Priority Technology Holdings, Inc. Announces Second Quarter Financial Results
Priority Technology Holdings (NASDAQ: PRTH) reported its Q2 2024 financial results, showcasing significant growth. Revenue rose to $219.9 million, a 20.6% increase from Q2 2023. Adjusted gross profit improved to $81.7 million from $67.0 million, up 22.0%, with a margin boost to 37.2%. Operating income surged 73.4% to $33.2 million. Adjusted EBITDA climbed 25.4% to $51.6 million.
For the full year 2024, the company expects revenue between $875 million and $883 million, and adjusted gross profit ranging from $325 million to $330 million. Adjusted EBITDA is forecast between $196 million and $200 million.
CEO Tom Priore emphasized their leading unified commerce platform and commitment to customer success as key drivers for this growth.
Priority Technology Holdings (NASDAQ: PRTH) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando una crescita significativa. I ricavi sono aumentati a 219,9 milioni di dollari, con un incremento del 20,6% rispetto al secondo trimestre 2023. Il profitto lordo rettificato è migliorato a 81,7 milioni di dollari rispetto ai 67,0 milioni di dollari, con un aumento del 22,0%, e un incremento del margine al 37,2%. Il reddito operativo è aumentato del 73,4% raggiungendo 33,2 milioni di dollari. L'EBITDA rettificato è salito del 25,4% a 51,6 milioni di dollari.
Per l'intero anno 2024, l'azienda prevede ricavi compresi tra 875 milioni e 883 milioni di dollari, e un profitto lordo rettificato compreso tra 325 milioni e 330 milioni di dollari. Si prevede che l'EBITDA rettificato si attesti tra 196 milioni e 200 milioni di dollari.
Il CEO Tom Priore ha sottolineato come la loro piattaforma di commercio unificato leader e l'impegno per il successo del cliente siano i principali fattori trainanti di questa crescita.
Priority Technology Holdings (NASDAQ: PRTH) informó sus resultados financieros del segundo trimestre de 2024, mostrando un crecimiento significativo. Los ingresos aumentaron a 219,9 millones de dólares, un 20,6% más que en el segundo trimestre de 2023. La ganancia bruta ajustada mejoró a 81,7 millones de dólares desde 67,0 millones de dólares, un incremento del 22,0%, con un aumento en el margen al 37,2%. El ingreso operativo se disparó un 73,4% a 33,2 millones de dólares. El EBITDA ajustado subió un 25,4% a 51,6 millones de dólares.
Para el año completo 2024, la empresa espera ingresos entre 875 millones y 883 millones de dólares, y ganancias brutas ajustadas entre 325 millones y 330 millones de dólares. Se pronostica que el EBITDA ajustado estará entre 196 millones y 200 millones de dólares.
El CEO Tom Priore enfatizó que su plataforma de comercio unificado líder y el compromiso con el éxito del cliente son los principales impulsores de este crecimiento.
프리어리티 테크놀로지 홀딩스 (NASDAQ: PRTH)는 2024년 2분기 재무 결과를 발표하며 상당한 성장을 강조했습니다. 매출은 2억 1,990만 달러로 증가하며, 2023년 2분기 대비 20.6% 증가했습니다. 조정된 총이익은 6,700만 달러에서 8,170만 달러로 개선되어 22.0% 증가했으며, 마진은 37.2%로 상승했습니다. 운영 소득은 73.4% 증가하여 3,320만 달러에 도달했습니다. 조정된 EBITDA는 25.4% 상승하여 5,160만 달러에 달했습니다.
2024년 전체 연도에 대해 회사는 매출이 8억 7,500만 달러에서 8억 8,300만 달러 사이가 될 것으로 예상하며, 조정된 총이익은 3억 2,500만 달러에서 3억 3,000만 달러 범위로 예상합니다. 조정된 EBITDA는 1억 9,600만 달러에서 2억 달러 사이로 예측됩니다.
CEO 톰 프리오레는 그들의 선도적인 통합 상거래 플랫폼과 고객 성공에 대한 헌신이 이러한 성장을 위한 주요 원동력이라고 강조했습니다.
Priority Technology Holdings (NASDAQ: PRTH) a publié ses résultats financiers pour le deuxième trimestre 2024, mettant en évidence une croissance significative. Les revenus ont augmenté pour atteindre 219,9 millions de dollars, soit une augmentation de 20,6% par rapport au deuxième trimestre 2023. Le bénéfice brut ajusté a progressé à 81,7 millions de dollars contre 67,0 millions de dollars, soit une hausse de 22,0%, avec une augmentation de la marge à 37,2%. Le revenu opérationnel a grimpé de 73,4% pour atteindre 33,2 millions de dollars. L'EBITDA ajusté a augmenté de 25,4% pour atteindre 51,6 millions de dollars.
