Priority Technology Holdings Inc (PRTH) 2025 Q1 法說會逐字稿

(Operator Instructions). Greetings and welcome to the Priority Technology Holdings Q1 2025 earnings call. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Megna Meera, managing director, ICR. Thank you. You may begin.

（操作員指令）。大家好，歡迎參加 Priority Technology Holdings 2025 年第一季財報電話會議。（操作員指令）。提醒一下，本次會議正在錄製中。現在我很高興向大家介紹您的主持人，ICR 董事總經理 Megna Meera。謝謝。你可以開始了。

Good morning and thank you for joining us. With me today are Thomas Priore, Chairman and Chief Executive Officer of Priority Technology Holdings, and Tim O Leary, Chief Financial Officer. Before giving our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements.

早安，感謝您加入我們。今天與我一起出席的還有 Priority Technology Holdings 董事長兼執行長 Thomas Priore 和財務長 Tim O Leary。在發表準備好的評論之前，我想提醒所有參與者，我們今天的評論將包括前瞻性陳述，其中涉及許多風險和不確定性，可能導致實際結果與我們的前瞻性陳述有重大差異。

The company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings, and we encourage you to review these filings. Additionally, we may refer to non-GAAP measures, including but not limited to EBITDA and adjusted EBITDA during the call.

無論是由於新資訊、未來事件或其他原因，本公司均不承擔更新或修改前瞻性聲明的義務。我們在提交給美國證券交易委員會的文件中詳細討論了各種風險因素，並鼓勵您查看這些文件。此外，我們可能會在電話會議中參考非公認會計準則指標，包括但不限於 EBITDA 和調整後的 EBITDA。

Reconciliations of our non-gap performance and liquidity measures to the appropriate GAAP measures can be found in our press release and SEC findings available in the investor section of our website.

我們的非差距績效和流動性指標與適當的 GAAP 指標的對帳可以在我們的新聞稿中找到，而 SEC 調查結果可以在我們網站的投資者部分找到。

With that, I would like to turn the call over to our Chairman and CEO Thom Priore.

接下來，我想將電話轉給我們的董事長兼執行長 Thom Priore。

Thank you, Meghna, and thanks to everyone for joining us for our first quarter 2025 earnings call. I'll begin today's call by highlighting our aggregate performance that reinforces our consistent revenue and adjusted EBITDA guidance for 2025 before handing it over to Tim, who'll provide segment level performance, key trends and developments within each of our business segments, and priority overall.

謝謝你，梅格納，也謝謝大家參加我們的 2025 年第一季財報電話會議。在今天的電話會議上，我將首先強調我們的整體業績，這將鞏固我們穩定的收入和 2025 年調整後的 EBITDA 指引，然後將其交給 Tim，他將提供細分市場的業績、每個業務部門內的關鍵趨勢和發展以及總體優先事項。

This morning, we reported strong growth in both revenue and profit, despite the economic uncertainty over the impact of tariffs and government cuts that emerge in Q1. Summarize on slide 3, priority had a solid Q1 by every key financial metric, growing that revenue by 9%, generating adjusted gross profit, and adjusted EBITDA growth of 14% and 11% respectively. And increasing adjusted EPS by $0.19 year-over-year.

今天上午，我們報告稱，儘管第一季關稅和政府減稅的影響給經濟帶來了不確定性，但收入和利潤均實現了強勁增長。總結投影片 3，優先股在第一季的各項關鍵財務指標上都表現穩健，營收成長 9%，調整後毛利和調整後 EBITDA 分別成長 14% 和 11%。調整後每股收益較上年同期增加 0.19 美元。

We ended the first quarter with over 1.3 million total customer accounts operating on our commerce platform, up from 1.2 million at the end of the year. Annual transaction volume increased by $5 billion to over $135 billion and account balances under administration improved to $1.3 billion versus $1.2 billion at year end 2024.

截至第一季末，我們的商務平台上共有超過 130 萬個客戶帳戶，高於去年年底的 120 萬個。年度交易量增加 50 億美元，達到 1,350 億美元以上，管理的帳戶餘額從 2024 年底的 12 億美元增加到 13 億美元。

Then we'll walk through the full year 2025 guidance specifics and some of the more noteworthy trends we are seeing within our SMB acquiring B2B payables and enterprise payment segments later in the call. Based on strong growth trends and continued favorable shift in business, I'm confident that the company can achieve 10% to 14% top line revenue growth to a range of $965 million to $1 billion. And generate adjusted EBITDA of $220 million to $230 million in 2025.

然後，我們將在電話會議的稍後部分介紹 2025 年全年指導細節以及我們在 SMB 收購 B2B 應付款項和企業支付領域中看到的一些更值得注意的趨勢。基於強勁的成長趨勢和持續有利的業務轉變，我相信該公司可以實現 10% 至 14% 的營收成長，達到 9.65 億美元至 10 億美元。並在 2025 年實現 2.2 億至 2.3 億美元的調整後 EBITDA。

This confidence comes from the value of our unified commerce platform, which streamlines collecting, storing, lending, and sending money that is delivering revenue and operational success to our customers, despite likely headwinds related to lower interest rates and a somewhat murky macroeconomic environment.

這種信心來自於我們統一的商業平台的價值，該平台簡化了收集、儲存、借貸和匯款流程，儘管可能面臨與較低利率和略顯不明朗的宏觀經濟環境相關的阻力，但仍為我們的客戶帶來了收入和營運成功。

Turning our attention to our Q1 results noted on slide 4, revenue of $224.6 million increased 9% from the prior year. This led to a 14% increase in adjusted gross profit to $87.3 million and an 11% improvement in adjusted EBITDA to $51.3 million. Adjusted gross profit margin of 38.9% increased 170 basis points from the prior year's quarter.

我們將注意力轉向投影片 4 中提到的第一季業績，營收 2.246 億美元，較上年成長 9%。這導致調整後毛利增加 14% 至 8,730 萬美元，調整後 EBITDA 成長 11% 至 5,130 萬美元。調整後的毛利率為 38.9%，較去年同期增加 170 個基點。

For those of you who are new to priority, slide 5 highlights our vision for unified commerce. The priority commerce engine is purpose built to streamline collecting, storing, lending, and sending money and delivers a flexible financial tool set for merchant services, payables, and banking and treasury solutions to accelerate cash flow and optimize working capital for businesses.

對於那些還不熟悉優先事項的人來說，第 5 張投影片重點介紹了我們對統一商務的願景。優先商務引擎旨在簡化收款、儲存、借貸和匯款流程，並為商家服務、應付款以及銀行和財務解決方案提供靈活的金融工具集，以加速現金流並優化企業營運資金。

I would encourage you to play the short one-to-two-minute videos embedded in the product links on this slide to gain a more fulsome appreciation for their value and how they are being leveraged by our growing customer base. While our financial performance demonstrates that partners consistently choose priority to help power their business.

我鼓勵您播放此幻燈片上的產品連結中嵌入的一到兩分鐘的短視頻，以更全面地了解它們的價值以及我們不斷增長的客戶群如何利用它們。我們的財務表現表明，合作夥伴始終選擇優先幫助推動他們的業務發展。

I thought it would be useful for investors to gain a deeper appreciation of why we are emerging as a go to solution provider for embedded finance solutions. Using an implementation framework, we typically see within our enterprise payments. Slide 6 highlights a typical partner integration to our payments and banking API.

我認為，讓投資者更深入了解我們為何成為嵌入式金融解決方案的首選提供者將會很有幫助。使用實施框架，我們通常會在企業支付中看到。投影片 6 重點介紹了合作夥伴與我們支付和銀行 API 的典型整合。

Importantly, this framework is consistently applied, whether the partner is a sports management software company, a debt resolution provider leveraging CFTPay, a payment facilitator, or property management technology company. Customers connect and can access all routes for digital payment acceptance. As well as lockbox for checks. Create FDIC pass through insured, full feature virtual bank accounts.

