Priority Technology (PRTH) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA for Q4 and full year 2024, with net revenue up 16%, adjusted gross profit up 19%, and adjusted EBITDA up 21% year-over-year, driven by strong performance across all business segments.

• Ended 2024 with over 1.2 million customer accounts, $130 billion in annual transaction volume, and $1.2 billion in average daily account balances.

• Business model increasingly driven by recurring revenues, now representing over 63% of Q4 adjusted gross profit.

• Priority Commerce Engine and unified commerce platform continue to drive organic growth and customer adoption.

• Successfully redeemed all senior preferred stock, simplifying the capital structure.

Financial highlights

• FY 2024 revenue increased 16% to $879.7 million; Q4 revenue up 14% to $227.1 million.

• Adjusted gross profit rose 19% to $328.1 million, with margin up 90 bps to 37.3%; Q4 adjusted gross profit $83.9 million (+15%).

• Adjusted EBITDA grew 21% to $204.3 million; Q4 adjusted EBITDA up 16% to $51.7 million.

• Q4 operating income grew 54.9% to $34.1 million; full year operating income up 63.7% to $133.4 million.

• Adjusted EPS for 2024 was $0.51, with Q4 adjusted EPS $0.18.

Outlook and guidance

• 2025 guidance: revenue of $965 million–$1 billion (+10–14%), adjusted EBITDA of $220–$230 million (+8–13%), and adjusted gross profit of $360–$385 million (+up to 17%).

• Lower EBITDA growth in 2025 expected due to higher OpEx from cloud migration and SOX compliance costs.

• Segment guidance: high single-digit revenue growth in SMB, low double-digit in B2B, and continued growth in enterprise.

• Anticipates continued improvements in profitability, offset by higher operating expenses.