Q1 2025 Priority Technology Holdings Inc Earnings Call Transcript
Key Points
- Priority Technology Holdings Inc (PRTH) reported a 9% increase in revenue for Q1 2025, demonstrating strong growth despite economic uncertainties.
- The company achieved a 14% increase in adjusted gross profit and an 11% improvement in adjusted EBITDA, indicating robust financial performance.
- The B2B and enterprise segments showed significant growth, with B2B revenue increasing by over 12% and enterprise revenue by over 22% year-over-year.
- The company ended the quarter with over 1.3 million customer accounts on its commerce platform, up from 1.2 million at the end of 2024.
- Priority Technology Holdings Inc (PRTH) maintained its full-year guidance, projecting 10% to 14% top-line revenue growth and adjusted EBITDA of $220 million to $230 million for 2025.
- SG&A expenses increased by $4.1 million from Q1 2024, driven by higher software expenses and non-recurring legal costs.
- Salaries and benefits rose by $3.6 million or 16.4% compared to Q1 of last year, impacting overall profitability.
- The SMB segment experienced a decline in gross margins by 30 basis points year-over-year due to reseller mix and lower specialized acquiring revenue.
- The company faces potential headwinds from interest rate changes, which could impact high-margin interest income.
- There is ongoing remediation of a material weakness related to automated controls, which will remain until the fiscal 2025 audit process is completed.
(Operator Instructions). Greetings and welcome to the Priority Technology Holdings Q1 2025 earnings call. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Megna Meera, managing director, ICR. Thank you. You may begin.
Good morning and thank you for joining us. With me today are Thomas 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
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