Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to Priority Technology Holdings Third Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded.

I'd like to turn the call over to Mr. Chris Kettmann. ahead. go Please

Chris Kettmann

thank are and of joining With Financial us. Technology Good Priore, you Chairman today Officer. Chief O'Leary, Tom and Officer and me Holdings; morning Tim for Chief Priority Executive

remarks, prepared our our results the a to cause that will number our give risks today statements. we I like The uncertainties all comments which to statements, forward-looking from actual and differ forward-looking would company include forward-looking of materially participants remind involve may Before otherwise. no that whether to detailed obligation and or revise you review information, factors or undertakes result we a events, discussion risk to new filings these We statements, of our various update as a SEC filings. in encourage of future the provide

measures, non-GAAP SEC release performance measures liquidity appropriate section of may not EBITDA can in our to but website. be adjusted and the press in we limited and our the and EBITDA refer call. of found filings Investors GAAP during available non-GAAP including, the measures to Reconciliations to Additionally, our

would that, call Chairman our to Priore. turn CEO, to Tom With over and the like I

Tom Priore

Thank would Tim Third like Call. and Earnings Quarter personally for I September. you, us named our XXXX thanks everyone for welcome CFO was O'Leary, Chris, who to in also joining

We excellent period. are We quarterly excited and team. to growth delivered have the during him results, again revenue once on the EBITDA reporting strong

$XXX.X of margin of the million, basis to to a $XX.X to were XXXX. nearly revenue XX% profit XX% year quarter improvement point and led gross from in a $XX.X almost to from a by quarter which increased increased XX.X% results record XXX third These nearly million. prior in EBITDA million million Our adjusted XX% XX.X%. the Operating a income third $XX.X expansion fueled gross increase in to

throughout over a basis, the million up slide total organically on and to QX just by impact XX.X% a year. we've positive the excluding momentum third see results $XXX quarter been Finxera XX.X% can basis, year-to-date revenue on the strong our was XX% extended in the the four, seeing acquisition. On you As year-to-date grew and of

XX% quarters of adjusted EBITDA to three go from segment Year-to-date, million Gross was of gross profit first $XXX.X XXXX. $XXX.X in up increased of on third XX% our results XXXX. XX.X% through will million XXX the basis the Tim the margin increased by shortly. nine over reported XX.X% we first into level detail points months quarter and to

of five at company's Before he some aggregate and let's does, look the slide statistics. performance

merchant at SMB, more payment Our annual supporting software than over BXB unified over scale, the is and segments XXX,XXX XX% billion, $XXX integrated active of volume payment and deposit active than commerce efficiently connections. XXX,XXX total platform enterprise processing from serves bank SMB accounts, accounts, derived with more

with customer and delivering. balanced proud market sophisticated operating and solutions, industry-leading segments Our continue technology the of we're the to resonate service, results we're

you our functionality to of are banking those the highlights serve. payments robust networks merchant company, store commerce to new collect the six and money, who and monetize is purpose-built proprietary combining to For send unified we platform slide how

that flow belief demands greater businesses of and software accelerate both funds to banking our payment and on systems reinforce to combining and as put cash environments continue multiparty customers Our solution critical, be in providers. features will distribute payments

this initiatives our year. higher-than-estimated benefit will EBITDA modestly in This banking we to made we ourselves position half interest decision adjusted of product this revision a forecasting rise the To our the expenses year and in rates, investment more in the resources. in in Consequently, operating are from trend accelerate our and quickly guidance. back continued operating to full result

million. of we $XXX million million between year anticipate million guidance to our full $XXX EBITDA to achieve million to adjusted $XXX versus expect to $XXX will initial still we our of $XXX million, While revenue range $XXX

enterprise benefit future native to banking the outsized and in a in will solutions result coming our Priority markets shareholders accelerating into the rate full payment in and the current years. environment our proprietary SMB particularly development believe BXB and to passport suite We partners, offering of deliver the of interest

year-over-year to Our of continues third largest revenue do the segment incredibly quarter. payments well, SMB growth reporting volume bankcard X.X% in XX.X% and growth

in compiled in As rates the the five we've done X, the the past merchant aggregate slide table on the US. acquirers top of growth we highlighting non-bank

