PRTH - Earnings call 3 2023 | Priority Technology Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Priority Technology Holdings Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.I would now like to turn the conference over to Chris Kettmann. Please go ahead.

Chris Kettmann

Good morning and thank you for joining us. With me today are Tom Priore, Chairman and Chief Executive Officer of Priority Technology Holdings; and Tim O'Leary, Chief Financial Officer.Before we give our prepared remarks, I would like to remind all participants that our comment today will include forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. obligation a or future result otherwise. no statements the events undertakes as whether of company to revise update forward-looking or The new information, provide but review the these risk we may EBITDA the filings We during non-GAAP call. we to filings.Additionally, discussion measures, EBITDA to our adjusted including and to in limited SEC various you encourage refer detailed a not factors of and press be release measures liquidity SEC Reconciliations call of to and found the Priore. Chairman GAAP the in measures performance turn CEO, our our our I in our available to can of website.With and appropriate filings and the section would to Tom non-GAAP investors over that, like

Thomas Priore

call. saw of of execute Chris by everyone process Thank and important I'd of our provide trends for the the for to on excess acquisition platform thanks administrating XX-month rates XXX,XXX, and Priority, Plastiq.Consistent out results strong the our positioned accounts the about by last on year update over environment.Total the committed integration you continued average in start then We're in accelerate now while SMB currently benefit strong deposits. current BXB the our in platform, third accelerated developments we first quarter. close our commerce we We maintained third of Payments. commerce momentum segments business. and interest basis quarter, in what and year, transaction discussing to and to-date, in And billion business of million with results us the on in at processing to the on that today a including seeing XXXX an of payments and in half announcement all our some financial $XXX you, exceed positive joining like working our operating we're our in today, strongly business. position hard earnings third XXXX.As our banking volume August during $XXX to to X acquiring, single on to of earlier Delivering of a we quarter remain unified our diverse lines vision Enterprise XXXX ourselves in the from with saw combining higher successful strength excited progress were the macroeconomic daily

points operating profit gross XX% leading profit quarter, million, the basis from increased million, Our led $XX year, purpose-built increased XX% in to to the QX to XX.X% revenue adjusted $XXX.X million. of XX.X% to $XXX.X year XXX prior XX% EBITDA gross improvement in increased highlighting the increase $XX.X of revenue our to this million and $XXX strong adjusted gain in a margin gross platform.On a profit from year-to-date prior XX.X% a Adjusted leverage million. a of basis, to adjusted

expect and Now profit in to we a first far increase XXXX our year current increase from end business can basis the this in XX% combined generated XXXX.As continue. in margin we morning, you published with in channels XXX X EBITDA see as thus margin point our adjusted in trends strong a guidance to adjusted the of growth gross XX.X%, months

increase revenue project result, of $XXX year to we a full million, $XXX XX% of between deliver million As to XXXX. an over approximately

in to to BXB accelerating sales percent and of XX-plus our strength the $XXX deliver. the from and increasing operating operations uniquely synergizing adjusted drive and work on is our drag in notable to channel.Since went million X the A the $XXX to software Plastiq combines once our built our teams $XXX proprietary that EBITDA platform offering, demonstrated we're functionality operate a our to efficiency million, diverse growth technology systematically the trends and channel embracing that initiatives teams payment of revenue contributing value our the increase merchant you again robust of and on and previously operating reflects Slide guidance EBITDA see to we're to product payments acquisition and mitigated full that performance, highlights those continue are to $XXX our million quickly example absorb from range unified closing outlook and our year customers XXXX.Our networks confidence commerce profits.Now X, over to August we importantly, Priority, architecture More monetize estimated new of for our banking partner serve. to the that who assets million

providers.We're features banking Our growing funds combining our will customer market accelerate be critical expectations belief solution committed as multiparty and customers' our to of in the partners, experience make combined greater flow Priority simple. payment working by and on base, with meeting that payments seamless with reinforce distribute environments cash our current to conditions, demands systems to both continue refining to software uncertain and businesses of put and

commerce best this performance further the and with I'd hand level Enterprise in our it that BXB along suite who payment of our with their commerce for Tim, quarter, insight applications segments of engine, that fit and current the the are their to guidance money trends and financial the into performance our each that their consistently passport unified during the We're provide moving SaaS on into laser business, our focused will innovation segment year. fit Our SMB, continued Payments tools partners of needs evolving growing services illustrates Priority. adopt meet like that to factored portfolio full and Passport choose customers.At over in needs point, eager of to the

