Priority Technology (PRTH) 10 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Priority Technology Holdings Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask question. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Chris Kettmann. ahead. go Please

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

Plastiq. by call. Thank like for our Priority, our and then earnings joining of developments you, to overview for noteworthy us we're of and quarter exciting of at XXXX including start in Chris, for second the some the business, thanks everyone walking recent today trends seeing through I'd currently provide acquisition an

combining the and single banking in We the strong SMB quarter and committed delivered we enterprise a few acquiring, saw second in BXB we on commerce our year, unified remain macroeconomic in positioned in with a we Consistent strength performance We're business of of on execute the both trends. payments. year. remains quarter results first vision to rates, accelerated to of to payments equally similar what weakening first and months our the continued the during were and what have trajectory countercyclical platform, from seen that pleased third higher by our interest benefit half that lines the to

today, our quarter. earlier strong announcement our in we saw momentum with a positive you continued As second

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

has increase a in in EBITDA to XXXX. increased driving On a to in $XXX.X in XX% we point gain achieved half thus far profit XX% a of a gross XXX gross basis profit adjusted revenue XX.X% with XXXX adjusted XX% Combined increase million. year-to-date basis, first margin million, to in $XXX.X the

you anticipate half our have and our trends may first first channels in business noted page established we strong slides, As that supplemental of on continue. the the will performance

As includes $XXX a full line double-digit million, deliver $XXX and result, which we to to bottom projecting million increase top remain confident consistent growth, revenue to Plastiq's in our year ability contribution. line to

despite our XXXX, acquisition results of expected of to previous are These a reiterating Plastiq, to year for require the bring investment half the we're EBITDA back adjusted our strength division value the performance. to the will our which to some of testament and profitability. offering the recent of $XXX EBITDA our of $XXX drag the significantly, million more guidance million on And in from

merchant networks and serve. of highlights the unified those partner are proprietary of slide monetize payments the functionality, and Priority, our combines platform that new X to we banking to who architecture For you commerce robust

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

suite or middle an tools CPX now API, market demand and their automated the adopting growing Partners to customers' Passport payables can via whether or best our begin make or fits meeting for to for choose FI that POS that choosing move and working and can to Plastiq seamless connecting the us by their fit simple. they select customer application partners, enterprise committed experience business business Merchant, with the refining the MX are to is Priority our We small best that our financial partner money. needs from operator a

our customers. of to cutting-edge payment engine payment Passport We stay needs services of continue the to innovating our of suite SaaS technology on commerce the by meet and evolving

fully Merchant of channels our adding our XXX went distributor direct suite independent who customers new the quarter from program POS with to the QX execute XX July we evidence second managers of wings. Passport with and implementation waiting the as a reselling MX MX further robust and in the in process pipeline POS continued program which had during our on rollout of joined XX this, integrated have As of prospect in nine Merchant live partners

that can that be automating a quickly and payable strength In to continued accounts over access improve control all operational cash working revenue instant infrastructure. and synergies Plastiq of acquisition to announced BXB on businesses week our closed benefit addition capital that of captured provides from of payments legacy business, enabling complementary flow, unique our our payments our receivables. with and highly aspects Plastiq, have platform technology last we we solutions the that while will

another adding a Plastiq Plastiq, that working and relationships optimize how flexibility vendor our for will businesses, commerce differentiated addition to BXB and important example operate combined buyer software maximizing capital clients. unified cash building platform grow. supplier of By business is our while solutions flow and integrated provide funded most of their is Priority offering The

bill tools management platform. on to Our as the payment one choose native all including best Plastiq flow fit acceptance payments automated banking place and that our payment can in optimize, customers now a business and their cash their service

BXB the over addition look same forward base our customer in Priority acquisitions we past next of commerce customers the our the strategic the of We've Plastiq's for family the our combined team and grow Passport the of engine. integrating benefits proven realize We and to through ability months welcoming power the through and to see offering create value our the Plastiq. with businesses to into the opportunity several to and shareholders our opportunities value-creating

I'm into like happy the guidance trends might segment-level along during questions you over second Tim provide any with to at answer full of into will for during the insights have hand who Plastiq point, portion our But performance would our quarter in factored that further on to it call. the each Q&A I current the this to year.