Pour l'année entière 2024, l'entreprise prévoit des revenus compris entre 875 millions et 883 millions de dollars, ainsi qu'un bénéfice brut ajusté se chiffrant entre 325 millions et 330 millions de dollars. L'EBITDA ajusté est prévu entre 196 millions et 200 millions de dollars.
Le CEO Tom Priore a souligné que leur plateforme de commerce unifié de premier plan et leur engagement envers le succès de leurs clients sont des moteurs clés de cette croissance.
Priority Technology Holdings (NASDAQ: PRTH) veröffentlichte die finanziellen Ergebnisse für das zweite Quartal 2024 und zeigte ein signifikantes Wachstum. Der Umsatz stieg auf 219,9 Millionen Dollar, was einem Anstieg von 20,6% im Vergleich zum zweiten Quartal 2023 entspricht. Der bereinigte Bruttogewinn verbesserte sich auf 81,7 Millionen Dollar von 67,0 Millionen Dollar, was einem Anstieg von 22,0% entspricht, mit einer Margenerhöhung auf 37,2%. Das operative Einkommen stieg um 73,4% auf 33,2 Millionen Dollar. Das bereinigte EBITDA kletterte um 25,4% auf 51,6 Millionen Dollar.
Für das gesamte Jahr 2024 erwartet das Unternehmen einen Umsatz von 875 Millionen bis 883 Millionen Dollar sowie einen bereinigten Bruttogewinn zwischen 325 Millionen und 330 Millionen Dollar. Das bereinigte EBITDA wird zwischen 196 Millionen und 200 Millionen Dollar prognostiziert.
CEO Tom Priore betonte, dass ihre führende integrierte Handelsplattform und das Engagement für den Erfolg der Kunden die Haupttreiber dieses Wachstums sind.
- Revenue increased by 20.6% from $182.3 million to $219.9 million.
- Adjusted gross profit increased by 22.0% from $67.0 million to $81.7 million.
- Operating income rose by 73.4% to $33.2 million.
- Adjusted EBITDA rose by 25.4% to $51.6 million.
- Strong financial guidance with revenue expected between $875 million and $883 million for full year 2024.
- Interest expense increased significantly to $21.7 million from $17.8 million.
Insights
Priority Technology Holdings' Q2 2024 results demonstrate strong financial performance across key metrics. Revenue grew
The significant jump in operating income (
However, investors should note the substantial increase in interest expenses and a one-time debt extinguishment charge, which impacted net income. Despite strong operational performance, net income was only
Priority's Q2 results reflect the growing demand for unified commerce solutions in the payments industry. The company's ability to deliver integrated payments and banking services at scale appears to be resonating with customers, driving substantial revenue growth.
The diversification of revenue streams across segments is a positive sign, potentially reducing business risk. However, the market should closely monitor the sustainability of this growth rate and any potential impact from economic headwinds or increased competition in the fintech space.
Priority's guidance suggests confidence in maintaining momentum, but investors should be aware that the revised revenue forecast narrows the upper range slightly. This could indicate some caution regarding market conditions or competitive pressures in the latter half of the year. The company's focus on cash flow acceleration and working capital optimization for businesses aligns well with current market trends, potentially positioning Priority for continued growth.
Priority's strong performance underscores the importance of technology-driven solutions in the payments sector. The company's unified commerce platform appears to be a key differentiator, enabling seamless integration of payments and banking services.
The significant revenue growth suggests that Priority's technology stack is scalable and adaptable to meet increasing demand. However, the tech landscape is rapidly evolving and continued investment in R&D will be important to maintain this competitive edge.
Investors should note the increase in depreciation and amortization of revenue-generating assets, which rose from
Strong Second Quarter Growth Driven by Performance Across Unified Commerce Platform
Highlights of Consolidated Results
Second Quarter 2024 Compared with Second Quarter 2023
- Financial highlights of the second quarter of 2024 compared with the second quarter of 2023, are as follows1:
-
Revenue of
$219.9 million 20.6% from$182.3 million -
Adjusted gross profit (a non-GAAP measure2) of
$81.7 million 22.0% from$67.0 million -
Adjusted gross profit margin (a non-GAAP measure2) of
37.2% increased 40.0 basis points from36.8% -
Operating income of
$33.2 million 73.4% from$19.1 million -
Adjusted EBITDA (a non-GAAP measure2) of
$51.6 million 25.4% from$41.1 million
(1) |
Certain amounts/percentages may not add mathematically due to rounding. |
(2) |
See "Non-GAAP Financial Measures" and the reconciliations of Adjusted Gross Profit (non-GAAP), Adjusted Gross Profit Margin (non-GAAP), and Adjusted EBITDA, to their most comparable GAAP measures provided below for additional information. |
"We again reported record results in the second quarter by capitalizing on our leading unified commerce platform that delivers elegant product solutions across our segments and customer service that is committed to our partners' success," said Tom Priore, Chairman & CEO of Priority. "Priority’s technology and operations are built for the future and executing on our mission to deliver a thriving ecosystem of financial solutions that accelerate cash flow and optimize working capital for businesses."
