Priority Technology Holdings, Inc. Announces Third Quarter Financial Results
Priority Technology Holdings (NASDAQ: PRTH) reported strong Q3 2024 financial results with revenue increasing 20.1% to $227.0 million from $189.0 million in Q3 2023. Operating income grew 62.0% to $38.1 million, while Adjusted EBITDA rose 21.5% to $54.6 million. The company affirmed its full-year 2024 revenue guidance between $875-883 million, representing 16-17% growth, and increased Adjusted EBITDA forecast to $200-204 million, projecting 19-21% growth compared to 2023.
Priority Technology Holdings (NASDAQ: PRTH) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con ricavi in crescita del 20,1% a 227,0 milioni di dollari, rispetto ai 189,0 milioni di dollari del terzo trimestre del 2023. L'utile operativo è aumentato del 62,0% a 38,1 milioni di dollari, mentre l'EBITDA rettificato è salito del 21,5% a 54,6 milioni di dollari. L'azienda ha confermato le previsioni di ricavo per l'intero anno 2024 tra 875-883 milioni di dollari, rappresentando una crescita del 16-17%, e ha aumentato le previsioni di EBITDA rettificato a 200-204 milioni di dollari, prevedendo una crescita del 19-21% rispetto al 2023.
Priority Technology Holdings (NASDAQ: PRTH) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos que aumentaron un 20,1% a 227,0 millones de dólares, en comparación con 189,0 millones de dólares en el tercer trimestre de 2023. El ingreso operativo creció un 62,0% a 38,1 millones de dólares, mientras que el EBITDA ajustado subió un 21,5% a 54,6 millones de dólares. La empresa confirmó su guía de ingresos para el año completo 2024 entre 875-883 millones de dólares, representando un crecimiento del 16-17%, y aumentó la previsión del EBITDA ajustado a 200-204 millones de dólares, proyectando un crecimiento del 19-21% en comparación con 2023.
Priority Technology Holdings (NASDAQ: PRTH)는 2024년 3분기 강력한 재무 결과를 보고했으며, 수익은 20.1% 증가하여 2억 2,700만 달러로, 2023년 3분기 1억 8,900만 달러에서 증가했습니다. 운영 소득은 62.0% 증가하여 3,810만 달러에 도달했으며, 조정 EBITDA는 21.5% 증가하여 5,460만 달러에 이르렀습니다. 이 회사는 2024년 전체 연도 수익 전망을 8억 7,500만에서 8억 8,300만 달러 사이로 확인했으며, 이는 16-17%의 성장률을 나타내고, 조정 EBITDA 예측을 2억에서 2억 4백만 달러로 증가시켜 2023년 대비 19-21%의 성장을 예측하고 있습니다.
Priority Technology Holdings (NASDAQ: PRTH) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec des revenus en hausse de 20,1 % à 227,0 millions de dollars, contre 189,0 millions de dollars au troisième trimestre 2023. Le bénéfice d'exploitation a augmenté de 62,0 % pour atteindre 38,1 millions de dollars, tandis que l'EBITDA ajusté a progressé de 21,5 % pour atteindre 54,6 millions de dollars. L'entreprise a confirmé ses prévisions de revenus pour l'année 2024 entre 875 et 883 millions de dollars, représentant une croissance de 16 à 17 %, et a renforcé ses prévisions d'EBITDA ajusté à 200-204 millions de dollars, projetant une croissance de 19 à 21 % par rapport à 2023.
Priority Technology Holdings (NASDAQ: PRTH) hat starke Finanzzahlen für das dritte Quartal 2024 gemeldet, mit einem Umsatzwachstum von 20,1% auf 227,0 Millionen Dollar, verglichen mit 189,0 Millionen Dollar im dritten Quartal 2023. Der Betriebsgewinn stieg um 62,0% auf 38,1 Millionen Dollar, während das bereinigte EBITDA um 21,5% auf 54,6 Millionen Dollar zunahm. Das Unternehmen bestätigte seine Umsatzprognose für das gesamte Jahr 2024 zwischen 875-883 Millionen Dollar, was einem Wachstum von 16-17% entspricht, und erhöhte die Prognose für das bereinigte EBITDA auf 200-204 Millionen Dollar, was ein Wachstum von 19-21% im Vergleich zu 2023 projiziert.
