The following is a summary of the Priority Technology Holdings, Inc. (PRTH) Q4 2023 Earnings Call Transcript:
Financial Performance:
Priority Technology reported its highest Q4 2023 results to date with a revenue of $199.3 million, rising by over 12% from the previous year.
The adjusted gross profit for Q4 2023 marked a 20% increase to $72.9 million, and a 12% growth in adjusted EBITDA to $44.6 million.
There was a 14% annual increase in revenue for 2023 to $755.6 million, leading to a 21% gain in adjusted gross profit to $275.3 million.
The adjusted gross profit margin of 36.6% for 2023 is an increase of 230 basis points from 2022.
A projected full-year revenue for 2024 is expected to rise by 16% to 18% to $875 million to $890 million, whereas the anticipated adjusted EBITDA is a 15% to 18% rise to $193 million to $198 million.
Business Progress:
The successful integration of Plastiq contributed to robust results in SMB acquiring, B2B payables, and enterprise payments.
Their commerce platform now serves over 860,000 customer accounts and processed about $120 billion in transaction volume throughout 2023.
Due to the investment in Passport, it is anticipated that the Plastiq B2B channel will drive future growth.
The company plans to continually innovate its SaaS payment suite of services, or Passport Commerce Engine, to cater to its steadily expanding customer base.
Despite a diversification strategy that led to a 7% decline in Q4 revenue to $139.9 million, revenues would have increased over 5% year-on-year without the $18 million revenue headwind.
The company projects SMB revenues to grow in the mid-single-digit range for 2024, and more than 20% growth in B2B, driven by the Plastiq acquisition.
Priority Technology plans to enhance its free cash flow conversion and is targeting industries such as construction, investment management, and real estate for its services.
More details: Priority Technology IR
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