Tim O’Leary

good morning, and Thank you, everyone. Tom,

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

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

segment SMB the generated and quarter X quarter. the on in of the over mentioned, third Tom of performance across $XXX.X first SMB strong X. As third revenue a $X.X was for the months we financial Slide the prior QX increase million, year's with which had business million the year.Starting

on of discussed earnings to their throughout continue our activity. at last And is we to one their we our reseller partners XXXX, diversification said expected which we diversify strategy believe to call, that the started continue the time larger As case.

If on you look the it at year-over-year of the headwind a results, that the million QX quarter. revenue impact $XX shift in was to

the as average of X% more we XXX,XXX a averaged offset revenue quarter, just down $XX.X that billion to reseller, the in But a balance primary on impact, the billion from SMB were the we QX in $XX.X lower dollar which would on see over during standpoint, X,XXX have it over under by in reseller decline a the contributor in growth But growth average volumes If basis, were which the prior had large than which remainder impact the XXXX. normalized the year. year-over-year of exclude than XX% demonstrates the you merchant continue XXX,XXX in the accounts the business.Bankcard of SMB is the the comparative grew that a year-over-year to accounts results in impact of again, is large the from exclude quarter, if you X% segment.From to strong the basis. was business

in month merchant in quarter by XXXX.Adjusted third partially to or past, as SMB large gross X,XXX the for compared that the But new The in down compared million in lower was quarter reseller. comparative $XX.X year. the the gross quarterly X% quarter, last $X.X was and stated profit to we the decline volumes monthly profit averaged an for generates by the X,XXX to For boards of per million impacted average margins relationship of lower revenue from Priority.

So reduction adjustment the year more in was third that QX a of in tough for year's comparison profit million.The gross million by in quarter billing related $X.X quarter. under provided quarterly a impacted this year-over-year $X was last

would adjusted items, approximately you gross of in increased margins are the in XX.X% again exclude by you the If the in last down have XX.X% in basis year. slightly those portfolio.Gross growth on of of QX unaffected demonstrates if which But an million quarter, strong from $X balance revenues the profit the from in X combination decline a reseller. but core in to and of XXXX, large billing acquiring the due core impact in gross growth of strong exclude the improved business QX low-margin resulting basis of points business, the the of adjustment mix by XX the margins favorable

wind quarter, down XXX% XX, in but $XX.X year's income the SMB, gross represents was was of already the $X.X BXB by partially the impacted contributed year. Services on million the or Managed increase by or final XX% of a offset increase the quarterly that factors decline which quarter. during million of third $XX from of million was discussed from prior operating to for of payments. million $XX.X profit.Moving The the July closed acquisition a income the Lastly, million an Plastiq, prior million in business. negatively of Operating $X.X Revenue $XX.X

As previously to third away growth impact Services the offset increased discussed, to grew profit profit will at of last comparative million gross $X.X by Managed million in $X down. see but in headwind looking to the quarter.Adjusted year's go in QX. gross that partially with as BXB by CPX combined XX% a that or from QX Managed And CPX, Services we business in expected year-over-year separately in compared QX, also which for was XX% business, acquisition, Plastiq wind a result the