- Revenue increased 20.1% YoY to $227.0 million
- Operating income grew 62.0% to $38.1 million
- Adjusted EBITDA rose 21.5% to $54.6 million
- Raised full-year 2024 Adjusted EBITDA guidance to $200-204 million
- Adjusted gross profit margin decreased 40 basis points to 37.9%
Insights
The Q3 results demonstrate robust financial performance with notable metrics: revenue up
Despite a slight margin compression of 40 basis points in adjusted gross profit margin, the absolute growth in adjusted gross profit of
The fintech sector's competitive landscape makes Priority's performance particularly noteworthy. The company's full-year guidance projecting
Strong Third Quarter Growth Driven by Performance Across Unified Commerce Platform
Highlights of Consolidated Results
Third Quarter 2024 Compared with Third Quarter 2023
Financial highlights of the third quarter of 2024 compared with the third quarter of 2023, are as follows1:
-
Revenue of
$227.0 million 20.1% from$189.0 million -
Adjusted gross profit (a non-GAAP measure2) of
$86.0 million 18.9% from$72.3 million -
Adjusted gross profit margin (a non-GAAP measure2) of
37.9% decreased 40.0 basis points from38.3% -
Operating income of
$38.1 million 62.0% from$23.5 million -
Adjusted EBITDA (a non-GAAP measure2) of
$54.6 million 21.5% from$45.0 million
(1) |
Certain amounts/percentages may not compute accurately 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 reported record results in the third quarter as we sustained our positive momentum, delivering consistently strong results in SMB Acquiring, B2B Payables and Enterprise Payments," said Tom Priore, Chairman & CEO of Priority. “Our continued execution reinforces that Priority’s technology, operations and decision making have positioned us to excel through the remainder of 2024 and beyond to deliver a thriving ecosystem of financial solutions that accelerate revenue 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 affirmed to range between
$875 million $883 million 16% to17% , compared to fiscal 2023 results
-
Adjusted gross profit (a non-GAAP measure) forecast affirmed to range between
$325 million $330 million 18% to20% compared to fiscal 2023 results
-
Adjusted EBITDA (a non-GAAP measure) forecast increased to a range between
$200 million $204 million $196 million $200 million 19% to21% compared to fiscal 2023 results
Conference Call
Priority's leadership will host a conference call on Thursday, November 7, 2024 at 11:00 a.m. EST to discuss its third 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/5gtz5go8 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 November 14, 2024 at 2:00 p.m. EST. To listen to the audio replay, dial (877) 344-7529 or (412) 317-0088 and enter conference ID number 2890176. 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 September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
227,049 |
|
|
$ |
189,015 |
|
Cost of revenue (excluding depreciation and amortization) |
|
(141,070 |
) |
|
|
(116,682 |
) |
Adjusted gross profit |
$ |
85,979 |
|
|
$ |
72,333 |
|
Adjusted gross profit margin |
|
37.9 |
% |
|
|
38.3 |
% |
Depreciation and amortization of revenue generating assets |
|
(4,207 |
) |
|
|
(3,000 |
) |
Gross profit |
$ |
81,772 |
|
|
$ |
69,333 |
|
Gross profit margin |
|
36.0 |
% |
|
|
36.7 |
% |
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 September 30, |
|||||
|
2024 |
|
|
2023 |
|
|
Net income (loss) |
$ |
10,608 |
|
$ |
(87 |
) |
Interest expense |