重要的是，無論合作夥伴是體育管理軟體公司、利用 CFTPay 的債務解決方案提供者、支付服務商或物業管理技術公司，該框架都一致應用。客戶連接並可以存取所有數位支付接受路線。以及支票保險箱。建立 FDIC 直通保險、功能齊全的虛擬銀行帳戶。

And virtual and physical card issuing, bill payments, and automated payables options at their own pace. Our tightly coupled platform creates two important benefits for priority long-term prospects. At first, it allows our partners to choose your adventures we like to say and evolve their offering to respond to opportunities as we add features in collaboration with their goals.

並按照自己的步調進行虛擬和實體卡發行、帳單支付和自動付款選項。我們的緊密耦合平台為優先的長期前景創造了兩個重要的好處。首先，它允許我們的合作夥伴選擇我們喜歡的冒險，並在我們根據他們的目標添加功能時改進他們的產品以響應機會。

Both parties have a clear line of sight to quantify and access revenue growth opportunities. It creates loyalty and gives us the ability to grow with our partners’ businesses. Now second, by maintaining operational workflow consistency across implementation in diverse industry segments, we can clearly identify our operational metrics in key areas like compliance, payment operations, risk, application, support, and the like to ensure that we scale cost efficiently.

雙方都有清晰的視線來量化和獲取收入成長機會。它創造了忠誠度並使我們能夠與合作夥伴的業務共同成長。其次，透過在不同產業領域實施過程中維持營運工作流程的一致性，我們可以清楚地識別合規性、支付營運、風險、應用、支援等關鍵領域的營運指標，以確保我們有效率地擴展成本。

We're committed to meeting our customers where they are and by refining the experience for our partners in order to make working with priority seamless and easy. Now this vision explains why we've been able to continually transform priority into high performing payments and banking fintech with consistently strong recurring revenue prospects.

我們致力於滿足客戶的需求，並改善合作夥伴的體驗，使優先工作的發展變得無縫且輕鬆。現在，這個願景解釋了為什麼我們能夠持續將重點轉向高效能支付和銀行金融科技，並持續保持強勁的經常性收入前景。

Our customers and current market conditions reinforce our belief that systems facilitating payments and banking solutions to accept and distribute funds in multi-party environments will be critical as businesses put greater demands on software and payment solution providers to unlock value in existing and developing channels.

我們的客戶和當前的市場條件強化了我們的信念：隨著企業對軟體和支付解決方案提供者提出更高的要求以釋放現有和發展中管道的價值，促進支付和銀行解決方案在多方環境中接受和分配資金的系統將至關重要。

At this point I'd like to hand it over to Tim who'll provide further insight into the health of our business segments, along with current trends in each, that factored into our first quarter results and confidence for sustained performance in 2025.

現在，我想把時間交給 Tim，他將進一步深入了解我們業務部門的健康狀況，以及每個部門的當前趨勢，這些因素影響了我們的第一季業績以及對 2025 年持續業績的信心。

Thank you, Tom, and good morning everyone. I'll start on slide 8. As Tom mentioned, we had strong financial performance across the business in the first quarter, and the priority commerce engine continues to generate high growth in our higher margin operating segments. I'll go into more detail in the segment results, but B2B revenue grew over 12% and enterprise revenue grew over 22% on a year-to-year basis for the quarter.

謝謝你，湯姆，大家早安。我將從第 8 張投影片開始。正如湯姆所提到的，我們第一季的整個業務財務表現強勁，優先商業引擎繼續在我們利潤率較高的營運部門中產生高成長。我將在分部業績中詳細介紹，但本季 B2B 營收年增超過 12%，企業營收年增超過 22%。

That growth has resulted in adjusted gross profit from our B2B and enterprise segments now representing 62% of our total. The growth in those higher margin segments also allowed for overall margin expansion as adjusted gross profit margins and improved by over 170 basis points from Q1 2024. The continued shift in our business mix also contributes to the highly visible and recurring nature of our business model, as nearly 62% of adjusted gross profit in Q1 came from recurring revenues that are not dependent on transaction counts or card volumes.

這一增長使得我們 B2B 和企業部門的調整後毛利目前占我們總利潤的 62%。這些利潤率較高的部門的成長也使得整體利潤率有所擴大，因為調整後的毛利率較 2024 年第一季提高了 170 多個基點。我們業務組合的持續轉變也促進了我們業務模式的高度可見性和重複性，因為第一季調整後的毛利中有近 62% 來自不依賴交易數量或卡量的經常性收入。

Moving out of the segment level results and starting with the SMB segment on slide 9. SMB generated Q1 revenue of $151.7 million, which is $7.7 million or 5.3% higher than last year. Day count for the quarter compared to last year had an approximate 2% drag on the growth rate. SMB's revenue growth was a combination of strong 10% growth in the core portfolio, partially offset by the continued attrition of historical residual portfolio purchases along with risk pairing and specialized acquiring in advance of certain network program management changes being implemented that we believe will benefit us in the future.

離開細分級別結果並從幻燈片 9 上的 SMB 細分開始。SMB 第一季營收為 1.517 億美元，比去年同期成長 770 萬美元，增幅達 5.3%。與去年相比，本季的天數對成長率造成了約 2% 的拖累。SMB 的收入成長是核心投資組合 10% 強勁成長的綜合結果，但部分被歷史剩餘投資組合購買的持續損耗以及在實施某些網路計畫管理變更之前的風險配對和專業收購所抵消，我們認為這些變更將在未來使我們受益。

Total card volume was $17.7 billion for the quarter, which is up 3.4% for the prior year. Again, day count also had an impact on volume growth given fewer processing days in Q1 of 2025. From a merchant standpoint, we averaged approximately 178,000 accounts during the quarter, up modestly from 177,000 in Q1 of '24, while new monthly boards averaged 4,100 during the quarter compared to 4,300 in Q1 of last year and 3,700 in Q4.

本季信用卡總發卡量為 177 億美元，較上年同期成長 3.4%。同樣，由於 2025 年第一季的處理天數較少，天數也會對處理量成長產生影響。從商家的角度來看，本季我們平均擁有約 178,000 個帳戶，較 2024 年第一季的 177,000 個略有增加，而本季每月新增板數平均為 4,100 個，而去年第一季為 4,300 個，第四季為 3,700 個。

Adjusted gross profit in SMB for the first quarter was $33.1 million, which is 3.9% higher than last year's first quarter. Gross margins of 21.8% in the quarter are down 30 basis points from last year but sequentially increased almost 130 basis points from Q4 as we recovered certain credit losses during the quarter that were charged off in early 2024.

第一季中小企業調整後毛利為 3,310 萬美元，比去年第一季高 3.9%。本季毛利率為 21.8%，較去年同期下降 30 個基點，但較第四季度環比增長近 130 個基點，因為我們在本季度收回了 2024 年初沖銷的部分信貸損失。

On a year-to-year basis, margins were impacted by the combination of reseller mix, lower specialized acquiring revenue, and the attrition of historical residual portfolio purchases. Lastly for SMB adjusted EBITDA was $25.7 million, which is up 2.7% from last year. Adjusted EBITDA growth lagged, adjusted gross profit growth in the quarter because of increased salary and benefits along with higher software expenses related to the previously discussed migration to the public cloud, which will convert certain CapEx to OpEx but provide longer term benefits to the company.

