶關係。

By taking out unnecessary parts and repurposing internal resources as part of our Boldly Forward Shift4 Way initiative to eliminate unnecessary processes, components that are costly and might eventually fail and to optimize the excellent talent we currently employ. And I'd be remiss if I didn't give some credit to SpaceX, an organization I'm fortunate to observe closely and how well they have pioneered and embrace these philosophies.

作為我們 Boldly Forward Shift4 Way 計劃的一部分，通過去除不必要的部分和重新利用內部資源來消除不必要的流程、成本高昂且最終可能失敗的組件，並優化我們目前僱用的優秀人才。如果我不對 SpaceX 表示讚賞，那我就是失職了，我有幸密切觀察了這個組織，以及他們在開創和接受這些理念方面做得如何。

So we will always remain a customer-first organization. We cannot force the gateway-only customer to consolidate their end-to-end processing with Shift4. However, at the same time, we believe implementing this new approach will result in conversations that are in our mutual interest of Shift4 and our gateway only customer. And we want our gateway-only merchants to consider the value we're providing and how much better it gets when taking advantage of our end-to-end offering and incentives. This is always a good conversation for us both to have, and we expect the results will begin to become quite apparent in the second half of this year.

因此，我們將始終保持客戶至上的組織。我們不能強迫只使用網關的客戶使用 Shift4 來整合他們的端到端處理。然而，與此同時，我們相信實施這種新方法將導致對話符合我們 Shift4 和我們的網關唯一客戶的共同利益。我們希望僅使用網關的商家考慮我們提供的價值，以及在利用我們的端到端產品和激勵措施時能獲得多少好處。這對我們雙方來說總是一次很好的對話，我們預計結果將在今年下半年開始變得非常明顯。

So while we're still talking about our high-growth core, I'd like to update you on the progress of our next-generation POS product that will serve the restaurant market. As we discussed before, we're getting close to fully launching our new cloud-based restaurant POS platform called SkyTab POS. We're already a major player in the restaurant POS arena, having grown payment volume at accelerated levels for well over a decade, and this new offering will ensure we will continue to find success as new and existing restaurant customers seek out next-generation solutions.

因此，雖然我們仍在談論我們的高增長核心，但我想向您介紹我們將服務於餐廳市場的下一代 POS 產品的最新進展。正如我們之前討論的那樣，我們即將全面推出名為 SkyTab POS 的新的基於雲的餐廳 POS 平台。我們已經是餐廳 POS 領域的主要參與者，十多年來支付量一直在加速增長，隨著新老餐廳客戶尋求下一代解決方案，這一新產品將確保我們繼續取得成功.

We currently have several thousand restaurants operating in beta on the SkyTab POS solution, which will move out of beta shortly. Total operating -- total merchants operating in the SkyTab POS platform have increased 158% in March versus the same period a year ago. We are positioning SkyTab as the next-generation cloud-based POS platform, servicing the mid to high end restaurant customer. It is based on Android technology stack built from the ground up at Shift4 and equipped with very modern and purpose-built mobile solution, which is also comes with some pretty space-aged hardware.

我們目前有數千家餐廳在 SkyTab POS 解決方案上處於測試階段，該解決方案將很快結束測試階段。營業總額——3 月份在 SkyTab POS 平台上營業的商家總數與去年同期相比增長了 158%。我們將 SkyTab 定位為下一代基於雲的 POS 平台，服務於中高端餐廳客戶。它基於 Shift4 從頭開始構建的 Android 技術堆棧，配備了非常現代的專用移動解決方案，還配備了一些漂亮的太空時代硬件。

We already have 125,000 restaurants to pursue that are already customers operating across the 4 software brands we already own. SkyTab POS, of course, will be the migration path for existing -- our existing base of restaurants who are seeking out new capabilities to better serve their patrons. Not to mention our distribution channels will use SkyTab POS to continue to take share and grow across the vertical just as we've done for well over a decade.

我們已經擁有 125,000 家餐廳，這些餐廳已經是我們擁有的 4 個軟件品牌的客戶。當然，SkyTab POS 將成為現有餐廳的遷移路徑——我們現有的餐廳基地正在尋求新功能以更好地為顧客服務。更不用說我們的分銷渠道將使用 SkyTab POS 繼續佔據份額並在垂直領域實現增長，就像我們十多年來所做的那樣。

We also see an opportunity for SkyTab POS in sporting arenas, theme parks and entertainment venues. Combined with our mobile technology from VenueNext, we have a differentiated right to win in stadiums as venue operators continue to view us as the category-leading solution that delivers a unified commerce experience for their fans. As mentioned previously, SkyTab POS has already been installed in several arenas.

我們還看到了 SkyTab POS 在體育場館、主題公園和娛樂場所的機會。結合我們來自 VenueNext 的移動技術，我們擁有在體育場館中獲勝的差異化權利，因為場館運營商繼續將我們視為類別領先的解決方案，為他們的粉絲提供統一的商業體驗。如前所述，SkyTab POS 已經安裝在多個場所。

Lastly, the fact that we have in excess of 3,000 restaurant clients that signed up for SkyTab POS during the beta is clear proof statement that our offering has already been validated by the market. To summarize what I've just covered in our high-growth core, we're excited about the combination of our accelerated gateway-only conversion plan, our new SkyTab POS offering and our unique integration with 425 mission-critical software suites, which leads us to believe our high-growth core will remain the primary contributor to our growth over the next several years. In fact, it's worth mentioning that the above high-growth core initiatives could have quite a meaningful impact as early as the upcoming second quarter.

最後，我們有超過 3,000 家餐廳客戶在測試期間註冊了 SkyTab POS，這一事實清楚地證明了我們的產品已經得到市場驗證。總結一下我剛剛在我們的高增長核心中所涵蓋的內容，我們對我們的加速網關轉換計劃、我們新的 SkyTab POS 產品以及我們與 425 個關鍵任務軟件套件的獨特集成的組合感到興奮，這導致我們相信，我們的高增長核心仍將是未來幾年增長的主要貢獻者。事實上，值得一提的是，上述高增長核心舉措最早可能在即將到來的第二季度產生相當有意義的影響。

Moving into our new markets and verticals, we continue to maintain momentum within stadiums and venues. During the first quarter, we signed a number of new major lease stadiums, including Philadelphia's Wells Fargo Center, where we'll provide ticketing and payments for all the events at this venue, including the Philadelphia Flyers and 76ers. We also entered into an agreement to power payments for all the food and beverage concessions and retail purchases at Oracle Park, home of the San Francisco Giants major league baseball team and food and beverage and concessions, at Lone Depot Parks, home of the Miami Marlins.

進入我們的新市場和垂直領域，我們繼續在體育場館和場館內保持勢頭。在第一季度，我們簽署了一些新的主要租賃體育場，包括費城的富國銀行中心，我們將為該場館的所有活動提供票務和付款，包括費城飛人隊和 76 人隊。我們還簽訂了一項協議，為舊金山巨人隊大聯盟棒球隊主場甲骨文公園的所有餐飲特許權和零售採購以及邁阿密馬林魚隊主場 Lone Depot Parks 的食品和飲料特許權支付電力.

In car and horse racing, we will power point-of-sale in mobile-based solutions for 4 of the Speedway Motorsports racing venues across the United States. And we'll also power payments in New Jersey's Meadowlands Racing and Entertainment venues, been very busy. We're also excited to share that the Ohio State University has selected our VenueNext software and payment services to power all their sports and entertainment transactions, including the fourth largest college football field in the country, Go Buckeyes. We also signed an agreement to process all food and beverage transactions for San Diego State's new Snapdragon Stadium scheduled to open later this year.

在汽車和賽馬方面，我們將為美國 4 個 Speedway Motorsports 賽車場提供基於移動解決方案的銷售點。我們還將在新澤西州的 Meadowlands 賽車和娛樂場所進行電力支付，非常繁忙。我們也很高興地與大家分享，俄亥俄州立大學選擇了我們的 VenueNext 軟件和支付服務來支持他們所有的體育和娛樂交易，包括該國第四大大學橄欖球場 Go Buckeyes。我們還簽署了一項協議，為聖地亞哥州立大學計劃於今年晚些時候開放的新 Snapdragon 體育場處理所有食品和飲料交易。

As mentioned before, we believe our VenueNext mobile commerce technology is the category leader in sports and entertainment venues. Our software is installed well over 100 stadiums and our new business pipeline in the space remains very strong.

如前所述，我們相信我們的 VenueNext 移動商務技術是體育和娛樂場所的類別領導者。我們的軟件已安裝在 100 多個體育場館中，我們在該領域的新業務渠道仍然非常強大。

In gaming, we're adding new gaming licenses and scaling our volume with BetMGM. Our daily gaming volume process through BetMGM increased 4x since we began processing in February of this year, but it's still around 1% of the total volume we anticipate processing in the year ahead as new territories are added. Similarly, in nonprofit, we began processing for St. Jude back in January this year, but also have only processed about 1% of the volume we expect to capture over the next several quarters as we complete key software integrations to serve the nonprofit vertical. I mentioned it's not in the light of disappointment at all, but to highlight how strong we performed this past quarter despite only just beginning to make traction in our new verticals.

在遊戲方面，我們正在添加新的遊戲許可證並通過 BetMGM 擴大我們的數量。自今年 2 月開始處理以來，我們通過 BetMGM 處理的每日遊戲量增加了 4 倍，但隨著新地區的增加，它仍占我們預計未來一年處理總量的 1% 左右。同樣，在非營利組織中，我們早在今年 1 月就開始為 St. Jude 處理數據，但隨著我們完成關鍵軟件集成以服務於非營利垂直領域，我們也只處理了我們預計在未來幾個季度捕獲的數量的 1%。我提到這根本不是因為失望，而是為了強調我們在上個季度的表現有多強勁，儘管我們的新垂直領域才剛剛開始受到關注。

In airlines, we remain on track to begin processing volume in June with Allegiant Airlines and for SpaceX Starlink, testing is complete, we'll begin processing U.S. volume in Q2, with U.S. volume ramping up as the domestic subscriber base grows. It's worth noting that SpaceX is on a pretty eye-watering pace of Starlink satellite launches. They aim to ramp up to a weekly launch cadence and grow their subscriber base domestically and across the world.

在航空公司方面，我們仍有望在 6 月開始處理 Allegiant Airlines 的處理量，而對於 SpaceX Starlink，測試已經完成，我們將在第二季度開始處理美國的處理量，隨著國內用戶群的增長，美國的處理量也會增加。值得注意的是，SpaceX 的 Starlink 衛星發射速度非常驚人。他們的目標是提高到每週發布一次的節奏，並在國內和世界範圍內擴大他們的用戶群。

Moving on to our 2 recently announced acquisitions. The Giving Block acquisition is an example of how we identify a pain point in a specific industry, in this case the desire by nonprofits to accept cryptocurrency donations, and then bundling and cross-selling with our end-to-end payment solutions to pursue what we believe is a $450 billion payment opportunity. For those of you on the call that are unfamiliar with The Giving Block, they operate a donation marketplace that connects nonprofit organizations with crypto donors, and we acquired the company rather recently. Since we closed in late February, crypto donation volume is up 4.7x versus a year ago. The number of nonprofit customers on the platform is up 7.3x, and total revenue is up 6.5x.

