Priority Technology Holdings Inc
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
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3. Revenues
- Revenues
Disaggregation of Revenues
The following table presents a disaggregation of our consolidated revenues by type:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | 2024 | 2023 |
| Revenue Type: | ||||
| Merchant card fees | $169,246 | $144,524 | $327,193 | $294,168 |
| Money transmission services | 31,340 | 23,718 | 60,484 | 45,124 |
| Outsourced services and other services(2) | 16,256 | 10,582 | 31,921 | 21,587 |
| Equipment | 3,025 | 3,466 | 5,988 | 6,439 |
| Total revenues(1) | $219,867 | $182,290 | $425,586 | $367,318 |
(1)Includes contracts with an original duration of one year or less and variable consideration under a stand-ready series of distinct days of service. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material.
(2)Approximately $13.1 million and $25.0 million of interest income for the three and six months ended June 30, 2024, respectively, and $7.2 million and $12.2 million for the three and six months ended June 30, 2023, respectively, is included in outsourced services and other services revenue in the table above. Approximately $0.6 million and $1.2 million of interest income for the three and six months ended June 30, 2024, respectively, and $0.3 million and $0.6 million three and six months ended June 30, 2023, respectively, is included in other income, net on the Company's Unaudited Consolidated Statements of Operations and Comprehensive Loss and not reflected in the table above.
The following table presents a disaggregation of our consolidated revenues by segment:
| Three Months Ended June 30, 2024 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $150,696 | $— | $1,380 | $3,025 | $155,101 |
| B2B Payments | 18,682 | — | 3,199 | — | 21,881 |
| Enterprise Payments | 451 | 31,340 | 11,879 | — | 43,670 |
| Eliminations | (583) | — | (202) | — | (785) |
| Total revenues | $169,246 | $31,340 | $16,256 | $3,025 | $219,867 |
| Six Months Ended June 30, 2024 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $290,496 | $— | $2,621 | $5,988 | $299,105 |
| B2B Payments | 36,971 | — | 6,254 | — | 43,225 |
| Enterprise Payments | 804 | 60,484 | 23,372 | — | 84,660 |
| Eliminations | (1,078) | — | (326) | — | (1,404) |
| Total revenues | $327,193 | $60,484 | $31,921 | $5,988 | $425,586 |
| Three Months Ended June 30, 2023 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $143,544 | $— | $938 | $3,466 | $147,948 |
| B2B Payments | 954 | — | 2,020 | — | 2,974 |
| Enterprise Payments | 26 | 23,718 | 7,694 | — | 31,438 |
| Eliminations | — | — | (70) | — | (70) |
| Total revenues | $144,524 | $23,718 | $10,582 | $3,466 | $182,290 |
| Six Months Ended June 30, 2023 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $292,232 | $— | $4,210 | $6,439 | $302,881 |
| B2B Payments | 1,881 | — | 3,879 | — | 5,760 |
| Enterprise Payments | 55 | 45,124 | 13,565 | — | 58,744 |
| Eliminations | — | — | (67) | — | (67) |
| Total revenues | $294,168 | $45,124 | $21,587 | $6,439 | $367,318 |
Deferred revenues were not material for the three and six months ended June 30, 2024 and 2023.
Contract Assets and Contract Liabilities
Material contract assets and liabilities are presented net at the individual contract level in the Unaudited Consolidated Balance Sheets and are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations.
Contract liabilities were $0.6 million and $0.6 million as of June 30, 2024 and December 31, 2023, respectively. Substantially all of these balances are recognized as revenue within 12 months.
Net contract assets were not material for any period presented.
Impairment losses recognized on receivables or contract assets arising from the Company's contracts with customers were not material for the three and six months ended June 30, 2024 and 2023.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.