gross of the of the which fully to produced of a which enterprise compared attributable million approximately million year, flows QX $XX.X $X.X of higher $XX.X in was income the the but on in for $XX which million hedge number joined during million in million, and of improved from this XXXX. contribute broken increased conversion quarter include remember the favorable quarter Enterprise also the over certain of levels, including quarter the due Plastiq a the growth this quarter if to $XX.X XX% $X.X debt represents September million on revolver wind of almost at XXX quarter million higher $X an increasing XXX the increased strong environment.For decreased gross operating QX interest on in QX the generate of natural to to we benefits rate period leverage $XX in the and acquisition by the $XX in expense have million business the proceeds I'll profit on basis to only prior was deposits. EBITDA million increases increase to to due sequentially over in available increase on than sequential the XXXX the XXXX impact transaction-related segment.Gross items, QX were resulted almost we of from during acquisition-related of last million XX Plastiq clients, growth losses and million million XXX% segment Services.Moving the $XX.X balance to XX. $XX.X after Managed gross acquisition of of to quarter, the end hedge environment the million million Interest with of That $XXX.X CPX in of Salaries of to with compared $XX.X on increase million QX improve levels $XX.X enterprise continue through transaction attributable acquisition, the $X.X balance neutral in next the at interest QX which to segment compared to by this, increase of approximately Compared the the past decline we in the year, the Plastiq margins XX%. growth. the discussed $XX.X previously from $XX.X million result cash to revenue for increased on XX.X% year. net approximately our the was million, for Plastiq QX while in of you'll and incremental from term then We net of That the slide. borrowings additional enrollments $X $XXX.X the borrowing impact to for Plastiq XX% but higher quarter The as as reporting XXXX.SG&A $XXX.X the was increased rate million on of end in $X of an of XX the million, discounts XX% but at Operating or adjusted continued balance the place the XX. to and P&L borrowings quarter $XXX.X our the The a and compared stock LTM a liquidity for the higher floating our business XX% team last was calls, was was India which from of the several quarter-end in that for million on the high $XX.X million $XX.X under floating the is natural at on For and sheet from unrestricted QX expenses liquidity build stock.Moving to Adjusted interest we million the million of QX debt, million growth a the covered BXB this sequential acquisition. continued reason.From September being development amortization of from is million balances year-over-year the totaled employees, standpoint, that that from margins that finished have and on of in year quarters year, QX. year loan income Plastiq the in $X.X trends margins ended of is the a discipline consolidated or $XX XXXX. the and expense that of for profit adjusted July was to investing end the $XX.X Depreciation XX.X% our was on $XXX.X to in QX of given by and the to the QX deposit of the and with have to nonrecurring of related that likely our cash adjusted from maintain million income rate was the $XX XXXX. QX, increase issuance operating of million those million quarterly the million new million revolver including combined Preferred you monthly capital the strong structure used the XX% to last all of end, over expenses borrowings. sheet. debt requirements operating comparable rate, XXX% and levels same and Net segment, and for Slide the down EBITDA XX. facility, Subsequent end by just revenue was compared repay of at for costs. just quarter, $XX.X $XX.X of revolving put BXB segment.Moving July liabilities full the rate quarter GAAP of for ended to the year.Moving including Debt center, unaccreted we modestly last revenue at slide sequentially entirely capacity and XXX credit and balance of time. were sheet.For raised of debt quarter. to for during sound an page. during million record driven quarter from XX, preferred Page million XX% with down At quarter, the like QX balance $X.X our next

with but this and just the that The income we've supplemented PIK discounts revenue higher-margin quarter preferred accretion consists also discuss totals over growth the the the of gross large already to reflects revenue our million $X.X of costs of turning it is our combined is our million math million the employed over the on Tom, of guidance combination resellers. a impact from are not higher-margin the more of third paid This $XXX and fourth of pools wanted the full in Simply and statement evolved, a the one than million first and I the obvious full higher range put, call latest where but quarter million year. we revenue to has a issuance the our segments cash, importantly EBITDA state component. to to revised dividend we of XXXX, results BXB created and our business expect and But diversification EBITDA $X.X we for reflects that of our by standpoint, profit simultaneously strong of to back of strategy lower-margin $XX.X reducing a are SMB million, guidance continued our quarter Enterprise year-to-date on guidance segments.I'll The $XXX revised our to equal. adjusted the the for operating in gross range full profit increasing the mix related segment. $XXX year to $XXX performance the expectations million of of Based and profit from being discussed revenue related the year. and guidance for is adjusted all $XXX,XXX.Before

will for both and continue and turn products capital, comments. markets that believe will his I'll back closing Tom human to now we call So the over value.With shareholder we to that, significant invest create our and financial,

Thomas Priore

Thank you, Tim.

