Priority Technology (PRTH) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with revenue of $219.9 million, up 21% year-over-year, and adjusted EBITDA of $51.6 million, up 25% year-over-year, driven by strong performance in SMB, B2B, and Enterprise segments, and leveraging the Unified Commerce platform.

• Total customer accounts exceeded 1 million, with $125 billion in annual transaction volume and over $1 billion in average daily deposits.

• All segments reported growth, with B2B revenue surging 636% year-over-year, mainly from the Plastiq acquisition and organic expansion.

• Net loss attributable to common stockholders was $17.6 million for Q2 2024, primarily due to preferred stock dividends, despite net income of $1.0 million.

• Completed major refinancing, redeeming $170 million of preferred stock and improving capital structure.

Financial highlights

• Q2 2024 revenue reached $219.9 million, up 21% year-over-year; adjusted gross profit rose 22% to $81.7 million, with margin up 40 basis points to 37.2%.

• Adjusted EBITDA increased 25% to $51.6 million; operating income grew 73% to $33.2 million.

• Year-to-date revenue was $425.6 million, up 16%; adjusted EBITDA $97.9 million, up 24%.

• Q2 2024 net loss attributable to common stockholders was $17.6 million; EPS $(0.23).

• Interest expense increased to $21.7 million in Q2 2024.

Outlook and guidance

• Full-year 2024 revenue guidance is $875–$883 million, a 16–17% increase over 2023.

• Adjusted EBITDA guidance raised to $196–$200 million, representing a 16–19% increase over 2023.

• Adjusted gross profit expected between $325–$330 million, up 18–20% year-over-year.

• Expense increases expected in H2 2024 due to SOX 404 compliance and cloud migration, but no further acceleration anticipated in 2025.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operations, and credit facility availability.