Even you by higher we in vertical our customers proving resonate see, and forward-looking a to aggregate our growth than measures, markets of these can meaningfully remains on growth a outpaced significant peer purely thoughtful products Priority continues As group, trajectory all with it's investment organic acquiring differentiator. and peers. competitive

BXB X. as strength new again strong the product. partner slide of CPX our channels continues to on add on reported it results Moving payments to

third which delivered customer, wind-down of BXB managed of quarter expansion large on growth our the points a expected a profit year despite earnings XX.X%, last gross increase segment compared gross service $XXX,XXX, the year-over-year we For of of basis occurred to quarter. call. This our revenue growth the margin discussed XXX and prior

Priority's CPro significant we've Intalere, investment of by product and Century Healthcare Premier announced Systems sizable opportunities among off [ph], pay pipeline the the others. to throughout Bank evidenced CPX our in business continues year with

reported grow volume provides quarterly Enterprise to $XX.X deposit million. clients balances of $XX increased and and and with of the payments on gross along payment build our Total continues our Lastly, segment, and payments those banking deposits. revenue solutions profit rates which embedded to million partners,

in to the acquisition prior Although, growth given in our along QX comparisons XX.X% XXXX, line Finxera meaningful XXXX profit. are for sequential from XX.X% the September top XXXX year was of especially QX not increase gross with

reinforce the performance real software estate strong reflect to like systems. and sectors trend in and countercyclical construction additional platform existing wins the treasury and Our strength of continued

the cutting in channels I retrenching, I resources are are chain Unlike that did and Priority environment. not continued we volatile are revenue early prolonged cycle remaining digital inflationary business higher remiss to and in pressure, will we current by higher and build from address interest wrapping if poised diversified initiatives into up, and and strength regardless a to many fueled supply our continues peers continue would others of increasing that platform that downturn, position purposely to to Before to while inflationary payments from economic new the probability and geopolitical broader be benefit unique our an cycles. leading disruptions a conversion interest with operate positioned invest investments, intention, reducing our and headed future rates, of are in rates accelerating economic of who events.

it I'd who segment. business provide this like point, trends current to our quarter with insight At each along into to will over the further performance in during Tim hand

Tim O'Leary

Thank you, Tom, and good morning everyone.

outstanding thank to in has who moment the things forward remarks, the to I prepared me company the take team look a to everyone want ahead. at my into get with I Before welcomed into years great family. I accomplishing this Priority

sure I into Mike as thank I'm this weeks want role. several I being listening. also for an Vollkommer invaluable to past transitioned the to resource over he's me

you’ve I So a hope enjoy you all for positive you have Mike retirement. thank the your done company that to well-earned and impact on

Now the task hand. in to moving on

further review the the segment level contribution the supplemental for I refer results, the As to MD&A to or quarter consolidated slides details. third please

link that our included this morning comparative that in Our SEC A to on can was provides of our with filing be year-to-date the results. MD&A discussion also and third a XX-Q the quarter found and filed Form is website.

for XXXX. performance third quarter financial we've all As first Tom in business the the across segments and months mentioned, strong nine of had

X% quarter XX, under revenue grew increased quarter. the count the by That bank monthly slide of throughout This averaged transaction from over $XXX.X is the card growth to higher million billion, growth of Looking boarding X.X% monthly bankcard average size. payments merchant prior X,XXX year boards at per over dollar year. where in new prior modestly in growth the SMB just and roughly driven ticket over just strong was merchant XXX,XXX $XX.X Average growth about average of driven XX.X% X,XXX. month count volume by X.X% of than X.X% historical in the trends merchant

Looking $X.X volume the growth payments quarter trends was customers year. increased from the new in compared of XXXX. the XX.X% slide last combined XX.X% revenue for result a million with increase customers existing million XX, of quarter the of at addition drove quarter in third XXXX CPX in BXB from the revenue of That as strong to of third $X.X