morning everyone. Thank you, Tom, good and

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

quarter, our in market the demonstrate the MD&A Priority driven also segments on XX-Q ability our strong website. was saw business mix SEC morning which Our to Consistent by a filing of be is discussion was of of with diverse performance our continued conditions. filed financial link in first to this our that Form second in with a of and in the provides the quarter what found that quarter we second variety can results. XXXX the perform comparative included the to A of

results, other relates as segment-level consolidated the key I second quarter it the a to want metrics into results. go I to Before provide few

billion bankcard line in the last year. quarter, For was with volume QX segments dollar $XX.X across of all

over other the debit bankcard billion was increase XXXX. volume $XX.X and and ACH $XX you is billion end a volumes, $XX trailing just quarter billion On QX, the from basis volume at which was If was total almost dollar in the billion. a payments for volume payments X% total $XXX include XX-month of

XX-month comparable growth $XX which respectively. XX% last those billion, and the billion just at volumes same If just you represent year period over year-over-year look trailing X% for under and $XXX over just were

volume for go now the the on the I'll second segments for those detail quarter. are Again metrics business more results into each business. of consolidated

slide on Let's start with X. SMB payments

XXX.X which $XXX.X For a a transactions, fees quarter, X% which was revenue bankcard of billion. to count increase dollar million over $XX.X the merchant second combination in higher the bankcard growth year's SMB second driven quarter. of was growth $X.X million in to transaction by offset and generated the or This prior card X% volume decline XX% million,

during reseller diversification their activity. long-standing of the dollar negatively volume impacted by Bankcard quarter in boarding SMB implementing planned a a the merchant new partner was segment

this through XXXX. continue to While strong also we a and will continue we with expect relationship reseller, that have activity the boarding diversification

that anticipate the will during We the though lessen quarters. which quarter, than We QX quarterly in higher XXX,XXX over future impact averaged X% merchants of XXXX. is just

of under impacted compared with by X,XXX merchant For average second an per the during on partner's new to activity. merchant diversification XXXX. also the Consistent boarding quarter the quarter trends averaged reseller month volumes, of dollar were bankcard my in X,XXX quarter, comments boards negatively the just monthly

to $XX.X gross was by decline page. next profit by the for quarter banks. X% last certain year. on Continuing year-over-year The of $X the profit to impacted with SMB one nonrecurring compared down quarterly $XXX,XXX comparative profitability our true-up assessments gross for million a billing Adjusted by was sponsor million negatively in

you would $XXX,XXX in the profit by have quarter. impact, increased If that exclude gross

on Lastly the $XX.X comparative my operating a decline of our for profit, impacted banks. SMB, quarterly with one the basis $X.X true-up the quarter. year timing the represents gross by profit prior sponsor on a of million operating comments of quarterly income million, from negatively from was billing year-over-year second Consistent

in year compared million an In SMB based were addition, in higher increase count of to salaries $X.X the second half last and benefits in XXXX. QX head on in

quarter QX of by at away goes Services impact Moving we payments. business continue from and of second the the that prior Managed anniversary million was in year-over-year decrease compared year's business. wind-down grew year QX XX% in from Managed last QX. previously the Revenue that of also year. of Services both this before continue as to looking see CPX sequentially And a to We'll to BXB $X comparative headwind to separately QX discussed in a XX% versus the business

to Plastiq the will include of the ahead September. QX, and BXB Looking for August segment of months results the

on details quarterly that So call. on earnings you impact we'll include our for next

gross slide With continue off. profitability profit as lower profit adjusted respect increase result adjusted rolls to margin business as Managed Services million to of the wind on a margins declined the down, Services but $X.X to BXB's gross XX, Managed

gross XX.X% this the and in of year. were margins to quarter, For XX.X% QX last XX.X% compared year

an loss was improvement income was in The year. the operating year which this an from but last at of breakeven $XXX,XXX during was from down in from BXB $XXX,XXX operating quarter, QX an QX standpoint segment

of an the increase of several themes next or QX million to from page. was segment Enterprise XXXX. million in $XX.X from million past $XX on XX% almost as QX the have growth. Moving the favorable to the the contributed revenue of $XX.X higher revenue new monthly interest growth clients, all strong the in increase balances environment billed trends deposit quarters in enrollments of have in continued number and and The rate

segment operating Enterprise expanded for the As the quarter. shown for next gross adjusted adjusted $XX.X while Operating XX%. segment by $XX.X profit on basis by XX% by margins also profit leverage over Enterprise slide, benefited points outpacing to from increased for XXX income the profit million growth as in business exemplified significantly revenue gross million, just to the the growth of

costs to QX and and after Operating corporate for $XX.X QX business with the consistent our increase Moving during continue the year. XX. discipline from prior on but our as spend benefits XX% of from team XXXX. expense of in year, an we XX% maintain $XX.X during on investing to Salaries slide totaled of the quarter, last the was expenses million increased million