與去年同期相比，利潤率受到經銷商組合、專業收購收入下降以及歷史剩餘投資組合購買的流失等因素的影響。最後，中小企業調整後的 EBITDA 為 2,570 萬美元，比去年成長 2.7%。調整後的 EBITDA 成長滯後，本季調整後的毛利成長是由於薪資和福利增加，以及與先前討論的遷移到公有雲相關的軟體費用增加，這將把某些資本支出轉化為營運支出，但為公司帶來長期利益。

Moving to B2B, revenue of $23.9 million was an increase of 12.1% or $2.6 million from the prior year. Our buyer funded revenues grew by 7.1% while supplier funded revenues grew by 35% on a year-to-year basis. To clarify, when we use the terms, buyer funded and supplier funded, we're referring to who is paying the interchange or credit card related fees.

轉向 B2B，收入為 2390 萬美元，比前一年增加 12.1% 或 260 萬美元。我們的買家資助收入較去年同期成長 7.1%，而供應商資助收入較去年同期成長 35%。需要澄清的是，當我們使用「買方資助」和「供應商資助」這兩個術語時，我們指的是誰支付交換費或信用卡相關費用。

In the supplier funded model, or what we've historically referred to as CPX, the supplier accepts the card payment net of the interchange discount because they want to receive the payment faster while receiving the funds electronically with reconciliation back into their GL and without the cost of handling paper checks. In the buyer funded model, which came by the plastic acquisition, the buyer pays the card fee because they want to utilize existing credit card capacity to extend their payables terms and optimize their working capital while generating cashback or rewards points for using their cards.

在供應商資助模式（或我們歷史上稱為 CPX）中，供應商接受扣除交換折扣後的卡支付，因為他們希望更快地收到付款，同時以電子方式接收資金，並將其與總賬進行對賬，而無需承擔處理紙質支票的費用。在透過塑膠收購而產生的買方資助模式中，買方支付卡費是因為他們希望利用現有的信用卡容量來延長其應付期限並優化其營運資金，同時透過使用他們的卡產生現金回饋或獎勵積分。

The buyer funded businesses increased focus on enterprise level customers and large bank referral partners showed success in the quarter as companies seek to optimize their working capital and streamline their payables operations in the face of rising input costs, whether resulting from general inflation or from increased tariff rates.

買方融資企業更加關注企業級客戶，大型銀行推薦合作夥伴在本季度取得了成功，因為面對不斷上升的投入成本（無論是由於普遍通貨膨脹還是由於關稅稅率提高）企業都在尋求優化營運資本並簡化應付款項業務。

Adjusted gross profit in B2B increased to $7.3 million in the quarter, which is a 17.8% increase over the prior year. For the quarter, gross margins were 30.5% or 150 basis points higher compared to 29% in the first quarter of 2024. The B2B segment produced $3.5 million of adjusted EBITDA during the quarter, which was a $1.8 million or 101% increase over the comparable period in 2024.

本季 B2B 調整後毛利增至 730 萬美元，較上年成長 17.8%。本季毛利率為 30.5%，較 2024 年第一季的 29% 高出 150 個基點。本季度，B2B 部門的調整後 EBITDA 為 350 萬美元，比 2024 年同期成長 180 萬美元，增幅達 101%。

The acceleration of adjusted EBITDA growth compared to adjusted gross profit was driven by strong operating leverage in the segment, including a 14% reduction in operating expenses on a year-to-year basis. Moving to the enterprise segment. Q1 revenue of $50.1 million was an increase of $9.1 million or 22.2% from the prior year.

調整後 EBITDA 成長相對於調整後毛利的加速是由於該部門強勁的經營槓桿，包括經營費用年減 14%。轉向企業領域。第一季營收為 5,010 萬美元，較上年增加 910 萬美元，增幅為 22.2%。

Revenue growth was driven by continued strong enrollment trends and an increase in the number of build clients and CFTPay combined with an increase in the number of integrated partners in organic same store sales growth with those existing partners. Higher account balances and CFTPay and passport were able to largely offset the impact of lower interest rates in the quarter.

營收成長的動力來自於持續強勁的註冊趨勢、建立客戶和 CFTPay 數量的增加，以及與現有合作夥伴一起實現有機同店銷售成長的綜合合作夥伴數量的增加。更高的帳戶餘額以及 CFTPay 和護照能夠在很大程度上抵消本季度較低利率的影響。

As a result of those factors, adjusted gross profit for the enterprise segment also increased by 22.2% to $46.9 million, while adjusted gross profit margins remained at 93.6%. Adjusted EBITDA for the quarter was $42.4 million, an increase of $7.7 million or 22.2% from the prior year's first quarter. Overall profitability in enterprise was driven by continued strong performance in CFTPay, which offset investments made in newer verticals that we believe will provide the next leg of the growth stool for the enterprise segment.

由於這些因素，企業部門的調整後毛利也成長了 22.2%，達到 4,690 萬美元，而調整後的毛利率維持在 93.6%。本季調整後 EBITDA 為 4,240 萬美元，較去年同期第一季增加 770 萬美元，增幅為 22.2%。企業的整體獲利能力受到 CFTPay 持續強勁表現的推動，這抵消了對新垂直領域的投資，我們相信這些投資將為企業部門提供下一個成長支柱。

Moving to consolidated operating expenses. Salaries and benefits of $25.8 million increased by $3.6 million or 16.4% compared to Q1 of last year, and SG&A of $15.1 million increased by $4.1 million from Q1 of 2024. Higher in SG&A expenses were driven by increased spend on software, including the continued public cloud migration, higher marketing expenses in the quarter, and certain non-recurring legal and other expenses, including those related to the secondary equity offering we closed in January.

轉向合併營業費用。薪資和福利為 2,580 萬美元，比去年第一季增加了 360 萬美元，增幅為 16.4%，銷售、一般及行政費用為 1,510 萬美元，比 2024 年第一季增加了 410 萬美元。銷售、一般及行政費用的增加是由於軟體支出的增加，包括持續的公共雲遷移、本季度更高的營銷費用以及某些非經常性法律和其他費用，包括與我們在一月份完成的二次股票發行相關的費用。

Moving to the capital structure and liquidity overview. Debt levels during the quarter declined to $935.5 million following a $10 million prepayment of the term loan during the quarter. We ended the quarter with $117.6 million of available liquidity, including all $70 million of borrowing capacity available under our revolving credit facility, and $47.6 million of unrestricted cash on the balance sheet.

轉向資本結構和流動性概述。在本季預付了 1,000 萬美元的定期貸款後，本季的債務水準下降至 9.355 億美元。本季末，我們擁有 1.176 億美元的可用流動資金，其中包括循環信貸額度下所有 7,000 萬美元的可用借款能力，以及資產負債表上的 4,760 萬美元非限制性現金。

For the LTM period ended March 301, adjusted EBITDA of $209.2 million represents $4.9 million of sequential quarterly growth from $204.3 million at the end of Q4. This growth in adjusted EBITDA combined with net debt of $887.9 million resulted in net leverage of 4.2 times a quarter end, which is down from 4.3 times at 2024s-year end.

截至 3 月 30 日的 LTM 期間，調整後的 EBITDA 為 2.092 億美元，較第四季末的 2.043 億美元環比增長 490 萬美元。調整後的 EBITDA 成長加上 8.879 億美元的淨債務導致季度末的淨槓桿率為 4.2 倍，低於 2024 年末的 4.3 倍。

As mentioned on our last earnings call, we will continue to focus on opportunities to reduce leverage on our balance sheet, while also remaining nimble in the face of inorganic growth opportunities in this market. If you were to use the midpoint of our 2025 adjusted EBITDA guidance, we would be under four times leverage by year end based on today's net debt balance.