CPX migrating from is by revenue in wind-down by managed offset, driven continued was customer partially platform. in a services the which in was that a with the growth decrease of That certain business

we see through we move this levels. decline As nominal to will QX, revenue continue to figure

in Moving of QX an $XX to million $XX.X the XXXX. million of revenue from enterprise segment, million $X.X increase was QX of

but was dollar quarter enterprise of effect a from it drove growth the acquired CFTPay XXXX, that segment. a late the in full not was and XXXX CFTPay all, reminder of in September results big in most As

sequential billed in late want comparison the note I interest quarter for second quarter of number also to growth is enterprise on While saw that the the given in basis to of strong difficult acquisition of CFTPay a in to XXXX. we XXXX, did contributing clients the third increased enterprise, and year-over-year increased with rates compared rising XX% quarter revenue over growth all enrollments,

SMB a XX prior slide Within XX.X% profit gross in increased basis. million to X.X%. of which from Moving We the and million by that gross non-GAAP gross $XX.X of on profit year. $XX.X is increased million $XX.X profit saw which

the on with enterprise gross profit I XX.X% of $XX enterprise the increasing second the by BXB in strong over increased profit Consistent million XX.X% profit quarter sequential gross from million. million segment, we of million that also increased revenue a quarterly gross $XX comparability with of QX $X made for XXXX. growth of and $X the saw comments

XX, gross point drove XXX SMB significantly XXXX QX basis from results margin Moving margin and XXX to and decline margin points basis expansion and BXB on overall profit a was levels. offset the in increased XX.X% than margins. gross more slide The profit enterprise of

prior As growth mix-related discussed faster largely where they driving the has rates. of shifts also larger margin ISO pressure higher commission partners in on SMB result operate calls, but with are been our the

acquisition driven $XX.X operating expenses increased resulting the by change growth. from the XX%. with XXXX, combined primarily in On continued slide QX investments XX, in business, CFTPay million This the business expenses is the increased of strong support in to other

with XX.X% of increased in our the in in wage a driven million were head $XX.X connection in an head from both increases added year initiatives. count mainly as XXXX, count growth CFTPay of Salaries we increase by million head acquisition and $XX.X count. also result but and additional of increases this XXXX, benefits The

$XX.X XX.X% last increases the SG&A of quarter $X.X continued and million Again, in of growth. acquisitions. year, level million acquisition-related QX $XX.X expansion amortization by driven from increased of along primarily Depreciation drove million the from that $X.X investment in with business increased XXXX for million by, million XXXX. $XX.X

million operating SMB operating increase that million in $X.X XX% about head increase benefits compensation $XX.X $XX.X $X.X million and quarter XX, $X.X higher for decreased a largely in slide of in from count along Within and income SG&A income million, XXXX. to by salary million increased to On expenses. of stock-based due the due $X.X a million with

operating were partially other increases Those by efficiencies. offset

expenses increase largely mentioned, count the As attributable were in the to and growth head initiatives company. SG&A within

revenues increased for allowed BXB that leverage large $XXX,XXX in operating services levels income decline margin expansion and revenue previously driven from managed in customer. combined discussed of from expected with operating XXXX, the the a by breakeven increased despite

$X.X XX% Enterprise from in revenue gross of over sequential QX. million, quarterly for this operating with income discussion and on the was consistent Enterprise's also an $X.X in from profit to $X.X growth operating XXXX with income QX by segment million increased increase strong million

the acquisitions up $X.X and QX to Corporate was from in business. million expense $X.X in tied million again XXXX growth investments of largely

EBITDA XXXX. the in increased for which was Adjusted million $XX.X quarter QX million from XX.X% $XX.X

at depreciation look and items income on you added the and amortization consolidated slide, this largest expense the to walk obviously are As EBITDA interest back

of comparative quarter million the Interest debt of of expense environment the to QX of million levels, the rising rate the our given of debt full along increase balances QX XXXX interest of XXXX with the floating QX XXXX an higher $X.X agreement. given the for from combination nature $XX.X is rate compared impact effect

deposits in rising environment. that I rate income place the the generated would rate debt, On have is floating a part interest note topic, for the in given from benefited on enterprise of have also segment our natural which hedge that, do the we

of further $X.X EBITDA and million approximately consists The nonrecurring adjusted noncash adjustments which compensation at include non-cash or $X.X expenses. derived million stock of of adjustments, certain other