QX from year end of including levels. and was approximately of We quarter a employees, amortization million $X.X Development while from XXXX, our XXX finished depreciation consistent million India QX XXX the quarter XXX in of comparable our million to compared $XX with XXXX. QX which in SG&A increased $XX.X modestly for last and QX Center, at approximately the is XX% increased at with

rate XXXX. EBITDA the Moving in of $XX.X of quarter was of of levels for million $XX.X next expense XX% increase $X.X to the increased quarter million million QX of from slide. the environment. from Interest interest as impact Adjusted an million the rising $XX.X for XXXX which the was result QX a

throughout we debt a XXX% given place prior As rate of the interest natural on the income quarter. of in calls, grew covered the generate QX we At the end in hedge for our as deposit deposits. have hedge the mentioned natural debt that floating balances over

XX% the QX end include component rate our the rate covered preferred floating you the our natural at of If floating of liabilities. hedge of stock,

of of the slide end represents XX June at not the of $X QX. period on million adjusted $XXX.X for While $XXX.X EBITDA ended million million listed from LTM over growth the

Moving to debt on page outstanding the slide XX.

QX. of QX. from also $X.X to the is the Our down down balance compared finished levels and the $XXX.X debt the debt of end at debt which $XXX.X gross continued have million end quarter decline of is Net we to at million million by $XXX.X with million of

quarter a liquidity increase an with From June ended the under that million facility of on revolving standpoint borrowing we our $XX part includes facility of a million we the closed $XX.X as which XX. amendment credit capacity to

cash In end. addition, of million we on finished the balance unrestricted at with quarter $XX.X sheet

end our million facility quarter and the increased revolving additional credit an $XX conjunction which Plastiq brought size to acquisition by capacity on the the of to Subsequent $XX the with total closing in we million. facility

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

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

the back Tom, of to for the Based on the I wanted will $XXX and impact half the year. EBITDA range adjusted over XXXX to full our over second EBITDA in $XXX the the expectations profitability forecast for investment of turning half results, for address the of year. combination call quarters next reach to the to guidance to Plastiq, of revenue continue adjusted full require we Before some our couple revised of first which

revenue increasing range to $XXX $XXX our million. guidance are We million to

now call Tom I'll to that, With back closing turn for comments. over the his

Tim. Thank you,

believe earnings qualities review referenced continue wrap that wanted quarter's to the we second us from one and Priority we fintech and I more the of to propel differentiate quarter of reinforce will us As call last payment others in up the sector. our in important of

growing our described During we Priority people I workflow, organization our endeavors that discussion invests organization mentality This a operationalize make effort as that as embed that say vision. into an an efficiently well that is to both dedicated stay and to submit there's to financial our and evidence customer that at and human our cost industry leading capital and to capabilities. of a forefront consistently would of the to our support We ahead trends competitors. body

positioned of to from in Consider that to digital Priority and we focus payment early growth countercyclical inflation. sectors build on their stakeholders trends insulate that as from early out conversion XXXX, as rising our non-digital methods the and risk declining lines to business were impending

vision estate resulted of of That a debt. in MRI in holdings XXX% through a Software in strong year part partner. as height COVID the a sale the to integrated capital of our of real approximately with remains the led key results as $XXX monetization return a technology paydown well in transaction million over That who on a little and

already of in we roots banking service its into Passport since and as strategy finance Similarly have and add collect Finxera XXXX, demand through store the fast-growing engine limited developed acquisition send high-growth had a initiated ahead today's refined to well for a solutions. embedded our

and and through and of harmonized on flexibility today's rate features payments movement banking and of of working The be the guiding money combination and thesis demands speed only businesses money for accelerate are payment that platform can vision achieved environment. a real-time our optimize that interest driving commerce to innovation and single a modern is flow move settlement to rising look posting all routes as sizes particularly capital, cash in all that

acquiring quickly buyer-funded linked to payment sales need. and We At vision collect supplier-funded are their accounts CPX positioned businesses receivables to our demonstrate through merchant solutions example another can acquisition money operationalized Priority Plastiq it on to applications, Priority will and and our why accounts of send deliver confident the our Passport of Plastiq their vendors applications. be their is fund or businesses uniquely that our

monetize taking participate options a for maximize flow to today's business. and our investors is their grow and Simply cash capital to accelerate of you flows that ongoing time to one-stop appreciate analysts. the support working We the businesses put, all payment Priority shop our call in