|
23,246 |
|
|
19,997 |
|
Income tax expense |
|
4,899 |
|
|
4,328 |
|
Depreciation and amortization |
|
13,733 |
|
|
17,275 |
|
EBITDA |
|
52,486 |
|
|
41,513 |
|
Debt extinguishment and modification |
|
43 |
|
|
— |
|
Non-recurring gain |
|
— |
|
|
(166 |
) |
Selling, general and administrative (non-recurring) |
|
696 |
|
|
2,114 |
|
Non-cash stock-based compensation |
|
1,416 |
|
|
1,501 |
|
Adjusted EBITDA |
$ |
54,641 |
|
$ |
44,962 |
|
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 September 30, |
||||
|
2024 |
|
2023 |
||
Selling, general and administrative expenses (non-recurring): |
|
|
|
||
Certain legal fees |
|
552 |
|
|
656 |
Professional, accounting and consulting fees |
|
128 |
|
|
1,364 |
Other expenses, net |
|
16 |
|
|
94 |
|
$ |
696 |
|
$ |
2,114 |
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 1.1 million active customers across its SMB, B2B and Enterprise channels processing approximately
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 Income (Loss) (in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
227,049 |
|
|
$ |
189,015 |
|
|
$ |
652,635 |
|
|
$ |
556,333 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of revenue (excludes depreciation and amortization) |
|
141,070 |
|
|
|
116,682 |
|
|
|
408,486 |
|
|
|
353,929 |
|
Salary and employee benefits |
|
21,748 |
|
|
|
20,129 |
|
|
|
66,017 |
|
|
|
58,286 |
|
Depreciation and amortization |
|
13,733 |
|
|
|
17,275 |
|
|
|
44,230 |
|
|
|
53,303 |
|
Selling, general and administrative |
|
12,413 |
|
|
|
11,423 |
|
|
|
34,620 |
|
|
|
31,328 |
|
Total operating expenses |
|
188,964 |
|
|
|
165,509 |
|
|
|
553,353 |
|
|
|
496,846 |
|
Operating income |
|
38,085 |
|
|
|
23,506 |
|
|
|
99,282 |
|
|
|
59,487 |
|
Other (expense) income |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(23,246 |
) |
|
|
(19,997 |
) |
|
|
(65,836 |
) |
|
|
(55,461 |
) |
Debt extinguishment and modification costs |
|
(43 |
) |
|
|
— |
|
|
|
(8,666 |
) |
|
|
— |
|
Other income, net |
|
711 |
|
|
|
732 |
|
|
|
2,011 |
|
|
|
1,319 |
|
Total other expense, net |
|
(22,578 |
) |
|
|
(19,265 |
) |
|
|
(72,491 |
) |
|
|
(54,142 |
) |
Income before income taxes |
|
15,507 |
|
|
|
4,241 |
|
|
|
26,791 |
|
|
|
5,345 |
|
Income tax expense |
|
4,899 |
|
|
|
4,328 |
|
|
|
9,996 |
|
|
|
6,550 |
|
Net income (loss) |
|
10,608 |
|
|
|
(87 |
) |
|
|
16,795 |
|
|
|
(1,205 |
) |
Less: Dividends and accretion attributable to redeemable senior preferred stockholders |
|
(5,121 |
) |
|
|
(12,192 |
) |
|
|
(36,348 |
) |
|
|
(35,252 |
) |
Less: Return on redeemable NCI in consolidated subsidiary |
|
— |
|
|
|
— |
|
|
|
(639 |
) |
|
|
— |
|
Net income (loss) attributable to common stockholders |
|
5,487 |
|
|
|
(12,279 |
) |
|
$ |
(20,192 |
) |
|
$ |
(36,457 |
) |
Other comprehensive income ( loss) |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
(28 |
) |
|
|
(65 |
) |
|
|
(37 |
) |
|
|
(34 |
) |
Comprehensive income (loss) |
$ |
5,459 |
|
|
$ |
(12,344 |
) |
|
$ |
(20,229 |
) |
|
$ |
(36,491 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.07 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.47 |
) |
Diluted |
$ |
0.07 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.47 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
77,973 |
|
|
|
78,381 |
|
|
|
77,910 |
|
|
|
78,270 |
|
Diluted |
|
80,095 |
|
|
|
78,381 |
|
|
|
77,910 |
|
|
|
78,270 |
|
Priority Technology Holdings, Inc. Unaudited Consolidated Balance Sheets (in thousands) |