QX the our net to Total and is the during at have XXth, our September see levels year. of On million This of of and million that of debt slide a you'll $XX shares reduction outstanding includes repurchasing continued quarter. XX XXXX moving continued to after in X.X of decline. this $XXX.X since end million business the investments debt, PRTH also debt reduction

million was $X the in $XX.X quarter. lower cash than of The quarter. the by declined to debt total end debt of balances the million from debt less $XXX.X at million approximately the Net due reduction in end second reduction the of net at

of our balance From cash at of a million standpoint, in $XX million liquidity $XX.X facility under capacity we to borrowing sheet had revolving on addition quarter unrestricted credit the end.

on Slide senior discounts balance September at XXth net million stock preferred of our the costs. On of sheet XX, $XXX.X issuance and and totaled unaccreted $XX.X is million

preferred cash of paid $X.X accretion a in $XXX,XXX. costs with of dividend approximately comprised issuance our $X.X supplemented in of million The second statement quarter This million million $X.X of PIK and the and component. is income of discounts is

achieve we turning Consistent to our $XXX confident guidance $XXX adjusted million to revenue with full and address over the QX revenue earnings of our commentary to the call, Before in further back Tom, our during our ability the guidance call wanted year. full to year million. I remain EBITDA for XXXX

However, organic support in both investments have continued which given growth growth. to the and we technology includes strong make to business, that our people

also development capabilities have market which to will allow the of sooner. product We suite to a certain full banking-as-a-service activities, accelerated bring us

result, guidance a EBITDA million adjusted to million. million a we guidance provided from of full to $XXX the previously $XXX adjusting $XXX million of $XXX to year As our are range

The EBITDA diminished represent of our view opportunities. reduction guidance does in our not business adjusted a

that independent contrary, that to we create ever advantage capabilities and third-parties, now our investing many the by more will value shareholders. sooner and for long-term we the market opportunity for take is On than brighter believe banking-as-a-service believe opportunities of

now back over I'll Tom. call turn to the that, With

Tom Priore

interested respected embedded banking Thank you, our be highly technology. remarks, to hear audience Tim's shared reinforce I by Tim. payments strongly thought may Further to investment our that closing expectations and to our consultancies accelerate thesis

US to to this released recently total payments, Bain finance XXXX. enablers XX% transaction value $XX total transaction more in to and trillion expect will of and to double XXXX McKinsey platforms and large trillion at market and XXXX from They billion estimates market in research $X than revenue the market is for surge of According over conducted expect growing. and the they Bain, lending, by banking, value. billion embedded or $XX the finance also cards US across embedded $X.X by

are take virtual streamline shift buyers The greatest share in BXB embedded where reach seen value-added considerably trillion payments that higher AP/AR impact and reconciliation. $XX.X may payments and Their market simplify for the are will to operations estimates be XXXX. a to expectations e-check, cards, as by ACH to

During $X.X BXB this market time, payments $X.X the from embedded proportionally billion. $X.X growing to with trillion will from billion revenues nearly trillion to $X.X quadruple

of into line Very e-commerce would most debit we conventional today platform starting open and much in By never meet may logging like merchant, their McKinsey a with MX that with deposit up small needs. can a unified businesses noted our their what say bank. a interact order they commerce or account, vision, financing card,

easy-to-use a assessment and regulatory, is customer services of the seamless, likely will into and provide convenient, winners The full embed products And some including single, suite experience. origination, that operators financial oversight, will compliance, platforms of these a fulfillment. their

now will just easy trend Enablers We're the servicing the we've remind and of edge embedded determined emerging like take the that are and finance of recognizing. for integrations upper committed through to among hassle others hand. great at that out this been being should leading the hold winners you and Priority platforms

extremely built On well laid the managed Priority out key precision. priority been reasons positioned slide with over has the long-term. why XX, we've and succeed is to purpose

of environments and The win, Our has model. to somewhat we results in of honing changing agility our reinforce date us deteriorating the and strength produced hungrier success quickly the to made face economic market-leading of our our the this the of approach of possible be without evolution forefront to None commerce. and the at of to their be willingness takes win. team it would to do customer-centric work focus the

thank to employees Priority will to you job So done of I all you've and for our want continue to do. the

future unified and were to a pro-cyclical simply powerhouse, last. technology which Priority the lead are tide the continues products revealing to while be for our is which investing others commerce, long-term retreat. it As businesses and building the built performers forward-looking of is high-value resources have to accelerating and to recede, payments

and payments technology through of platform and the deliver banking and products the our client-inspired combination of solutions the winning customers necessary competition our shareholders We demand have ahead people to our our and that stay dedicated the should expect. our

call We appreciate support on your we'd for and ongoing of like analysts. participating time today's open and call the our the to investors Operator, now questions.

