Priority Technology Holdings Inc (PRTH) Reports Robust Revenue and EBITDA Growth in Q3 2023
Priority Technology Holdings Inc (NASDAQ:PRTH) sees a 13.6% year-over-year revenue increase in Q3 2023.
Adjusted EBITDA climbs 28.2%, with the company raising its full-year 2023 forecast.
Operating income jumps by 66.7%, showcasing strong operational efficiency.
Company's strategic investments in technology and scalable operations pay off amid economic challenges.
On November 9, 2023, Priority Technology Holdings Inc (NASDAQ:PRTH) released its third-quarter financial results, demonstrating significant growth across key financial metrics. The company, a leading provider of integrated payments and banking services, reported a 13.6% increase in revenue, reaching $189.0 million compared to $166.4 million in the same quarter of the previous year. This growth was driven by strong performance across the company's diverse business segments, including SMB Acquiring, B2B, and Enterprise Payments.
Financial Highlights and Updated Guidance
Priority Technology Holdings Inc (NASDAQ:PRTH) showcased a robust financial performance in the third quarter of 2023. Adjusted gross profit rose by 23.6% to $72.3 million, with the adjusted gross profit margin expanding by 310 basis points to 38.3%. Operating income saw a significant uptick, increasing by 66.7% to $23.5 million. The adjusted EBITDA, a key indicator of the company's profitability, grew by 28.2% to $45.0 million.
Encouraged by the strong results, PRTH has updated its full-year 2023 financial guidance. The company now expects revenue to be between $755 million and $765 million, marking a growth rate of 14% to 15% compared to the fiscal 2022 results. Adjusted EBITDA is forecasted to range from $167 million to $170 million, representing a growth rate of 19% to 21%.
Management Commentary
Tom Priore, Chairman & CEO of Priority, commented on the results, stating,
Building on the momentum we saw in the first half of the year, during the third quarter we continued to execute in all three segments of our business, delivering strong results in SMB Acquiring, B2B and Enterprise Payments,"
and
We are delivering on the promise of unified commerce with clear and sustainable financial performance, as clearly evidenced in our results throughout the tumultuous economic environments like the pandemic and today. We have invested thoughtfully in technology and built scalable operations and financial resources that will continue to outperform as market demands evolve."
Income Statement and Balance Sheet Overview
The income statement reflects the company's revenue growth and improved profitability. The balance sheet as of September 30, 2023, shows total assets of $1.56 billion, with current assets accounting for $826.6 million. The company's liabilities and stockholders' deficit stood at $1.44 billion and $(134.9) million, respectively. PRTH's solid cash position, with cash and cash equivalents of $24.6 million, supports its operational and strategic initiatives.
Cash Flow and Segment Performance
PRTH's cash flow from operations was positive, providing $72.7 million for the nine months ended September 30, 2023. The reportable segments' results, although not detailed in this summary, contribute to the overall financial health of the company, with each segment likely playing a role in the company's revenue and EBITDA growth.
Priority Technology Holdings Inc (NASDAQ:PRTH) has demonstrated resilience and strategic acumen in navigating a challenging economic landscape, delivering impressive growth figures. The company's updated guidance reflects confidence in its continued performance and its ability to capitalize on market opportunities. Investors and stakeholders can look forward to the conference call for a deeper dive into the company's financials and strategic direction.
For detailed financial tables and further information, readers are encouraged to view the full earnings release and financial statements available on the company's website and the SEC's EDGAR database.
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Explore the complete 8-K earnings release (here) from Priority Technology Holdings Inc for further details.
This article first appeared on GuruFocus.
