Priority Technology Holdings saw increased demand for its payments and banking-as-a-service (BaaS) services across three segments: small and medium-sized business (SMB) acquiring solutions, B2B accounts payable, and enterprise BaaS.
Overall, the company's fourth-quarter 2023 revenue increased 12% year over year, Priority said in an earnings call on Tuesday (March 12).
“Our unified commerce vision brings together payment and banking functions on a single platform, potentially driven by the strength of our diverse business lines, benefiting from higher interest rates and providing We remain confident that we are well-positioned to perform in these areas,” Thomas Priore, Priority's executive chairman and CEO, said Tuesday during the company's quarterly earnings call. Told.
According to a presentation made in conjunction with the conference call, the SMB Acquiring Solutions segment averaged 3,700 new boards per quarter and increased revenue by 7% year-over-year.
The company's B2B division saw a 657% year-over-year increase in revenue due to the acquisition of Plastiq. Priority completed its acquisition of Plastiq in August, saying the combined B2B services of both companies will provide a complete suite of working capital solutions.
“We are excited about Plastiq B2B TAM on the back of our strong outlook.” [total addressable market] It will be a significant growth driver for the business, as demonstrated by the success we have seen to date,” Priore said on a conference call.
According to the presentation, Enterprise segment revenue increased 53% year-over-year, with average monthly new enrollments increasing to 49,000 from 39,000 a year ago. Here, increases in deposit balances and interest rates also contributed to the increase in sales.
Looking forward, Priority is expected to see revenue growth of 16% to 19% for the full year 2024, according to the presentation. This would be an increase from the 13.9% increase for the full year 2023.
“How we have taken unified commerce to the next level by meeting the demands of modern business and enabling customers to thrive in the real-time economy through unparalleled speed and cash flow transparency. I am confident that this will be borne out in future results,” Priore said during the call.
