Payments and banking solutions fintech company Priority recently reported record year-over-year revenue numbers for the third fiscal quarter of 2024. Priority CEO Thomas Priore said growth for the company across all segments is the result of yearslong planning by leaders who are focused on the future.
In 2018, when Priority went public, Thomas Priore and company leadership set a goal of diversifying its clients and services, attracting businesses in e-commerce, real estate, construction, health care administration, and other segments. At the same time, the company built out its B2B payables suite of services, adding capabilities such as the acquisition of Plastiq in 2023.
“Priority has been built with foresight and planning,” Thomas Priore said in a press release about the Q3 2024 numbers. “If you were to encapsulate it in one word, it would be ‘intention.’ We relentlessly pursue knowledge that can help us see around corners and operate with a singular focus on creating reliable, consistent, long-term value for stakeholders.”
Priority is a fintech company specializing in payments and banking solutions, allowing clients to streamline the collection, storing, lending, and sending of money. Priority’s unified commerceplatform allows clients to take control of their financial transactions in one place.
Earnings Show Significant Growth in Priority’s Revenue and Profits
Compared to the same period in 2023, the 2024 third quarter numbers showed a 20.1% increase in revenue to $227 million, an 18.9% increase in adjusted gross profit to $86 million, a 62% increase in operating income to $38.1 million, and a 21.5% increase in adjusted earnings before interest, taxes, depreciation, and amortization to $54.6 million.
In the earnings release, Thomas Priore said that the record results showed sustained momentum and the delivery of strong results in SMB acquiring, B2B payables, and enterprise payments.
“Our continued execution reinforces that Priority’s technology, operations, and decision-making have positioned us to excel through the remainder of 2024 and beyond to deliver a thriving ecosystem of financial solutions that accelerate revenue and optimize working capital for businesses,” Priore said.
Priority’s full-year guidance remains solid for 2024. The company forecasts $875 million to $883 million in revenue, an increase of 16% to 17% over 2023. It also projects an 18% to 20% increase in adjusted gross profit to between $325 million and $330 million.
Thomas Priore Says Priority’s Tech-Enabled Platform Unlocks Value
In the call with investors, Priore said the company’s focus on building the business toward a stronger, more diversified future has led to an annual adjusted EBITDA growth of 19.8% between 2018 and 2023.
“If we were to include our performance through 2024 using the $202 million midpoint of our guidance, our compound annual growth rate remains a consistent 19.56%,” Thomas Priore noted.
Priore added that the numbers reflect that Priority’s tech-enabled service platform unlocks value for businesses seeking better cash flow and working capital solutions, as well as resellers building success by delivering Priority’s commerce solutions to their portfolios. He said the numbers also show that Priority has “meaningfully outpaced our peers for several quarters.
“Priority’s technology, operations, and decision-making are built for the future, and we’re accomplishing our mission to deliver a thriving ecosystem of financial solutions that accelerate revenue and optimize working capital for the businesses we serve.”
Priority Looks To Continue Expanding Banking Solutions
Looking ahead, Priority aims to grow its core product categories: acquiring solutions (for card and digital payment acceptance), payables automation (from bill pay for small businesses to accounts payable solutions for enterprises), and banking solutions, such as those offered through its Passport.
In an interview, Priore emphasized Priority’s focus on solving real-world problems for businesses. For example, he envisions a construction company manager using Priority’s services to pay workers more efficiently. “If I could pay my laborers consistently and give them access to a traditional bank account rather than having them resort to payday lenders, it would certainly foster loyalty,” he explained. “These are practical solutions that businesses may not even realize they need until they see what we can offer.”
Priore likens Priority’s approach to the personalized service that businesses used to receive from local community banks. “Back in the ’80s, if I were a small-town merchant, I’d visit my bank branch to open an account, get help with payroll, maybe secure a loan, and get a credit card,” he said. “That experience has largely disappeared, with even major banks reducing their branch networks.”
While businesses today value the benefits of modern technology, they also crave the personalized experience that community banks once provided.
“Our clients want a single place to handle payment acceptance, accelerate cash flow, pay bills, and access credit,” Priore said. “When you need support, you can call your representative, who can personally assist you or send someone over. That’s the kind of personal, tech-forward experience we strive to offer.”