正如我們在上次收益電話會議上提到的那樣，我們將繼續專注於降低資產負債表槓桿率的機會，同時在該市場無機成長機會面前保持靈活。如果使用我們 2025 年調整後 EBITDA 指引的中點，那麼根據今天的淨債務餘額，到年底我們的槓桿率將低於四倍。

This is the first quarter since I joined Priority, where this page doesn't include mention of the preferred stock dividend. With the redemption in full of the preferred stock in 2024, I'm happy to report that all of our net income now flows to the benefit of our common shareholders, which resulted in adjusted EPS of $0.22 for the quarter. That compares to $0.18 in Q4 2024 and $0.03 in Q1 of last year.

這是我加入 Priority 以來的第一個季度，此頁面沒有提及優先股股息。隨著 2024 年優先股的全額贖回，我很高興地報告，我們所有的淨收入現在都流向我們的普通股股東，這導致本季度調整後的每股收益為 0.22 美元。相比之下，2024 年第四季為 0.18 美元，去年第一季為 0.03 美元。

As Thom mentioned, based on our Q1 results and our forecast for the remainder of the year, we are maintaining the full year of financial guidance that was provided on our Q4 2024 earnings call. This outlook is informed by the current environment where consumer spending remains stable and interest rate changes remain aligned with current market forecasts.

正如 Thom 所提到的，根據我們第一季的業績和今年剩餘時間的預測，我們將維持在 2024 年第四季財報電話會議上提供的全年財務指引。這種前景是基於當前消費支出保持穩定、利率變化與當前市場預測一致的環境而形成的。

If you compare Q1 results to the full year guidance, the simple math will show that we're not 25% of the way there yet. But our expectation is and has been that we will grow revenue and profits sequentially each quarter as we move through the year. Before I turn the call back over to Thom, I wanted to provide an update on our progress in the remediation of the material weakness related to the design and operating deficiencies and certain automated controls around ingestion and validation of third-party processors data.

如果將第一季的業績與全年預期進行比較，簡單的計算就會顯示我們尚未完成 25%。但我們的預期是，隨著全年的發展，我們的每季的營收和利潤都會逐季成長。在我將電話轉回給 Thom 之前，我想介紹一下我們在修復與設計和操作缺陷以及圍繞第三方處理器資料的提取和驗證的某些自動控制相關的重大缺陷方面取得的進展。

As noted in our 10-K and comments on our last earnings call, the material weakness did not result in a restatement or any change to our consolidated financial results. The Board of Directors and management team are actively working to remediate the automated control efficiency. As of today, the team has made substantial progress in those efforts, and we are testing the existing data translation controls in a non-production environment.

正如我們在 10-K 報告和上次收益電話會議上的評論中所述，重大缺陷並未導致重述或對我們的合併財務結果進行任何更改。董事會和管理團隊正在積極致力於提高自動化控制效率。截至今天，團隊在這些工作中取得了實質進展，我們正在非生產環境中測試現有的資料翻譯控制。

Once we are certain those controls meet our internal standards and those of our external auditors, we will move them into a production environment for formal certification. To be clear though, the material weakness will remain intact until we complete our fiscal 2025 audit process and receive a formal opinion from our external auditor.

一旦我們確定這些控制符合我們的內部標準和外部審計師的標準，我們就會將它們轉移到生產環境中進行正式認證。但需要明確的是，在我們完成 2025 財政年度審計流程並收到外部審計師的正式意見之前，重大缺陷仍將存在。

With that, I'll now turn the call back over to Thom for his closing comments.

說完這些，我現在將電話轉回給湯姆，請他發表最後評論。

Thank you Tim. Before concluding, I want to speak to priorities, market positioning as consumers, businesses and investors reconcile the current economic picture. 0.3% decline in US GDP during the first quarter. Consumer spending, which counts for 2/3 of GDP, grew by only 1.8% in the quarter from a healthy 4% exiting 2024.

謝謝你，提姆。最後，我想談談消費者、企業和投資者在當前經濟狀況下的優先事項和市場定位。美國第一季GDP下降0.3%。消費者支出佔 GDP 的三分之二，本季僅成長 1.8%，而 2024 年底的成長率為 4%。

April's 32% decline in consumer sentiment, the levels not seen since the 1990s recession. It's clearly a challenging environment. But candidly not one that has surprised us. Entering 2025, we believe the post-election optimism for economic growth. Required near perfect execution. And we were more likely to experience measures of volatility and uncertainty.

四月消費者信心下降了32%，這是自上世紀90年代經濟衰退以來從未見過的水平。這顯然是一個充滿挑戰的環境。但坦白說，這並不令我們感到驚訝。進入2025年，我們相信選舉後對經濟成長的樂觀情緒。需要近乎完美的執行。我們更有可能經歷波動性和不確定性。

Therefore, our goals were basic. The gain market share in the acquiring segment as cyclical challenges we anticipated emerged. While continuing to strengthen our countercyclical assets, including automated payables and CFTPay and investing efficiently in new verticals with large teams that are still early in the adoption of integrated payment and banking solutions.

因此，我們的目標很簡單。隨著我們預期的周期性挑戰出現，收購領域的市佔率不斷增加。同時持續加強我們的逆週期資產，包括自動應付帳款和 CFTPay，並透過仍處於採用綜合支付和銀行解決方案早期階段的大型團隊對新垂直領域進行有效投資。

In fact, during our 2024 year-end earnings call, we reflected that there was likely to be growing urgency for working capital solutions among US businesses as tariffs took shape. And that our CFTPay business was well positioned for growth by assisting the increasing population of stressed consumers find financial wellness through debt resolution.

事實上，在我們 2024 年年終收益電話會議上，我們反映，隨著關稅的形成，美國企業對營運資金解決方案的需求可能會越來越緊迫。我們的 CFTPay 業務透過幫助日益增多的壓力消費者透過債務解決實現財務健康，為成長做好了準備。

As our results demonstrate, we execute it in each regard. While the car brand networks, and large-scale issuing banks reported 3% to 5% volume growth. Our core acquiring channels produced 10% organic revenue growth. Meanwhile, our countercyclical segments grew 12% and 22% respectively, despite investments for the future in emerging integrated verticals like payroll and benefits, real estate and construction technology.

正如我們的結果所表明的，我們在各個方面都執行了它。而汽車品牌網路、大型發卡銀行的發卡量則成長了3%至5%。我們的核心收購管道實現了 10% 的有機收入成長。同時，儘管我們在薪資和福利、房地產和建築技術等新興綜合垂直領域進行了未來投資，但我們的逆週期部門仍分別成長了 12% 和 22%。

And sports entertainment where collecting, storing, and sending money are an important part of the value chain. Would cause a modest drag on a results while they scale. Now I offer these observations to our stakeholders with humility. And recognition from our teams that success must be earned each day with relentless pursuit of execution.

在體育娛樂領域，收款、儲存和匯款是價值鏈的重要組成部分。在擴大規模時會對結果造成一定程度的拖累。現在我謙虛地向我們的利害關係人提出這些觀察結果。我們的團隊認識到，必須每天堅持不懈地追求執行才能取得成功。

An openness to critique and thorough evaluation to avoid complacency, particularly as economic conditions can further erode. We're hopeful that our consistent results in the first quarter of 2025. And a unified commerce vision that has delivered five-year compound annual adjusted EBITDA growth of 19.8% through the end of 2024 will convince our current and future stakeholders that priority routinely stays ahead of the market trends and its technology, operations, and decision making are geared for the future of payments and banking.

接受批評並進行徹底的評估以避免自滿，特別是在經濟狀況可能進一步惡化的情況下。我們希望 2025 年第一季能夠取得穩定的業績。統一的商業願景已實現 2024 年底前五年複合年調整後 EBITDA 成長率 19.8%，這將使我們當前和未來的利益相關者相信，優先順序始終領先於市場趨勢，其技術、營運和決策面向支付和銀行業務的未來。

To put it simply, we're built different. As always, I want to thank my colleagues at Priority who continue to work incredibly hard to deliver industry leading results. Your commitment and dedication to improving everything we do is clear. Providing our partners and customers with a constant reminder that they made the right decision to partner with priority.