Operator, call we'd the open for now questions.

will now go Please Instructions] Global first [Operator question-and-answer begin of Brian Partners. the from session. Alliance Kinstlinger ahead. We comes The question

much so Thanks morning. questions. Good taking Hey. my for

in Did merchant merchants this now from more is for acquiring of resell was fact the processors? into Can merchant two memory. you in Priority or years my little payment last so, count detail about partner? a in first bit sequentially a was bit time impact go talked weaker exclusively You partner the -- variety and confused. down was a sending of this and the it a just acquires I the resell little the to solutions total bit

Yes, sure.

to years. and were a Brian look, makes have to diversified reached products So that and a scale long-standing -- some And yes they for them it's look, diversification. been I've sense I Priority for of exclusive many that managing this if expressed offering their with and also them, some their they've partner business were it in

balancing a long-standing that. they're strong Still So partnership.

And those to into some nature because Tim on continue would analysis, banking flattening one that been their prospective that some we of and But them evolve it and is going there's to them, is diversification have of boarding. to and the network. start see. that you historical automated them the our other have. we some anticipate them you That's It's areas from payable we extract of increased strong have be the stats look with that to, the say, solutions some at driver actually for share of growth let's known think, of the of we'll underway. step as to But can If with year-over-year. I the have we build partnership were

So ahead, Tim. go

Yes.

that think because up right XX% on right? would of And the without consolidated growth the have quarter basis. that decline Brian reseller average volume we growth to SMB, count extracted volume the and right? a had flat partner you for did compared just we that, volume merchant at your impact if in X% would think, looked I been I X% So that was show revenues yes, have then,

in So our are great. past as we've of obviously of the larger profit talked isn't gross impact reseller a generate revenue, partners lot as about some they the but

have confident revenue we as little bit balance partner impact we from diversifying a the the a have see right? year. boarding. the diversification we're But in mentioned bigger of that think of So been the less, quarters prepared impact had the less throughout would reseller we'll would the gross in that future So profit impact without our remarks I an

and/or the CPX? growth as that it Okay. And do helping then to how see Plastiq, of you adoption trajectory relates with

the at payables talk just if segment let's those right? look we and it for Well products of way BXB about our right it, So think you is are automated the customers call generally adoption those I'll are at vendors. designed to pay designed Commercial

So and services supply their to optimize for goods working chain vendors buyers pay their relationships and capital. to of their

use of the suppliers but With bank to their customers CPX to the supplier absorbs credit cost CPX have use addition who accept their existing also use to really not digital Plastiq, a credit method as by do payments the card. option make to now issued been has of a payment payment, those that the where Plastiq within to

a to let give of at example you mathematical way me look So it. a

let's total add those cost a X.XX% of clears a is which a just typically modest So interchange weeds transaction little the paying processing But on I'm you a X $XX,XXX bit way a just achievable it's -- works. in take interchange I'm bills. fees to and And in supplier bills. going BXB hey, pay $XXXXX the say, looking for at around say, you're let's into amount of to just on Level for qualifies Brian X%,

my So let's X% net But is a X.XX% my up cash by if get keep I XX -- math them shows simple is cost days and it it bill bill to X.XX%. credit of time just rewards let's my I on back. they card okay? the standard my that And pay my days. XX have payment card call pays The use then the

more example. most than larger let's XX-day that this use Now time companies for actually our mathematical but have standard

points, at credit current of that insured I X.XX%. rate X.X% is even at invested over right? So my cash slightly my deposits just minus XX basis XX interest days let's card X.XX% cash net say back X% to don't cost of in FDIC the have the pay bill, is Well

month. right? XX-plus a cost you're low. my two-month percent terms capital a about net under down couple doing working if around annualize of cost points You're in So that exceedingly that you're over of period in every capital, basis And talking of

