On August 8, 2024, Priority Technology Holdings Inc (PRTH, Financial) released its 8-K filing for the second quarter of 2024. Priority Technology Holdings Inc is a provider of merchant acquiring and commercial payment solutions to small and medium businesses enterprises in the United States. The company operates through three segments: SMB Payments, B2B Payments, and Enterprise Payments.
Performance Overview
Priority Technology Holdings Inc (PRTH, Financial) reported revenue of $219.9 million for Q2 2024, a 20.6% increase from $182.3 million in Q2 2023. However, this figure fell short of the analyst estimate of $223.32 million. The company posted an earnings per share (EPS) of $0.01, surpassing the analyst estimate of -$0.01.
Financial Achievements
The company achieved an adjusted gross profit of $81.7 million, up 22.0% from $67.0 million in the same period last year. The adjusted gross profit margin also improved to 37.2% from 36.8%. Operating income saw a significant increase of 73.4%, reaching $33.2 million compared to $19.1 million in Q2 2023. Adjusted EBITDA rose by 25.4% to $51.6 million from $41.1 million.
We again reported record results in the second quarter by capitalizing on our leading unified commerce platform that delivers elegant product solutions across our segments and customer service that is committed to our partners' success," said Tom Priore, Chairman & CEO of Priority.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $219.9 million | $182.3 million |
| Adjusted Gross Profit | $81.7 million | $67.0 million |
| Adjusted Gross Profit Margin | 37.2% | 36.8% |
| Operating Income | $33.2 million | $19.1 million |
| Adjusted EBITDA | $51.6 million | $41.1 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Priority Technology Holdings Inc (PRTH, Financial) reported total assets of $1.67 billion, up from $1.62 billion at the end of 2023. The company’s cash and cash equivalents stood at $34.6 million, a decrease from $39.6 million at the end of 2023. Total liabilities increased to $1.74 billion from $1.50 billion.
Analysis
Despite missing revenue estimates, Priority Technology Holdings Inc (PRTH, Financial) demonstrated strong year-over-year growth in key financial metrics, including adjusted gross profit, operating income, and adjusted EBITDA. The company's ability to exceed EPS expectations indicates effective cost management and operational efficiency. However, the increase in total liabilities and the decrease in cash reserves may pose challenges moving forward.
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Explore the complete 8-K earnings release (here) from Priority Technology Holdings Inc for further details.