簡單來說，我們生來就不一樣。像往常一樣，我要感謝 Priority 的同事們，他們繼續努力工作以取得業界領先的成果。您對改善我們所做的一切的承諾和奉獻是顯而易見的。不斷提醒我們的合作夥伴和客戶，他們所做的優先合作決定是正確的。

Last, we continue to appreciate the ongoing support of our investors and analysts and for those in attendance who are new to priority, for taking the time to participate in today's call.

最後，我們繼續感謝投資人和分析師的持續支持，也感謝那些新來參加今天電話會議的人。

Operator, we'd like to now open the call for questions. Thank you.

接線員，我們現在開始回答問題。謝謝。

(Operator Instructions) Hal Goetsch, B. Riley Securities.

（操作員指示）Hal Goetsch，B. Riley Securities。

Thanks guys. Quick question on expenses, SG&A dollars and salaries and benefits rose about $5 million in spending sequentially, and I know you called out, the secondary offering and the cloud, migration. Could you parse out some of those numbers for us to let us know. If you can, the details of how much that cloud infrastructure is different than a year ago and any other kind of expense there is you can share with us.

謝謝大家。關於費用、銷售、一般及行政費用以及工資和福利支出的快速問題連續增加了約 500 萬美元，我知道您提到了二次發行和雲端遷移。您能否分析出其中的一些數字並讓我們知道。如果可以的話，您可以與我們分享雲端基礎設施與一年前相比有何不同，以及其他類型的費用等詳細資訊。

Sure, Thanks, Hal. Yes, if you look at the SG&A in particular for Q1 of this year and compare that to last year, if you normalize for the non-recurring items, obviously we had about $2.2 million this year non-recurring items and about $0.8 million last year. So if you adjust for those, SG&A was up about 26% year-over-year, another million or so of that is related to the continued migration from the private cloud to the public cloud, so you'd have to adjust for that as well.

當然，謝謝，哈爾。是的，如果你看今年第一季的銷售、一般和行政費用，並將其與去年進行比較，如果你將非經常性項目正常化，顯然今年我們的非經常性項目約為 220 萬美元，去年約為 80 萬美元。因此，如果對這些進行調整，SG&A 費用年增約 26%，其中約 100 萬美元與從私有雲到公有雲的持續遷移有關，因此您也必須對此進行調整。

So that was really the large part of the drivers there in SG&A and then on the salary and benefit side. A lot of that is just driven by some of the headcount editions last year that obviously didn't have a full year impact into the financials, in Q3 or Q4 of last year. But you've got the full quarter, impact of that this year. I think going forward though, obviously we've maintained our guidance and feel.

因此，這實際上是銷售、一般及行政費用以及工資和福利方面的主要驅動因素。這在很大程度上只是由去年的一些員工人數統計所驅動，這些統計顯然沒有對去年第三季或第四季的全年財務狀況產生影響。但今年整季都會受到這項影響。我認為，展望未來，我們顯然會保持我們的指導和感覺。

Where we sit from an overall margin standpoint and some of the trends on the expense side and continue to look at efficiencies, especially across the technology part of the team and things we can utilize automated tools for. So we'll continue to evaluate those opportunities to manage expenses from here.

我們從整體利潤率的角度和費用方面的一些趨勢出發，繼續關注效率，特別是團隊的技術部分以及我們可以利用自動化工具的事情。因此，我們將繼續評估這些管理費用的機會。

I have one follow it, I think you mentioned the number 62%, I think twice I think or me. You said 62%, -- is it 62% of your gross product, or gross profit dollars now are coming from B2B and enterprise, is that right? I'm sure I heard that right.

我有一個跟隨它，我認為你提到了 62% 這個數字，我想了兩遍，或者我。您說的是 62%——是指您現在的總產品或毛利的 62% 來自 B2B 和企業，對嗎？我確信我沒聽錯。

It is and actually this quarter both of the numbers I referenced were 62%. So probably got a little confused with the exact same figure, but the gross profit coming from B2B at enterprise aggregates to just over 62% for the quarter. And then the other figure I referenced at 62% is the percentage of our adjusted gross profit that comes from recurring revenues in the quarter.

確實如此，實際上本季我提到的兩個數字都是 62%。因此，可能與完全相同的數字有些混淆，但本季來自企業 B2B 的毛利總計略高於 62%。然後我提到的另一個數字 62% 是我們調整後的毛利中來自本季經常性收入的百分比。

Okay. And that includes some, just the current revenue in SMB.

好的。其中包括一些 SMB 的當前收入。

It does it includes. Yes, that's on a consolidated basis, that's right.

它確實包括了。是的，這是合併後的數據，沒錯。

Okay. And the and the last one before you turn it back and getting back in the queue, you mentioned a pretty interesting finisher win with the Minnesota Wild, that's a fairly large enterprise. Could you share with us your thoughts on how you, the sales cycle that how you won that contract and what were some of the reason why you're picked over others that are active in the stadium space thanks.

好的。在您轉回話題並回到隊列之前的最後一個問題中，您提到了與明尼蘇達荒野隊一起取得的一場非常有趣的終結勝利，這是一場相當大的勝利。您能否與我們分享您的想法，關於您如何贏得該合約的銷售週期，以及為什麼您比其他活躍在體育場領域的公司更受青睞的原因是什麼？謝謝。

Yes, sure, Hal. I do want to mention one other thing that you know on the on the expense side. So the purpose of migrating to the public cloud also allows us to position for some engineering efficiencies. Just, it normalizes, the and the engineering work that gets done, there's a broader set of folks that operate in that environment. So we do expect you'll start to see some of that efficiency flow through in the following quarters.

是的，當然，哈爾。我確實想提一下您知道的關於費用方面的另一件事。所以遷移到公有雲的目的也讓我們能夠定位一些工程效率。只是，它使完成的工程工作正常化，有更廣泛的人群在這種環境中運作。因此，我們確實預計您將在接下來的幾季開始看到一些效率的提升。

On the on the OpEx side. As it relates to the press release on the Minnesota Wild, it was pretty, I think explanatory when you looked at their Chief Revenue Officer's comments. Not only do we step in and make ticketing more efficiently, the executed the other areas are really implementing the banking transparency and the acceleration of cash flow.

在營運支出方面。至於它與明尼蘇達荒野隊的新聞稿有關，當你看到他們的首席營收官的評論時，我認為它很有解釋力。我們不僅介入並提高售票效率，執行的其他領域也真正實現了銀行透明度和現金流的加速。

That we're able to help manage. So because we've combined payments of banking on a single platform, think about it this way, every single area of revenue that flows through at the stadium level or anything attached to the enterprise. We can, instead of all that, going into a single settlement bucket. We can parse it out.

我們能夠幫助管理。因此，由於我們已將銀行支付功能整合到一個平台上，請這樣想，每個收入領域都會流經體育場層級或與企業相關的任何領域。我們可以不用把所有這些都納入單一的解決方案中。我們可以分析一下。

Buy, think of it like a clearing account as that money flows in, reconciliation of all the batches are automated, because we see the batch come through, we see the deposit going into the account, and then it can immediately and efficiently sweep out into their operating bank account. Often, and this may surprise you, but these organizations, sports in particular have just, they've exploded over the past years, in evaluation.

