Q4 2024 Priority Technology Holdings Inc Earnings Call Transcript
Key Points
- Priority Technology Holdings Inc (PRTH) reported the strongest revenue performance in its history for both the fourth quarter and the full year 2024.
- The company achieved a 16% increase in net revenue, a 19% growth in adjusted gross profit, and a 21% improvement in adjusted EBITDA for the full year 2024.
- The company ended the year with approximately 1.2 million total customer accounts and processed over $130 billion in annual transaction volume.
- The B2B and Enterprise segments showed significant growth, with adjusted gross profit from these segments representing 59% of the total for the year.
- The company anticipates 10% to 14% top-line revenue growth and 8% to 13% adjusted EBITDA growth in 2025, despite potential macroeconomic headwinds.
- The company faces potential headwinds related to lower interest rates and a murky macroeconomic environment.
- There was a material weakness in internal controls over financial reporting, specifically related to automated controls and IT general controls.
- The SMB segment experienced a negative impact due to the write-off of certain obsolete inventory and the maturation of prior portfolio purchases.
- Interest expense increased by $2.5 million due to higher comparative debt levels.
- The company is undergoing a shift from CapEx to OpEx due to cloud migration, which is expected to increase expenses in the short term.
Good morning, and welcome to the Priority Technology fourth-quarter 2024 conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Chris Kettmann. Please go ahead.
Good morning, and thank you for joining us. With me today are Tom Priore, Chairman and Chief Executive Officer of Priority Technology Holdings; and Tim O'Leary, Chief Financial Officer.
Before giving our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings and we encourage you to review these filings.
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