that So, this attractive to they already not it's very maximizing. that credit to utilize be in environment, may that's available businesses

our see businesses that's across XX% BXB business implemented segment active we this have we working the small look not XXX,XXX customers. And of broadly specifically, SMB struggle, with very how the being but payment across of more just BXB segment So, nearly CPX, capital. where segment

fore. this come driver why became time the Unified for that think is was we asset within big to Commerce, that when the product this the available really we broader a feature, So And our platform the to to pursued us. this of acquisition of,

it. have not. Is consistently economy payments I'll consumer, quarters? question the average or Why the where was I if weakening. weaker the the coming It one meaningfully ticket down size has It's was from say there average we down? pricing XX% queue. would is been again, different? payments back many last ticket from you off the Is it be so and see for Got it a any Again, many when business. at consumer just I in it's business, quarters the get last size, the at look could

Brian. Yes,

tend So shifts operate part much right? I the of the quarter thinking volume other to volume declined services the the ticket much with and of right? think and So, is, during main about higher different mix, sizes, impact that a professional ticket verticals was there the higher So, some areas.

the some saw volume reseller especially, those of from from areas. the declines we large came of partner some And

that shift impacted average size. So ticket mix the

shift. entire seeing from a bit benefit in areas inflation thinking of driven you're enterprise we mix haven't broader seen on of a like-kind looked of the But sales certain of the in little average but seen little really across what think size, I a the the business, average, We've size change a ticket by a of much you kind is right? a of aspect the market, bit same-store about in kind ticket if at really

Thanks Okay. All so right. much.

of from is Jacob Street. go Please question next ahead. The Stephan Lake

Yes. for my Hi, guys. Thanks questions. taking

look the I feel kind your segment, growth do of just business And that the that when expanding? how Plastiq about base million are for stabilized, becoming business the talking more you you base of $X BXB So it here level? has of around here? can at that -- or kind bigger Is what a expectations business part package, the see the business of this

over We see the of growing segment now year. substantially No. from decline seeing that next that you're was this business run that fully quarter. the off a Recognize, Managed of Services that has as

the our -- largely the was BXB, we we with why that of decision. and that resources growth an wanted really made outsource which dedicate So more is component opportunities services towards in that business look, to the

Now growth. pipeline, have meaningful the we we contracted, existing will know already create

as Plastiq year. as the of percent in of process final coming current a over contract hundred with sales of coupled that the and our couple well growing negotiation addition, we just kind see So pipeline processes, that

On line... the bottom

too. to just picture, put some I'll Jacob,

yes. So,

separate So the So the we Managed platform and that right? So CPX product XX% from from to offering. QX grew sequentially seeing if Services right? CPX CPX are business, about QX, think you BXB that in growth right business,

We last in was QX, business started year the of So gone in winding right? continue some headwinds Services late in to see comparative QX. down will QX Managed and effectively

a QX year to this effectively will absent quarter, clean have starting last relatively which of year quarter. over Managed from BXB will it business, show Services really help clean lesser kind impact obviously in will a But a with bridge next gone QX. that existing So and QX in be pure Plastiq

quarter of What kind QX, from of QX. then quarter just kind of Okay. the you OpEx of maybe step-up Plastiq acquisition, full what being not a operating in but full kind model? Plastiq? expense And that we So, of kind the be from see really would on a would uptick could see

From an -- itself. quarter, business Plastiq is of it $X the call I it's think be is OpEx, to a million running that to business going right going at let's OpEx standpoint, which Yes. be

Okay right.

to being kind generate to now expect the where we we a investment of And you get get EBITDA. EBITDA last the about the in on make to comfortable of in million think to and the the keeping months didn't revised, few the you where we're want we're of Plastiq if then, have But right profitability. it guidance going kind year. we've attributable in is revenue the and to revenue guidance the despite think So, that change guidance can into business of five dollars specifics overall to of largely to

So, OpEx it's a extract that time period to as going short we but business at cost profitability to get savings, run to higher the quickly. pretty for expect we all

out more in The a function it's to And new now or all build built me just and support seems nice helpful. need kind last like That's of kind is that for increase then It headcount Okay. that business? But this margin one there, being of expansion here. do enrollments. about just there. Enterprise what business, see just of revenue level to significant you expect scale you'll really pure

earnest. was ready that live there's in really I the Expense kind already already sector. process We're be healthy be management February bringing the program marginal relationship would managers maybe technology-based. thereafter integrated seeing will they of and consider stage. and They number negotiation not program we new and quoted, in a have out that in that of on this increase phenomenal to in performance management and start and that sales. of on going live will nine in XX I partners the be side are or based launched are

stage. is rate expectations the exceeding this of we've at -- So, adoption

Okay.

people We don't the have rate we run to additional at to add are right now.