買，把它想像成一個清算帳戶，當資金流入時，所有批次的核對都是自動化的，因為我們看到批次通過，我們看到存款進入帳戶，然後它可以立即有效地轉入他們的運營銀行帳戶。這可能會讓你感到驚訝，但這些組織，尤其是體育組織，在過去幾年中，在評估方面呈現爆炸性增長。

But many of them are still, small market teams managed and kind of by smaller group of personnel. So money that's sitting in those systems may not get invested in overnight funds or things like that. So bringing tools that allow them to optimize their working capital, get that money to work quickly, which we're able to do within our systems, things like that are the reasons why we want it. It's just a more complete tool set to help accelerate cash flow, optimize working capital.

但其中許多仍然是小型市場團隊，由較小規模的人員管理。因此，存放在這些系統中的資金可能不會投資於隔夜基金或類似的東西。因此，我們想要提供一些工具，讓他們能夠優化營運資金，讓資金快速運轉，而這些我們能夠在我們的系統內實現，這就是我們想要它的原因。它只是一套更完整的工具，有助於加速現金流，優化營運資金。

That's how we go to market, that's what resonates. And that's true whether a business is a professional sports franchise or a small business around the corner.

這就是我們進入市場的方式，這就是引起共鳴的方式。無論企業是專業運動特許經營企業還是附近的小型企業，情況都是如此。

Very good. One last thing, could you comment on the, Q1 this year versus last year had one last day and Easter was several weeks into April versus in March a year ago. Was that one last day bear any impact on volume and float and income and revenue in that any manner?

非常好。最後一件事，您能否評論一下，今年第一季與去年相比只剩最後一天，而復活節是在四月的幾個星期後，而去年則在三月。最後一天是否會對交易量、浮動資金、收入和收益產生任何影響？

It did. I'll let him speak to the specifics, but it also, I would also add in you had the had had President Carter's funeral, which, we saw some weird influence there, in the way it affected volume. So there's a few abnormalities, from the historical, in this quarter.

確實如此。我會讓他講具體細節，但我還要補充一點，卡特總統的葬禮，我們看到了它對音量產生的一些奇怪的影響。因此，從歷史來看，本季存在一些異常情況。

And if it does, obviously your intuition is right. So one less day this year compared Q1 of last year, if you look at just our daily revenue, which it impacts SMB the most, I mean the daily revenue there, it's about 67, right, so it's got an impact and then if you look at just Q4 to Q1, there's two days of difference between Q4 and Q1. So that has an impact on us as well.

如果確實如此，顯然你的直覺是對的。因此，與去年第一季相比，今年少了一天，如果只看我們的每日收入，這對中小企業的影響最大，我的意思是那裡的每日收入大約是 67，對吧，所以它有影響，然後如果你只看第四季度和第一季度，第四季度和第一季度之間有兩天的差異。所以對我們也有影響。

Alright, perfect. Thanks guys.

好的，完美。謝謝大家。

Bryan Bergin, TD Cowen

布萊恩·伯金（Bryan Bergin），TD Cowen

Hey guys, good morning. Thanks for taking the question. I appreciate the outlook for growing overall revenue and profit sequentially as you go through 2025. Are there any important considerations as you get into the segment forecasts on growth and profit as you go through 2Q and the balance of the year?

大家好，早安。感謝您回答這個問題。我非常看好你們在 2025 年實現總營收和利潤連續成長的前景。當您進入第二季和今年剩餘時間的成長和利潤細分預測時，是否有任何重要的考慮因素？

I think the biggest potential impact that would affect maybe one segment more than others is just if there's any major shift in rate curves. And you think about where interest rates go and how that impacts our balances and the income we generate on permissible investments. At this point we've taken the latest estimates we have from the forward curves and applied that against our 39 forecast and ultimately roll that into how we feel about the full year guidance.

我認為，如果利率曲線發生重大轉變，對某個細分市場的影響可能會比其他細分市場更大。想想利率走向以及這會對我們的餘額和我們在允許的投資中產生的收入產生什麼影響。此時，我們已經從遠期曲線中獲得了最新的估計值，並將其應用於我們的 39 個預測，並最終將其納入我們對全年指導的看法。

But if there's any meaningful shift in rates, which at this point we've assumed three cuts this year consistent with what we're seeing in the Fed dollar plot and some of the curves. So if that changes one way or the other, then that could have an impact on the high margin interest income we generate on the permissible investments.

但如果利率出現任何有意義的轉變，目前我們假設今年將降息三次，這與我們在聯準會美元圖表和一些曲線中看到的情況一致。因此，如果這種情況發生某種變化，那麼這可能會對我們在允許投資中產生的高保證金利息收入產生影響。

Okay, makes sense. And then within SMB, so 10% growth in the core X, the residual attrition and the risk pairing. Can you scale just the impact between those two categories and how should we be thinking about the remaining size of the business that may face incremental risk pairing as you go forward?

好的，有道理。然後在 SMB 內部，核心 X、剩餘損耗和風險配對增加了 10%。您能否衡量一下這兩個類別之間的影響？我們應該如何考慮未來可能面臨增量風險配對的剩餘業務規模？

Sure. So the majority of that impact, probably a two to one plus ratio, is more of the risk pairing than it was the runoff from the historical residual purchases. Yes, I don't think we're going to expect to see a lot more on the risk parent side. We feel like we're in a pretty good position overall in that portfolio and really getting in front of some of the potential changes that Tom can talk about. But overall, I think it's all been factored into some of our guidance and the cadence of the quarterly estimates as well.

當然。因此，這種影響的大部分（可能為二比一以上的比例）更多的是風險配對，而不是歷史剩餘購買的流失。是的，我認為我們不會期望看到更多風險父母方面的情況。我們覺得，我們在該投資組合中總體處於相當有利的地位，並且真正領先於湯姆所談論的一些潛在變化。但總的來說，我認為這一切都已計入我們的一些指導和季度估計的節奏中。

Yes, just to give you a little bit of granular context, there's some network adjustments that are occurring within specialized e-commerce space. It's, -- it just, you don't know, nothing more than putting some additional reporting burden. And really the way the networks will measure performance is going to become a little bit more stringent.

是的，只是為了給你一點詳細信息，在專業電子商務領域正在發生一些網絡調整。這只是——你不知道，只不過增加了一些額外的報告負擔。實際上，網路衡量效能的方式將會變得更加嚴格。

In advance of that, we took some actions to reduce our footprint. With a belief that a number of players who participated in the space historically are actually going to be forced to exit. Because it just, it's going to compress their economics to a point where it won't make sense. So we expect that to be to our benefit over the long term, and we're just kind of positioning for that in advance of those realities, just getting it reconciled by the market participants. So that's why we try to get ahead of a few emerging opportunities.

在此之前，我們採取了一些行動來減少我們的足跡。我們相信，歷史上參與該領域的許多參與者實際上將被迫退出。因為這將壓縮他們的經濟，使其變得毫無意義。因此，我們預計從長遠來看這對我們是有利的，我們只是在現實到來之前做好了準備，讓市場參與者接受這一點。這就是我們努力抓住一些新興機會的原因。

Okay, understood. Thank you, guys.

好的，明白了。謝謝你們。

Tim Switzer, KBW.

提姆‧斯威策，KBW。

Hey, good morning. Thank you for taking my questions. Given your exposure to consumer spending, small businesses, I thought you guys might have a pretty good sense of how those customer segments have reacted to the tariffs and economic uncertainty, since Liberation Day. Have you guys seen any notable changes, in behavior or anything like that?

嘿，早安。感謝您回答我的問題。鑑於你們對消費者支出和小型企業的了解，我認為你們可能非常了解自解放日以來這些客戶群對關稅和經濟不確定性的反應。你們有沒有看到任何顯著的變化，無論是行為上還是類似方面？

Nothing material yet, Tim. Obviously, Liberation Day came in after the quarter, so we haven't really seen a dramatic shift in anything and if we continue to look at just recent volume trends here even after the quarter, I think relatively consistent and I think some of this goes to the mix of customers we have as well. If you think about our overall portfolio, we feel like we've got some good resilience in that portfolio.