|||||||
|
|
|
|
||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
41,072 |
|
|
$ |
39,604 |
|
Restricted cash |
|
13,398 |
|
|
|
11,923 |
|
Accounts receivable, net of allowances |
|
73,393 |
|
|
|
58,551 |
|
Prepaid expenses and other current assets |
|
19,103 |
|
|
|
13,273 |
|
Current portion of notes receivable, net of allowance |
|
2,567 |
|
|
|
1,468 |
|
Settlement assets and customer/subscriber account balances |
|
879,361 |
|
|
|
756,475 |
|
Total current assets |
|
1,028,894 |
|
|
|
881,294 |
|
Notes receivable, less current portion |
|
3,727 |
|
|
|
3,728 |
|
Property, equipment and software, net |
|
51,603 |
|
|
|
44,680 |
|
Goodwill |
|
376,091 |
|
|
|
376,103 |
|
Intangible assets, net |
|
248,819 |
|
|
|
273,350 |
|
Deferred income taxes, net |
|
25,477 |
|
|
|
22,533 |
|
Other noncurrent assets |
|
25,058 |
|
|
|
13,649 |
|
Total assets |
$ |
1,759,669 |
|
|
|
1,615,337 |
|
Liabilities, Redeemable Senior Preferred Stock, Redeemable NCI, and Stockholders' Deficit |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
67,009 |
|
|
$ |
52,643 |
|
Accrued residual commissions |
|
35,818 |
|
|
|
33,025 |
|
Customer deposits and advance payments |
|
4,205 |
|
|
|
3,934 |
|
Current portion of long-term debt |
|
8,350 |
|
|
|
6,712 |
|
Settlement and customer/subscriber account obligations |
|
875,815 |
|
|
|
755,754 |
|
Total current liabilities |
|
991,197 |
|
|
|
852,068 |
|
Long-term debt, net of current portion, discounts and debt issuance costs |
|
808,081 |
|
|
|
631,965 |
|
Other noncurrent liabilities |
|
19,241 |
|
|
|
18,763 |
|
Total liabilities |
|
1,818,519 |
|
|
|
1,502,796 |
|
Redeemable senior preferred stock, net of discounts and issuance costs |
|
105,098 |
|
|
|
258,605 |
|
Stockholders' deficit: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
77 |
|
|
|
77 |
|
Treasury stock, at cost |
|
(19,278 |
) |
|
|
(12,815 |
) |
Additional paid-in capital |
|
— |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
(66 |
) |
|
|
(29 |
) |
Accumulated deficit |
|
(146,571 |
) |
|
|
(134,951 |
) |
Total stockholders' deficit attributable to stockholders of Priority |
|
(165,838 |
) |
|
|
(147,718 |
) |
Non-controlling interests in consolidated subsidiaries |
|
1,890 |
|
|
|
1,654 |
|
Total stockholders' deficit |
|
(163,948 |
) |
|
|
(146,064 |
) |
Total liabilities, redeemable senior preferred stock, redeemable NCI and stockholders' deficit |
$ |
1,759,669 |
|
|
$ |
1,615,337 |
|
Priority Technology Holdings, Inc. Unaudited Consolidated Statements of Cash Flows (in thousands) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
16,795 |
|
|
$ |
(1,205 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of assets |
|
44,230 |
|
|
|
53,303 |
|
Stock-based, ESPP and incentive units compensation |
|
4,878 |
|
|
|
5,183 |
|
Amortization of debt issuance costs and discounts |
|
2,250 |
|
|
|
2,812 |
|
Debt extinguishment and modification costs |
|
8,666 |
|
|
|
— |
|
Deferred income tax |
|
(2,944 |
) |
|
|
(2,432 |
) |
Change in contingent consideration |
|
3,280 |
|
|
|
906 |
|
Other non-cash items, net |
|
(37 |
) |
|
|
(169 |
) |
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(15,712 |
) |
|
|
17,931 |
|
Prepaid expenses and other current assets |
|
(2,808 |
) |
|
|
(2,630 |
) |
Income taxes (receivable) payable |
|
(3,000 |
) |
|
|
498 |
|
Notes receivable |
|
(883 |
) |
|
|
(668 |
) |
Accounts payable and other accrued liabilities |
|
12,864 |
|
|
|
302 |
|