review, third our conclude the consistently a we execution unified vision for As underpins quarter performance. our strong moment our on want work multiyear in that reflect planning to to commerce of and I take a

and height XXXX, managing meticulously to ahead maintain a quoting, to that noted varying through are investors. we issuing countercyclical with and our more the Banking acceleration cash in the we calls one-stop growth quarters emphasize of to me who compliance.And revenue to assets and products present.I the Priority, likely cycles. differentiated businesses amidst 'XX you companies without continue emergence a acquisition handful if that participated of you've stated the have of I'm and payments we value. headaches few platform by at that to we would That reminder transformation, in you that, markets regarded those Priority's share payments our as a monetize to where will look brief decisions in In work growth past that heard on belief we of the the in my channels. acquiring years as as certainly, our the send past are collect target and offer the like we shop decisions architects business For several of money these following the operations, when have And a business of a pandemic, assets payment of XXXX, down store a and has Service of client platform again, building stability and risk, and powerhouse our deliver a underwriting for is service business realize be year would managing our to and looking curated of would for

economic reality.Our to for remain nearly assets what XX% the growth. position strategy a had our traditional and as planned unfolded line leverage line XX% bottom downturn delivering the and As we in lean became agile XXXX, top and innovative, and combination anticipated technology countercyclical of expected, performed to

And and like evidenced simply performance outperform with highlight technology operates pandemic as the it's superior an on To these promise commerce unified and vision short revenue evolve. conversion and and we've past build that higher to would financial last, unified quarterly as invested economic as tumultuous of want benefit us foresight I embedded are that a initiatives built future commerce a because the to last. second, otherwise, scalable organization believe finance will to regardless to decisions to and our closing, that from early that is continue culture accelerate the today.And I the with interest informative that and in Our that first, financial of resources inflationary Priority us predictor clear is rates that positioned results.In be investment I allowed thoughtfully in the is of performance throughout that in time of the solutions I past put, in we're of environments our Priority. of channels say to and continue operations sustainable delivering anecdote new results disclaimers environment.Now, that demands to market submit share recognized

reflection, change they We what team have share speaks company. Last of organization. movement we acceleration, an UI/UX our came and for Monday shared, for it is the as now payment with on and one doing to reconciliation of that morning one their money to entire our of partners. mission honor we a and share call cash tradition 'we to are submission types the sizes She motivation, work.'Priority a who the week's and a designers, from banking Monday how expectations businesses a the all and their from by members each Jahanvi, think of XXX dream simplicity about

doing XXXX. Priority again to say mission honors by ongoing goals work. your day to our Our want for you call the throughout this for for now I our questions. like to and analysts entire thank at the dedicated and and you thank our is to delivering quarter team our support.Operator, dedicated we'd team each open to investors And

Operator

KBW. The first Instructions] Michael from question [Operator of is Perito

Michael Perito

maybe around so your you commerce like start helped wanted a XX/XX, I are unified BXB pressures acquirer, a felt payment and out I has and just to I kind to? it. context in are And And was maybe insulate pricing your merchant how couple name approach of Vegas seeing business margins little wondering pricing some the some that -- clearly guys around, of bit provide of, of you speaking of kind the of was some how and space, I the a Money guys for conversations and ago could dynamics in peers lot you there weeks in the trending? enterprises if Las from was

Thomas Priore

looking think successful call will, Priority XX% Priority right?But and an That's want profit, our elements just a what right? think way is our Tim services and is composition, loyal recognizing either -- share, part to card the we've At you this gross I those transaction volume. coming from itself great insured for I'll middle it Not if discount to, pay I'll digital at call our the business customer seamless it, And them.So get -- pay sure. acceptance. pay market, this, like channels could at, about right? Or certainly redisposition we're acceptance to into customers. bringing more than more whether doing channels, the my money pay is proposition. when unrelated way, about address, SMB the that to services business doing wallet to to experience ACH, two, you talk acceptance, more the cashback and virtual of but of end also they a unified a from generating at of; upmarket, why Yes, resolved even it make day, Plastiq now you a of designed you through vendors this use of the sources by commerce credit which what all from provided. a There's very want a benefit standpoint, earnings that they're the the customers just been enterprise and is And existing are is the being quickly Michael, or sizes, reseller's kind capture of to about market want maybe that look of question. beneficiaries And I'll to what alluded if a funds than card so where FDIC payments can makes that card your with revenue of into it, accept a do but card. routable with revenue is or about pay account, It's money help Priority, you won't a whether really when and Because card actually I using that nonetheless. use it's more discounts, you you grow. of who a it, can is additional low; better that one, you're have reselling just is Because all while types -- tools early our why to attrition are bank card, AR customer, and the for early get it get your work, its we're vendors into gives across -- that. the to you makes that way