繼續我們最近宣布的 2 項收購。 Giving Block 的收購是我們如何識別特定行業痛點的一個例子，在這種情況下，非營利組織希望接受加密貨幣捐贈，然後與我們的端到端支付解決方案捆綁和交叉銷售以追求什麼我們相信這是一個 4500 億美元的支付機會。對於電話會議中不熟悉 The Giving Block 的人，他們運營著一個捐贈市場，將非營利組織與加密捐助者聯繫起來，我們最近收購了這家公司。自從我們在 2 月下旬關閉以來，加密貨幣捐贈量比一年前增長了 4.7 倍。該平台上的非營利客戶數量增長了 7.3 倍，總收入增長了 6.5 倍。

We've also signed several Giving Block customers to our end-to-end platform, which was part of the $45 billion cross-sell opportunity of existing Giving Block customers that we highlighted as part of the acquisition. We are in active conversations with many others. While on the subject of The Giving Block, I'd like to personally thank those of you that participated in our Caring with Crypto fundraising campaign. We launched this fundraiser in mid-March to raise awareness within the crypto community, and I agreed to personally match dollar for dollar for every crypto donation made on The Giving Block marketplace platform. Since launching the campaign, we have raised more than $15 million for charities and important causes, such as the humanitarian relief efforts in Ukraine.

我們還與我們的端到端平台簽署了幾個 Giving Block 客戶，這是我們作為收購的一部分強調的現有 Giving Block 客戶的 450 億美元交叉銷售機會的一部分。我們正在與許多其他人進行積極對話。關於 The Giving Block 的主題，我想親自感謝那些參與我們的 Caring with Crypto 籌款活動的人。我們在 3 月中旬發起了這次籌款活動，以提高加密社區的意識，我同意親自為在 The Giving Block 市場平台上進行的每一筆加密捐款匹配美元。自發起該活動以來，我們已為慈善事業和重要事業籌集了超過 1500 萬美元，例如烏克蘭的人道主義救援工作。

We are increasing the network effects of our donation marketplace by connecting more members of the crypto community with more nonprofits and vice versa. The fundraising campaign is still underway, and I encourage all of you to check thegivingblock.com website for more information.

我們正在通過將更多的加密社區成員與更多的非營利組織聯繫起來來增加我們捐贈市場的網絡效應，反之亦然。籌款活動仍在進行中，我鼓勵大家查看 thegivingblock.com 網站以獲取更多信息。

Last, I'd like to give an update on the Finaro acquisition. As some of you may recall from our last report, we announced the acquisition of a European cross-border e-commerce platform with processing capabilities and licenses in Europe and parts of APAC. The earnout structure of the transaction encourages both sides to pursue commercial opportunities and begin integration efforts as early as possible. This means integrating the Shift4 platform and products, such as our hotel software integrations, our VenueNext Stadium software, our SkyTab POS restaurant software, our Lighthouse business intelligence product and preparing for important customers like Starlink, while we are waiting on the regulatory approvals. I'm pleased to share -- so we recently completed our first cross-border test transactions, and Finaro is just the first step as we move boldly forward with our global expansion endeavors.

最後，我想介紹一下 Finaro 收購的最新情況。正如你們中的一些人可能還記得我們上一份報告，我們宣布收購了一家歐洲跨境電子商務平台，該平台在歐洲和亞太地區部分地區具有處理能力和許可證。交易的收益結構鼓勵雙方尋求商業機會並儘早開始整合工作。這意味著整合 Shift4 平台和產品，例如我們的酒店軟件集成、我們的 VenueNext 體育場軟件、我們的 SkyTab POS 餐廳軟件、我們的 Lighthouse 商業智能產品，並為 Starlink 等重要客戶做準備，同時我們正在等待監管部門的批准。我很高興與大家分享——我們最近完成了第一筆跨境測試交易，Finaro 只是我們大膽推進全球擴張的第一步。

So we are not sitting still. We retain significant firepower with just over $1 billion of cash, a low pro forma leverage ratio and a ton of conviction around our strategic plan. Despite our clear enthusiasm, we are leaving our 2022 guidance unchanged. We believe that the macro environment, including inflation and varying consumer sentiment warrants some caution as we look out across the full year. That stated, we remain optimistic across the various initiatives I mentioned previously and may elect to revisit guidance as the year progresses.

所以我們沒有坐以待斃。我們保留了強大的火力，擁有超過 10 億美元的現金、較低的備考槓桿率和對我們戰略計劃的堅定信念。儘管我們表現出明顯的熱情，但我們仍將保持 2022 年的指導方針不變。我們認為，宏觀環境，包括通貨膨脹和不同的消費者情緒，在我們展望全年時需要保持謹慎。也就是說，我們對我之前提到的各種舉措保持樂觀，並可能會選擇隨著時間的推移重新審視指導。

And with that, let me turn the call over to our President and Chief Strategy Officer, Taylor Lauber.

說到這裡，讓我把電話轉給我們的總裁兼首席戰略官 Taylor Lauber。

Thanks, Jared, and good morning everyone. I will focus my prepared remarks on how we see our volumes trending for the balance of the year and update on our acquisitions. And then some additional color on major strategic initiatives. Our previously provided volume guidance for this year assumes a modest recovery in international and business travel, absent any reinstatement of restrictions resulting from new COVID variants currently impacting other regions of the world. Not included in our guidance is a meaningful contribution from the new verticals Jared mentioned or M&A.

謝謝，賈里德，大家早上好。我將把我準備好的評論重點放在我們如何看待今年餘下時間的交易量趨勢以及我們收購的最新情況。然後是主要戰略計劃的一些額外顏色。我們之前提供的今年銷量指南假設國際和商務旅行適度復甦，目前影響世界其他地區的新 COVID 變種導致的限制沒有任何恢復。我們的指南中沒有包括 Jared 提到的新垂直領域或併購的有意義的貢獻。

Despite a tough January and early February with Omicron, March volumes were a record for the company, which was further exceeded in April. Of note, our hotel volume grew meaningfully month-over-month. This is a cohort we have yet to experience a normal contribution from, and we've added over 5,000 hotels since the pandemic began roughly 2 years ago. Applying typical seasonality trends to our year-to-date performance, you can be quite optimistic about the remainder of '22.

儘管 Omicron 在 1 月和 2 月初表現不佳，但 3 月的銷量創下了該公司的記錄，4 月進一步超過了這一記錄。值得注意的是，我們的酒店數量環比顯著增長。這是一個我們還沒有經歷過正常貢獻的群體，自大約 2 年前大流行開始以來，我們已經增加了 5,000 多家酒店。將典型的季節性趨勢應用於我們年初至今的表現，您可以對 22 年的剩餘時間感到非常樂觀。

What remains challenging to model is the pace of recovery in light of higher inflation and rising interest rates and how all this will impact consumer spending. This is part of what informed our decision to leave our full year guidance unchanged at this point despite the weekly records we continue to set.

模型仍然具有挑戰性的是在通脹上升和利率上升的情況下復甦的步伐，以及所有這些將如何影響消費者支出。這是我們決定在這一點上保持全年指導不變的部分原因，儘管我們繼續設定每週記錄。

Turning to acquisitions. We closed on the acquisition of The Giving Block on February 28 and are tracking for a fourth quarter close of Finaro. We are making significant progress with identifying cross-sell opportunities within The Giving Block space of customers and have already begun outreach to prospective merchants. We are adding credit card acceptance to The Giving Block's online widget, which we anticipate will be operational by the end of the second quarter. From a KPI standpoint, the donation volume for the month of March is included in our reported end-to-end volume because we derive a spread on that. However, the impact is quite negligible, less than 10 basis points.

轉向收購。我們於 2 月 28 日完成了對 The Giving Block 的收購，並正在追踪 Finaro 第四季度的收盤。我們在尋找客戶的 Giving Block 空間內的交叉銷售機會方面取得了重大進展，並且已經開始接觸潛在的商家。我們正在為 The Giving Block 的在線小部件添加信用卡接受功能，我們預計該小部件將在第二季度末投入運營。從 KPI 的角度來看，3 月份的捐贈量包含在我們報告的端到端數量中，因為我們得出了一個價差。但是，影響可以忽略不計，不到 10 個基點。

For context, this business accepts the majority of donations during the fourth quarter and in December more specifically. Our Caring with Crypto campaign was quite successful in adding new nonprofits to the platform and should position us well for this year's giving season.

就上下文而言，該業務在第四季度接受了大部分捐贈，更具體地說是在 12 月。我們的 Caring with Crypto 活動在為平台添加新的非營利組織方面非常成功，應該讓我們在今年的捐贈季中處於有利地位。

For Finaro, we are working diligently on our pre-closing objectives, which include partnering to deliver a global cross-border solution for customers. We have already achieved a notable milestone of running successful test transactions in both the U.S. and Europe. There's much more work to be done, but these important first steps further validate our acquisition thesis and help build upon our strong conviction for international expansion. The Shift4 and Finaro teams are jointly energized. We are excited about welcoming the Finaro employees to Shift4 later this year.

對於 Finaro，我們正在努力實現我們的交易前目標，其中包括合作為客戶提供全球跨境解決方案。我們已經實現了在美國和歐洲成功運行測試交易的顯著里程碑。還有很多工作要做，但這些重要的第一步進一步驗證了我們的收購論點，並有助於建立我們對國際擴張的堅定信念。 Shift4 和 Finaro 團隊共同賦能。我們很高興在今年晚些時候歡迎 Finaro 員工加入 Shift4。

As a reminder, we're not including any contribution from the acquisitions in our guidance, but do anticipate positive contribution in '23. For Finaro, we anticipate $15 billion of end-to-end volume and $30 million of adjusted EBITDA contribution in 2023, and for The Giving Block we anticipate $5 million of adjusted EBITDA contribution in 2023.

提醒一下，我們沒有在我們的指導中包括收購的任何貢獻，但確實預計 23 年會有積極貢獻。對於 Finaro，我們預計 2023 年的端到端交易量為 150 億美元，調整後的 EBITDA 貢獻為 3000 萬美元，對於 The Giving Block，我們預計 2023 年的調整後 EBITDA 貢獻為 500 萬美元。

Turning to our gateway conversion strategy, I want to provide some numbers that are anchoring our thinking and helps you model the potential revenue pool we're going after. In '21, gateway-only revenue totaled approximately $70 million. The gross profit lift from converting this gateway-only revenue stream to end-to-end is a gross profit lift of roughly 4 to 5 times, implying a $280 million to $350 million incremental gross revenue opportunity if we converted 100% of the remaining gateway-only customers. To put that into context, we generated $278 million of gross profit in 2021 for the entire company.

談到我們的網關轉換策略，我想提供一些數字來支撐我們的想法，並幫助您為我們追求的潛在收入池建模。 21 年，僅網關的收入總計約為 7000 萬美元。將僅網關的收入流轉換為端到端的毛利提升約為 4 到 5 倍，這意味著如果我們將剩餘網關的 100% 轉換成 2.8 億至 3.5 億美元的增量毛收入機會- 只有客戶。綜上所述，我們在 2021 年為整個公司創造了 2.78 億美元的毛利潤。

While this conversion strategy has been a meaningful contributor to our growth already, we're making a deliberate pivot to pursue the strategy more aggressively. We believe the impact of this strategy will accelerate conversions but also make us a more efficient company. Lastly, we remain well positioned for further M&A and continue to pursue opportunities to enhance our global offering. This includes PSPs with unique front-end capabilities and vertical specialization, as well as scaled gateway platforms where our current strategy has proven to be quite successful.

