Priority Technology Holdings, Inc. · NASDAQ:PRTH
Priority Technology — Q4 2023 Earnings Presentation
16 slides from Priority Technology's earnings presentation, Mar 12, 2024
Slide 1: Supplemental Slides: 4Q 2023 Earnings Call
Priority Technology Holdings, Inc. (Nasdaq: PRTH) Supplemental Slides: 4Q 2023 Earnings Call March 12, 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 2023 Highlights
Key 2023 Highlights FY 2023 RESULTS CONTINUED STRONG MOMENTUM NET REVENUE ADJ GROSS PROFIT1 TOTAL REVENUE ADJUSTED EBITDA1 (In Millions) (In Millions) a +14% +21% $875 - $890 $15 $193 - $198 $5 ADJ EBITDA1 OPERATING INCOME Guidance Range Guidance Range +20% +45% FY 2023 KEY METRICS $875 $193 $756 $1
Slide 4: Q4 2023 Consolidated Results
Q4 2023 Consolidated Results 12% 20% 230BP 12% $199.3M $72.9M 36.6% $44.6M $177.6M $61.0M 34.3% $39.8M Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 12% to increased 20% to margin1 increased increased 12% to $199.3 million $72.9
Slide 5: FY 2023 Consolidated Results
FY 2023 Consolidated Results 14% 21% 220BP 20% $755.6M $275.3M 36.4% $168.3M $663.6M $226.9M 34.2% $140.3M FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Revenue Adj Gross Profit1 Adj Gross Profit Adjusted EBITDA1 increased 14% to increased 21% to margin1 increased increased 20% to $755.6 million $
Slide 6: Unified Commerce Platform
Unified Commerce Platform AS P B SMB Acquiring Solutions B2B Payables Enterprise BaaS ® Click here to watch the "Say Hello to Passport!" video 6
Slide 7: Financial Results
(S Priority FINANCIAL RESULTS
Slide 8: SMB Highlights – 4Q 2023
SMB Highlights – 4Q 2023 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $139.9MM $31.6MM 22.6% $11.1MM (7%) YoY (12%) YoY (140) Bps YoY (26%) YoY 4Q 2023 Segment Highlights ➢ Bankcard $ Volumes decreased 2% to $14.6 billion (up 7% excluding impact of large reseller) ➢ Avg Numb
Slide 9: B2B Highlights – 4Q 2023
B2B Highlights – 4Q 2023 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $21.2MM $5.3MM 24.9% ($1.7)MM +657% YoY +204% YoY (3,720) bps YoY (61%) YoY 4Q 2023 Segment Highlights ➢ Revenue growth driven by Plastiq and CPX (+57%) ➢ Adjusted Gross Profit Margin declined due to highe
Slide 10: Enterprise Highlights – 4Q 2023
Enterprise Highlights – 4Q 2023 Revenue Adj. Gross Profit1 Adj. Gross Profit Margin1 Operating Income $38.1MM $36.0MM 94.5% $23.9MM +53% YoY +55% YoY +110 bps YoY +109% YoY 4Q 2023 Segment Highlights ➢ Avg Monthly New Enrollments of 49K increased 26% from 39K ➢ Avg Number of Billed Clients increased
Slide 11: Consolidated Operating Expenses – 4Q 2023
Consolidated Operating Expenses – 4Q 2023 Salaries & Benefits SG&A Depreciation & Amortization $21.7MM $14.1MM $15.1MM +29% YoY +77% YoY (16%) YoY 4Q 2023 Highlights ➢ Higher Salaries and Benefits expense driven by headcount adds in late 2022 combined with a full quarter impact of the Plastiq acquis
Slide 12: Adjusted EBITDA Walk
Adjusted EBITDA1 Walk Adjusted EBITDA experienced strong growth in Q4 and FY 2023 ➢ Q4 2023 Adjusted EBITDA of $44.6 million increased 12% from $39.8 million in Q4 2022 ➢ Full-Year 2023 Adjusted EBITDA grew 20% to $168.3 million EBITDA Walk (in Millions) 2023 2022 Q4 Q4 Consolidated net income (loss
Slide 13: Capital Structure & Liquidity
Capital Structure & Liquidity Outstanding Debt Senior Redeemable Preferred Stock Balance as of September 30, 2023 $639.1 Balance as of September 30, 2023 $252.9 (+/-) Net Revolver Borrowings ($33.0) (+/-) Dividend Payable2 $0.2 (+/-) Net Term Loan Borrowings $48.3 (+/-) PIK Dividend $4.6 Balance as
Slide 14: 2024 Financial Guidance
2024 Financial Guidance The Company’s outlook for full-year 2024 financial results are: TOTAL ADJUSTED ADJUSTED REVENUE GROSS PROFIT1 EBITDA1 $875 to $890 million $325 to $335 million $193 to $198 million (16-18% Growth) (18-22% Growth) (15-18% Growth) Quarterly Revenue, Adjusted Gross Profit1, and
Slide 15: Appendix
(S Priority APPENDIX
Slide 16: Appendix 1 – 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 December 31, 2023 Three Months Ended December 31, 2022 SMB B2B Enterprise Total SMB B2B Enterprise Total
Priority Technology Holdings — Q4 2023 Earnings Presentation on 6ix