Full Year 2024 Financial Guidance
Priority's outlook remains strong and our adjusted full year 2024 guidance is as follows:
-
Revenue forecast to range between
$875 million $883 million $875 million $890 million 16% to17% , compared to fiscal 2023 results -
Adjusted gross profit (a non-GAAP measure) forecast to range between
$325 million $330 million $325 million $335 million 18% to20% compared to fiscal 2023 results -
Adjusted EBITDA (a non-GAAP measure) forecast to range between
$196 million $200 million $193 million $198 million 17% to19% compared to fiscal 2023 results
Conference Call
Priority's leadership will host a conference call on Thursday, August 8, 2024 at 11:00 a.m. EDT to discuss its second quarter financial results. Participants can access the call by phone in the
The Internet webcast link and accompanying slide presentation can be accessed at https://edge.media-server.com/mmc/p/ds7wmbnk and will also be posted in the "Investor Relations" section of the Company's website at www.prioritycommerce.com.
An audio replay of the call will be available shortly after the conference call until August 15, 2024 at 2:00 p.m. EDT. To listen to the audio replay, dial (877) 344-7529 or (412) 317-0088 and enter conference ID number 2689178. Alternatively, you may access the webcast replay in the "Investor Relations" section of the Company's website at www.prioritycommerce.com.
Non-GAAP Financial Measures
This communication includes certain non-GAAP financial measures that we regularly review to evaluate our business and trends, measure our performance, prepare financial projections, allocate resources, and make strategic decisions. We believe these non-GAAP measures help to illustrate the underlying financial and business trends relating to our results of operations and comparability between current and prior periods. We also use these non-GAAP measures to establish and monitor operational goals. However, these non-GAAP measures are not superior to or a substitute for prominent measurements calculated in accordance with GAAP. Rather, the non-GAAP measures are meant to be a complement to understanding measures prepared in accordance with GAAP.
Adjusted Gross Profit and Adjusted Gross Profit Margin
The Company's adjusted gross profit metric represents revenues less cost of revenue (excluding depreciation and amortization). Adjusted gross profit margin is adjusted gross profit divided by revenues. We review these non-GAAP measures to evaluate our underlying profit trends. The reconciliation of adjusted gross profit to its most comparable GAAP measure is provided below:
|
|
|
|
||||
(in thousands) |
Three Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Revenues |
$ |
219,867 |
|
|
$ |
182,290 |
|
Cost of revenue (excluding depreciation and amortization) |
|
(138,118 |
) |
|
|
(115,281 |
) |
Adjusted gross profit |
$ |
81,749 |
|
|
$ |
67,009 |
|
Adjusted gross profit margin |
|
37.2 |
% |
|
|
36.8 |
% |
Depreciation and amortization of revenue generating assets |
|
(3,941 |
) |
|
|
(3,030 |
) |
Gross profit |
$ |
77,808 |
|
|
$ |
63,979 |
|
Gross profit margin |
|
35.4 |
% |
|
|
35.1 |
% |
EBITDA and Adjusted EBITDA
EBITDA and adjusted EBITDA are performance measures. EBITDA is earnings before interest, income tax, and depreciation and amortization expenses ("EBITDA"). Adjusted EBITDA begins with EBITDA but further excludes certain non-cash costs, such as stock-based compensation and the write-off of the carrying value of investments or other assets, as well as debt extinguishment and modification expenses and other expenses and income items considered non-recurring, such as acquisition integration expenses, certain professional fees, and litigation settlements. We review the non-GAAP adjusted EBITDA measure to evaluate our business and trends, measure our performance, prepare financial projections, allocate resources, and make strategic decisions.