Michael Perito

dynamics I if That's of different the it's yet interesting growing outside know time of a providing based good as to I to it trends of the I the thinking maybe of you're try time, 'XX. particularly qualify term? is seeing ton expectation But double-digit the and and you mean, intermediate in of and helpful. guys Yes. really think kind fair aren't that -- I I change you BXB, mean guess Or the is an top it's on financials, line be still and about a bridge a kind us what think mean, the line kind for bottom about volumes. today on especially enterprise to good all? we have I still, color of transactional some approach of that or and to guys to some would we at

Thomas Priore

before would like and to that Commerce and in say of really offer reflection the of expectation trend -- of because Yes, to have mix guidance. very business. appreciation the That's rapid current of on of our I we've the the of partners. simple. the And would platform enterprise would I say dramatically it I'll it's our conversion We look don't offer guidance keen inaccurate, low-end the one very an to the that, a why is we, market, XXXX the were large that -- that it's just changes want been by the evaluating frankly, is a we be I adoption fair the -- Passport picture. business expectation. opinion And If say, a our

Michael Perito

on helpful that's No, both sides. Yes. context

in trajectory, -- been revenue enterprise lastly to going for maybe who on has 'XX, then for puts rights us are And a do the absolute The just that. maybe baseball this you what beneficial inside kind is also mean Tim. knows some mean, enterprise I basis, around maybe on you appreciate on I what me, an provide segment, rates little give the a and of context the on both I can So little about just takes but business. how of more but macro Can presumably, the for margins? bit

Tim O’Leary

to. happy Sure,

deposit balances the where flows in through the flow XXX% It's obviously, earn effectively margins, we on rate that straight a through. income So business, that components right? interest

very across total segment, Enterprise, in million revenue just Roughly margins of well, the have revenue million. still the enterprise To was of lot dependent. through to that the in So a you $X So or not Tom's flows franchise a recurring percentage right? attributable point, quarter $XX revenue that was is income the that of volume at that that's as high revenue for high right? interest took you the transaction balance under monthly of if

now XX% So profit. it is that of highly of stream north just revenue our is recurring, highly gross valuable

So types we've interest the some pretty across with got income I of I generating we're while think we're to the think fee weight other the business. balanced income,

Michael Perito

Great. you go ahead. -- Perfect. guys Sorry, Appreciate

Thomas Priore

I would submit to you as well.

topic, taking and vertical, into SME capability we're early that in on pushing right? Just the it innings that still

Michael Perito

Right.

there's lot rates opportunity still volume growth So of where of kind say of you regardless would a are.

Thomas Priore

yes. Yes, That's exactly right.

note indicate I further a that a some a it, come have positioned increase that, just probably of the have in way economic decline of we we're lot let's assets just would call on segment, The lot softening, or which thing partners would the say, rates platform in and have that platform adoption. about other on that to come would

-- point your to So

Michael Perito

if be it. not drop, might as to it's case. So dollar-for-dollar some rate The but levers necessarily there are the a not like great, [indiscernible] benefit that's

Thomas Priore

still other their said, segments in see capabilities. That's of you'll rollout just right would that and because financial you'll tools just increase. the -- And then the see of we're innings trends embedded the more like early onboarding I some

XXXX. I'll better We back want how is not just some metrics is those to which think to we question and current which to built insight for about look, give get for about failure, right? going adoption guidance it's would initial say to expectations trends, your say, just But our -- I'll want So us as guidance, success.

Operator

Next Harold Riley question [Operator Instructions] of Goetsch is from B. Securities.

Harold Goetsch

a good are happen? is got a what bankrupt, I a even really really company guys segment, Plastiq things basically went make to in segment this did was [indiscernible] because know to to want breakeven. that you whole the you you commentary. guys to quickly This seems so on quarter and the interesting benefit like peel to I'd and Plastiq. BXB have been back to broke It huge