還沒有什麼實質內容，提姆。顯然，解放日是在本季之後到來的，所以我們並沒有真正看到任何戲劇性的變化，如果我們繼續觀察本季之後的近期銷售趨勢，我認為還是相對一致的，我認為這也與我們的客戶組合有關。如果您考慮我們的整體投資組合，我們會覺得該投資組合具有良好的彈性。

We certainly have restaurants, you make up a good portion of mid to high teens percentage of the portfolio, which could have an impact, but If you think about the retail component of our end market, while that's you know high 20% range as a percentage of the portfolio. If you break that apart even further and look at the mix within that retail component, you've got package stores or liquor stores, you've got auto parts stores, you've got other end markets that have more resiliency.

我們當然有餐館，它們佔投資組合中百分之十幾到百分之十幾的份額，這可能會產生影響，但如果你考慮一下我們終端市場的零售部分，那麼你知道，這佔投資組合的百分之二十幾左右。如果你進一步細分它，並觀察零售部分的組合，你會發現有包裝店或酒類商店，有汽車配件商店，還有其他更具彈性的終端市場。

And then we also have obviously meaningful components in professional or business services including law firms, doctors' offices, other areas that are more re recession resistant. So we'll see some impact, but we think we're well positioned for what we expect to happen in the consumer spend cycle.

然後，我們在專業或商業服務領域也擁有明顯有意義的組成部分，包括律師事務所、醫生辦公室和其他更能抵禦經濟衰退的領域。因此，我們會看到一些影響，但我們認為，我們已經為消費者支出週期中預期發生的事情做好了準備。

Okay.

好的。

The other thing I would note actually this might as you look at some of the available research that like some of the banks are publishing, around I'll call it small business owner sentiment. Businesses that are above a half a million bucks of revenue are, largely reporting, kind of, a limited, if any concern, no substantive drop off.

我實際上要注意的另一件事是，當你查看一些銀行發布的一些現有研究時，我稱之為小企業主情緒。收入超過 50 萬美元的企業大多報告稱，儘管存在一些令人擔憂的情況，但收入沒有實質下降。

Our average customer is doing just shy of $40,000 a bank card a month. So you can do the math. They're larger healthier customers and it's our go to market to utilize distribution that focuses on the upper. Kind of segment of small business. So that also I think contributes to our consistency.

我們的普通客戶每月每張銀行卡的消費額接近 40,000 美元。所以你可以做一下計算。他們是更大、更健康的客戶，而我們進入市場的方式是利用專注於高端市場的分銷方式。小型企業的一種。所以我認為這也有助於我們的一致性。

Okay, got it. That's helpful and then within your enterprise segment. What kind of impact do you think some of this uncertainty that you have on the debt resolution business and like have you starting to see a take up an activity there? I think there could be a lot of opportunities with some of the layoffs related to do and maybe even as student loan payments, are now being reported credit bureaus.

好的，明白了。這對您的企業部門很有幫助。您認為這些不確定性對債務解決業務有何影響？您是否已經開始看到在那裡開展活動？我認為，與裁員相關的一些事情可能會帶來很多機會，甚至可能作為學生貸款支付，現在正在向信用局報告。

And the potential for some students to be kicked off, repayment plans and see you know rising payments there it's going to probably pressure a lot of consumers, with that.

有些學生可能會被踢出還款計劃，而且你知道還款額會不斷增加，這可能會給很多消費者帶來壓力。

Yeah, I'll tell you a couple of things we're looking at, just as leading indicators, obviously, the headlines are instructive. When you look at the amount of seriously delinquent, unsecured credit card debt, it's increasing pretty consistently. So, fundamentally we think there's going to be a great opportunity for CFTPay to, help assist stressed consumers, towards resolution work out, certainly the numbers are supporting that historically.

是的，我會告訴你我們正在關注的幾件事，就像領先指標一樣，顯然，標題是啟發性的。當您查看嚴重拖欠的無擔保信用卡債務金額時，您會發現它正在持續增加。因此，從根本上來說，我們認為 CFTPay 有一個很好的機會來幫助有壓力的消費者解決問題，從歷史上看，數據肯定也支持這一點。

And Tim can speak to some of the curve, of that business or the revenue in it curve, but there's, generally about a six-month lag, where we start to see the, --an increase in through put on resolution to, a backup in the economic environment. Because, consumers, one you you've got that 90-day delinquent window before you sort of start to catch the attention of the card issuers, and consumers fight, they either.

蒂姆可以談談該業務的一些曲線或收入曲線，但一般來說，大約有六個月的滯後，我們將開始看到透過解決投入而增加的經濟環境的支持。因為，對於消費者來說，在您開始引起發卡機構的注意之前，您有 90 天的拖欠期限，並且消費者會進行抗爭。

The consumers engaged in this process, they have jobs, they have to in order to be engaged in a resolution and work out. So they were at one time healthy consumers that were able to get 30+ million of unsecured 30+ 1,000 excuse me, of unsecured debt. So their ability to pay is just has been compromised in the near term. So we think there's going to be a growing number of consumers that fit that profile. And it should give us some opportunities in the month to fall.

參與這一過程的消費者，他們有工作，他們必須為了解決問題而參與其中並努力工作。因此，他們曾經是健康的消費者，能夠獲得 3000 多萬美元的無擔保債務，對不起，是 3000 多萬美元的無擔保債務。因此，他們的支付能力在短期內受到了損害。因此我們認為符合此特徵的消費者數量將會不斷增加。這應該會為我們在這個月帶來一些下跌的機會。

Okay, got it. That was really helpful. And if I could have one more it seems like there's been an opportunity for you guys in the embedded finance space, largely related to some of the disruption and banking as a service relationship, you can call out the evolving synapse situation. I believe another middleware provider solid also recently filed for bankruptcy. What kind of opportunities has this created for you guys, with your embedded finance and ledgering products?

好的，明白了。這真的很有幫助。如果我可以再問一次的話，似乎你們在嵌入式金融領域有一個機會，這很大程度上與一些顛覆和銀行即服務關係有關，你可以指出不斷發展的突觸情況。我相信另一家中間件供應商 Solid 最近也申請破產了。這為你們的嵌入式金融和分類帳產品創造了什麼樣的機會？

It's been, yes, it's been a target rich environment. So we've been very focused on some of the businesses that we're on those platforms. And feel like we'll continue to get our fair share of wins, and you'll see those manifested, over the coming months as they transition from you know just environments that are they're just less stable.

是的，這是一個目標豐富的環境。因此，我們一直非常關注這些平台上的一些業務。感覺我們將繼續獲得公平的勝利，在接下來的幾個月裡，隨著他們從不太穩定的環境中轉變，你會看到這些勝利的體現。

So that's, yes, I think you can appreciate, we, we've been very intentional about the differentiation of our platform, the stability of our bank partners, kind of building with a long-term purpose in mind, maintaining money transmission licenses. So that, -- there's kind of clarity and certainty among our big bank partners of the rigor around our compliance.

是的，我想您可以理解，我們一直非常注重我們平台的差異化、我們銀行合作夥伴的穩定性，並以長期目標為建立目標，維護匯款許可證。因此，我們的大銀行夥伴對於我們合規性的嚴格性有一定程度的明確性和確定性。

And that's, -- we're positioned to benefit from, the fallout of some of the banking service providers who, are just not viable in the current in the current regulatory environment.

那就是，我們將從一些銀行服務提供者的倒閉中獲益，這些服務提供者在當前的監管環境下是不可行的。

Got it very helpful. Thank you.