The reconciliation of adjusted EBITDA to its most comparable GAAP measure is provided below:
(in thousands) |
Three Months Ended June 30, |
|||||
|
2024 |
|
2023 |
|||
Net income (loss) |
$ |
994 |
|
$ |
(612 |
) |
Interest expense |
|
21,710 |
|
|
17,765 |
|
Income tax expense |
|
2,515 |
|
|
2,355 |
|
Depreciation and amortization |
|
15,244 |
|
|
17,980 |
|
EBITDA |
|
40,463 |
|
|
37,488 |
|
Debt extinguishment and modification |
|
8,623 |
|
|
— |
|
Selling, general and administrative (non-recurring) |
|
636 |
|
|
1,859 |
|
Non-cash stock-based compensation |
|
1,829 |
|
|
1,746 |
|
Adjusted EBITDA |
$ |
51,551 |
|
$ |
41,093 |
|
Further detail of certain of these adjustments, and where these items are recorded in our consolidated statements of operations, is provided below:
(in thousands) |
Three Months Ended June 30, |
||||
|
2024 |
|
2023 |
||
Selling, general and administrative expenses (non-recurring): |
|
|
|
||
Certain legal fees |
|
204 |
|
|
1,221 |
Professional, accounting and consulting fees |
|
310 |
|
|
509 |
Other expenses, net |
|
122 |
|
|
129 |
|
$ |
636 |
|
$ |
1,859 |
Priority does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for various cash and non-cash reconciling items that would be difficult to predict with reasonable accuracy. For example, stock-based compensation expense would be difficult to estimate because it depends on the Company's future hiring and retention needs, as well as the future fair market value of the Company's common stock, all of which are difficult to predict and subject to constant change. As a result, the Company does not believe that a GAAP reconciliation would provide meaningful supplemental information about the Company's outlook.
About Priority Technology Holdings, Inc.
Priority is a solution provider in Payments and Banking as a Service operating at scale with over 1 million active customers across its SMB, B2B and Enterprise channels processing
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services, and other statements identified by words such as "may," "will," "should," "anticipates," "believes," "expects," "plans," "future," "intends," "could," "estimate," "predict," "projects," "targeting," "potential" or "contingent," "guidance," "outlook" or words of similar meaning. These forward-looking statements include, but are not limited to, our 2024 outlook and statements regarding our market and growth opportunities. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. Our actual results could differ materially, and potentially adversely, from those discussed or implied herein.
We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in our SEC filings, including our most recent Annual Report on Form 10-K filed with the SEC on March 12, 2024. These filings are available online at www.sec.gov or www.prioritycommerce.com.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
Priority Technology Holdings, Inc. Unaudited Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
$ |
219,867 |
|
|
$ |
182,290 |
|
|
$ |
425,586 |
|
|
$ |
367,318 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of revenue (excludes depreciation and amortization) |
|
138,118 |
|
|
|
115,281 |
|
|
|
267,416 |
|
|
|
237,247 |
|
Salary and employee benefits |
|
22,119 |
|
|
|
19,109 |
|
|
|
44,269 |
|
|
|
38,157 |
|
Depreciation and amortization |
|
15,244 |
|
|
|
17,980 |
|
|
|
30,497 |
|
|
|
36,028 |
|
Selling, general and administrative |
|
11,212 |
|
|
|
10,787 |
|
|
|
22,207 |
|
|
|
19,905 |
|
Total operating expenses |
|
186,693 |
|
|
|
163,157 |
|
|
|
364,389 |
|
|
|
331,337 |
|
Operating income |
|
33,174 |
|
|
|
19,133 |
|
|
|
61,197 |
|
|
|
35,981 |
|
Other (expense) income |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(21,710 |
) |
|
|
(17,765 |
) |
|
|
(42,590 |
) |
|
|
(35,464 |
) |
Debt extinguishment and modification costs |
|
(8,623 |
) |
|
|
— |
|
|
|
