Priority Technology Holdings, Inc (NASDAQ:PRTH) Q4 2019 Earnings Conference Call - Final Transcript

Mar 31, 2020 • 11:00 am ET


Priority Technology Holdings, Inc (NASDAQ:PRTH) Q4 2019 Earnings Conference Call - Final Transcript


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Thomas C. Priore

as April begins, the level of economic uncertainty is only becoming more pronounced and impossible to predict. We are of the view, as are many others, that April will be the tale of the tape, so to speak. While being proactive, where we can, there is still potential for many less predictable considerations that can influence our business. We are cautiously optimistic that our SaaS and subscription revenue opportunities can offset larger processing volume declines anticipated in April, and potentially the months ahead. But it's premature to be confident in that outcome.

Consequently, we believe it would be imprudent to provide full-year 2020 guidance until we are able to more accurately forecast the financial impact of COVID-19 in the weeks to follow. It is our desired goal to be in position to provide our full-year 2020 forecast at the time of our Q1 2020 earnings release in May. However, depending on the lasting impact of the COVID-19 crisis, we may need until the second quarter release.

In conclusion, we're very pleased with our fourth quarter and full year results, particularly considering the impacts of the pause of our subscription e-commerce business and we are proud of our team and how they moved so quickly to respond in the face of a global pandemic. We are further encouraged by the leading indicators of Q1 2020 and, needless to say, we're intently focused on remaining vigilant about our operating expenses and agile to capture growth opportunities as the impact of COVID-19 on the U.S. economy becomes more pronounced broadly and the payment segments, in particular, begins to crystallize.

I've always taken to heart the notion that the decisions of our past are the architects of our present. While the COVID-19 pandemic is an unpredictable event, we are seeing evidence that our past decisions to build defensively positioned counter-cyclical integrated payment assets in segments like rents, hospitality, healthcare and B2B has positioned us favorably to weather this crisis and future economic cycles. While these past strategic initiatives provide a measure of cautious optimism, ultimately, our performance may well be a matter of sheer will and the strength of the Priority community of partners. I was reminded of this by an email I received from a member of our client service team, Kenny Inzart [Phonetic] in response to a message I had sent to our employees. His very straightforward message encompassed our attitude at Priority. It said, united we stand, together we rise. COVID-19 is dealing us and our community a blow, but together, our Priority team, as well as our community of technology reselling and merchant partners will rise. Operator, we would now like to open the lines for questions, please.