Tim O’Leary

Tim. in It's Sure. that. jump on I'll

companies quarter, the So the business of that I and into place. the and of given would across operationalize we we're to lot team broader some we've that franchise, of XXXX. think bring others EBITDA and some efficiencies get of as a to business that profitability we the use and infrastructure I Priority profitability and like ability running the to actions flow, have cash and find is taken ahead the quarter we submit we in indicated first Plastiq expected the pace it in the term of last

do that, lot the costs to a So we've reduced of that business. operating really able in been

marketing So far, the haven't really we the that spend and ramped yet. up go-to-market business for

far business QX, there's I we So to the we so nominally QX, standpoint. to growth. in to there business what efforts expect got in with bit line that be revenue in lot from equation, somewhat But baseline little on a so. of in pleased had we I all cost might business EBITDA. the be revenues effectively but the pulled, call increase almost the we're levers of a to in then that fully that still top breakeven pulled really drive cost levers the right? a think the would But very side even And that haven't of We

Harold Goetsch

effects [indiscernible] through off the next that's those to would the the it headwind SMB, about loss what saying of reseller. QX the looked year? say way And volume or Is the transition feeling first this where Terrific. safe to a Is point? on there of of at thanks kind fairest color we you for think to than like, then this more on is it should come as have it being excluding of started

Thomas Priore

new what said, seen we this it is a -- full X XX. year the some have lose this reseller. They That a I just -- they're reseller. boarding resellers of -- diversification, reseller didn't It last And evolution, and considerable I XXX of increase given We first a their months. through submit their signed was going we wouldn't made way, would a remain blame clarify. A our being year things, couple to the community. compare of were previously, of certainly the increase. it. We've That would year already by have them adoption through with couldn't They which, to trends on sense. stabilized mentioned for

that borrow just coming I'll again, benefit folks -- resellers very to money, It's and your parties, from Priority. what bills, capability, working back money, The strong just their with portfolio So been of store they're very, things. now recognizing fees of every a fact our collect our maximize send their and because there's at this collect more call is with doing like types adoption those less Priority. day, store capital, pay has ways more worth other generate with to help borrow things your efficiently customers is

just better So we're newer benefit our agreements, on we're margins. actually the seeing of

Tim O’Leary

your And just to impact for Hal, the on couple just to quarters. next the adding that, of question on

continues certainly mentioned its next definitely somewhat in some profitability QX that, But business into limited. think into that current headwinds next in QX I our see of we'll and will year. prepared of at impact as of rate, moderate if I've the is year. think QX I That remarks,

seen it So revenue impact. was us increase EBITDA I a you've of think Obviously, more guidance.

reflecting year. we're in those guidance the both So impact of for the our of

Operator

Our next of Alliance Kinstlinger Brian from question Partners. is Global

Brian Kinstlinger

been you've XX,XXX merchants XX,XXX of adding from change this X the to the quarters for the XX,XXX month reseller. last before So per

focus of give those capabilities staying resellers, risk -- change at size lanes at they in? on look to as or it does new you added the And again I the experienced missed that in do quite could you your As Or Or profile resellers, some are maybe above? as you're were number, look you new I or on XX,XXX you Do it different the will not same to bringing back verticals one the and that expect they at mean, recently. get you with, be your that all? verticals?

Thomas Priore

Sure.

on just we can bit. things, then a me little maybe Let math few and comment clarify the a

composition. reseller. referenced, the to just the of those result quite were and those added, their they're alternative The higher-margin let's impact say, it's to what changed actually say, -- as sense? to as and the that off, the reseller much. new of Does merchant the boarding you're That first far of than we'll migration with impact So merchants related is that resellers actually that important It's migrated net make really note merchants These current platform. the similar. the you are net are occurred -- trends which the reflecting migration the merchants, hasn't a

Brian Kinstlinger

Yes.

So what you're saying is the It's you. because merchants reseller to more of are leaving as bringing opposed as of to issue? a you're not acquiring migration not more many

Thomas Priore

exactly. Yes,

So -- so -- you're it's existing

Brian Kinstlinger

The lower. is net number

Thomas Priore

exactly. exactly, Yes,

the been where with but stable pretty boarding trends are they've month So historically. each

Brian Kinstlinger

at probably look count you you the for reseller do can give as you're you again? number you reseller? added accelerate to then the XX,XXX And adjusted these, at Okay. then expect that merchant from that And or that the XX,XXX

Thomas Priore

upward. have know, to XXX seen. there'll added year-to-date. be that impact It's a think certainly remains You We be modest been

Brian Kinstlinger

And XX Is full that year for the last what year. was said? that you

Thomas Priore

the full Yes. for year. Yes. XX

Brian Kinstlinger

it. Got

Okay.