(8,623 |
) |
|
|
— |
|
Other income, net |
|
668 |
|
|
|
375 |
|
|
|
1,300 |
|
|
|
587 |
|
Total other expense, net |
|
(29,665 |
) |
|
|
(17,390 |
) |
|
|
(49,913 |
) |
|
|
(34,877 |
) |
Income before income taxes |
|
3,509 |
|
|
|
1,743 |
|
|
|
11,284 |
|
|
|
1,104 |
|
Income tax expense |
|
2,515 |
|
|
|
2,355 |
|
|
|
5,097 |
|
|
|
2,222 |
|
Net income (loss) |
|
994 |
|
|
|
(612 |
) |
|
|
6,187 |
|
|
|
(1,118 |
) |
Less: Dividends and accretion attributable to redeemable senior preferred stockholders |
|
(18,565 |
) |
|
|
(11,765 |
) |
|
|
(31,227 |
) |
|
|
(23,060 |
) |
Less: Return on redeemable NCI in consolidated subsidiary |
|
(58 |
) |
|
|
— |
|
|
|
(639 |
) |
|
|
— |
|
Net loss attributable to common stockholders |
|
(17,629 |
) |
|
|
(12,377 |
) |
|
$ |
(25,679 |
) |
|
$ |
(24,178 |
) |
Other comprehensive loss |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
4 |
|
|
|
7 |
|
|
|
(9 |
) |
|
|
31 |
|
Comprehensive loss |
$ |
(17,625 |
) |
|
$ |
(12,370 |
) |
|
$ |
(25,688 |
) |
|
$ |
(24,147 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.23 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.31 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
77,736 |
|
|
|
78,292 |
|
|
|
77,878 |
|
|
|
78,213 |
|
Priority Technology Holdings, Inc. Unaudited Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
|
|
|
|
||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
34,626 |
|
|
$ |
39,604 |
|
Restricted cash |
|
12,625 |
|
|
|
11,923 |
|
Accounts receivable, net of allowances |
|
65,746 |
|
|
|
58,551 |
|
Prepaid expenses and other current assets |
|
19,479 |
|
|
|
13,273 |
|
Current portion of notes receivable, net of allowance |
|
2,188 |
|
|
|
1,468 |
|
Settlement assets and customer/subscriber account balances |
|
802,394 |
|
|
|
756,475 |
|
Total current assets |
|
937,058 |
|
|
|
881,294 |
|
Notes receivable, less current portion |
|
4,998 |
|
|
|
3,728 |
|
Property, equipment and software, net |
|
49,800 |
|
|
|
44,680 |
|
Goodwill |
|
376,091 |
|
|
|
376,103 |
|
Intangible assets, net |
|
258,632 |
|
|
|
273,350 |
|
Deferred income taxes, net |
|
25,556 |
|
|
|
22,533 |
|
Other noncurrent assets |
|
21,294 |
|
|
|
13,649 |
|
Total assets |
$ |
1,673,429 |
|
|
|
1,615,337 |
|
Liabilities, Redeemable Senior Preferred Stock, Redeemable NCI, and Stockholders' Deficit |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
66,724 |
|
|
$ |
52,643 |
|
Accrued residual commissions |
|
36,091 |
|
|
|
33,025 |
|
Customer deposits and advance payments |
|
3,569 |
|
|
|
3,934 |
|
Current portion of long-term debt |
|
8,350 |
|
|
|
6,712 |
|
Settlement and customer/subscriber account obligations |
|
798,753 |
|
|
|
755,754 |
|
Total current liabilities |
|
913,487 |
|
|
|
852,068 |
|
Long-term debt, net of current portion, discounts and debt issuance costs |
|
809,045 |
|
|
|
631,965 |
|
Other noncurrent liabilities |
|
15,488 |
|
|
|
18,763 |
|
Total liabilities |
|
1,738,020 |
|
|
|
1,502,796 |
|
Redeemable senior preferred stock, net of discounts and issuance costs |
|
105,684 |
|
|
|
258,605 |
|
Stockholders' deficit: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
76 |
|
|
|
77 |
|
Treasury stock, at cost |
|
(18,673 |
) |
|
|
(12,815 |
) |
Additional paid-in capital |
|
— |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
(38 |
) |
|
|
(29 |
) |
Accumulated deficit |
|
(153,472 |
) |
|
|
(134,951 |
) |
Total stockholders' deficit attributable to stockholders of PRTH |
|
(172,107 |
) |
|
|
(147,718 |
) |
Non-controlling interest |
|
1,832 |
|
|
|
1,654 |
|
Total stockholders' deficit |
|
(170,275 |
) |
|
|
(146,064 |
) |
Total liabilities, redeemable senior preferred stock, redeemable NCI and stockholders' deficit |
$ |
1,673,429 |
|
|
$ |
1,615,337 |
|
Priority Technology Holdings, Inc. Unaudited Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
6,187 |
|
|
$ |