雖然這種轉換戰略已經對我們的增長做出了有意義的貢獻，但我們正在有意識地轉向更積極地實施該戰略。我們相信這一戰略的影響將加速轉化，同時也使我們成為一家更有效率的公司。最後，我們仍處於進一步併購的有利位置，並繼續尋求機會來增強我們的全球產品。這包括具有獨特前端功能和垂直專業化的 PSP，以及我們當前的戰略已被證明非常成功的擴展網關平台。

And with that, I'll turn it over to our CFO, Brad Herring.

有了這個，我會把它交給我們的首席財務官 Brad Herring。

Thanks, Taylor. So now I'll review the financial performance for the quarter. Q1 gross revenues were $402 million, up 68% from the same quarter last year. Gross revenue less network fees were at $149 million, an increase of 53% over last year. The components of our revenue growth breakdown as follows: a 70% year-over-year increase in net processing revenues, driven by continued merchant adoption of our end-to-end solution; a 30% increase in our SaaS and other revenue stream, driven by expansion into new verticals and further penetration into our core restaurant and hospitality verticals; and finally, a 16% increase in our gateway revenue stream, driven largely by modest recovery in the hospitality sector.

謝謝，泰勒。所以現在我將回顧本季度的財務業績。第一季度總收入為 4.02 億美元，比去年同期增長 68%。扣除網絡費用後的總收入為 1.49 億美元，比去年增長 53%。我們收入增長的組成部分如下：由於商戶持續採用我們的端到端解決方案，淨加工收入同比增長 70%；我們的 SaaS 和其他收入流增長了 30%，這得益於向新垂直領域的擴張以及對我們核心餐廳和酒店垂直領域的進一步滲透；最後，我們的門戶收入流增長了 16%，這主要是受到酒店業溫和復甦的推動。

Spreads came in for the quarter at 76 basis points, which is 1 basis point higher than what we reported for the same period last year. It's worth noting there was a pretty significant shift in the mix between debit and credit when compared to Q1 of last year. It was primarily related to the second round of government stimulus checks that were issued in March of 2021. That mix shift resulted in lower-than-normal spreads for last year's first quarter. Using consistent debit-credit mix between last year's Q1 and this year's Q1, spreads were down approximately 4 basis points. This is in line with previous guidance on an overall spread decline due to moving upmarket into larger volume merchants with lower spreads.

本季度利差為 76 個基點，比我們去年同期報告的利差高 1 個基點。值得注意的是，與去年第一季度相比，借方和貸方之間的組合發生了相當大的變化。這主要與 2021 年 3 月發布的第二輪政府刺激支票有關。這種組合轉變導致去年第一季度的利差低於正常水平。使用去年第一季度和今年第一季度之間一致的借貸組合，利差下降了大約 4 個基點。這與之前關於整體價差下降的指導意見一致，原因是將高端市場轉移到價差較低的大批量商家。

This move-up market is evident by 2 factors: one, hotels, which produced an average of 2.5x as much volume as the average restaurant, now make up 21% of our end-to-end volume compared to 12% in the same quarter last year; and two, the size of our average restaurant customer has increased by over 25% compared to last year.

這種上升的市場有兩個因素可以證明：第一，酒店，其平均產量是普通餐廳的 2.5 倍，現在占我們端到端銷量的 21%，而同期為 12%去年一個季度；第二，與去年相比，我們平均餐廳顧客的規模增加了 25% 以上。

For the quarter, we reported an adjusted EBITDA of $44.3 million, which is up 100% over the same quarter last year. Excluding the abnormal merchant failure we experienced in Q1 of last year, which resulted in a credit loss of $5.2 million, adjusted EBITDA was up 62% over last year. The resulting adjusted EBITDA margin for the quarter was 30%. Excluding that previously mentioned credit loss from last year, this represents approximately 170 basis points of margin expansion over the same period last year.

本季度，我們報告調整後的 EBITDA 為 4430 萬美元，比去年同期增長 100%。不包括我們在去年第一季度經歷的異常商家倒閉導致 520 萬美元的信用損失，調整後的 EBITDA 比去年增長了 62%。本季度調整後的 EBITDA 利潤率為 30%。不包括前面提到的去年的信用損失，這意味著利潤率比去年同期擴大了約 170 個基點。

As we've talked about previously, our high-growth core continues to expand margins commensurate with our increased scale. We believe that margin expansion with prudent investments in our recently announced new verticals that, once scaled, we believe will achieve the same margin profile similar to our core business.

正如我們之前談到的那樣，我們的高增長核心繼續擴大與我們擴大規模相稱的利潤率。我們相信，通過對我們最近宣布的新垂直領域進行審慎投資，利潤率會擴大，一旦規模擴大，我們相信將實現與我們的核心業務相似的相同利潤率。

With respect to capital transactions within the quarter between January 1 and March 31, we repurchased approximately 302,000 shares at an average price of $56.78 per share. Our buyback program continued into April. And by the end of April, we have cumulatively purchased 1.8 million shares at an average price of $55.08 per share. Repurchased shares are reflected as treasury stock on our balance sheet.

關於 1 月 1 日至 3 月 31 日期間的資本交易，我們以每股 56.78 美元的平均價格回購了約 302,000 股股票。我們的回購計劃一直持續到 4 月。到 4 月底，我們已累計以每股 55.08 美元的平均價格購買了 180 萬股。回購的股份在我們的資產負債表上反映為庫存股。

Adjusted free cash flow for the quarter was $13.7 million, which represents $22.4 million of improvement over the same period last year.

本季度調整後的自由現金流為 1370 萬美元，比去年同期增加 2240 萬美元。

Adjusted free cash flow as well as free cash flow conversion will both continue to increase as the year progresses due to the cash flow pass-through of our incremental growth and the continued scale benefits we will achieve on our CapEx. A full reconciliation of adjusted free cash flow is available in the appendix of our earnings materials.

由於我們增量增長的現金流傳遞以及我們將在資本支出上實現的持續規模效益，調整後的自由現金流量和自由現金流量轉換都將隨著時間的推移繼續增加。調整後的自由現金流量的完整調節可在我們的收益材料的附錄中找到。

With respect to our guidance, as you've heard, we are reiterating the figures we provided in our previous earnings call. While we're extremely confident in our continued ability to profitably grow our business, there are a number of uncertainties that could influence their trajectory over the next several months, most notably would be macroeconomic forces that could influence consumer behavior as the year progresses; and the continued pressure on global travel and commerce, driven by the continued volatility in Eastern Europe.

關於我們的指導，正如您所聽到的，我們重申了我們在之前的財報電話會議中提供的數據。儘管我們對我們持續盈利增長業務的能力充滿信心，但仍有許多不確定因素可能會影響未來幾個月的發展軌跡，最值得注意的是宏觀經濟力量可能會隨著時間的推移影響消費者行為；以及東歐持續動盪給全球旅行和商業帶來的持續壓力。

So with that, I will turn it back to Jared for a few closing comments before we open it up to questions.

因此，在我們開始提問之前，我會把它轉回給 Jared 聽取一些結束評論。

Thanks, Brad. Yes, I appreciate everyone joining us earlier joining us this morning, and I think we can just roll right into Q&A at this point.

謝謝，布拉德。是的，我感謝今天早上早些時候加入我們的每個人，我想我們現在可以直接進入問答環節。

(Operator Instructions) Our first question comes from Dan Perlin of RBC Capital Markets.

（操作員說明）我們的第一個問題來自 RBC 資本市場的 Dan Perlin。

Great. Jared, you outlined a little bit the concept of kind of getting these conversions to be quicker for end-to-end from gateway. Can you just give some sort of like real-life example or hypothetical example maybe without giving kind of competitive, I guess, issues out there, about what really is taking place like practically?

偉大的。 Jared，您概述了一些讓這些轉換更快地從網關進行端到端轉換的概念。你能不能給出一些類似現實生活中的例子或假設的例子，而不是給出一些競爭性的，我想，關於實際發生的事情的問題？

I know you talked about pricing and some of the carrots that you put out there from incentives. But -- any real-world examples about how you would structure that would be very helpful.

我知道你談到了定價和你從激勵措施中拿出的一些胡蘿蔔。但是 - 任何關於如何構建的真實示例都會非常有幫助。

Ladies and gentlemen, unfortunately, we've lost connection with our speakers. Please bear with as we reconnect them.

女士們先生們，不幸的是，我們與演講者失去了聯繫。請耐心等待我們重新連接它們。

(technical difficulty)

（技術難度）

We now have the speakers back with us.

我們現在把揚聲器帶回來了。

Sorry, can you repeat the question?

抱歉，你能重複這個問題嗎？

I'm sorry. Yes, sure. So Jared, I was just saying you gave some details around the conversion, like the ability to accelerate conversion from gateway end-to-end. I was hoping maybe you could provide a little more detail about, kind of real-world structures of what that might look like. You called out pricing. And then obviously, there's some carrots that you guys have historically done with incentives.

對不起。是的，當然。所以賈里德，我只是說你提供了一些關於轉換的細節，比如加速從網關端到端轉換的能力。我希望你能提供更多關於真實世界結構的細節。你叫了定價。然後很明顯，你們在歷史上用激勵措施做了一些胡蘿蔔。

But I think it's hard for outsiders looking in and investors to really understand practically what you're doing. And then I'm not asking you to give kind of the competitive strategy here, but maybe some real-world examples even on a high level would be super helpful.

但我認為外人和投資者很難真正理解你在做什麼。然後我不是要你在這裡給出某種競爭策略，但也許一些現實世界的例子即使在高層次上也會非常有幫助。

Yes, sure. Happy to do it. So I think it's important to point out when you're operating as a gateway, which again, I think it's pretty clear, it's a legacy model. There aren't many new fintechs, again, starting up with the idea of routing transactions to their various competitors. Fully integrated end-to-end offerings is where the market is going. But we did inherit what could be dozens of pipes to all our various competitors that we're essentially upkeeping. And a very large portion of our resources are being spent maintaining connectivity to our various competitors.

是的，當然。很高興這樣做。所以我認為重要的是要指出當你作為網關運行時，我認為這很清楚，這是一個遺留模型。同樣，沒有多少新的金融科技公司以將交易路由到其各個競爭對手的想法開始。完全集成的端到端產品是市場的發展方向。但我們確實繼承了我們基本上正在維護的所有各種競爭對手的可能是幾十個管道。我們的很大一部分資源都用於維持與我們各個競爭對手的連接。

It's actually quite resource intense. Every time a new security or EMV protocol comes out, or a new device needs to be certified, we have to do it for ourselves and everybody else. And as a result, a very large portion of our workforce is spent kind of maintaining the path and enabling our competition instead of winning our next great customers. So this strategy of moving customers off of those connections to our end-to-end platform has been working incredibly well for a long time now. What we're saying is there's an awful lot of volume there, and we need to pull it forward so we can, kind of, free up our resources to focus on winning the next major merchants and building out our international strategy.