Thomas Priore

these to management revenue, Priority's to I that funds submit kind resellers impactful using that cash and on opportunities base, -- look, on can financial you, in use X no capital, at account less. is they of existing accelerate customers. gateway, so within a pay have one's can to vendor would actually Passport working of for Brian, Passport that put where with by fine their harvest appreciate for tool are opportunities our on reflected there's our right? genetic providing incremental you just our a And opportunity more it, thing, focused recognition Brian, flow merchant their make Customers your -- their to more their minutes thing optimize that does just in the this platform.What spend These we're the or the because They'll people, more better point level.

but not a hours. you're customer, processing within XX day, you're same gateway, that If typically getting a the

often, weekend, like Because is. the But for not seeing a weekend. setting, you're traditional if days, on that is you're running about money you're Now, the that weekend, to the a bank open think if in not X a restaurant more right? X on on Priority

that of to better we to And we are the acquirer a to able everyone we're really intentional that's software and you and machine, if the It's ability just it's but do speak kind question, comes money account, push this Passport big here worker to built way. We say give for And different to because it message can in exceedingly of a and now that's themselves. It's going.Like take earlier recognize.It's optimize generate That's get the of account, out everyone merchant that on ways purely point it. it's to people And it's and thinks that to and add payment other And model. pay meaningful, I ecosystem. it this, additional a their this examples, access we're model. expect it economic tips a out customers servers use can and on could interchange a We're to is quickly. in experience. about like spend they it assets. fintech well revenue not push So And call out And your a a trying go what to part to or why things Passport unified is the results I environment. to where a just exceedingly very negotiate salon company, that it you we're have Plastiq we and now. vendors to to we particularly that different prove. something that like And said, in money commerce to the we're model. synergize well, people performance Hal's terms

Operator

of is from next DGA. question The Natasha Otton

Natasha Otton

and please You that decline differently rest standpoint they the was compared to GAAP BXB addition from mentioned to BXB further differently? why explain segment a treated gross margin in Could the financials and report that the how of related of to need business. the the it's you Plastiq, their

Thomas Priore

Chief quarter to does sitting Rajeev next fantastic Plastiq I to Accounting the of who some Officer, that us. our benefit but of Yes, as we the here started acquired for GAAP who's explain different last and I've got a Kumar, requirements, job

better try of going answer can concerns to little let other market a gross him dispel the bit some and to in those see on we I'm that this out that, there the quarter, margins. if So

Rajeev Kumar

payments. records they transactions where accepting they're business the Thanks, that model are merchant Tim. so Plastiq, of in the is the

like from in as that, interchange all be payments be there, as networks against record, a of is settle on and are that that their or fee collect not requires services. fees, we why them then they're recognized gross and do that not they cost gross principle scenario the interchange merchant the should then we they netting the interchange acquiring and fee customers that should to collect they our revenue we card our the merchant all have business, providers. we So our of that And expense therefore, -- recognized if compare therefore, and on And is not pay do. service their behalf. as on Whereas, GAAP you

that record that record So the real basis. in is a of question. are the answers we that difference Plastiq they revenue those merchant required The are to at and all is processing, hopefully, the gross transactions therefore,

Tim O’Leary

to profit other margins at net parts there would a business. if for about of the the business. way but lower, think of our rest transaction maybe same basis, Gross looked was the Plastiq look approximates of that we The on is as the the as business the apples-to-apples effect Plastiq revenue it, revenue it more our

Rajeev Kumar

That's correct.

Operator

would back I conference Priore to remarks. turn like the over to Tom closing This for concludes our question-and-answer session.

Thomas Priore

be team everyone Have a Fantastic and you, to to very laser-focused dedicated hopefully, and we're right. I about headed business. a has rest to Thanksgiving we're where that everyone to great deliver very to everyone. assured, weekend. not I we've it's investors. for for holidays. thank just hope a to And a Well, excellent given want We on time the story, forward an weekend. continuing thank clear look to are starting And a got more our to taking folks, everyone speak afternoon our terrific All while. for going performing.So follow as learn

Operator

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

disconnect. now may You

Priority Technology (PRTH) 9 Nov 232023 Q3 Earnings call transcript