(1,118 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of assets |
|
30,497 |
|
|
|
36,028 |
|
Stock-based, ESPP and incentive units compensation |
|
3,462 |
|
|
|
3,682 |
|
Amortization of debt issuance costs and discounts |
|
1,824 |
|
|
|
1,826 |
|
Debt extinguishment and modification costs |
|
8,623 |
|
|
|
— |
|
Deferred income tax |
|
(3,023 |
) |
|
|
(9,619 |
) |
Change in contingent consideration |
|
2,213 |
|
|
|
346 |
|
Other non-cash items, net |
|
(929 |
) |
|
|
(461 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(7,145 |
) |
|
|
18,066 |
|
Prepaid expenses and other current assets |
|
(1,148 |
) |
|
|
(3,560 |
) |
Income taxes (receivable) payable |
|
(5,037 |
) |
|
|
498 |
|
Notes receivable |
|
(584 |
) |
|
|
(389 |
) |
Accounts payable and other accrued liabilities |
|
13,291 |
|
|
|
1,306 |
|
Customer deposits and advance payments |
|
(365 |
) |
|
|
635 |
|
Other assets and liabilities, net |
|
(5,859 |
) |
|
|
(383 |
) |
Net cash provided by operating activities |
|
42,007 |
|
|
|
46,857 |
|
Cash flows from investing activities: |
|
|
|
||||
Additions to property, equipment and software |
|
(11,718 |
) |
|
|
(9,869 |
) |
Notes receivable, net |
|
(1,406 |
) |
|
|
(498 |
) |
Acquisitions of assets and other investing activities |
|
(7,474 |
) |
|
|
(2,715 |
) |
Net cash used in investing activities |
|
(20,598 |
) |
|
|
(13,082 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net of issue discount |
|
830,200 |
|
|
|
— |
|
Debt issuance and modification costs paid |
|
(7,555 |
) |
|
|
— |
|
Repayments of long-term debt |
|
(654,372 |
) |
|
|
(3,525 |
) |
Borrowings under revolving credit facility |
|
— |
|
|
|
5,000 |
|
Repayments of borrowings under revolving credit facility |
|
— |
|
|
|
(12,000 |
) |
Redemption of PHOT redeemable NCI |
|
(2,130 |
) |
|
|
— |
|
Repurchases of shares withheld for taxes |
|
(604 |
) |
|
|
(1,018 |
) |
Redemption of senior preferred stock |
|
(136,936 |
) |
|
|
— |
|
Redemption of accumulated unpaid dividend on redeemable senior preferred stock |
|
(30,819 |
) |
|
|
— |
|
Dividends paid to redeemable senior preferred stockholders |
|
(16,393 |
) |
|
|
(17,908 |
) |
Settlement and customer/subscriber accounts obligations, net |
|
40,914 |
|
|
|
175,548 |
|
Payment of contingent consideration related to business combination |
|
(4,156 |
) |
|
|
(1,959 |
) |
Net cash provided by financing activities |
|
18,149 |
|
|
|
144,138 |
|
Net change in cash and cash equivalents and restricted cash: |
|
|
|
||||
Net increase in cash and cash equivalents, and restricted cash |
|
39,558 |
|
|
|
177,913 |
|
Cash and cash equivalents and restricted cash at beginning of period |
|
796,223 |
|
|
|
560,610 |
|
Cash and cash equivalents and restricted cash at end of period |
$ |
835,781 |
|
|
$ |
738,523 |
|
|
|
|
|
||||
Reconciliation of cash and cash equivalents, and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
34,626 |
|
|
$ |
17,567 |
|
Restricted cash |
|
12,625 |
|
|
|
12,357 |
|
Cash and cash equivalents included in settlement assets and customer/subscriber account balances |
|
788,530 |
|
|
|
708,599 |
|
Total cash and cash equivalents, and restricted cash |
$ |
835,781 |
|
|
$ |
738,523 |
|
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results |
|||||||||||
(in thousands) |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
SMB Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
155,101 |
|
$ |
147,948 |
|
$ |
299,105 |
|
$ |
302,881 |
Adjusted EBITDA |
$ |
28,597 |
|
$ |
28,434 |
|
$ |
53,620 |
|
$ |
56,836 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
Merchant bankcard processing dollar value |
$ |
15,791,635 |
|
$ |
15,111,781 |
|
$ |
30,579,730 |
|
$ |
30,332,495 |
Merchant bankcard transaction count |
|
193,841 |
|
|
180,343 |
|
|
369,069 |
|
|
343,749 |
|
|
|
|
|
|
|
|
||||
B2B Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
21,881 |
|
$ |