Operator

Brian Kinstlinger, Global question Instructions] will Partners. Thank from be First you. Alliance [Operator

Brian Kinstlinger

Thanks. Great. a of got I've questions. handful

Banking-as-a-Service The the first question is I on new expected have offering.

today's credit it that I investments mentioned platform in economy enable launch to sooner. you super instant for demand increased You figure high. the for is to

the investments? management kind of go live is And full defaults? in risk then is place new when expected limit these launch So with to what

Tom Priore

question, Brian. Great

So launched. already look of it's some

the to process website in customers live go guide. have can we forward And you the and So API pass the download as of we speak. that going are

So and apologize the range I'm something City has in on. be noise, for of the they always Brian. which construction New I from middle to software. background estate real -- going York got

me with bear for So moment. a

is far in authorized gateway fast the with the we're we'll through way coming -- out transactions initial as the money next some And having other funding we're going naturally or will directly be to networks and beta a.m. of our which and the us know as authorization constructed gives day. to prerequisite embedded be then for And in banking, go group QX. client our at a ready the funding from instant an basically that get we're we X the

fraud is be which requirement And networks. funded to authorization our to funding are through authorized, network have by going they those instant on our that's as the at at transactions to have those the they the a level authorize basically be level. and once doing customers products, be checks So for all gateway to

And I tell back within minutes on feature. end, cool three a after then mean, transaction that a into the you this we is so merchant I'll fund can pretty authorization.

So then how the capability. once we're there'll be money can controls their swept do and settlement end out pretty that excited percentage account. And back money instant as on to be some fund as quickly it, -- that about we we of that the what

So not authorization a we'll we're right prefer complete perspective. the testing I we vendors directly, tool the we'll beta to through on from of And continue to the once also out to fraud now we're -- refine testing best-in-class put but additionally front-end assessment. and a out speak And in process. couple to we're pick it that our

Brian Kinstlinger

Great. can That's retail top then of maybe us the or And your difficulty inside CPG. three you remind helpful. percentage payments highlighted which what four the consumer? Clearly, revenue comes And or economy? you've in the the consumer from are verticals then

Tom Priore

Sure.

quite I'm you -- -- out Just I and sorry said couldn't CPG? make

Brian Kinstlinger

Yeah, consumer products retail. consumer -- product sorry or

Sorry.

Tom Priore

that that So a and We've largest those And range of our up between just fall-in, do I'll XX% there a -- would broke next is wholesale it are shops. tools fall – to in of trade. I segments the of yeah, unique segments for We operators large Hospitality was Look, category. high-teens worries. some no barber of say, a lot restaurant We're heck salons, large of percentage. from your providers into we average BXB. kind got lot line other Medical then X% really lot us. in both not legal which small slightly. chains my do a – services. the doing our largely is

depending month. a double and digits those revenue those categories So low high – each kind percentage of of volume fall it's of digits the on in single

Brian Kinstlinger

expect we economic a that growth an – those we we call think sustain month? you we you and adding to X,XXX consumer it And can so as then can a sorry, you merchants mix, takes? about How with puts X% to call business in about downturn, can XX% higher recent? X,XXX the still recession it think payments you call do growth of So, with think

Tom Priore

be boarding number really quarters, X,XXX us and we've were call it's should seen, I'll share that in over consistently time. growth sales And in that's why growth sustainable, which months look other But new by but that's inform of of our our over numbers the Look, – QX, the look accelerated in you that one. to what a X,XXX as X,XXX – previous we the so, that QX, channels, certainly at to in and share we in we the gaining new market trends as we market – boards. for largely think month. to up the merchant doing – investment of new say, support it's if each just beneficiary drive were we'll it And those as you driven merchants those showing compounds,

So that's certainly one aspect.

