Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — Q3 2023 Earnings Presentation
16 slides from Priority Technology's earnings presentation, Nov 9, 2023
Slide 1: Supplemental Slides: 3Q 2023 Earnings Call
Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides: 3Q 2023 Earnings Call November 9, 2023
Slide 2: Disclaimer
DISCLAIMER Important Notice Regarding Forward-Looking Statements and Non-GAAP Measures This presentation 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 financia
Slide 3: Key 3rd Quarter 2023 Highlights
Key 3rd Quarter 2023 Highlights Q3 2023 RESULTS CONTINUED STRONG MOMENTUM NET REVENUE ADJ GROSS PROFIT1 TOTAL REVENUE ADJUSTED EBITDA1 (In Millions) (In Millions) a +14% +24% $755 - $765 $167 - $170 $10 $3 Guidance Guidance ADJ EBITDA1 OPERATING INCOME Range Range +28% +67% Q3 2023 KEY METRICS $755
Slide 4: Q3 2023 Consolidated Results
Q3 2023 Consolidated Results 14% 24% 310BP 28% $189.0M $72.3M 38.3% $45.0M $166.4M $58.5M 35.2% $35.1M Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 14% to increased 24% to margin1 increased increased 28% to $189.0 million $72.3
Slide 5: Year-to-Date Consolidated Results
Year-to-Date Consolidated Results 14% 22% 230BP 23% $556.3M $202.4M 36.4% $123.7M $486.1M $165.9M 34.1% $100.5M Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 14% to increased 22% to margin1 increased increased 23% to $556.3 mill
Slide 6: Priority Unified Commerce Platform
Priority Unified Commerce Platform SMB ACQUIRING B2B PAYMENTS ENTERPRISE PAYMENTS APPLICATIONS POS Terminals MXM™ POS Suite CPX Plastiq Passport CFTPay • Pro Applications Supplier Buyer Program • Flex CFTConnect • Retail • Build Funded Funded Mgmt • Enterprise • Restaurant • Givve • e|tab • PayRight
Slide 7: Financial Results
(S Priority FINANCIAL RESULTS
Slide 8: SMB Highlights - Q3 2023
SMB Highlights - Q3 2023 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $140.1MM $34.2MM 24.4% $11.8MM +0.1% YoY (4%) YoY (100) Bps YoY (13%) YoY 3Q 2023 Segment Highlights ➢ Bankcard $ Volumes decreased 6% to $14.2 billion due to diversification strategy of large reseller ➢ A
Slide 9: B2B Highlights - Q3 2023
B2B Highlights - Q3 2023 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $13.8MM $5.0MM 36.2% $0.1MM +182% YoY +67% YoY (2,500) bps YoY (50%) YoY 3Q 2023 Segment Highlights ➢ Revenue growth driven by Plastiq and CPX, but partially offset by the final wind down of the Managed Se
Slide 10: Enterprise Highlights - Q3 2023
Enterprise Highlights - Q3 2023 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $35.1MM $33.1MM 94.3% $21.3MM +63% YoY +66% YoY +170 bps YoY +129% YoY 3Q 2023 Segment Highlights ➢ Avg Monthly New Enrollments of 56K increased 49% from 38K ➢ Avg Number of Billed Clients increased
Slide 11: Consolidated Operating Expenses - Q3 2023
Consolidated Operating Expenses - Q3 2023 Salaries & Benefits SG&A Depreciation & Amortization $20.1MM $11.4MM $17.3MM +23% YoY +12% YoY (3%) YoY 3Q 2023 Highlights ➢ Higher salary and employee benefits expense driven by increased headcount in late 2022 combined with acquisition activity in the quar
Slide 12: Adjusted EBITDA Walk
Adjusted EBITDA1 Walk Adjusted EBITDA experienced strong growth in Q3 2023 ➢ Q3 2023 Adjusted EBITDA of $45.0 million increased 28% from $35.1 million in Q3 2022 EBITDA Walk (In millions) 2023 2022 Q3 Q3 Consolidated net income (loss) (GAAP) $ (0.1) $ (0.8) Add: Interest expense 20.0 13.4 Add: Depre
Slide 13: Capital Structure & Liquidity
Capital Structure & Liquidity Outstanding Debt Senior Redeemable Preferred Stock Balance as of June 30, 2023 $612.7 Balance as of June 30, 2023 $240.7 (+/-) Net Revolver Borrowings $27.5 (+/-) Cash Dividend2 $6.8 (+/-) Net Term Loan Borrowings ($1.1) (+/-) PIK Dividend $4.5 Balance as of September 3
Slide 14: Revised 2023 Financial Guidance
Revised 2023 Financial Guidance Total Revenue Adjusted EBITDA1 $755 to $765 million $167 to $170 million Q1 2023 Q1 2023 Q2 2023 Guidance Range: Q2 2023 $755.0 - $765.0 Guidance Range: Q3 2023 Q3 2023 $167.0 - $170.0 $198.7 - $208.7 $556.3 $43.3 - $46.3 $123.7 $189.0 $45.0 $182.3 $556.3 $123.7 $41.1
Slide 15: Appendix
(S Priority APPENDIX
Slide 16: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation The reconciliation of adjusted gross profit to its most comparable GAAP measure is provided below: (in Millions) (in Millions) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 SMB B2B Enterprise Total SMB B2B Enterprise Total Revenues $
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