Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — Q1 2024 Earnings Presentation
15 slides from Priority Technology's earnings presentation, May 9, 2024
Slide 1: Supplemental Slides: 1Q 2024 Earnings Call
Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides: 1Q 2024 Earnings Call May 9, 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 1st Quarter 2024 Highlights
Key 1st Quarter 2024 Highlights Q1 2024 RESULTS CONTINUED STRONG MOMENTUM NET REVENUE ADJ GROSS PROFIT1 TOTAL REVENUE ADJUSTED EBITDA1 (In Millions) (In Millions) a +11% +21% $875 - $890 $15 $193 - $198 $5 ADJ EBITDA1 OPERATING INCOME Guidance Range Guidance Range +23% +66% Q1 2024 KEY METRICS $875
Slide 4: Q1 2024 Consolidated Results
Q1 2024 Consolidated Results 11% 21% 300BP 23% $205.7M $76.4M 37.1% $46.3M $185.0M $63.1M 34.1% $37.6M Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 11% to increased 21% to margin1 increased increased 23% to $205.7 million $76.4
Slide 5: Unified Commerce Platform
Unified Commerce Platform A B P Acquiring Banking Payables Full featured POS & Merchant … Passport Financial Toolset that … helping you optimize your Working Acquiring Solutions that Accelerate automates reconciliation, streamlines Capital by leveraging our integrated your Cash Flow & work seamlessl
Slide 6: Financial Results
(S Priority Financial Results
Slide 7: SMB Highlights – 1Q 2024
SMB Highlights – 1Q 2024 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $143.8MM $31.6MM 22.0% $12.4MM (7%) YoY (11%) YoY (90) Bps YoY +3% YoY 1Q 2024 Segment Highlights ➢ Revenue is 7% lower than Q1 2023 (up over 8% y-o-y excl. large reseller) but improved 3% sequentially fro
Slide 8: B2B Highlights – 1Q 2024
B2B Highlights – 1Q 2024 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $21.1MM $6.2MM 29.6% ($0.8)MM +658% YoY +220% YoY (4,040) bps YoY +7% YoY 1Q 2024 Segment Highlights ➢ Revenue growth driven by both Plastiq ($17.3 million) and CPX (+61% y-o-y) ➢ Adjusted Gross Profit Mar
Slide 9: Enterprise Highlights – 1Q 2024
Enterprise Highlights – 1Q 2024 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $40.9MM $38.6MM 94.5% $25.5MM +50% YoY +50% YoY +50 bps YoY +102% YoY 1Q 2024 Segment Highlights ➢ CFTPay Avg Monthly New Enrollments of 54K increased 17% from 46K ➢ CFTPay Avg Number of Billed Clie
Slide 10: Consolidated Operating Expenses – 1Q 2024
Consolidated Operating Expenses – 1Q 2024 Salaries & Benefits SG&A Depreciation & Amortization $22.2MM $11.0MM $15.3MM +16% YoY +21% YoY (15%) YoY 1Q 2024 Highlights ➢ Higher Salaries and Benefits expense driven by merit increases, certain performance based non-recurring bonuses, and headcount adds
Slide 11: Adjusted EBITDA Walk
Adjusted EBITDA1 Walk Adjusted EBITDA experienced strong growth in Q1 2024 ➢ Q1 2024 Adjusted EBITDA of $46.3 million increased 23% from $37.6 million in Q1 2023 EBITDA Walk (in Millions) 2024 2023 LTM Q1 Q1 Q1 2024 Consolidated net income (loss) (GAAP) $ 5.2 $ (0.5) $ 4.4 Add: Interest expense 20.9
Slide 12: Capital Structure & Liquidity
Capital Structure & Liquidity Outstanding Debt Senior Redeemable Preferred Stock Balance as of December 31, 2023 $654.4 Balance as of December 31, 2023 $258.6 (+/-) Net Revolver Borrowings -- (+/-) Dividend Payable2 $0.1 (+/-) Net Term Loan Borrowings ($1.7) (+/-) PIK Dividend $4.7 Balance as of Mar
Slide 13: Pending Recapitalization (Q2 2024)
Pending Recapitalization (Q2 2024) Sources (est.) Pro Forma Capitalization New $70MM Revolver -- Q1 2024 Adjustments PF Q1 2024 New $835MM Term Loan $835.0 Unrestricted Cash $34.3 ($0.7) $33.6 Cash on Hand $0.7 Revolver -- -- -- Total Sources $835.7 Term Loan $652.7 $182.3 $835.0 Senior Debt $652.7
Slide 14: Appendix
(S Priority Appendix
Slide 15: Appendix – Adjusted Gross Profit Reconciliation
Appendix 1 – 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 March 31, 2024 Three Months Ended March 31, 2023 SMB B2B Enterprise Total SMB B2B Enterprise Total Reven
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