Latest Financial Results
Q3 2020
Quarter Ended Sep 30, 2020
Stock Information
Company Overview
Priority Technology Holdings is a leading provider of merchant acquiring, integrated payment software and commercial payment solutions, offering unique product and service capabilities to its merchant network and distribution partners. Growing into the 5th-largest non-bank merchant acquirer in the U.S. and processing more than $48 billion in volume annually, Priority leverages a proprietary platform of microservices purpose-built to monetize vertically specialized merchant networks. The company operates the following business segments:
- Consumer Payments: Provides full-service payment processing and payment-enabled solutions for B2C transactions, leveraging Priority’s proprietary software platform, distributed through ISOs, agents, banks, and ISVs
- Commercial Payments: Provides market-leading accounts payable automation software, payment processing and managed services to industry leading financial institutions (including Citi, MasterCard, and AMEX) and corporations
- Integrated Partners: Provides vertical-specific payment-enabled software solutions for high-growth markets
Priority primarily generates revenue from volume-based payment processing fees, along with software and subscription fees and managed services fees for supporting B2B programs.
Investment Considerations
Large Market Opportunity with Strong Tailwinds
- Electronic consumer payment volume expected to grow at a 7% 10-year CAGR, as consumers increasingly use cards over paper-based payments and global eCommerce continues to accelerate
- 11% 7-year CAGR for digital B2B payments volume, driven by an increase in AP automation and card payment adoption
- COVID-19 pandemic accelerates the shift to electronic payments
Capitalizing on Attractive Organic Growth Opportunities
- Robust core acquiring growth through diverse reseller network
- Strong growth in specialized merchant acquiring business lines and exceptional growth in Integrated Partner channels as COVID19 accelerates shift of cash and paper payments to digital
- Commercial payments fueled by large FI partner signings, pipeline conversions and acceleration of AP automation
Scalable, Innovative Technology Platform
- Robust, agile technology provides resellers and merchants with a fully customizable suite of applications and solutions to help manage critical workflows
- Integrated processing ecosystem with direct connections to card networks
- Technology agnostic, developer friendly software
Strong Revenue Growth and Inherent Operating Leverage
- High-value solution, low volume attrition of 11%
- High-growth, transaction-based business provides recurring revenue stream
- Secure, long-term relationships with distribution partners delivers steady stream of 4,900+ new merchant onboards per month
- Capex-lite business, with 85% operating free cash flow conversion
M&A Platform Opportunity
- Purpose-built shared services and technology infrastructure enables Priority to quickly board new volume, eliminate redundant operating costs and introduce proprietary products to drive new revenue sources and improve retention
- Robust M&A pipeline, targeting attractive merchant acquirers, vertical-specific software, and expanded capabilities in new payment adjacencies
Strong Management Team with Track Record of Execution
- Priority’s executive management team has a record of execution in the merchant acquiring and technology-enabled payments industry
- Priority’s proven execution track record is reflected in its core revenue growth and strong profitability
Investor Contact Information
Company
Priority Technology Holdings, Inc.
2001 Westside Parkway
Suite 155
Alpharetta, GA 30004
T: 404-952-2149
IR@prth.com
Investor Relations
Lincoln Churchill Advisors
Chris Kettmann
T: 773-497-7575
ckettmann@lincolnchurchilladvisors.com
Transfer Agent
American Stock Transfer & Trust Company
Felix Orihuela
6201 15th Ave.
Brooklyn, NY 11219
T: 800-937-5449
help@astfinancial.com