它實際上非常耗費資源。每次出現新的安全或 EMV 協議，或者需要對新設備進行認證時，我們都必須為自己和其他人做這件事。結果，我們的很大一部分員工都花在了維持道路和促進我們的競爭上，而不是贏得下一個偉大的客戶。因此，這種將客戶從這些連接轉移到我們的端到端平台的策略長期以來一直運作得非常好。我們所說的是那裡的交易量非常大，我們需要推動它向前發展，這樣我們才能在某種程度上釋放我們的資源，專注於贏得下一個主要商人並製定我們的國際戰略。

So how do you do it? Well, for sure, we can collect the toll. We are providing all the technology that enables that commerce experience. We should be better rewarded for it. So tolls are definitely 1 component of the strategy. Another is we will outright sunset connections. So for a very specific example and kind of to the heart of your question, we have a connection to one of the old legacy acquirers, and one of their very first connections that they did like 25 years ago. And there's probably less than 150 merchants on it.

你是怎麼做到的？嗯，當然，我們可以收取通行費。我們正在提供支持這種商務體驗的所有技術。我們應該因此得到更好的回報。因此，通行費絕對是該戰略的一個組成部分。另一個是我們將徹底日落聯繫。因此，對於一個非常具體的例子和你問題的核心，我們與一位老的傳統收購者有聯繫，這是他們 25 年前喜歡的第一個聯繫之一。上面可能有不到 150 個商家。

So there's kind of no choice there. We're just going to give notice that at the end of a period of time, we're just going to sunset the connection. We'll provide a lot of warning, and we'll probably do some brownouts to make sure everybody -- we have their attention of this relatively small population of customers. And then we'll -- then we will basically put them to the test to, do you want to use one of maybe the other 2 payment platforms that are out there that can serve your vertical? Or do you want to take the easy button and just move to our end-to-end platform because this connection has to go.

所以那裡別無選擇。我們只是要發出通知，在一段時間結束時，我們將終止連接。我們會提供很多警告，我們可能會進行一些限電，以確保每個人 - 我們都會關注這一相對較少的客戶群體。然後我們將 - 然後我們將基本上對它們進行測試，您想使用可以為您的垂直服務的其他 2 個支付平台之一嗎？或者你想點擊簡單的按鈕並轉移到我們的端到端平台，因為這個連接必須去。

In our minds, we see this very similar, like forcing Microsoft to support Windows 95 indefinitely. You can't make progress as an organization and think about the new technology, the new innovations that are required if you're continuing to maintain the software and the technology you built 25 years ago. And we have a lot of connections to go through like that.

在我們看來，我們認為這非常相似，就像迫使微軟無限期支持 Windows 95 一樣。如果您繼續維護 25 年前構建的軟件和技術，那麼您無法作為一個組織取得進步並考慮新技術和新創新。我們有很多這樣的聯繫要經歷。

So what we're just saying is we're kind of taking a strategy that was very carrot first, and that's what we've been doing for the last 5 years, and we're introducing some forcing functions to it to kind of pull forward that volume onto our end-to-end platform and kind of liberate some of our resources to work on the next major projects for us.

所以我們要說的是，我們採取的策略首先是胡蘿蔔，這就是我們過去 5 年一直在做的事情，我們正在向它引入一些強制功能來拉動將該卷轉發到我們的端到端平台，並解放我們的一些資源，為我們的下一個主要項目工作。

Okay. No, that's really, really helpful. Just a quick follow-up, if I could, on sports and the entertainment vertical. You highlighted a lot of new logos on the slides. And the question really is, you called out some where you're processing ticketing, food, beverage, retail, like parking. Others you called out just utilizing VenueNext POS. And so the question is, when we see these kinds of announcements, how do we draw a distinction between the amount of end-to-end volume that you're really getting?

好的。不，那真的非常有用。如果可以的話，只是快速跟進一下體育和娛樂垂直領域。您在幻燈片上突出顯示了許多新徽標。真正的問題是，您在處理票務、食品、飲料、零售（例如停車）的地方打了電話。您只是使用 VenueNext POS 呼叫的其他人。所以問題是，當我們看到這些類型的公告時，我們如何區分您真正獲得的端到端交易量？

Because I would suspect there's a pretty material difference between how you're connecting. And then is it your anticipation that over time, you're able to kind of pull all of those together under the same POS and then obviously, your end-to-end processing.

因為我懷疑你們的聯繫方式有很大的不同。然後你是否期望隨著時間的推移，你能夠將所有這些都放在同一個 POS 下，然後顯然是你的端到端處理。

Yes. Dan, it's a really good question. So first, just to be clear, we don't announce anything that we're not capturing both the software and payments on. So every one of these kind of signature wins we're announcing, there is payment volume coming along with it.

是的。丹，這是一個非常好的問題。所以首先，要明確一點，我們不會宣布任何我們沒有同時捕獲軟件和付款的東西。因此，我們宣布的每一種此類簽名獲勝，都會帶來相應的支付量。

Now how much, it's a great question. Because if you're getting ticketing, you're getting a lot. If you're getting point-of-sale, so mobile, in-seat ordering concessions, you're obviously not getting quite as much. Now there's timing elements to this. So these sports teams could sign 5-year agreements with a certain ticketing vendor that we're not integrated into, in which case, for sure, we're happy to kind of get our foot in the door, get our technology powering a large portion of that venue. And then when those contracts are up on ticketing, we're in an optimal position to try and capture it.

現在多少錢，這是一個很好的問題。因為如果你得到票，你會得到很多。如果您獲得銷售點、移動、座位內訂購優惠，您顯然不會得到那麼多。現在有時間因素。因此，這些運動隊可以與我們未整合的某個票務供應商簽署 5 年協議，在這種情況下，我們當然很樂意涉足，讓我們的技術為大型該場地的一部分。然後，當這些合同到期時，我們處於最佳位置來嘗試捕獲它。

Now there are other venues that we're able to get it all right out of the gate. And I think this is pretty exciting because last year, when we were having kind of these conversations or really just introducing you into VenueNext, ticketing was the upside. There is a lot of volume there. There's very good spreads. But we had to get integrations into like SeatGeek and Ticketmaster, which we didn't possess at this time last year and really were unable to pursue that volume.

現在還有其他場所，我們可以從一開始就把它搞定。我認為這非常令人興奮，因為去年，當我們進行此類對話或實際上只是向您介紹 VenueNext 時，票務是有利的。那裡有很多體積。有很好的點差。但是我們必須集成到 SeatGeek 和 Ticketmaster 中，去年這個時候我們還沒有，而且確實無法達到那個數量。

Now we're announcing ticketing wins, so it's a huge step in the right direction. In terms of like the overall contribution of sports entertainment, venues and ticketing, it's still incredibly small, like a super small portion of our business today. Very, very like minute portion of Q1. But we do expect this to become quite material, probably not this year until we get a lot more of those, the Ohio State University type wins under our belt. But I think starting in probably 2023, we might be able to call out a little bit more how much our sports and entertainment volume and ticketing is really contributing to our growth.

現在我們宣布中獎，這是朝著正確方向邁出的一大步。就體育娛樂、場館和票務的整體貢獻而言，它仍然非常小，就像我們今天業務的一小部分。非常非常像 Q1 的微小部分。但我們確實希望這會變得非常重要，可能今年不會，直到我們得到更多這樣的東西，俄亥俄州立大學類型的勝利在我們的帶領下。但我認為大概從 2023 年開始，我們可能會更多地說明我們的體育和娛樂量以及票務對我們的增長有多大貢獻。

Our next question comes from Darrin Peller.

我們的下一個問題來自 Darrin Peller。

When we look at the magnitude of the wins you guys have had and the record volume weeks you were having, can you extrapolate on that, plus the obvious gateway conversion potential, you would think that end-to-end volume is trending above what you would even have expected and such that just a little bit surprised of the guidance being maintained. And now I understand conservatism. I think investors, it would be helpful to just get a sense of what assumptions really were built into that, what kind of conservatism from a macro standpoint or any other variables, that could be helpful.

當我們看到你們所取得的勝利的規模和你們所擁有的創紀錄的周交易量時，你們能否對此進行推斷，再加上明顯的網關轉化潛力，你們會認為端到端的交易量趨勢高於你們甚至會期望如此，以至於對維持指導方針感到有點驚訝。現在我理解了保守主義。我認為投資者，了解其中真正內置了哪些假設，從宏觀角度或任何其他變量來看什麼樣的保守主義可能會有所幫助。

Darrin, this is Taylor. I'll address that. Obviously, the question that's going to be on people's minds in this kind of economic cycle. Bring you through our thinking, let's start with the data we're experiencing inside the business, and then let's kind of talk about the world around us and where we think conservatism is prudent.

達林，這是泰勒。我會解決這個問題。顯然，在這種經濟周期中，人們會想到這個問題。帶您了解我們的想法，讓我們從我們在企業內部遇到的數據開始，然後讓我們談談我們周圍的世界以及我們認為保守主義是謹慎的地方。

Taking our payment volume from January through April, and annualizing that on the same trajectory we experienced last year, we would be ahead of our guidance for the full year. That is what we've experienced year-to-date, and that's with Omicron, that's encouraging. The new wins and the acceleration of the gateway strategy are obviously further encouraging.

考慮到我們從 1 月到 4 月的支付量，並按照我們去年經歷的相同軌跡將其年化，我們將領先於全年的指導。這就是我們今年迄今所經歷的，這與 Omicron 一起，令人鼓舞。新的勝利和門戶戰略的加速顯然進一步令人鼓舞。

It just felt like in the current environment, with the macro picture is uncertain as it was, it wouldn't be prudent to change that full year guidance this early in the year. So that -- we debated it quite a bit and landed where we did based on those -- that framing. Jared, I don't know if you want to layer anything else into that.

感覺就像在當前環境下，宏觀前景不確定，在今年年初更改全年指導是不明智的。所以——我們就它進行了相當多的辯論，並根據這些——那個框架確定了我們所做的。 Jared，我不知道你是否想在其中添加任何其他內容。

Yes. I think I would. I mean we've been -- we're approaching our second year as a public company. We thought we had to overcome COVID-19 and then we ran into Delta in the fourth quarter of 2020. We thought we overcame it again, and then we ran into Omicron. I mean there are things that are just unpredictable now that are out there where it just seems like, one, I don't think we're going to be rewarded properly for it either. And just -- there is uncertainty in the world.

是的。我想我會的。我的意思是我們已經 - 我們正在接近我們作為上市公司的第二個年頭。我們認為我們必須克服 COVID-19，然後我們在 2020 年第四季度遇到了 Delta。我們認為我們再次克服了它，然後我們遇到了 Omicron。我的意思是現在有些事情是不可預測的，看起來就像是，一個，我認為我們也不會因此而得到適當的回報。只是 - 世界上存在不確定性。

That said, like we're being as transparent as we can about what we're seeing. We're showing you where our records are in April. We're delivering a lot of wins, and we're telling you about really 2 organic initiatives that are underway right now that we think will have -- I think, as I described in my letters, like a pretty impactful -- quite impactful in 2022 and may cause us to kind of revisit what we've already shared.

也就是說，就像我們對我們所看到的一樣盡可能透明。我們將向您展示我們 4 月份的記錄。我們取得了很多勝利，我們正在告訴您目前正在進行的兩項有機計劃，我們認為這些計劃將會——我認為，正如我在信中所描述的那樣，非常有影響力——非常有影響力2022 年，可能會讓我們重新審視我們已經分享的內容。

So I don't think anyone should read into it other than, look, it's been an incredibly chaotic time to be a public company with our end markets the way they are, and we just want to play it safe.

