Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — Q2 2024 Earnings Presentation
16 slides from Priority Technology's earnings presentation, Aug 8, 2024
Slide 1: Supplemental Slides: 2Q 2024 Earnings Call
Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides: 2Q 2024 Earnings Call August 8, 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 2nd Quarter 2024 Highlights
Key 2nd Quarter 2024 Highlights Q2 2024 RESULTS CONTINUED STRONG MOMENTUM NET REVENUE ADJ GROSS PROFIT1 TOTAL REVENUE ADJUSTED EBITDA1 (In Millions) (In Millions) a +21% +22% $875 - $883 $196 - $200 $8 $4 ADJ EBITDA1 OPERATING INCOME +25% +73% Guidance Range $449 Guidance Range $98 Q2 2024 KEY METRI
Slide 4: Q2 2024 Consolidated Results
Q2 2024 Consolidated Results 21% 22% 40BP 25% $219.9M $81.7M 37.2% $51.6M $182.3M $67.0M 36.8% $41.1M Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 21% to increased 22% to margin1 increased increased 25% to $219.9 million $81.7
Slide 5: Year-to-Date Consolidated Results
Year-to-Date Consolidated Results 16% 22% 180BP 24% $425.6M $158.2M 37.2% $97.9M $367.3M $130.1M 35.4% $78.7M Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Q2 23 Q2 24 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 16% to increased 22% to margin1 increased increased 24% to $425.6 millio
Slide 6: Priority: Your Trusted Partner
Priority: Your Trusted Partner Our mission is to create a thriving ecosystem of financial solutions that accelerate cash flow and optimize working capital for businesses MERCHANT ACQUIRING BANKING-AS-A-SERVICE PAYABLES Full featured POS & Merchant Acquiring Passport Financial Toolset that automates
Slide 7: Financial Results
(S Priority Financial Results
Slide 8: SMB Highlights – 2Q 2024
SMB Highlights – 2Q 2024 Revenue Adj. Gross Profit1 Adj. EBITDA1 $155.1MM $35.6MM $28.6MM +5% YoY +1% YoY | 23.0% Margin +1% YoY | 18.4% Margin 2Q 2024 Segment Highlights ➢ Revenue is 5% higher than Q2 2023 (up 12% y-o-y excl. large reseller) and improved 8% sequentially from Q1 2024 ➢ Bankcard $ Vo
Slide 9: B2B Highlights – 2Q 2024
B2B Highlights – 2Q 2024 Revenue Adj. Gross Profit1 Adj. EBITDA1 $21.9MM $5.6MM $1.5MM +636% YoY +138% YoY | 25.4% Margin +152% YoY | 7.0% Margin 2Q 2024 Segment Highlights ➢ Revenue growth driven by CPX (+49% y-o-y) and $17.8 million of Plastiq revenue (+3% sequentially) ➢ Timing of certain incenti
Slide 10: Enterprise Highlights – 2Q 2024
Enterprise Highlights – 2Q 2024 Revenue Adj. Gross Profit1 Adj. EBITDA1 $43.7MM $40.6MM $37.2MM +39% YoY +38% YoY | 92.9% Margin +45% YoY | 85.3% Margin 2Q 2024 Segment Highlights ➢ CFTPay Avg Monthly New Enrollments of 55K increased 4% from 53K in Q2 2023 ➢ CFTPay Avg Number of Billed Clients incre
Slide 11: Consolidated Operating Expenses – 2Q 2024
Consolidated Operating Expenses – 2Q 2024 Salaries & Benefits SG&A Depreciation & Amortization $22.1MM $11.2MM $15.2MM +16% YoY +4% YoY (15%) YoY 2Q 2024 Highlights ➢ Higher Salaries and Benefits expense driven largely by timing of the Plastiq acquisition ➢ Increase in SG&A expenses primarily incurr
Slide 12: Adjusted EBITDA Walk
Adjusted EBITDA1 Walk Adjusted EBITDA experienced strong growth in Q2 2024 ➢ Q2 2024 Adjusted EBITDA of $51.6 million increased 25% from $41.1 million in Q2 2023 EBITDA Walk (in Millions) 2024 2023 LTM Q2 Q2 Q2 2024 Consolidated net income (loss) (GAAP) $ 1.0 $ (0.6) $ 6.0 Add: Interest expense 21.7
Slide 13: Capital Structure & Liquidity
Capital Structure & Liquidity Outstanding Debt Senior Redeemable Preferred Stock Balance as of March 31, 2024 $652.7 Balance as of March 31, 2024 $264.2 (+/-) Net Revolver Borrowings -- (+/-) Redemption of Preferred Stock ($166.3) (+/-) Net Term Loan Borrowings $182.3 (+/-) Dividend Payable2 ($4.3)
Slide 14: Appendix
(S Priority Appendix
Slide 15: 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 June 30, 2024 Three Months Ended June 30, 2023 SMB B2B Enterprise Eliminations Total SMB B2B Enterprise
Slide 16: 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 June 30, 2024 Three Months Ended June 30, 2023 SMB B2B Enterprise Corporate Total SMB B2B Enterprise Corporate Tota
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