2,974 |
|
$ |
43,225 |
|
$ |
5,760 |
Adjusted EBITDA |
$ |
1,530 |
|
$ |
608 |
|
$ |
3,276 |
|
$ |
518 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
B2B issuing dollar volume |
$ |
249,454 |
|
$ |
216,358 |
|
$ |
477,266 |
|
$ |
414,904 |
B2B issuing transaction count |
|
242 |
|
|
282 |
|
|
482 |
|
|
562 |
|
|
|
|
|
|
|
|
||||
Enterprise Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
43,670 |
|
$ |
31,438 |
|
$ |
84,660 |
|
$ |
58,744 |
Adjusted EBITDA |
$ |
37,244 |
|
$ |
25,728 |
|
$ |
71,971 |
|
$ |
48,096 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
Average billed clients |
$ |
782,466 |
|
$ |
520,028 |
|
$ |
753,531 |
|
$ |
492,622 |
Average monthly new enrollments |
|
55,089 |
|
|
53,374 |
|
|
53,563 |
|
|
49,661 |
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results |
||||||||||||||||||||
|
|
Three Months Ended June 30, 2024 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
28,597 |
|
|
$ |
1,530 |
|
|
$ |
37,244 |
|
|
$ |
(15,820 |
) |
|
$ |
51,551 |
|
Interest expense |
|
|
— |
|
|
|
(1,241 |
) |
|
|
— |
|
|
|
(20,469 |
) |
|
|
(21,710 |
) |
Depreciation and amortization |
|
|
(8,541 |
) |
|
|
(1,261 |
) |
|
|
(4,087 |
) |
|
|
(1,355 |
) |
|
|
(15,244 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,623 |
) |
|
|
(8,623 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(636 |
) |
|
|
(636 |
) |
Non-cash stock based compensation |
|
|
(4 |
) |
|
|
(109 |
) |
|
|
(32 |
) |
|
|
(1,684 |
) |
|
|
(1,829 |
) |
Income (loss) before taxes |
|
$ |
20,052 |
|
|
$ |
(1,081 |
) |
|
$ |
33,125 |
|
|
$ |
(48,587 |
) |
|
$ |
3,509 |
|
|
|
Six Months Ended June 30, 2024 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
53,620 |
|
|
$ |
3,276 |
|
|
$ |
71,971 |
|
|
$ |
(30,976 |
) |
|
$ |
97,891 |
|
Interest expense |
|
|
— |
|
|
|
(2,214 |
) |
|
|
— |
|
|
|
(40,376 |
) |
|
|
(42,590 |
) |
Depreciation and amortization |
|
|
(17,127 |
) |
|
|
(2,731 |
) |
|
|
(8,126 |
) |
|
|
(2,513 |
) |
|
|
(30,497 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,623 |
) |
|
|
(8,623 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,435 |
) |
|
|
(1,435 |
) |
Non-cash stock based compensation |
|
|
(8 |
) |
|
|
(227 |
) |
|
|
(65 |
) |
|
|
(3,162 |
) |
|
|
(3,462 |
) |
Income (loss) before taxes |
|
$ |
36,485 |
|
|
$ |
(1,896 |
) |
|
$ |
63,780 |
|
|
$ |
(87,085 |
) |
|
$ |
11,284 |
|
.
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results |
||||||||||||||||||||
|
|
Three Months Ended June 30, 2023 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
28,434 |
|
|
$ |
608 |
|
|
$ |
25,728 |
|
|
$ |
(13,677 |
) |
|
$ |
41,093 |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
(117 |
) |
|
|
(17,648 |
) |
|
|
(17,765 |
) |
Depreciation and amortization |
|
|
(9,151 |
) |
|
|
(17 |
) |
|
|
(6,319 |
) |
|
|
(2,493 |
) |
|
|
(17,980 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,859 |
) |
|
|
(1,859 |
) |
Non-cash stock based compensation |
|
|
(112 |
) |
|
|
(7 |
) |
|
|
(65 |
) |
|
|
(1,562 |
) |
|
|
(1,746 |
) |
Income (loss) before taxes |
|
$ |
19,171 |
|
|
$ |
584 |
|
|
$ |
19,227 |
|
|
$ |
(37,239 |
) |
|
$ |
1,743 |
|
|
|
Six Months Ended June 30, 2023 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
56,836 |
|
|
$ |
518 |
|
|
$ |
48,096 |
|
|
$ |
(26,717 |
) |
|
$ |
78,733 |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
(230 |
) |
|
|
(35,234 |
) |
|
|
(35,464 |
) |
Depreciation and amortization |
|
|
(18,417 |
) |
|
|
(37 |
) |
|
|
(12,624 |
) |
|
|
(4,950 |
) |
|
|
(36,028 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,296 |
) |
|
|
(2,296 |
) |
Non-cash stock based compensation |
|
|
(294 |
) |
|
|
(201 |
) |
|
|
(129 |
) |
|
|
(3,058 |
) |
|
|
(3,682 |
) |
Other non-recurring loss, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(159 |
) |
|
|
(159 |
) |
Income (loss) before taxes |
|
$ |
38,125 |
|
|
$ |
280 |
|
|
$ |
35,113 |
|
|