所以我不認為任何人都應該閱讀它，除了，看，這是一個非常混亂的時期，作為一家上市公司，我們的終端市場是這樣的，我們只是想安全地玩。

Yes. I think that makes a lot of sense in this environment. As long as I think investors just want to understand if it really was just conservatism, but probably better off. All right. That's really helpful.

是的。我認為在這種環境下這很有意義。只要我認為投資者只是想了解這是否真的只是保守主義，但可能會更好。好的。這真的很有幫助。

And just one quick follow-up on free cash conversion, which we were obviously happy to see the inflection in the quarter to a nice positive free cash conversion number in the mid-20% range. Can you just touch on that a little further, though, maybe Brad, just talking about the trajectory of that? I think you had talked about 30% or 35% potential conversion for the year as the year progresses.

並且只是對自由現金轉換的快速跟進，我們顯然很高興看到本季度的變化，在 20% 的中間範圍內出現了不錯的正自由現金轉換數字。不過，你能否進一步談談這個問題，也許是 Brad，只是談談它的軌跡？我認為隨著時間的推移，你已經談到了今年 30% 或 35% 的潛在轉化率。

Darrin, I appreciate the question. You're exactly right. I mean, it's one of the reasons we've tried to be more front-footed on talking about free cash flow based on some of the feedback we've gotten. And Q1 is a really good quarter for us. I think we'll post -- it looks like a 30% conversion rate when you do the math on it.

達林，我很欣賞這個問題。你完全正確。我的意思是，這是我們根據我們得到的一些反饋，試圖更積極地談論自由現金流的原因之一。第一季度對我們來說是一個非常好的季度。我想我們會發布——當您對其進行數學計算時，它看起來像 30% 的轉換率。

Our guide for the full year was 35% to 40%. One thing to keep in mind for the quarter, there will be some quarterly interest payments that will hit in Q2 and Q4. So there's a little bit of bouncing around across the quarters, but we still feel good about the 35% to 40% guide for the year.

我們全年的指南是 35% 到 40%。本季度要記住的一件事是，第二季度和第四季度將有一些季度利息支付。因此，各個季度都有一些反彈，但我們仍然對今年 35% 至 40% 的指導感覺良好。

And it's really driven by 2 things, right? As we continue to grow, we have really good pass-through rates at the cash level on that incremental growth. We've talked about that over time. The other piece that I think may have been kind of underappreciated was the value of scale benefits we get out of our CapEx. What you'll see even in our Q1 results, as much growth as we've been able to put on the table for the last couple of quarters, our CapEx numbers haven't grown commensurate with those revenue streams or even the volume streams.

它真的是由兩件事驅動的，對吧？隨著我們的持續增長，我們在增量增長的現金層面上擁有非常好的轉嫁率。隨著時間的推移，我們已經談到了這一點。我認為另一件可能被低估的是我們從資本支出中獲得的規模收益的價值。即使在我們第一季度的業績中你也會看到，儘管我們在過去幾個季度能夠實現的增長，但我們的資本支出數字並沒有與這些收入流甚至流量流相稱。

And that's what we've talked about, we've been able to leverage some of the CapEx scaling. As we go up market, we've talked about equipment. Remember, we don't necessarily deploy as expensive of equipment into these new verticals. So you're not going to see the growth in those CapEx lines commensurate with volume or revenue.

這就是我們所說的，我們已經能夠利用一些資本支出擴展。當我們進入市場時，我們談到了設備。請記住，我們不一定要將昂貴的設備部署到這些新的垂直領域。所以你不會看到這些資本支出的增長與數量或收入相稱。

So those 2 items are going to continue to expand, free cash flow just from a quantum number and as well from a conversion number.

因此，這兩個項目將繼續擴大，自由現金流僅來自量子數和轉換數。

Our next question comes from David Togut of Evercore.

我們的下一個問題來自 Evercore 的 David Togut。

Could you unpack your blended spread, which improved 2 basis points sequentially to 76 basis points? That was ahead of our expectations. It appears you picked up some yield in restaurants and your all other categories, while lodging was flat to down, recognizing that lodging is now 21% of end-to-end volume. And what is the impact from that progressing going forward?

你能拆開你的混合價差嗎，它連續提高了 2 個基點，達到 76 個基點？這超出了我們的預期。看起來你在餐館和所有其他類別中獲得了一些收益，而住宿持平甚至下降，認識到住宿現在佔端到端量的 21%。這種進步對未來的影響是什麼？

Yes, David, a good question. There's a lot of mix that goes on. Typically, Q1 is going to have a little bit lower spread. One of the things I mentioned in the script that we want to make sure people are kind of aware of is this credit debit mix.

是的，大衛，一個好問題。有很多混合在進行。通常，Q1 的價差會略低一些。我在腳本中提到的一件事是我們希望確保人們意識到這種貸記借記組合。

What we've seen in the data is finally by the time we got to Q4 of last year and Q1 of this year, that number has largely stabilized. Just to put it in context, if you go look at Q1 of last year, debit was 25% of our volume. Q1 of this year, it's 18%. So that's a pretty big spread lift you get year-over-year, which is one of the points I was trying to articulate in my remarks earlier.

我們在數據中看到的是，到去年第四季度和今年第一季度時，這個數字已經基本穩定下來。只是把它放在上下文中，如果你去看看去年第一季度，借方是我們交易量的 25%。今年第一季度，是18%。所以這是一個相當大的同比提升，這是我在之前的評論中試圖闡明的觀點之一。

When you look at the spreads within the verticals, we have seen very solid spread behavior. We've seen within restaurants, within hotels, spreads have maintained. A lot of that has to do with our ability to continue to add feature functionality to the -- to our end-to-end solution, which we've always talked about will monetize through 1 or 2 basis points of spread at a time.

當您查看垂直線內的價差時，我們看到了非常穩固的價差行為。我們已經看到在餐廳、酒店內，差價一直保持不變。這在很大程度上與我們繼續向我們的端到端解決方案添加特色功能的能力有關，我們一直在談論的解決方案將一次通過 1 或 2 個基點的點差獲利。

So we expect the spreads within the verticals to maintain themselves, but you will start to see, I think, going forward, now you got the spread mix as we move larger up market is going to be more evident because it's not going to be masked as much by that debit credit mix that we think is largely behind us.

所以我們預計垂直領域內的價差會保持不變，但我認為，你會開始看到，隨著我們向上移動市場，你會看到價差組合會更加明顯，因為它不會被掩蓋我們認為很大程度上已經落後於我們的借貸組合。

Understood. Thanks for that, Brad. Just a quick follow-up. I think, Jared, you mentioned you had under 1% of total annualized volume in the quarter from new verticals, but these are growing very rapidly. Are there any timing issues we should consider in terms of seeing verticals contribute more materially? And what's built into the guidance for this year from new verticals?

明白了。謝謝你，布拉德。只是快速跟進。我想，賈里德，你提到你在本季度來自新垂直行業的年化總量不到 1%，但這些增長非常迅速。在看到垂直行業做出更大貢獻方面，我們是否應該考慮任何時間問題？今年新垂直行業的指南中包含哪些內容？

Yes. Really, really good questions there, David. I think, again, just pointing out, as you move into new verticals as an integrated payments company, you need to integrate into software. I mean, that's what makes us special. When you possess software integrations, I mean, it is very, very hard for other payment companies to kind of encroach in your territory, and we obviously have a lot of them in our high-growth core.

是的。真的，非常好的問題，大衛。我認為，再次指出，當你作為一家綜合支付公司進入新的垂直領域時，你需要整合到軟件中。我的意思是，這就是讓我們與眾不同的原因。當你擁有軟件集成時，我的意思是，其他支付公司很難侵入你的領地，而我們的高增長核心顯然有很多這樣的公司。

As we expand, whether it's in gaming, airlines, in the travel management systems, e-commerce, some of our signature customers that like well, even nonprofit, they have numerous systems, like it takes time to accumulate those software integrations. But they're pretty rare and precious when you get them.

隨著我們的擴張，無論是在遊戲、航空公司、旅行管理系統、電子商務中，我們的一些簽名客戶都非常喜歡，甚至是非營利組織，他們擁有眾多系統，就像積累這些軟件集成需要時間一樣。但是當你得到它們時，它們非常稀有和珍貴。

So like nothing is unexpected at this point at all. I was actually kind of just highlighting that 1% just to point out, like, hey, we did pretty good with our restaurants and hotels in the quarter where Omicron really pulled back some consumer spending. Imagine what it's going to look like when some of these new verticals are firing as we anticipate them to do so.

所以在這一點上沒有什麼是出乎意料的。實際上，我只是強調那 1% 只是為了指出，嘿，我們在本季度的餐廳和酒店做得很好，Omicron 確實減少了一些消費者支出。想像一下，當這些新的垂直領域中的一些像我們預期的那樣開火時會是什麼樣子。

So yes, I mean, we're completing software integrations as we go. I think we called out St. Jude. We've been processing since January, but that means that was one integration that was live there. We've added a bunch more. We'll continue to add throughout the year. The same goes for BetMGM and some of these others. So I'd say it's like very, very little baked into our current full year volume guidance on what these new verticals will contribute, but we obviously have pretty high expectations so that when they all start coming online.

所以是的，我的意思是，我們正在完成軟件集成。我想我們召集了聖裘德。我們從一月份開始就在處理，但這意味著那是一個實時的集成。我們又添加了一堆。我們將在全年繼續添加。 BetMGM 和其他一些公司也是如此。所以我想說的是，我們目前的全年銷量指導中幾乎沒有涉及這些新垂直行業將做出的貢獻，但我們顯然有很高的期望，所以當它們都開始上線時。

And David, just to put a finer point on that. This is Taylor. It's less than 5% of our full year guidance. So again, conservatism on that front, we believe. And to Jared's point, highlighting the value of that high-growth core and the progress yet to be made in these verticals was kind of the point of the statement.

大衛，只是為了更好地說明這一點。這是泰勒。它不到我們全年指導的 5%。因此，我們再次相信，這方面的保守主義。對於 Jared 的觀點，強調高增長核心的價值以及這些垂直領域尚未取得的進展是聲明的重點。

Understood. Look forward to seeing some of these new verticals ramp.

明白了。期待看到其中一些新的垂直行業的發展。

Our next question comes from Chris Donat of Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Chris Donat。

Jared, I think in your prepared remarks, you said that some end markets are still impacted. Can you give us a little color there? And then kind of ballpark where we are in the recovery with lodging and restaurants? Are we fully recovered? Partially recovered? Just trying to get a sense on maybe what's not yet working, and understanding there's a lot of macro crosscurrents here going on also.

Jared，我想在你準備好的發言中，你說過一些終端市場仍然受到影響。你能給我們一點顏色嗎？然後我們在住宿和餐館的複蘇中有什麼樣的球場？我們完全康復了嗎？部分恢復？只是想了解一下可能還沒有奏效的地方，並了解這裡也有很多宏觀的逆流。

Yes. Look, I think it's a good question. I mean when we break down our portfolio based on various regions of the country by vertical, I mean, there are certainly some cities where aren't going out to lunch for business meetings the way they did before. There are certainly some hotels that cater very much towards business travel that aren't back to where they were.