why experience, commerce that of some We we within as of unified that margin or just embedded exactly but same the investment this with either in at other percentage. finance embedded growth, The revenue, not sharing we're adding pulling channel are now call all, instant area unified forward our adding increase can where by funding, commerce, finance. it tools is for think because at people partners, banking, we reselling our really

And look the rates deposits got interest our that have to right, in as dynamic just monetize. platform at we've now capability embedded we rising the sitting of you

grabbing their the can a negotiate those cash to gives other funds higher better deposit our deals in business. suppliers, of the So balance through funds accelerate merchants on help to growth addition allow to earn. is access our faster or whatever earn Basically, and it business, their accelerating and now that SMB to else flow with that settlement running to are us that retaining to incremental we going fees

will of very regardless obvious So, share. pretty I because it's think the fact growth grabbing we're confident will the impact that, of if base, of be we the further market merchant only the segment, growth accentuated it implementation it and feel will that about within you have on its

Brian Kinstlinger

or two the Great. for Tim. things. numbers on And the last you one

like I First right closer million. heard if looks going $X.X is services be -- of to to zero managed the all, from

in similar about see you're end Banking-as-a-Service to quarter. remarks. of prepared Also, new But decline. fourth guidance, at on we'll then that the revenues in the investing the the talking – revenue low the offering So third quarter

low that with EBITDA more at So of reconcile third compared million increased the $X generating do the investments end, quarter? how you to

Tim O'Leary

to Happy one. Thanks, Great. in on jump Brian. that

I to, roll So, right? math the if into you look and off third point forward of if QX, and you get you at that you're kind to trying at to jumping think, to quarter, look the you get the

guidance, if took numbers the of right? And of obviously, So, trends the XXX, you there's pick a that roll revenue range of into you million there. And think range same over of low gets good EBITDA, that comfortable the the about with that exact QX, we're the XXX-plus We I and on adjusted revenue end another very we're upper up from range. which is to $XX feel just you'd side. end the which QX, seeing revenue

if think a of look moving be about you generated towards the that and to incremental revenue EBITDA range So, that standpoint, higher the to needs from to the in But you I the at end some EBITDA those in quarter to that needed fourth numbers. we the see tailwinds aid quarter. looking us we're expansion at obviously range, in margin fourth a getting will get think

I number through. factors of think a come

continue the networks. obviously, You've got that fees post strong come And volume-based trends. from incentive we card volume to

we're fees. So those on getting incentive optimistic

us of Fed environment, business and CFTPay of standpoint. points You standpoint quarter income the movement interest an the $XXX,XXX think interest the at of that movements positive which the there, some basis from an impacts to and we on every So there, XX have rate about right? benefits us deposits you if rising the per look about the rate from

you end a pretty early versus basis seen obviously as got rather you've moves the about at some December. on in -- of at well we've the XX-XX if move in September meaningful as XX today, by then curves split point look a of the XX XX November. And Fed So some

So I on that aspect. to think we'll benefit continue

that also right? continue in you've to see just we scale, in then strong as that growth continues And enterprise So business. business got very the enrollment to business, continued the higher-margin growth

see We increase the of continue number clients. to billed an in

you'll I of expansion and half all did the from as think that continues first So in what those to year, margin outgrow, see factors. the the scale come it

business, made quarter the a the from third time At already has same think standpoint, the and made been investment lot and people year-to-date. we've technology I that the of in in a

expect as push So to the expenses in we to to the market continue Banking-as-a-Service slow at product we maintained either those the faster. least growth or

Brian Kinstlinger

Okay. Thank you so much.

Tom Priore

fine on QX right? to say, has some -- of the sorry? remained, if at I'll slightly QX quarter. just that sequential a point trend in that look of I'm putting the sequential Maybe the that enterprise from growth accelerated, just growth you not numbers, level If so

Brian Kinstlinger

What it with bit which managed away revenue. higher-margin you're going saying margin, replacing a revenue you're is services revenue, lower is a bit more is and little little from the enterprise

Tom Priore

Yes, much, much higher.

So revenue, the the percentage the see to high, much pretty gross and you percent, super bottom drops profit line. is can it XXs all enterprise right,

to a just and So quarter. those as they're give that we'll us high come in would along with the confident are And that lumpy year two the confidence. the rewarded throughout produced -- poised that incentives Tim be that degree referenced, earn we've feel very on fourth the way factors acquiring in of growth

Brian Kinstlinger

you. Thank Great.