$ |
(72,414 |
) |
|
$ |
1,104 |
|
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results |
||||||||||||||||||||
Appendix 1 – Reconciliation of adjusted EBITDA (non-GAAP measure to the nearest GAAP measure) for select periods: |
||||||||||||||||||||
|
|
Three Months Ended March 31, 2024 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
|
25,023 |
|
|
$ |
1,747 |
|
|
$ |
34,727 |
|
|
$ |
(15,157 |
) |
|
$ |
46,340 |
|
Interest expense |
|
|
(1 |
) |
|
|
(973 |
) |
|
|
— |
|
|
|
(19,906 |
) |
|
|
(20,880 |
) |
Depreciation and amortization |
|
|
(8,586 |
) |
|
|
(1,470 |
) |
|
|
(4,039 |
) |
|
|
(1,158 |
) |
|
|
(15,253 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(798 |
) |
|
|
(798 |
) |
Non-cash stock based compensation |
|
|
(4 |
) |
|
|
(118 |
) |
|
|
(33 |
) |
|
|
(1,479 |
) |
|
|
(1,634 |
) |
Income (loss) before taxes |
|
|
16,432 |
|
|
$ |
(814 |
) |
|
$ |
30,655 |
|
|
$ |
(38,498 |
) |
|
$ |
7,775 |
|
|
|
Three Months Ended March 31, 2023 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
28,402 |
|
|
$ |
(90 |
) |
|
$ |
22,368 |
|
|
$ |
(13,040 |
) |
|
$ |
37,640 |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
(113 |
) |
|
|
(17,586 |
) |
|
|
(17,699 |
) |
Depreciation and amortization |
|
|
(9,267 |
) |
|
|
(20 |
) |
|
|
(6,305 |
) |
|
|
(2,456 |
) |
|
|
(18,048 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(437 |
) |
|
|
(437 |
) |
Non-cash stock based compensation |
|
|
(182 |
) |
|
|
(193 |
) |
|
|
(64 |
) |
|
|
(1,497 |
) |
|
|
(1,936 |
) |
Other non-recurring loss, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(159 |
) |
|
|
(159 |
) |
Income (loss) before taxes |
|
$ |
18,953 |
|
|
$ |
(303 |
) |
|
$ |
15,886 |
|
|
$ |
(35,175 |
) |
|
$ |
(639 |
) |
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results |
||||||||||||||||||||
|
|
Three Months Ended September 30, 2023 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
27,613 |
|
|
$ |
1,359 |
|
|
$ |
29,757 |
|
|
$ |
(13,767 |
) |
|
$ |
44,962 |
|
Interest expense |
|
|
— |
|
|
|
(498 |
) |
|
|
(62 |
) |
|
|
(19,437 |
) |
|
|
(19,997 |
) |
Depreciation and amortization |
|
|
(9,136 |
) |
|
|
(719 |
) |
|
|
(5,947 |
) |
|
|
(1,473 |
) |
|
|
(17,275 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,114 |
) |
|
|
(2,114 |
) |
Non-cash stock based compensation |
|
|
(114 |
) |
|
|
(36 |
) |
|
|
(66 |
) |
|
|
(1,285 |
) |
|
|
(1,501 |
) |
Other non-recurring gain, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
166 |
|
|
|
166 |
|
Income (loss) before taxes |
|
$ |
18,363 |
|
|
$ |
106 |
|
|
$ |
23,682 |
|
|
$ |
(37,910 |
) |
|
$ |
4,241 |
|
|
|
Three Months Ended December 31, 2023 |
||||||||||||||||||
(in thousands) |
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
25,036 |
|
|
$ |
372 |
|
|
$ |
33,040 |
|
|
$ |
(13,811 |
) |
|
$ |
44,637 |
|
Interest expense |
|
|
— |
|
|
|
(8032 |
|
|
|
(64 |
) |
|
|
(19,780 |
) |
|
|
(20,647 |
) |
Depreciation and amortization |
|
|
(9,162 |
) |
|
|
(1,075 |
) |
|
|
(3,856 |
) |
|
|
(999 |
) |
|
|
(15,092 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,256 |
) |
|
|
(5,256 |
) |
Non-cash stock based compensation |
|
|
(131 |
) |
|
|
(312 |
) |
|
|
(66 |
) |
|
|
(1,076 |
) |
|
|
(1,585 |
) |
Other non-recurring loss, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(250 |
) |
|
|
(250 |
) |
Income (loss) before taxes |
|
$ |
15,743 |
|
|
$ |
(1,818 |
) |
|
$ |
29,054 |
|
|
$ |
(41,172 |
) |
|
$ |
1,807 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808786335/en/
Priority Investor Inquiries:
Chris Kettmann
Chris.Kettmann@dgagroup.com
(773) 497-7575
Source: Priority Technology Holdings, Inc.
FAQ
What were Priority Technology Holdings (PRTH) Q2 2024 earnings?
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What is the revenue guidance for Priority Technology Holdings for full year 2024?
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