是的。看，我認為這是個好問題。我的意思是，當我們根據全國不同地區垂直細分我們的投資組合時，我的意思是，肯定有一些城市不會像以前那樣出去吃午餐參加商務會議。肯定有一些非常適合商務旅行的酒店並沒有回到原來的位置。

There are some hotels right now that are -- if we looked at it, kind of on a static pool to 2019, they're up in volume, but they're still not at full capacity. And it's -- whether that's labor induced or otherwise in terms of their ability to fully support their customers. I think in general, A lot of the customers that we support have recovered quite well. But I wouldn't say it was at 100%. I don't know, Taylor, if you want to add.

現在有一些酒店 - 如果我們看一下，到 2019 年有點像靜態池，它們的數量有所增加，但仍未滿負荷。它是——無論是勞動誘導還是以其他方式充分支持客戶的能力。我認為總的來說，我們支持的很多客戶都恢復得很好。但我不會說它是 100%。我不知道，泰勒，如果你想補充。

Just one stat I want to reiterate. Jared mentioned this, it's in our materials as well. But if you look at our average merchant from 2019, they're up about 21% in total since then. If you look at our business, we're up nearly 300%. So I think those 2 stats are really important to ground. The verticals are recovering, and yet the business growth has really been the predominant driver of our overall volume growth.

我只想重申一個數據。 Jared 提到了這一點，它也在我們的材料中。但如果你看看我們 2019 年的平均商戶，自那時以來他們總共增長了約 21%。如果你看看我們的業務，我們增長了近 300%。所以我認為這 2 個統計數據對於地面來說非常重要。垂直行業正在復蘇，但業務增長確實是我們整體銷量增長的主要驅動力。

The one thing that I would call out, and I think it's really important is we had very, very little hotel exposure prior to the pandemic. and we've added over 5,000 hotels through the pandemic. So this is a little bit of uncharted territory for us, knowing what the full expected volume of those hotels should be is something we struggle to forecast. Although we know in many cases, when we look at the growth, when we look at things like spring break and compare that year-over-year, that there's still room to grow inside of that population specifically.

我要指出的一件事，我認為這非常重要，那就是在大流行之前我們的酒店曝光率非常非常低。在大流行期間，我們增加了 5,000 多家酒店。所以這對我們來說是一個未知領域，我們很難預測這些酒店的全部預期數量。儘管我們知道在很多情況下，當我們看增長時，當我們看春假之類的事情並與去年同期比較時，特別是在人口內部仍有增長空間。

Okay, got it. And then just with the -- with the transitioning some of the gateway volumes and more than gateway customers, not so much the volume. Do you have any issues with having the capacity to do that transition? Or is that -- it's already baked in the cake as far as what you're doing. So there's not much incremental expense from a Shift4 perspective that needs to be done there. Just help us understand if there are some challenges with those transitions.

好，知道了。然後只是 - 隨著一些網關數量的轉變，不僅僅是網關客戶，數量也不多。您對進行這種過渡的能力有任何疑問嗎？或者是 - 就您正在做的事情而言，它已經在蛋糕中烤好了。因此，從 Shift4 的角度來看，需要在那裡完成的增量費用並不多。只是幫助我們了解這些過渡是否存在一些挑戰。

No. I mean, if anything, it kind of frees up resource capacity. So -- I mean we're processing these transactions today. I mean we're doing all of the heavy lifting for it. We're just then outputting the transaction volume to a third-party acquirer instead of just processing it entirely ourselves.

不，我的意思是，如果有的話，它可以釋放資源容量。所以 - 我的意思是我們今天正在處理這些交易。我的意思是我們正在為此做所有繁重的工作。我們只是將交易量輸出給第三方收單機構，而不是完全由我們自己處理。

So if we -- not to say that if we didn't pull like -- we pull $100 billion of gateway volume over to end to end over the next year, there is a certain amount of headcount required in customer service and technical support for fielding some questions that we aren't doing today, for example. But like largely, there's not a lot of incremental costs associated with it.

因此，如果我們 - 不是說如果我們不這樣做 - 我們在明年將 1000 億美元的網關量從頭到尾拉到一起，那麼客戶服務和技術支持需要一定數量的員工例如，回答一些我們今天沒有做的問題。但在很大程度上，與它相關的增量成本並不多。

I think what the idea here is, though, that there is a very large portion of our workforce today that is maintaining the past and not helping us build the kind of the future we want to conduct business in. So I think the idea is as we kind of progress with the strategy and we start closing down some of this old piping that we don't need any more, not only does it have like a pretty material impact on the performance of the company, and we're hoping to start to see that in another quarter or so, but it also frees up resources to accelerate what we're trying to achieve everywhere else in the world, which is our strategy right now.

不過，我認為這裡的想法是，我們今天有很大一部分員工在維護過去，而不是幫助我們建立我們想要開展業務的未來。所以我認為這個想法就像我們在戰略上取得了一些進展，我們開始關閉一些我們不再需要的舊管道，這不僅對公司的業績產生了相當大的影響，而且我們希望開始在另一個季度左右看到這一點，但它也釋放了資源來加速我們在世界其他地方努力實現的目標，這是我們目前的戰略。

Our next question comes from Jason Kupferberg of Bank of America.

我們的下一個問題來自美國銀行的 Jason Kupferberg。

This is Cassie on for Jason. I just wanted to ask a little bit about margins. So I know that the margin guidance implies a significant step up for the rest of the year. Can you just help us think about the quarterly cadence of it? And are you still planning to exit the year maybe in the mid to upper 30% range?

這是傑森的卡西。我只是想問一下利潤率。所以我知道保證金指導意味著今年剩餘時間的重大進步。你能幫我們想想它的季度節奏嗎？您是否仍計劃在 30% 的中上水平退出今年？

This is Brad, I'll take that. So one of the things that we've certainly talked about is how we're balancing top line revenue growth with margin expansion. I think Q1 is a really a good example of being able to put top line growth and margin expansion.

這是布拉德，我會接受的。因此，我們肯定談論過的一件事是我們如何平衡收入增長與利潤率擴張。我認為第一季度是能夠實現收入增長和利潤率擴張的一個很好的例子。

I think you're going to continue to see that. There is a cadence across the quarters. Q1 will typically be one of our lower margin quarters that will certainly expand into Q2 and Q3. And then Q4 you'll see a small bit of retraction. And all that is just based on seasonality of how the business evolves throughout the course of the year. But we still stand by our year-over-year margin expansion of 300 basis points. And I think that -- the context of that is really kind of threefold. It's one that balance between top line revenue growth, two; margin expansion; and three, continued cash flow -- free cash flow production and free cash flow conversion. So we still feel very confident that balance is the right balance and puts all 3 of those things at play.

我想你會繼續看到這一點。整個季度都有節奏。第一季度通常是我們利潤率較低的季度之一，肯定會擴展到第二季度和第三季度。然後第四季度你會看到一點回縮。而所有這些都只是基於業務在一年中如何發展的季節性。但我們仍然支持我們的利潤率同比增長 300 個基點。我認為 - 其背景實際上是三重的。這是一個在收入增長之間取得平衡的方法，兩個；保證金擴張；三、持續現金流——自由現金流的產生和自由現金流的轉換。所以我們仍然非常有信心，平衡是正確的平衡，並且讓所有這三件事發揮作用。

Okay, got it. And can you just provide any more color on maybe like Q2 expectations for top line metrics, like volumes or revenues? I mean, obviously, the year-over-year comps get significantly tougher. But just anything else you can share on that front for your expectations.

好，知道了。你能不能提供更多顏色，比如第二季度對頂線指標的預期，比如銷量或收入？我的意思是，很明顯，年復一年的比賽變得更加艱難。但是您可以在這方面分享您的期望的任何其他內容。

Yes. I don't think we've talked too much about Q2 expectations in general. Well, we have put out -- we did put out some numbers on April, to give some context for that. But I don't think we're providing necessarily Q2 numbers specifically.

是的。我認為我們總體上沒有過多討論第二季度的預期。好吧，我們已經發布了 - 我們確實在 4 月份發布了一些數字，以提供一些背景信息。但我認為我們不一定專門提供第二季度的數字。

Our next question comes from Andrew Jeffrey of Truist Securities.

我們的下一個問題來自 Truist Securities 的 Andrew Jeffrey。

Jared, I'd like to ask about the evolution of the gateway strategy and the way you described it is changing. There's two things: One, does it mean that the company will now pursue sort of end-to-end relationships sort of skipping the gateway step? And what does that imply, if that's right, what does that imply for sales cycles perhaps? And then is there a risk that with some of these customers as you sort of try to nudge them off the gateway to end-to-end, that they choose alternative providers? How do you frame that up?

Jared，我想問一下網關策略的演變以及你描述它的方式正在發生變化。有兩件事：第一，這是否意味著公司現在將追求一種端到端的關係，而不是跳過網關步驟？這意味著什麼，如果這是正確的，這對銷售週期可能意味著什麼？那麼，當您試圖將他們從網關推向端到端時，其中一些客戶是否存在風險，他們會選擇替代供應商？你如何構架它？

Yes. So let me just kind of start with the basics there. With respect to our high growth core which is where all of our growth is coming from really, it comes from 1 of 2 avenues. You're just winning a net new customer that requires the software integrations that we already possess. And every quarter, there's a bunch of hotels, restaurants, specialty retailers that fall in that category. That's like 50% of our production, and they come right into our end-to-end platform.

是的。因此，讓我從那裡的基礎知識開始。關於我們所有增長真正來自的高增長核心，它來自 2 個途徑之一。您剛剛贏得了一個需要我們已經擁有的軟件集成的淨新客戶。每個季度，都會有很多酒店、餐館和專賣店屬於這一類。這大約是我們生產的 50%，它們直接進入我們的端到端平台。

And then the other 50% is from this population of like, call it, approximately $180-or-so billion of volume that's already on our gateway, that's already leveraging those integrations, and we're doing all the heavy work, but we're outputting that volume to a third-party acquirer. And every month that goes by, we're kind of showering them with carrots and incentives, to incentivize them to move over from the gateway to our end-to-end platform. And that's 50% of our production every month.

然後另外 50% 來自這個群體，可以這麼稱呼，大約 180 億美元左右的交易量已經在我們的網關上，已經在利用這些集成，我們正在做所有繁重的工作，但我們'將該交易量重新輸出給第三方收購方。每個月過去，我們都會向他們提供胡蘿蔔和激勵措施，以激勵他們從網關轉移到我們的端到端平台。這占我們每個月產量的 50%。

That's a very easy thing to do. You're changing a merchant number in the system and kind of turning off the faucet to a Heartland or Global or Worldpay and you're keeping it yourself, right? What I'm saying is that for 5 years now, it's been pretty much an entirely carrot-first approach. And what we're going to do is kind of like you said, nudge them a little bit more, where we're either going to put tolls on, or tolls or just -- and also kind of simultaneously sunset some of the connections that are just too small to -- that are not really worth upkeeping anymore.