Operator

ahead. from [Operator Burnt Instructions] The question Please next Research. Singular [ph], go Mike will come

Unidentified Analyst

for also this call. my significant for significant the it's XX-Q also Hi. of most taking in number, Thanks numbers growth I found growth was while Congratulations quarter. your one in And CFTPay. the I the in most a The XX-Q. have on seen quarter,

comment growth of to Could your Thank XXXX. what million advantage third kind with So of the went And could XXXX competitive on third of you. continuing you talk see you about the in it in from over rate $XX future you million please? CFTPay? in basically, quarter quarter the $X.X

Tom Priore

Yes.

a on Let the me market then, let positioning. Tim handle I'll the little comment -- growth just bit and attributes the

Unidentified Analyst

Great, yes.

Tim O'Leary

Thanks Mike.

mentioned call we on both growth, the September Tom that a closed I and fact you the of standpoint, year. of headline some as of by now, growth CFTPay remarks, the XX from that if last So look distorted certainly what at is revenue Finxera, the in acquisition prepared percentage that

had only XX quarter last standpoint. you a So revenue days the in year from

nominal last year. really revenue of So levels

from So more that were year. to QX you're quarter-to-quarter the reflecting percent about this sequential seeing growth growth talked numbers on are I where think of we've XX-plus QX the

the So very business growth segment. strong in

expect comparison why in foreseeable you're future. that is referencing. the to the think continue XX-Q year-over-year I that wild those the in pretty But We percentages difficult see for you

Unidentified Analyst

Got it.

Tom Priore

said, kind of good QX, measure seen and payments. I for think between enterprise however sequential with that And that the growth our product suite of to in a orientation you've is its which trajectory QX speaks the

embedded that banking of integrated also software sector, we embedded payments within provide and third-party finance partners funds. – to So solutions administration and

transmission only segment the if money licenses within we're support business. And few that have nationwide that one of that the

to of really also have because quality certainly, but rigor segment of the we the that the able customers tech garner has. been So that regulatory

the this resolution, belief acquired transition on need when assistance. and close a lot partners benefit going opting attention, business, and of is this transfer lot might first getting CFTPay and we're that the the growth that administration numbers is our platform a a SMB consumers we would market to segments and one consumers We a the while back of be the new but Priority an from coming which are helping the growth began part product, premium. of lot we years, enter grabbing of you're now, And expect through to the in of that because would a environment couple a which leader environment share, licenses you like if new seeing that better boards transmission took our in that you it is the debt market of is as outsized at a under where assets – year like look our at we're they from a money the business at countercyclical of seeing

that look XX% you automated wind-down stand-alone if customer, the has is masked our payables, at on just segment, service by the grown CPX product under XX% managed CPX in of is really which our year-over-year. a basis, which Separately, growth – by

us benefiting really environment segments as strong So it's the because while important, just assets we perhaps by more growth. rates continue quickly those in combination are countercyclical finance outsized areas the to economic now. other getting resolved in consumer were do automated payables differently interest and as a have expect that cash adopted that becomes of acceleration We are businesses, two rise,

the So part – was that and rationale. of

requires So if gives follow-up hopefully, happy that but some explanation. more that you insight to

Unidentified Analyst

Thank you very much.

Operator

turn conclude will Mr. over I'll Tom closing for our the you. remarks Priore. That Please session. ahead. go call back question-and-answer Thank now to

Tom Priore

like platform been was who for our the And forward-looking this unified our our to segment. that mission of who've within Well taking proving is peers your commerce we of on everybody drive to think itself Priority – those call continuing Priority, a for be and time to right. learn story about the and those experience interest. an All you more hopefully to the the for new call thank payments following ahead insightful to for to are

hope great very everyone I holidays coming Thanks the everybody. has weekend So much a to enjoy those. day, on great is poised and up

Tim O'Leary

Thank you.

Operator

now The presentation. conference you. has you Thank concluded. Thank attending today's for

now You disconnect. may

Priority Technology (PRTH) 10 Nov 222022 Q3 Earnings call transcript