Customer deposits and advance payments |
|
271 |
|
|
|
3,802 |
|
Other assets and liabilities, net |
|
(5,998 |
) |
|
|
(4,953 |
) |
Net cash provided by operating activities |
|
61,852 |
|
|
|
72,680 |
|
Cash flows from investing activities: |
|
|
|
||||
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(28,182 |
) |
Additions to property, equipment and software |
|
(17,044 |
) |
|
|
(15,268 |
) |
Notes receivable, net |
|
(216 |
) |
|
|
151 |
|
Acquisitions of assets and other investing activities |
|
(7,474 |
) |
|
|
(7,925 |
) |
Net cash used in investing activities |
|
(24,734 |
) |
|
|
(51,224 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net of issue discount |
|
830,200 |
|
|
|
— |
|
Debt issuance and modification costs paid |
|
(6,901 |
) |
|
|
(807 |
) |
Repayments of long-term debt |
|
(656,460 |
) |
|
|
(4,650 |
) |
Borrowings under revolving credit facility |
|
— |
|
|
|
44,000 |
|
Repayments of borrowings under revolving credit facility |
|
— |
|
|
|
(23,500 |
) |
Redemption of PHOT redeemable NCI |
|
(2,130 |
) |
|
|
— |
|
Repurchases of shares withheld for taxes |
|
(1,208 |
) |
|
|
(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 |
|
(22,099 |
) |
|
|
(17,908 |
) |
Settlement and customer/subscriber accounts obligations, net |
|
116,065 |
|
|
|
165,610 |
|
Payment of contingent consideration related to business combination |
|
(4,996 |
) |
|
|
(4,698 |
) |
Net cash provided by financing activities |
|
84,716 |
|
|
|
157,029 |
|
Net change in cash and cash equivalents and restricted cash: |
|
|
|
||||
Net increase in cash and cash equivalents, and restricted cash |
|
121,834 |
|
|
|
178,485 |
|
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 |
$ |
918,057 |
|
|
$ |
739,095 |
|
|
|
|
|
||||
Reconciliation of cash and cash equivalents, and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
41,072 |
|
|
$ |
24,595 |
|
Restricted cash |
|
13,398 |
|
|
|
13,890 |
|
Cash and cash equivalents included in settlement assets and customer/subscriber account balances |
|
863,587 |
|
|
|
700,610 |
|
Total cash and cash equivalents, and restricted cash |
$ |
918,057 |
|
|
$ |
739,095 |
|
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results (in thousands) |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
SMB Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
158,770 |
|
$ |
140,241 |
|
$ |
457,875 |
|
$ |
443,122 |
Adjusted EBITDA |
$ |
28,644 |
|
$ |
27,613 |
|
$ |
82,265 |
|
$ |
84,449 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
Merchant bankcard processing dollar value |
$ |
15,517,131 |
|
$ |
14,150,995 |
|
$ |
46,096,861 |
|
$ |
44,483,491 |
Merchant bankcard transaction count |
|
195,786 |
|
|
178,721 |
|
|
564,855 |
|
|
522,470 |
|
|
|
|
|
|
|
|
||||
B2B Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
22,143 |
|
$ |
13,985 |
|
$ |
65,368 |
|
$ |
19,744 |
Adjusted EBITDA |
$ |
1,933 |
|
$ |
1,359 |
|
$ |
5,209 |
|
$ |
1,877 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
B2B issuing dollar volume |
$ |
255,323 |
|
$ |
221,456 |
|
$ |
732,589 |
|
$ |
636,361 |
B2B issuing transaction count |
|
256 |
|
|
267 |
|
|
738 |
|
|
829 |
|
|
|
|
|
|
|
|
||||
Enterprise Payments: |
|
|
|
|
|
|
|
||||
Revenues |
$ |
47,099 |
|
$ |
35,174 |
|
$ |
131,758 |
|
$ |
93,919 |
Adjusted EBITDA |
$ |
40,940 |
|
$ |
29,757 |
|
$ |
112,911 |
|
$ |
77,853 |
|
|
|
|
|
|
|
|
||||
Key Indicators: |
|
|
|
|
|
|
|
||||
Average billed clients |
|
832,351 |
|
|
590,578 |
|
|
766,370 |
