In This Article:
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Revenue: $227.1 million in Q4, a 14% increase from the prior year.
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Adjusted Gross Profit: $83.9 million in Q4, a 15% increase from the prior year.
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Adjusted EBITDA: $51.7 million in Q4, a 16% increase from the prior year.
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Adjusted Gross Profit Margin: 37% in Q4, up 40 basis points from the prior year.
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Full Year Revenue: $879.7 million, a 16% increase from the prior year.
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Full Year Adjusted Gross Profit: $328.1 million, a 19% increase from the prior year.
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Full Year Adjusted EBITDA: $204.3 million, a 21% increase from the prior year.
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SMB Segment Revenue: $155.7 million in Q4, an 11.1% increase from the prior year.
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SMB Segment Adjusted EBITDA: $26.6 million in Q4, a 6.4% increase from the prior year.
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B2B Segment Revenue: $23.7 million in Q4, a 10.9% increase from the prior year.
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B2B Segment Adjusted EBITDA: $2.4 million in Q4, a $2 million increase from the prior year.
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Enterprise Segment Revenue: $48.7 million in Q4, a 27% increase from the prior year.
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Enterprise Segment Adjusted EBITDA: $42 million in Q4, a 27% increase from the prior year.
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Interest Expense: $23.1 million in Q4, a $2.5 million increase from the prior year.
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Debt Levels: $945.5 million gross and $886.9 million net at the end of the quarter.
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Cash and Liquidity: $58.6 million of unrestricted cash and $70 million borrowing capacity available.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Priority Technology Holdings Inc (NASDAQ:PRTH) reported the strongest revenue performance in its history for both the fourth quarter and the full year 2024.
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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.
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The company ended the year with approximately 1.2 million total customer accounts and processed over $130 billion in annual transaction volume.
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The B2B and Enterprise segments showed significant growth, with adjusted gross profit from these segments representing 59% of the total for the year.
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The company anticipates 10% to 14% top-line revenue growth and 8% to 13% adjusted EBITDA growth in 2025, despite potential macroeconomic headwinds.
Negative Points
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The company faces potential headwinds related to lower interest rates and a murky macroeconomic environment.
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There was a material weakness in internal controls over financial reporting, specifically related to automated controls and IT general controls.
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The SMB segment experienced a negative impact due to the write-off of certain obsolete inventory and the maturation of prior portfolio purchases.
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Interest expense increased by $2.5 million due to higher comparative debt levels.
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The company is undergoing a shift from CapEx to OpEx due to cloud migration, which is expected to increase expenses in the short term.