Advertisement
Canada markets close in 4 hours 48 minutes

  • S&P/TSX

    22,304.94
    -41.82 (-0.19%)
     

  • S&P 500

    5,312.47
    +5.46 (+0.10%)
     

  • DOW

    39,397.60
    -273.44 (-0.69%)
     

  • CAD/USD

    0.7302
    -0.0004 (-0.05%)
     

  • CRUDE OIL

    77.53
    -0.04 (-0.05%)
     

  • Bitcoin CAD

    93,067.30
    -2,728.67 (-2.85%)
     

  • CMC Crypto 200

    1,466.79
    -35.87 (-2.39%)
     

  • GOLD FUTURES

    2,349.10
    -43.80 (-1.83%)
     

  • RUSSELL 2000

    2,062.98
    -18.73 (-0.90%)
     

  • 10-Yr Bond

    4.4850
    +0.0510 (+1.15%)
     

  • NASDAQ

    16,904.58
    +103.04 (+0.61%)
     

  • VOLATILITY

    12.35
    +0.06 (+0.49%)
     

  • FTSE

    8,332.40
    -37.93 (-0.45%)
     

  • NIKKEI 225

    39,103.22
    +486.12 (+1.26%)
     

  • CAD/EUR

    0.6743
    -0.0002 (-0.03%)
     
MARKETS LIVE BLOG:

NASDAQ, S&P 500 PARE GAINS EVEN AS NVIDIA SUPPORTS

Shares of the AI bellwether surge 9%, top US$1,000 for the first time

Priority Technology Holdings Inc (PRTH) Q1 2024 Earnings: Revenue Surpasses Estimates, Net Loss ...

GuruFocus Research
·3 min read

  • Revenue: Reported at $205.7 million, up 11.2% from $185.0 million in the previous year, falling short of estimates of $210.14 million.

  • Net Income: Turned positive at $5.19 million, a significant improvement from a loss of $0.506 million in the prior year, surpassing the estimated loss of $6.50 million.

  • Adjusted Gross Profit: Increased by 21.2% to $76.4 million, with adjusted gross profit margin expanding by 300 basis points to 37.1%.

  • Operating Income: Rose sharply by 66.3% to $28.0 million from $16.8 million.

  • Adjusted EBITDA: Grew by 23.1% to $46.3 million from $37.6 million in the previous year.

  • Earnings Per Share: Basic and diluted earnings per share improved to $0.10 from -$0.15 year-over-year.

  • Full Year Guidance: Revenue forecast reaffirmed to range between $875 million to $890 million, indicating a growth rate of 16% to 18%.

Priority Technology Holdings Inc (PRTH) Q1 2024 Earnings: Revenue Surpasses Estimates, Net Loss Narrows
Priority Technology Holdings Inc (PRTH) Q1 2024 Earnings: Revenue Surpasses Estimates, Net Loss Narrows

On May 9, 2024, Priority Technology Holdings Inc (NASDAQ:PRTH) released its 8-K filing, unveiling the financial outcomes for the first quarter of 2024. The company, a prominent provider of merchant acquiring and commercial payment solutions, reported a revenue of $205.7 million, marking an 11.2% increase from the previous year's $185.0 million, and surpassing the estimated $210.14 million. This growth is attributed to strong performance across its unified commerce platform.

Company Overview

Priority Technology Holdings Inc operates through three main segments: SMB Payments, B2B Payments, and Enterprise Payments. The SMB Payments segment, which is the major revenue contributor, offers full-service acquiring and payment-enabled solutions for B2C transactions. The B2B Payments segment focuses on AP automation solutions, while the Enterprise Payments segment provides embedded payment and treasury solutions to modernize legacy platforms.

Financial Highlights and Challenges

The company's adjusted gross profit increased by 21.2% to $76.4 million, with the adjusted gross profit margin expanding by 300 basis points to 37.1%. Operating income saw a significant rise of 66.3%, reaching $28.0 million. Adjusted EBITDA also grew by 23.1% to $46.3 million. Despite these positive trends, PRTH reported a net income of $5.193 million, a stark improvement from a loss of $0.506 million in the same quarter of the previous year, yet it fell short of the anticipated net income of -$6.50 million.

Strategic Operations and Market Position

Tom Priore, Chairman & CEO of Priority, emphasized the company's record results driven by robust performance in each business segment. He highlighted the ongoing innovation in PRTH's SaaS Payments and Banking suite, aiming to meet the evolving needs of their customer base and enterprise partners. The company's strategic focus remains on enhancing its proprietary platforms to sustain and accelerate growth.

Future Outlook and Guidance

Looking ahead, Priority Technology Holdings remains optimistic, reaffirming its full-year 2024 revenue forecast to range between $875 million to $890 million, indicating a growth rate of 16% to 18%. Adjusted EBITDA is expected to be between $193 million to $198 million, reflecting a growth of 15% to 18%. The forecast underscores the company's confidence in its operational strategy and market position.

Investor Relations and Market Response

The company plans to discuss these results in greater detail during a conference call scheduled for May 9, 2024. This will provide an opportunity for investors to gain deeper insights into the company's strategies and operational nuances.

ADVERTISEMENT

In conclusion, Priority Technology Holdings Inc's Q1 2024 results demonstrate notable revenue growth and operational improvements. While the company faces challenges, such as achieving consistent net profitability, its strategic initiatives and market positioning foster a positive outlook for the fiscal year. Investors and market watchers will likely keep a close watch on how PRTH manages its growth trajectory in the competitive payments landscape.

Explore the complete 8-K earnings release (here) from Priority Technology Holdings Inc for further details.

This article first appeared on GuruFocus.