|
|
525,274 |
Average monthly new enrollments |
|
62,875 |
|
|
56,269 |
|
|
57,281 |
|
|
51,864 |
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results (in thousands) |
||||||||||||||||||||
|
|
Three Months Ended September 30, 2024 |
||||||||||||||||||
|
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
28,644 |
|
|
$ |
1,933 |
|
|
$ |
40,940 |
|
|
$ |
(16,876 |
) |
|
$ |
54,641 |
|
Interest expense |
|
|
— |
|
|
|
(1,066 |
) |
|
|
— |
|
|
|
(22,180 |
) |
|
|
(23,246 |
) |
Depreciation and amortization |
|
|
(6,939 |
) |
|
|
(1,261 |
) |
|
|
(4,304 |
) |
|
|
(1,229 |
) |
|
|
(13,733 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(43 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(696 |
) |
|
|
(696 |
) |
Non-cash stock based compensation |
|
|
(4 |
) |
|
|
(73 |
) |
|
|
(33 |
) |
|
|
(1,306 |
) |
|
|
(1,416 |
) |
Income (loss) before taxes |
|
$ |
21,701 |
|
|
$ |
(467 |
) |
|
$ |
36,603 |
|
|
$ |
(42,330 |
) |
|
$ |
15,507 |
|
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||
|
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
82,265 |
|
|
$ |
5,209 |
|
|
$ |
112,911 |
|
|
$ |
(47,853 |
) |
|
$ |
152,532 |
|
Interest expense |
|
|
(1 |
) |
|
|
(3,280 |
) |
|
|
— |
|
|
|
(62,555 |
) |
|
|
(65,836 |
) |
Depreciation and amortization |
|
|
(24,065 |
) |
|
|
(3,992 |
) |
|
|
(12,431 |
) |
|
|
(3,742 |
) |
|
|
(44,230 |
) |
Debt modification and extinguishment expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,666 |
) |
|
|
(8,666 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,131 |
) |
|
|
(2,131 |
) |
Non-cash stock based compensation |
|
|
(12 |
) |
|
|
(299 |
) |
|
|
(98 |
) |
|
|
(4,469 |
) |
|
|
(4,878 |
) |
Income (loss) before taxes |
|
$ |
58,187 |
|
|
$ |
(2,362 |
) |
|
$ |
100,382 |
|
|
$ |
(129,416 |
) |
|
$ |
26,791 |
|
Priority Technology Holdings, Inc. Unaudited Reportable Segments' Results (in thousands) |
||||||||||||||||||||
|
|
Three Months Ended September 30, 2023 |
||||||||||||||||||
|
|
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 |
|
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||
|
|
SMB Payments |
|
B2B Payments |
|
Enterprise Payments |
|
Corporate |
|
Total Consolidated |
||||||||||
Reconciliation of Adjusted EBITDA to GAAP Measure: |
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
84,449 |
|
|
$ |
1,877 |
|
|
$ |
77,853 |
|
|
$ |
(40,484 |
) |
|
$ |
123,695 |
|
Interest expense |
|
|
— |
|
|
|
(498 |
) |
|
|
(293 |
) |
|
|
(54,670 |
) |
|
|
(55,461 |
) |
Depreciation and amortization |
|
|
(27,553 |
) |
|
|
(756 |
) |
|
|
(18,571 |
) |
|
|
(6,423 |
) |
|
|
(53,303 |
) |
Selling, general and administrative (non-recurring) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,410 |
) |
|
|
(4,410 |
) |
Non-cash stock based compensation |
|
|
(408 |
) |
|
|
(237 |
) |
|
|
(195 |
) |
|
|
(4,343 |
) |
|
|
(5,183 |
) |
Other non-recurring gain, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
Income (loss) before taxes |
|
$ |
56,488 |
|
|
$ |
386 |
|
|
$ |
58,794 |
|
|
$ |
(110,323 |
) |
|
$ |
5,345 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107931013/en/
Priority Investor Inquiries:
Chris Kettmann
Chris.Kettmann@dgagroup.com
(773) 497-7575
Source: Priority Technology Holdings, Inc.
FAQ
What was Priority Technology Holdings (PRTH) revenue in Q3 2024?
What is Priority Technology Holdings (PRTH) full-year 2024 revenue guidance?
How much did Priority Technology Holdings (PRTH) Adjusted EBITDA grow in Q3 2024?
