Priority Technology Holdings Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Nov 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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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 September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | 2024 | 2023 |
| Revenue Type: | ||||
| Merchant card fees | $171,814 | $146,974 | $499,007 | $441,142 |
| Money transmission services | 33,868 | 25,831 | 94,352 | 70,955 |
| Outsourced services and other services(2) | 18,063 | 13,181 | 49,984 | 34,768 |
| Equipment | 3,304 | 3,029 | 9,292 | 9,468 |
| Total revenues(1) | $227,049 | $189,015 | $652,635 | $556,333 |
(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 $13.8 million and $38.8 million of interest income on customer funds for the three and nine months ended September 30, 2024, respectively, and $9.7 million and $21.9 million for the three and nine months ended September 30, 2023, respectively, is included in outsourced services and other services revenue in the table above. Approximately $0.6 million and $1.8 million of interest income on corporate funds for the three and nine months ended September 30, 2024, respectively, and $0.5 million and $1.1 million three and nine months ended September 30, 2023, respectively, is included in other income, net on the Company's Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss) and not reflected in the table above.
The following table presents a disaggregation of our consolidated revenues by segment:
| Three Months Ended September 30, 2024 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $153,061 | $— | $2,405 | $3,304 | $158,770 |
| B2B Payments | 18,924 | — | 3,219 | — | 22,143 |
| Enterprise Payments | 521 | 33,868 | 12,710 | — | 47,099 |
| Eliminations | (692) | — | (271) | — | (963) |
| Total revenues | $171,814 | $33,868 | $18,063 | $3,304 | $227,049 |
| Nine Months Ended September 30, 2024 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $443,557 | $— | $5,026 | $9,292 | $457,875 |
| B2B Payments | 55,895 | — | 9,473 | — | 65,368 |
| Enterprise Payments | 1,325 | 94,352 | 36,081 | — | 131,758 |
| Eliminations | (1,770) | — | (596) | — | (2,366) |
| Total revenues | $499,007 | $94,352 | $49,984 | $9,292 | $652,635 |
| Three Months Ended September 30, 2023 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $136,292 | $— | $920 | $3,029 | $140,241 |
| B2B Payments | 10,838 | — | 3,147 | — | 13,985 |
| Enterprise Payments | 124 | 25,831 | 9,219 | — | 35,174 |
| Eliminations | (280) | — | (105) | — | (385) |
| Total revenues | $146,974 | $25,831 | $13,181 | $3,029 | $189,015 |
| Nine Months Ended September 30, 2023 | |||||
|---|---|---|---|---|---|
| (in thousands) | Merchant Card Fees | Money Transmission Services | Outsourced and Other Services | Equipment | Total |
| Segment | |||||
| SMB Payments | $428,524 | $— | $5,130 | $9,468 | $443,122 |
| B2B Payments | 12,718 | — | 7,026 | — | 19,744 |
| Enterprise Payments | 179 | 70,955 | 22,785 | — | 93,919 |
| Eliminations | (279) | — | (173) | — | (452) |
| Total revenues | $441,142 | $70,955 | $34,768 | $9,468 | $556,333 |
Deferred revenues were not material for the three and nine months ended September 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 $0.5 million and $0.6 million as of September 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 contract assets arising from the Company's contracts with customers were not material for the three and nine months ended September 30, 2024 and 2023.
Impairment losses recognized on receivables arising from the Company's contracts with customers were $1.1 million and $1.5 million for the three and nine months ended September 30, 2024, respectively, and were immaterial for the three and nine months ended September 30, 2023.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.