這是一件很容易做到的事情。您正在更改系統中的商戶編號，並關閉了 Heartland 或 Global 或 Worldpay 的水龍頭，而您自己保留了它，對嗎？我要說的是，5 年來，這幾乎完全是胡蘿蔔優先的方法。我們要做的有點像你說的，稍微推動他們一點，我們要么增加通行費，要么通行費，或者只是——同時也會切斷一些聯繫只是太小了——不再值得維護了。

Now this does put them to the test. Can you move to 1 of the other 2 gateway platforms? Yes, it's not very easy though. There's an awful lot we're doing when we're tokenizing and encrypting transactions and providing analytics that doesn't like transfer over very easily. They're going to wind up paying more in the process, and they're not going to really get a better commerce experience going for their customers.

現在這確實讓他們經受了考驗。您可以轉移到其他 2 個網關平台中的 1 個嗎？是的，但這並不容易。當我們對交易進行令牌化和加密並提供不喜歡很容易傳輸的分析時，我們正在做很多事情。他們最終會在這個過程中支付更多的錢，而且他們不會真正為他們的客戶獲得更好的商業體驗。

So what we're attacking here is the status quo that people have other things to worry about in a given day, and this isn't a high priority. So we're kind of bringing it to the top of their decision list, if you will. So I expect very, very little, as I mentioned in my kind of prepared remarks, like for sure, there is a risk-reward here. We think it's a very attractive one. We do absolutely think the end result is a large portion of that gateway business is coming forward faster.

所以我們在這裡攻擊的是人們在某一天有其他事情要擔心的現狀，這不是一個高優先級。因此，如果您願意，我們會將其置於他們決策列表的首位。所以我期望非常非常低，正如我在準備好的評論中提到的那樣，可以肯定的是，這裡有風險回報。我們認為這是一個非常有吸引力的。我們絕對認為最終結果是網關業務的很大一部分正在更快地發展。

I do want to say, though, that this is not actually a new strategy. This was always the strategy. It's just the last gateway that we bought was in the fourth quarter of 2019. And within like 4 months of that acquisition, you had a worldwide pandemic. And leading with anything other than carrots during that time period did not seem appropriate. It's at a different point now. So again, it's not -- we're not rethinking our approach. We're just -- it's just a better time to execute on what we had already planned. And it has nothing to do with our current approach not working. It's about making it work a lot faster.

不過，我確實想說，這實際上並不是一個新策略。這一直是策略。這只是我們在 2019 年第四季度購買的最後一個網關。在那次收購後的大約 4 個月內，全球大流行。在那段時間裡，除了胡蘿蔔之外，其他任何東西都不合適。現在情況不同了。所以，這不是——我們沒有重新考慮我們的方法。我們只是——現在是執行我們已經計劃好的更好的時機。這與我們當前的方法不起作用無關。這是為了讓它工作得更快。

Okay. That's really helpful color. And then just as a follow-up, on SkyTab POS, can you talk about the kind of monetization lift you think you can get? I think you mentioned 120,000 customers that it sounds like are back book conversion potential. What are the economics of converting them to this new point-of-sale system?

好的。那是非常有用的顏色。然後作為後續行動，在 SkyTab POS 上，您能談談您認為可以獲得的那種貨幣化提升嗎？我想你提到了 120,000 名客戶，這聽起來像是有回購轉換的潛力。將它們轉換為這個新的銷售點系統的經濟效益如何？

Yes. I mean it's kind of twofold, right? So similar to just talking about our gateway strategy, we have a product that's going to be able to win very effectively in just an addressable market. We have lots of great distribution channels. So you're going to win the same type of customer that's contributing the same kind of spreads and annual gross profit contribution like they look today in our restaurant book.

是的。我的意思是它有點雙重，對吧？與談論我們的網關戰略非常相似，我們擁有一種能夠在可尋址市場中非常有效地取勝的產品。我們有很多很棒的分銷渠道。因此，您將贏得相同類型的客戶，這些客戶貢獻的利差和年度毛利潤貢獻與他們今天在我們的餐廳書中看到的一樣。

But on top of that, you're also getting a SaaS lift, because the vast majority of the customers we are signing up today, and 85% of our existing book of restaurant customers do not pay any SaaS fees at all. We monetize entirely through payments.

但除此之外，您還獲得了 SaaS 提升，因為我們今天簽約的絕大多數客戶，以及我們現有餐廳客戶中 85% 根本不支付任何 SaaS 費用。我們完全通過支付獲利。

So you're going to get the same type of customer you had before, plus you're getting SaaS on top of it. And then we don't charge for access to our marketplace, which is like your third-party integrations to Grubhub, Uber Eats and DoorDash. Toast does charge for that. We don't have a capital program. There's going to be a capital on a payroll program that are part of SkyTab POS.

因此，您將獲得與之前相同類型的客戶，而且您還將獲得 SaaS。然後我們不收取訪問我們市場的費用，這就像您與 Grubhub、Uber Eats 和 DoorDash 的第三方集成。 Toast確實為此收費。我們沒有資本計劃。作為 SkyTab POS 一部分的薪資計劃將有一筆資金。

So you have a lot of additional monetization opportunities that you're not presently getting today. And then you have your existing base of customers where, again, 85% are not paying SaaS fees at all. They're all going to want to move to a next-generation POS product with new hardware, new capabilities. So you're going to get a SaaS lift from the existing base, but then you're also going to get it through operational efficiencies.

所以你有很多你現在沒有得到的額外的貨幣化機會。然後你有你現有的客戶群，其中 85% 根本沒有支付 SaaS 費用。他們都希望轉向具有新硬件和新功能的下一代 POS 產品。因此，您將從現有基礎上獲得 SaaS 提升，但隨後您還將通過運營效率獲得它。

Again, we -- like 2,000 employees, a large portion of them are supporting Windows-based POS systems that are more labor intense, if you will, more maintenance intense than a newer cloud-based product as well. So there's a lot of benefits that we're going to get kind of on the top end and bottom of our P&L.

同樣，我們 - 像 2,000 名員工一樣，他們中的很大一部分都支持基於 Windows 的 POS 系統，如果你願意的話，維護工作也比更新的基於雲的產品更密集。因此，我們將在損益表的頂端和底部獲得很多好處。

Our next question comes from Timothy Chiodo of Credit Suisse.

我們的下一個問題來自瑞士信貸的 Timothy Chiodo。

I wanted to revisit the bridge that you provided for end-to-end volumes for 2022. In that original bridge, you had a nice portion of about $3 billion or so related to the new markets. But also things seem to be going really well with stadiums and entertainment with a lot of the new wins that you announced today. Just wondering if there's any change that we should think about to that bridge or if all of this was fully contemplated in that $3 billion for new markets?

我想重新審視你為 2022 年端到端交易量提供的橋樑。在那個最初的橋樑中，你有大約 30 億美元左右的相當一部分與新市場相關。但是，隨著您今天宣布的許多新勝利，體育場館和娛樂活動似乎也進展順利。只是想知道我們是否應該考慮對那座橋進行任何更改，或者所有這一切是否都在用於新市場的 30 億美元中得到充分考慮？

Tim, I'll address that. The bridge, again, I think we've been using the term provocative. It was designed to show you sort of a relatively easy way for us to get towards our full year guide. I think the $3 billion is a conservative figure.

蒂姆，我來解決這個問題。這座橋，我想我們一直在使用挑釁這個詞。它旨在向您展示一種相對簡單的方法，使我們能夠獲得我們的全年指南。我認為 30 億美元是一個保守的數字。

The only thing to keep in mind is that it's probably just the SME vertical has some seasonality and the nonprofit vertical has some seasonality. SME, towards kind of the last 3 quarters of the year and nonprofit specifically towards the last quarter of the year. The Giving Block, I called out the example, the vast majority of their donations happen in Q4, and then the majority of those happen in December specifically.

唯一要記住的是，可能只是中小企業垂直領域有一些季節性，而非營利垂直領域也有一些季節性。中小企業，針對今年最後 3 個季度的類型，非營利組織特別針對今年最後一個季度。 Giving Block，我舉了個例子，他們的絕大部分捐贈發生在第四季度，然後大部分發生在 12 月。

So still early in the year. All these wins are encouraging. I would say the one area that's kind of outsized encouraging is the amount of ticketing wins, and I think we called that out last quarter. Q1 is relatively slow for SME in general, but the number of ticketing wins are quite encouraging because of the outsized volume they contribute.

所以還是年初。所有這些勝利都令人鼓舞。我想說的是，一個非常令人鼓舞的領域是票務獲勝的數量，我認為我們上個季度已經宣布了這一點。總體而言，對於中小企業而言，第一季度相對較慢，但由於它們貢獻的數量巨大，因此贏得的票數非常令人鼓舞。

Excellent. A quick follow-up. I don't know if you're willing to share this or not, but on the SkyTab POS, it seems like the growth in locations is really strong. Are you able to share what the absolute number is at, and fully appreciate that it's still really early days.

出色的。快速跟進。我不知道你是否願意分享這個，但在 SkyTab POS 上，地點的增長似乎非常強勁。您能否分享絕對數字是多少，並完全理解現在還處於早期階段。

We haven't disclosed the specific figure in our data this quarter, but it's over 3,000, which I think that would be around -- it's above where we listed last -- our Q4 call by several hundred merchants.

我們沒有在本季度的數據中披露具體數字，但它超過了 3,000，我認為這將是大約 - 它高於我們最後列出的數字 - 我們的數百個商家的第四季度電話。

Our next question comes from Jamie Friedman of Susquehanna International Group.

我們的下一個問題來自 Susquehanna International Group 的 Jamie Friedman。

Congratulations on the results here. I'll ask my 2 questions upfront. Taylor, in your prepared remarks, you talked a little bit about inflation. When we look at the RevPAR, like from some of your hotel customers or some of your restaurant customers, it looks like tickets are up. So can you talk about how inflation in the take rate model might help or hinder?

祝賀這裡的結果。我會提前問我的兩個問題。泰勒，在你準備好的發言中，你談到了通貨膨脹。當我們查看 RevPAR 時，就像從您的一些酒店客戶或您的一些餐廳客戶那裡看到的那樣，門票似乎已經售罄。那麼您能談談採用率模型中的通貨膨脹如何幫助或阻礙嗎？

And then the second one is -- can you talk at least at a high level about gateway volume growth? I don't think you disclosed that. If you did, I'm embarrassed. I apologize, but if you didn't, at least at a high level, could you talk to that? So first on inflation and second on gateway.

然後第二個是——你能至少在高層次上談談網關數量的增長嗎？我不認為你透露了這一點。如果你這樣做，我很尷尬。我很抱歉，但如果你沒有，至少在高層，你能和它談談嗎？所以首先是通貨膨脹，其次是網關。

Both good questions, thanks for asking them. Inflation helps to a point. And I would say that the restaurant vertical is an example of that, even at slightly lower than peak capacity restaurants have been able to deliver volume in excess in pre-pandemic levels. And that's largely price lift that they've exhibited inside of their business.

兩個好問題，謝謝你問他們。通貨膨脹在一定程度上有所幫助。我想說垂直餐廳就是一個例子，即使餐廳的容量略低於峰值容量，也能夠提供超過大流行前水平的容量。這主要是他們在業務中展示的價格上漲。

I would say on RevPAR, it's a little bit of a different story, and it's less of an inflation and more of a pent-up demand and an inability to satiate that demand because of supply constraints at hotels. So 2 very different dynamics. One is that you've got above industry average revenues inside of restaurants because they kind of led the pricing increases even before inflation was talking. If you went out to dinner last summer, you probably looked once or twice at the menu, at prices.

