Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — A.G.P. Technology Conference 2021
21 slides from Priority Technology's conference presentation, Feb 3, 2021
Slide 1: A.G.P. Technology Conference February 4, 2021
A.G.P. Technology Conference February 4, 2021 P R IO R IT Y T E C H N O L O G Y H O L D IN G S
Slide 2: Priority Overview
P R IO R IT Y T E C H N O L O G Y H O L D IN G S 88.0% 78.9% 77.7% 10.8% 10.2% 10.0% 1.1% 10.9% 12.3%$107 $119 $126 Consumer Commercial Integrated Priority is a leading provider of merchant acquiring and commercial payment solutions. The Company leverages a proprietary payment infrastructure purpose
Slide 3: Priority Key Highlights
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Priority Key Highlights ~70% % Integrated Volume $68M+ LTM Q3’20 Adj. EBITDA 16% Q3’20 Net Revenue Growth 11% LTM Volume Attrition(1) $396M+ LTM Q3’20 Net Revenue 5th Largest Non-Bank Merchant Acquirer ~450 Employees 219k+ Total Merchant Base $50B+ Q3
Slide 4: Priority's purpose-built payment technology and operating platform
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Priority’s purpose-built payment technology and operating platform is designed to monetize vertically focused merchant networks Infrastructure Resource Group Operations Resource Group Technology Resource Group Business Resource Group Priority Enterpri
Slide 5: Investment Highlights
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Investment Highlights Large Market Opportunity with Strong Tailwinds • Electronic consumer payment volume expected to grow at a 7% 10-year CAGR, as consumers increasingly use cards over paper-based payments and global eCommerce continues to accelerate
Slide 6: Market Opportunity
MARKET OPPORTUNITY P R IO R IT Y T E C H N O L O G Y H O L D IN G S
Slide 7: Consumer Payments Market Overview
P R IO R IT Y T E C H N O L O G Y H O L D IN G S 15% 8% 33% 26% 17% 12% 3% 37%29% 18% $5.0 $7.3 $10.1 2013 2018 2023 Mega Large 1) Sources: Morningstar, The Nilson Report. Consumer Payments Market Overview Micr o Small Mid-Size $1,562 $750 $462 $350 <$300 $0.5 $1.1 $2.3 $3.6 <$2.2 125 50K 185K 7,000
Slide 8: Consumer Payments Market Trends
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Sources: Wall Street research, The Nilson Report. Consumer Payments Market Trends • Large ‘mega-mergers’ dominated the headlines in 2019, but have focused on realizing synergies vs. investing in innovation and sales • As a result, a significant opport
Slide 9: B2B Payments Market Trends
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Source: BottomLine, MasterCard, Visa, yStats, PYMNTS.com, Wall Street Research. B2B Payments Market Trends Massive Market Size & Expanding Electronic Penetration Key Statistics $130T Global B2B Payments Volume $22T U.S. TAM U.S. Card Penetration 2018:
Slide 10: Attractive Vertical Markets
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Attractive Vertical Markets Large verticals that have been slow to adopt electronic payments and / or effective consumer engagement solutions represent massive opportunities $1T Volume Opportunity • Rent is one of the largest payments made by consumer
Slide 11: Revenue Segments
REVENUE SEGMENTS P R IO R IT Y T E C H N O L O G Y H O L D IN G S
Slide 12: Revenue Segments Overview
P R IO R IT Y T E C H N O L O G Y H O L D IN G S MX Platform Storefront Medical Insights Invoice Retail Connect Consumer Payments • Priority’s largest segment; primarily merchant acquiring revenue • Serves 212K SMB merchants, providing a full suite of payment and business solutions across a diverse
Slide 13: Consumer Payments
P R IO R IT Y T E C H N O L O G Y H O L D IN G S MX ConnectMX Merchant The Consumer Payments segment provides full-service payment processing and payment-enabled solutions for B2C transactions, leveraging Priority’s proprietary MX platform Consumer Payments 5th Largest Us Non-bank Acquirer 219K+ Tot
Slide 14: Commercial Payments
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Priority’s Commercial Payments segment continues to build momentum as Priority penetrates the $130 trillion B2B payments market Overview Consists of Priority’s accounts payable automation and integrated payments platform, CPX and other managed service
Slide 15: The Priority Advantage
P R IO R IT Y T E C H N O L O G Y H O L D IN G S The Priority Advantage Fully Integrated Payments vCard/ACH/Checks vCard: BIP/SIP/Ghost Early Pay Dynamic Discounting Split Payments Payment Approval Workflow API’s & Open Architecture Automated Supplier Enrollments Buyer/Supplier-Centric Networks Plug
Slide 16: Integrated Partners
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Priority’s Integrated Partners segment is executing on a significant opportunity to capitalize on the convergence of software and payments, leveraging its payment infrastructure-as-a-service platform Overview Priority’s Integrated Partners segment con
Slide 17: Integrated Partners – Payment IaaS
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Integrated Partners – Payment IaaS Priority Real Estate Technology Priority Healthcare Solutions Priority Hospitality Tech Provides Payment Integration & Infrastructure for Operations and Development Focus on Product UI & Sales Provides Business & Ope
Slide 18: Financial Overview
FINANCIAL OVERVIEW P R IO R IT Y T E C H N O L O G Y H O L D IN G S
Slide 19: Consolidated Net Revenue & Adj. EBITDA
P R IO R IT Y T E C H N O L O G Y H O L D IN G S $26 $49 $59 $68 13% 16% 17% Margin % Net Revenue Adj. EBITDA(1) ($mm) Consolidated Net Revenue & Adj. EBITDA = Legacy e-Commerce (1) Adj. EBITDA is EBITDA adjusted for non-recurring expenses and stock-based compensation. 131% ’18-’19 growth ex. Legacy
Slide 20: Pro Forma Results, Three and Nine Months Ended September 30, 2020
P R IO R IT Y T E C H N O L O G Y H O L D IN G S Three and Nine Months Ended September 30, 2020 ($ in thousands Pro Forma Results (1) Historical financial figures pro forma for the sale of RentPayment. 20 (in thousands) (in thousands) Three Months Ended September 30, 2020 Nine Months Ended September
Slide 21: Contact: Dave Faupel
C o n t a c t : D a v e F a u p e l C h i e f M a r k e t i n g O f f i c e r D a v e . F a u p e l @ P RT H . c o m P R IO R IT Y T E C H N O L O G Y H O L D IN G S
Priority Technology Holdings — A.G.P. Technology Conference 2021 on 6ix