Slide 1: Priority Technology Holdings, Inc. 3Q 2024 Earnings Call Supplemental Slides
Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides: 3Q 2024 Earnings Call November 2024
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 2024 Highlights
Key 3rd Quarter 2024 Highlights Q3 2024 RESULTS CONTINUED STRONG MOMENTUM NET REVENUE ADJ GROSS PROFIT1 TOTAL REVENUE ADJUSTED EBITDA1 +20% +19% (In Millions) $875 - $883 (In Millions) $200 - $204 $8 $4 ADJ EBITDA1 OPERATING INCOME Guidance Range Guidance Range +22% +62% $222 $47 Q3 2024 KEY METRICS
Slide 4: Q3 2024 Consolidated Results
Q3 2024 Consolidated Results 20% 19% 40bp 22% 38.3% $227.0M $86.0M $54.6M 37.9% $189.0M $72.3M $45.0M Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Revenue increased Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 20% to $227.0 increased 19% to margin1 decreased increased 22% to million $86.0
Slide 5: YTD Q3 2024 Consolidated Results
YTD Q3 2024 Consolidated Results 17% 21% 100bp 23% 37.4% $652.6M $244.1M $152.5M $556.3M 36.4% $123.7M $202.4M Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Revenue increased Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 17% to $652.6 increased 21% to margin1 increased increased 23% to milli
Slide 6: Priority Commerce: One Connection is all You Need
Priority The Priority Commerce Engine (PCE) is an innovative tech platform that seamlessly embeds acquiring, banking, and payables solutions into your existing Commerce: applications. With our modern API and complimentary, ready-built product suites, PCE is designed to help your business launch quic
Slide 7: Priority: Your trusted partner
Priority: Your trusted partner Our mission is to deliver a personalized, easy-to-adopt financial toolset to accelerate cash flow and optimize working capital for businesses. Merchant Services Payables Banking & Treasury Solutions Full featured POS & merchant acquiring solutions Optimize your working
Slide 8: Third Quarter 2024 Financial Results
Section 2 Third Quarter 2024 Financial Results prioritycommerce.com 8
Slide 9: SMB Highlights – Q3 2024
SMB Highlights – Q3 2024 Revenue Adj. Gross Profit1 Adj. EBITDA1 $158.8MM $35.6MM $28.6MM +13% YoY +3% YoY | 22.4% Margin +4% YoY | 18.0% Margin Q3 2024 Segment Highlights ➔ Revenue growth of 13% is reflective of organic growth ➔ Bankcard $ Volumes increased 10% to $15.5 billion ➔ New monthly boards
Slide 10: B2B Highlights – Q3 2024
B2B Highlights – Q3 2024 Revenue Adj. Gross Profit1 Adj. EBITDA1 $22.1MM $6.3MM $1.9MM +58% YoY +24% YoY | 28.5% Margin +42% YoY | 8.7% Margin Q3 2024 Segment Highlights ➔ $8.2 million of Revenue growth driven primarily by contribution from Plastiq ➔ Adjusted Gross Profit Margin increased 300+ bps s
Slide 11: Enterprise Highlights – Q3 2024
Enterprise Highlights – Q3 2024 Revenue Adj. Gross Profit1 Adj. EBITDA1 $47.1MM $44.1MM $40.9MM +34% YoY +35% YoY | 93.6% Margin +38% YoY | 86.9% Margin Q3 2024 Segment Highlights ➔ CFTPay Avg Monthly New Enrollments of 63K increased 12% from 56K in Q3 2023 ➔ CFTPay Avg Number of Billed Clients incr
Slide 12: Consolidated Operating Expenses – Q3 2024
Consolidated Operating Expenses – Q3 2024 Salaries & Benefits SG&A Depreciation & Amortization $21.7MM $12.4MM $13.7MM +8% YoY +9% YoY (21%) YoY Q3 2024 Segment Highlights ➔ Higher Salaries and Benefits driven largely by timing of the Plastiq acquisition. On a sequential basis, Salaries and Benefits
Slide 13: Adjusted EBITDA Walk
Adjusted EBITDA1 Walk Adjusted EBITDA experienced strong growth in Q3 2024 ➔ Q3 2024 Adjusted EBITDA of $54.6 million increased 22% from $45.0 million in Q3 2023 EBITDA Walk (in Millions) 2024 2023 LTM Q3 Q3 Q3 2024 Consolidated net income (loss) (GAAP) $ 10.6 $ (0.1) $ 16.7 Add: Interest expense 23
Slide 14: Capital Structure & Liquidity
Capital Structure & Liquidity Outstanding Debt Senior Redeemable Preferred Stock Balance as of June 30, 2024 $835.0 Balance as of June 30, 2024 $105.7 (+/-) Net Revolver Borrowings -- (+/-) Dividend Payable2 ($2.8) (+/-) Net Term Loan Borrowings ($2.1) (+/-) PIK Dividend $1.9 Balance as of September
Slide 15: Appendix
Section 3 Appendix prioritycommerce.com 15
Slide 16: Appendix – Adjusted Gross Profit Reconciliation
Appendix 1 – Adjusted Gross Profit1 Reconciliation The reconciliation of adjusted gross profit to its most comparable GAAP measure is provided below: (in Millions) (in Millions) Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 SMB B2B Enterprise Eliminations Total SMB B2B
Slide 17: Appendix – Adjusted EBITDA Reconciliation
Appendix 2 – Adjusted EBITDA1 Reconciliation The reconciliation of adjusted EBITDA to its most comparable GAAP measure is provided below: ($ in Millions) ($ in Millions) Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 SMB B2B Enterprise Corporate Total SMB B2B Enterprise
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