Priority Technology (PRTH) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA for Q4 and full year 2024, with net revenue up 16.4%, adjusted gross profit up 19.2%, and adjusted EBITDA up 21.3% year-over-year, driven by strong performance across all business segments.

• Ended 2024 with over 1.2 million customer accounts, processing more than $130 billion in annual transaction volume and administrating $1.2 billion in average daily account balances.

• Successfully redeemed all preferred stock in Q4, funded by a $115 million incremental term loan, simplifying the capital structure.

• Organic growth was the primary driver in Q4, following the sunset of the Plastiq acquisition impact.

• Priority Commerce Engine and technology platform continue to support operational success and revenue generation.

Financial highlights

• Full-year 2024 revenue: $879.7 million (+16.4% YoY); adjusted gross profit: $328.1 million (+19.2% YoY); adjusted EBITDA: $204.3 million (+21.3% YoY).

• Q4 2024 revenue: $227.1 million (+13.9% YoY); adjusted gross profit: $83.9 million (+15.1% YoY); adjusted EBITDA: $51.7 million (+16% YoY).

• Adjusted gross profit margin expanded by 90 basis points to 37.3% for the year; Q4 margin was 37%, up 40 basis points YoY.

• Q4 operating income grew 54.9% to $34.1 million; full year operating income up 63.7% to $133.4 million.

• Adjusted EPS for 2024 was $0.51, with Q4 at $0.18; Q4 adjusted EPS surged 800% YoY.

Outlook and guidance

• 2025 revenue guidance: $965 million–$1 billion (+10%–14% YoY); adjusted EBITDA: $220 million–$230 million (+8%–13% YoY); adjusted gross profit: $360 million–$385 million (+up to 17% YoY).

• Guidance factors in lower interest rates, macroeconomic uncertainty, and increased OpEx from cloud migration.

• Segment outlook: high single-digit revenue growth in SMB, low double-digit in B2B, and continued growth in enterprise.

• Anticipates continued improvements in profitability, offset by higher operating expenses.