我會說，在 RevPAR 上，情況有點不同，它不是通貨膨脹，更多的是被壓抑的需求，以及由於酒店供應限製而無法滿足需求。所以2個非常不同的動態。一是餐館內部的收入高於行業平均水平，因為他們甚至在通貨膨脹開始之前就引領了價格上漲。如果你去年夏天出去吃晚飯，你可能會在菜單上看一兩次價格。

Hotel is a different story. They're charging more because there's a lot of demand. And quite frankly, over the past several months, they haven't been able to adequately address that demand. Now it does appear like labor challenges are softening, and so hotels are filling up. And again, this kind of goes back to conservatism in guidance. I think the question is as these businesses are able to satiate 100% of the demand that they see, as they address their supply constraints more adequately, do prices come down or do prices stay where they are? And that's kind of the big macro level question we consistently ask ourselves. And it just leads to that cautionary level of conservatism.

酒店是另一回事。他們收費更高，因為需求量很大。坦率地說，在過去幾個月裡，他們未能充分滿足這一需求。現在看來，勞動力挑戰確實正在緩和，因此酒店正在客滿。再一次，這種在指導上又回到了保守主義。我認為問題是，隨著這些企業能夠滿足他們看到的 100% 的需求，因為他們更充分地解決了供應限制問題，價格會下降還是會保持在原位？這是我們不斷問自己的宏觀層面的大問題。它只會導致那種謹慎的保守主義水平。

The other piece that we're always conscious of is that, yes, prices going up inherently supports our business model because we drive a spread on those prices when customers pay. But there is a tipping point at which people simply go out less and they spend less as a result of higher prices. So things like gas prices are something we focus on a lot and the potential impact they could have on restaurant verticals.

我們一直意識到的另一點是，是的，價格上漲本質上支持我們的商業模式，因為我們在客戶付款時推動了這些價格的差價。但是有一個轉折點，人們只是因為價格上漲而減少外出和消費。因此，像汽油價格這樣的事情是我們非常關注的事情，以及它們可能對垂直餐廳產生的潛在影響。

I will say, if you look back historically, these verticals have performed really, really well. People cut back on a lot of other discretionary spending before they cut back on taking their family out to dinner once a month or once a week. So we're encouraged, but I think it's prudent to be cautious because there's some pretty unprecedented trends that we're seeing across the macro environment.

我會說，如果你回顧歷史，這些垂直領域的表現真的非常好。人們在減少每月一次或每週一次帶家人出去吃飯之前，會減少很多其他可自由支配的支出。所以我們感到鼓舞，但我認為謹慎是明智的，因為我們在整個宏觀環境中看到了一些前所未有的趨勢。

With regard to gateway volume, we quote it from time to time just to give a sense that it's very sticky volume. It's largely the same as it was when we acquired the gateways, less what we've converted over. There's probably room for that gateway volume to grow slightly because hotels, we do believe, are still under a normalized run rate. And there's a lot of hotels inside of that gateway, roughly 40% of the hotels in the country are on those gateways. But we didn't omit it for any reason other than it's largely status quo from quarter-to-quarter.

關於網關量，我們不時引用它只是為了給人一種它非常粘性的感覺。它與我們獲得網關時的情況大致相同，但我們轉換的內容較少。該網關數量可能有略微增長的空間，因為我們相信酒店仍處於正常運行率之下。該門戶內有很多酒店，該國大約 40% 的酒店都在這些門戶內。但我們並沒有因為任何原因而忽略它，除了它在很大程度上是一個季度到另一個季度的現狀。

Our final question of today's call comes from [Eugene Simone] of MoffettNathanson.

今天電話會議的最後一個問題來自 MoffettNathanson 的 [Eugene Simone]。

I wanted to ask about international, we haven't talked about it as much on the call today. So great to hear about the work you've been doing with Finaro. I'm just curious, based on this work, what's your greatest -- relate a sense of kind of the time line to shift for having the full scale capabilities to do a global payment acceptance processing? And what are the pieces that after you integrate Finaro you would still build out to kind of complete that process?

我想問一下關於國際的問題，我們今天在電話中沒有討論太多。很高興聽到您與 Finaro 的合作。我很好奇，基於這項工作，你最偉大的是什麼 - 與一種時間線的感覺有關，以便擁有全面的能力來進行全球支付接受處理？在你整合 Finaro 之後，你仍然會構建哪些部分來完成這個過程？

So Jared here. Good question, I mean we were really pleased that we were able to share on this call that some of the first cross-border test transactions between the Shift4 platform hosted here in the U.S. and the Finaro platform has already taken place.

賈里德在這裡。好問題，我的意思是我們真的很高興我們能夠在這次電話會議上分享在美國這里托管的 Shift4 平台和 Finaro 平台之間的一些首批跨境測試交易已經發生。

So as we mentioned last quarter, the earnout structure of the transaction very much incentivizes both parties to work towards connecting all the plumbing between our 2 worlds, which is great. Now what does that mean when this deal closes? And I would say like we'll be able to immediately kind of go to market with a North America plus European capability that, I'd say, is pretty unique in terms of the number of payment companies out there capable of delivering such a solution, especially with like e-commerce capabilities.

因此，正如我們上個季度提到的那樣，交易的收益結構非常激勵雙方努力連接我們兩個世界之間的所有管道，這很棒。現在，這筆交易結束意味著什麼？而且我想說我們將能夠立即以北美和歐洲的能力進入市場，我想說，就能夠提供這種解決方案的支付公司數量而言，這是非常獨特的，尤其是具有電子商務功能。

But the work can't stop there. We do -- we are very fortunate to have this strategic agreement with a customer that will be delivering subscription services all over the world, not just in North America and Europe. So for as much energy as we're putting into kind of connecting the dots so we can hit the ground running for that big customer, but also for all the other integrations and products we serve, we're also putting a lot of energy towards the other parts of the world that we don't have covered yet.

但工作不能就此停止。我們這樣做 - 我們非常幸運能夠與將在全球範圍內提供訂閱服務的客戶達成這項戰略協議，而不僅僅是在北美和歐洲。因此，儘管我們投入了很多精力來連接各個點，以便我們可以為那個大客戶開門紅，但對於我們服務的所有其他集成和產品，我們也投入了大量精力我們尚未涵蓋的世界其他地區。

And some of those parts of the world, like when you think about Central and South America, Africa, APAC, I mean, these are going to be regions where there's going to be very high demand for broadband capabilities. So hopefully, that gives you -- if we're telling you that we feel like we're very confident we're able to absorb Finaro and hit the ground running with that, while still at the same time, looking at other international opportunities, it should give you a sense of our confidence on how that integration is going.

世界上的一些地區，比如中美洲和南美洲、非洲、亞太地區，我的意思是，這些地區將對寬帶功能有非常高的需求。所以希望這給你 - 如果我們告訴你我們覺得我們非常有信心我們能夠吸收 Finaro 並以此為基礎開始運作，同時還在尋找其他國際機會，它應該讓您感受到我們對整合進展的信心。

Got it. Got it. Very helpful. And then a quick follow-up, just on your distribution strategy and how it might be shifting overall. So you obviously historically relied very heavily on a partner network. It's worked very well for you guys. As you enter new verticals, are you growing your direct sales force? How is that progressing? And where is the impact of that on the P&L, how we might see it translate to kind of your expense structure in the P&L over the coming quarters or years?

知道了。知道了。很有幫助。然後是快速跟進，只是關於您的分銷策略以及它可能如何整體轉變。所以你顯然在歷史上非常依賴合作夥伴網絡。這對你們來說效果很好。當您進入新的垂直領域時，您是否正在壯大您的直銷隊伍？進展如何？這對損益表的影響在哪裡，我們如何看待它在未來幾個季度或幾年內轉化為您在損益表中的費用結構？

Yes. So Jared here, I'll take the first half of that and then kick it over to Brad. It's interesting 2 years ago, at our virtual roadshow going up to the IPO. I mean, all we would have talked about is how important third-party distribution is and the operating leverage it gives us. And that's very true for the verticals at the time.

是的。 Jared 在這裡，我將先完成前半部分，然後交給 Brad。有趣的是 2 年前，在我們的 IPO 虛擬路演中。我的意思是，我們所談論的只是第三方分銷的重要性以及它為我們提供的運營槓桿。這對於當時的垂直行業來說是非常正確的。

Since the IPO, geez, we've entered sports and entertainment, e-commerce, nonprofits, travel and leisure, gaming. All of our new verticals are being pursued via direct strategy. I mean it's not hard either. I mean we -- generally, it's pretty easy to find where all the sports stadiums are out there, and they're always willing to have a conversation.

自從首次公開募股以來，天哪，我們已經進入了體育和娛樂、電子商務、非營利組織、旅遊和休閒、遊戲領域。我們所有的新垂直領域都是通過直接戰略進行的。我的意思是這也不難。我的意思是我們——一般來說，很容易找到所有體育場館的位置，而且他們總是願意進行對話。

So I'd say that pretty much the entirety of kind of our new vertical expansion strategy has been around an in-house enterprise and direct sales team. And look, obviously, it cuts out a residual expense that is pretty -- that is a pretty meaningful expense for us on an annual basis as we move into these new verticals. And I'll kind of kick it over to Brad to share a bit more.

所以我想說，幾乎所有我們新的垂直擴張戰略都是圍繞著一個內部企業和直銷團隊展開的。看，很明顯，它減少了一筆相當可觀的剩餘費用——當我們進入這些新的垂直領域時，這對我們來說每年都是一筆非常有意義的費用。我會把它交給 Brad 來分享更多。

Eugene, so how that's going to manifest itself, so Jared kind of teed it up a little bit. So residuals are obviously going to be 0 on this particular distribution channel. But you'll see a couple of pickups in some other spots. You'll see some other cost of sales pick up slightly because that's what we'll do our integration costs to bring on these new merchants.

尤金，那麼這將如何表現出來，所以賈里德稍微準備了一下。因此，在這個特定的分銷渠道上，殘差顯然將為 0。但是你會在其他一些地方看到幾個皮卡。你會看到其他一些銷售成本略有上升，因為這就是我們將花費的整合成本來吸引這些新商家。

One of the calls earlier, I had mentioned some discussions around adding some expenses into our G&A line. So that's where the bodies you'll see as part of our in-house sales efforts you're going to put in the G&A line. And you'll also see a little bit of advertising and marketing pickup to support some of the go-to-market strategy. But at the end of the day, those ads are going to be certainly favorable to what's going to come out of the residuals. So you'll see residuals come down more than what you'll see the adds coming back in those lines I mentioned.

在早些時候的一個電話中，我提到了一些關於在我們的 G&A 線路中增加一些費用的討論。因此，這就是您將在 G&A 生產線中看到的機構，作為我們內部銷售工作的一部分。你還會看到一些廣告和營銷活動來支持一些上市策略。但歸根結底，這些廣告肯定有利於殘差的結果。因此，在我提到的那些行中，你會看到殘差比你會看到的增加更多。

At this current stage, we have no further time for any questions. This concludes today's call. Thank you for joining, and you may disconnect your lines.

在當前階段，我們沒有更多時間提出任何問題。今天的電話會議到此結束。感謝您的加入，您可以斷開線路。

Thanks, everyone, for joining.

謝謝大家的加入。