Got color. it. for the Okay. Thanks

Enterprise think on I want a really everyone point for Priority is a platform good make SMB bring the store the is benefit across it integrated on. of Shared this the just and to in single BXB reason platform, the can -- send that, the on you call Look, the up segment. a Services produce acquiring, space and why we call. unique remark Enterprise collect We payments

come such because multifunctional. adding elements that into workflows without itself it's platform built common of is can that the scale a way We've channels. those that So, each people across with we in engine created

need technology been so have So, And one because built another, early to doing folks capability. been rock. of that stacks on have exploiting are they're innings the the operational that we last. redundant has perspective. -- or from benefit. to we're of an divergent That's built exclusively it's This or It's don't not aspect in

hear. Awesome. Great Thank you. to

Hal [Operator B. ahead. go next Instructions] Riley Please Securities. Goetsch The from is question of

cost on just just a Some run sure the questions Plastiq, to you revenue number you guidance a is Is or at inclusive revenue on the cost it revenue make run interchange really I trying mentioned is net slide net business? what's revenues? you million it million more X information of and of follow-up of pass-through the rate And versus that look OpEx. fees $X gave. -- rate $XX I'm in like network it and that $XX understand kind million --

appreciate joining. Hi I you Hal,

historically revenue as for revenue merchant is the you act yes, the our right? record, Priority model right? they a bit as little Plastiq look effectively about model they different of a So if revenue what than So think

modality then the and about through with think buyer that goes they cash supplier their wire card ultimately whatever you to a check payment using ACH. So want credit Plastiq and

right? would if of to merchant more booking consider the a the Plastiq's basis of Priority's a compare So numbers, record with on as like we Plastiq -- it what -- I of said revenue kind gross they're you

going can those back out true comparable on through in don't a go interchange. basis, back And to right here all us me we that's So numbers we of of the have that impact lower front net apples-to-apples of to if on Plastiq's start guidance kind the out. be kind include that report is right we've have net right? how at looked to plus the to you but But $XX you'd math. our an you basis that if million model, historically does of revenue provided I So revenue. all

Okay.

trying like What through if were ran my it And do some add -- because they're money of that the out. of a you cash those they're going company the back? And the and IPO that about didn't to to not from making they situation of the into Okay. have kind investments a of it get what of experience you're to cutting things when and XXXX work spec, XXXX? talk a kind on that are into out What -- of things think and XXXX was things companies back? -- you can I magnitude an like are that

this Look, curated. been actually very Yeah. -- we've approach actually has

the If horse you look into bid. bankruptcy through went the stalking as actually filings we the

So exactly understanding to with a successful. it done collaborative be we order make needed approach. very to had It's in Plastiq a what deep been of

to a their key relationships. customers fact, we and effort very In speak and to customers conscientious made

partner. as the company knew with they had are of method a partner that better the exploit an they a had in the all but market was with the result opportunity gained actually appropriate the One help it time to reset in they've that rather as just call to I'll So resources the bankruptcy of of business. position not, the the been actually duress this bankruptcies really a most that it idea in extreme business giving

need expense to we nothing there's from add actually standpoint. an So

Really of all we're efficiently of for working exists very which focused credit is application existing hands SMB and to taking of team, our the And is elegant partners all upmarket just our sizes, Plastiq effort businesses at Plastiq that it the and capital customers been on today into the for a more optimize working utilize what BXB get the on both into to alignment months. with that their segment integrated customers. in our in we've

you. Thank Great.

Thanks Thank for Yeah. you. your question.

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

on like and Priority the the our current about dedicated business state for and the all more taking future we I'd to employees Well, see thank of how and Tim and time at the of course of fintech payments. of I, behalf to learn everyone

I appreciate to of doing a everyone's coming Thanks engagement has our and months, of today. this the I in hope again everyone remainder sharing the look forward successful And we everyone. results. more week. great

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

disconnect. You may now