From: Jered Isaacman
Sent: Friday, May 25, 2018 11:21:31 PM
To: Taylor Laemmle; Nate Hirshberg
Subject:

Hey guys. Hope you're doing good. I was
hoping to get more color on the
underperformance in April/May Rev and
EBITDA from Shift4 and PRS. I know we
have a budget reconciliation scheduled for
next week, but obviously that is dated info by
then and a bit more of a formality.

I know the Shift4 enterprise team has a new
leader running sales. Does Shift4 plan to
invest in marketing activities to deliver more
leads/opps in Q3/4? The enterprise segment
should drive a substantial portion of the
organic growth in 2018 and beyond so
important that division regain momentum.

On the PRS side, it seemed the accounting
integration challenges last summer hurt the
ability to add new customers. Is that entirely
behind us know? What is the expected
growth rate for PRS for the rest of the year?

I'm certainly aware of the investments we are
making together in the payments, POS, and
marketplace area and resulting short-term
impact on EBITDA. I know there is plenty of
uncertainty that comes with that. I'm really
looking for the 'controllable' factors within
the individual businesses right now.

Thanks.

Jered
From: Taylor Laemmle
Sent: Saturday, May 26, 2018 12:18:20 AM
To: Jered Isaacman; Nate Hirshberg
Subject: Re:

Jered,
Totally understood and good questions.
Nate and I met with Randy yesterday for
almost two hours to dig into the details. He's
out today but we're going to try and circle up
again this weekend to make sure we're aligned
for that reconciliation meeting.

Here are a few of the main highlights
- April revenue miss for Shift4 was isolated
primarily to the enterprise segment, as you
noted, and mostly due to several high
volume accounts attritioning or moving
volume to other gateways. We had some
operational issues that delayed boarding a
couple of new accounts that were supposed
to come online in April. This impacted May
numbers which are still being finalized.
- Randy does have plans to restructure the
enterprise team and bring in some additional
resources for sales and mktg but not until late
Q3. He wants to re-evaluate the whole
structure and make major changes all at once.
- PRS had a software release that went out (not
part of the accounting integration, but
another module) that introduced a few bugs
that they've been working through. Randy
thinks this impacted new installs the last few
weeks. Still expecting high single digit growth
for PRS in Q3/Q4 based on the pipeline but
will have a better sense when we meet next
week.
More to come when we talk to Randy. Overall
he seems to be confident hitting the lower range
of the initial plan, but definitely not on track for
the mid or high end numbers at this point. Feels
like a lot is riding on Q4 for both divisions.
Thanks,
Taylor

From: Jered Isaacman
Sent: Saturday, July 28, 2018 7:38 PM
To: Taylor Laemmle
Cc: Nate Hirshberg; Randy Miskanic
Subject: Re: Shift4 Financial Report

Thanks, T. I appreciate the summary. I'm
definitely concerned about the revenue
shortfall, especially given that its across all
business segments - ENT, SMB and PRS.
That to me indicates bigger issues and
addressing only ENT won't be enough. I
thought the strategy before was we built up
SMB to support ENT while we wait for those
larger deals to close, and PRS was the big
upside surprise. Now it seems all 3 are
under pressure which puts annual plan for all
of Shift4 at risk.

The sales team restructuring at ENT is a
concern to me. Every time we do that, it
seems to set us back a quarter or two. I
really think Randy needs to consider
changing everything out - all business
segments.

I am definitely available this week to discuss
these issues so please schedule if
possible...even the weekend.

Jered

From: Jered Isaacman
Sent: Sunday, June 24, 2018 11:21 AM
To: Randy Miskanic; Taylor Laemmle; Nate Hirshberg
Subject:

Hey guys, wanted to follow up on the
performance of the various Shift4
business units. We're almost halfway
through the year and getting close to Q3.
Can we get an update on how we're
tracking against the original operating plan
for 2018?

I'm particularly interested in:

•   Shift4 Ent: Are we going to hit 200 bps
    organically in the merchant portfolio this
    year?
•   Shift4 SMB: What is attrition really
    trending at? I know there are some
    gateway migration efforts underway,
    which hopefully will help reduce that going
    forward?
•   PRS: I know its been a little slower to
    ramp than we thought. How far off plan
    are we, and do we have any concerns on
    hitting original expectations?

I'd like to understand what immediate
actions are being taken to change the slope
of the curve. I am available this week to
discuss. Please let me know.

Thanks.

Jered

 From: Jered Isaacman jisaacman@shift4.com
Sent: Friday, September 14, 2018 7:42 AM
To: Randy Miskanic rmiskanic@shift4.com; Taylor Laemmle
tlaemmle@cardconnect.com
Cc: Nate Hirshberg nhirshberg@cardconnect.com
Subject: Urgent - Recurring revenue

Randy and Taylor - The first half of 2018 has
been rather challenging from an operations
and execution standpoint. As a result, we
have fallen significantly below expectations
for the year, creating a financial obligation
for CC to make up in order to fulfill our
collective commitment to First Data. In order
to do so, we need to assess where we
currently stand and what levers are available
to pull.

I want to get a very granular view of where
we are today from a recurring, predictable
revenue perspective. Please provide the
following to me by Monday:

1.  Merchant portfolio attrition - broken down
    by business segment, at a per merchant
    (not TIN) level, and provide data for the
    last 6 months, including:
    a. Merchant name
    b. Volume and revenue at the time of
       attrition (show prior 3 months)
    c. Reason for attrition

2.  Any downward repricing concessions
    provided to a merchant in any segment
    over the last three months.
    a. Merchant Name
    b. Volume and Revenue before and
       after repricing
    c. Reason for repricing

3.  For PRS, provide a report of all merchants
    that are live, and their average revenue
    contribution. Also include merchants in
    implementation.
    a. Identify any PRS merchants that have
       left in the las six months.

I expect that going forward, and until we get
back on plan for 2018, that no changes
should be made to merchant pricing without
executive approval from either myself, Taylor
or Nate.

I am available the first half of next week.
Please be prepared to review this data.

Jered