明白了，非常有幫助。謝謝。

And there was a question that was asked about, the potential headwinds and Tim reference. If interest rates were to decline more than have more than three cuts, right? The offset to that is deposit growth. So we are seeing positive trends in deposit growth. The driver of that is are the segments outside of our CFTPay application and other segments within enterprise, some of which are, these vast providers looking for a more stable home.

有人問了一個問題，關於潛在的阻力和提姆的參考。如果利率下降幅度超過三次降息，對嗎？與之相抵消的是存款的成長。因此，我們看到存款成長呈現正面趨勢。其驅動因素是我們的 CFTPay 應用程式之外的部分和企業內的其他部分，其中一些是尋求更穩定歸屬的大型提供者。

Jacob Stephan, Lake Street Capital Markets.

Jacob Stephan，Lake Street Capital Markets。

Yes, thanks. Just a quick question. I want to talk about countercyclical, payments here. I mean, is it possible for you guys to kind of parse out, maybe some exposure to some of these markets you reference like doctor's offices, lawyers, either in terms of, like a dollar volume or revenue or even adjust the gross profit.

是的，謝謝。這只是一個簡單的問題。我想在這裡談談逆週期支付。我的意思是，你們是否可以分析一下，也許可以分析一下你們提到的一些市場，例如醫生辦公室、律師，無論是美元交易量還是收入，甚至調整毛利。

We can't from, I mean just you think about volume, Jacob, and you look at kind of the comments already made, restaurants is an end market is kind of mid to high teens, 15%, 16% percentage of our volume. Retail starts to get up into the high 20% range. And then within that there's obviously subsectors that as a reference, have some resiliency.

我們不能從，我的意思是你只考慮數量，雅各布，你看看已經發表的評論，餐館是一個終端市場，占我們銷量的中高水平，15%、16% 的百分比。零售業的成長率開始達到 20% 的高點。然後，其中顯然有一些子行業作為參考具有一定的彈性。

So there's a good mix there of I'd say half of that volume is in markets that have a good level of recession resistance. Legal services and doctors' offices, broader professional services, that's up north of 16%, 17% of the portfolio. You start getting down into other smaller subsectors, real estate those areas is called 5%. Then everything from there really it trails off, right?

因此，我認為其中一半的交易量來自具有良好抗衰退能力的市場。法律服務和醫生辦公室，更廣泛的專業服務，佔投資組合的 16% 至 17%。你開始進入其他較小的子行業，房地產這些領域被稱為 5%。那麼從那時起，一切真的都逐漸消失了，對嗎？

You've got things like education, sub 3%, public administration, sub 3%. So really the ones I've touched on already are the larger markets and then pretty diversified from there.

例如教育，佔 3% 以下；公共管理，佔 3% 以下。所以實際上我已經觸及的是較大的市場，並且從那裡開始變得相當多樣化。

Okay, very helpful. And then do you guys have any exposure to kind of enabling these tariff payments by companies in the government?

好的，非常有幫助。那麼，你們是否了解政府如何幫助企業支付這些關稅？

Yes, I don't know that I would call it exposure in fact, where I was going to transition your question because I think the observation is a good one, where we see kind of a countercyclical opportunity is in B2B. Right, where you are seeing the influence of tariffs and some of what buyers in the US have not prepared for, they're using our, card strategies, working capital strategies in our B2B segment to help them manage through that.

是的，事實上我不知道我是否會稱之為曝光，我正要轉換你的問題，因為我認為這個觀察很好，我們在 B2B 中看到了一種逆週期機會。是的，當您看到關稅的影響以及美國買家尚未準備好的一些因素時，他們正在使用我們 B2B 領域的信用卡策略和營運資金策略來幫助他們應對這些因素。

That's why, you're seeing pretty outsized growth in relative to consumer on the B2B side. Tim referenced it, our plastic volume was up 7%, our so our buyer funded, our supplier funded was up 35%. So this B2B automated payables suite of tools. I has meaningful countercyclical aspects.

這就是為什麼你會看到 B2B 方面相對於消費者而言有相當大的成長。提姆提到，我們的塑膠產量增加了 7%，我們的買家資助增加了 35%，我們的供應商資助增加了 35%。所以這是一套 B2B 自動化應付款項。我具有有意義的反週期面向。

Okay, that's helpful. Just last one for me, obviously Minnesota Wild, ticketing nice win. I was hoping that they get to the Western Conference semifinals for you guys, but maybe help us think about kind of, the difference in, contracting with, like a venue like the Excel Energy Center which is owned by the city of Saint Paul, do you, -- do you kind of view this as a leading, foot in the door towards a much broader opportunity with the wild? And like organizations.

好的，這很有幫助。對我來說，這是最後一個了，顯然是明尼蘇達荒野隊，獲得了漂亮的勝利。我希望他們能進入西部半決賽，但也許可以幫助我們思考一下，與聖保羅市擁有的 Excel 能源中心這樣的場館簽訂合約的區別，你是否認為這是邁向更廣闊的野生動物機會的先行一步？和組織一樣。

Yes. We are well positioned to help professional sports franchises optimize their payment environment. And I'll say their payment and banking environment. It's If you think about that stadium environment you referenced while yes, it's owned by the city. The team is still responsible for concerts, other activities within that venue that they're selling tickets with them.

是的。我們有能力幫助職業運動特許經營商優化其支付環境。我要說的是他們的支付和銀行環境。如果你考慮一下你提到的體育場環境，是的，它屬於城市所有。團隊仍負責該場館內的音樂會和其他活動以及門票銷售。

And they need to account for those discrete properties differently. So having a combination of flexible payment tools that can handle them all. But also, do so with call a banking container that can ease their reconciliation and operations and how they recognize that cash, or maybe even revenue shares or other payouts that need to occur within it.

他們需要以不同的方式解釋這些離散屬性。因此，擁有一套靈活的支付工具組合可以處理所有這些問題。但同時，這樣做還可以透過呼叫銀行容器來簡化他們的對帳和操作，以及他們如何識別現金，甚至是收入分成或需要在其中發生的其他支出。

It's a, it's a very useful financial tool set that brings them some efficiencies that their core bank providers and it's not just true of the wild, this is across the board. It's just not what banks do. So that's where we're bringing value to the system. And we have a very healthy pipeline of like-minded franchises that, we're speaking to about that very approach. So as we get more wins, we'll talk about it.

這是一套非常有用的金融工具，可以提高核心銀行提供者的效率，而且這不僅適用於野外，而且適用於所有領域。這不是銀行該做的事。這就是我們為系統帶來價值的地方。我們擁有非常健康的志同道合的特許經營管道，我們正在談論這種方法。因此，當我們獲得更多勝利時，我們就會談論它。

Great. I appreciate it guys.

偉大的。我很感謝你們。

Brian Kinstlinger, Alliance Global Partners.

布萊恩金斯特林格 (Brian Kinstlinger)，Alliance Global Partners 成員。

Great. Thank you. I just want to make sure I understood, just under 40% of your revenues from restaurants and retail just doing the simple math. So I want to make sure I heard you right in this in this slice of business. The have the volumes or average basket sizes materially changed. It sounds like no, at least since the beginning of April.

偉大的。謝謝。我只是想確保我理解了，透過簡單的計算，你從餐廳和零售業獲得的收入接近 40%。因此，我想確保我正確聽取了您在這件事上的意見。其交易量或平均購物籃大小是否發生了重大變化。聽起來好像不是，至少從四月初開始是這樣。

Brian, no major changes to the basket sizes, but I do want to clarify when you say it's almost 40% of our revenue. It's about 40% of the volume in SMB, which obviously is meaning to us from an overall revenue standpoint. I don't want to.

布萊恩，購物籃的規模沒有重大變化，但我想澄清一下你所說的這幾乎占我們收入的 40%。這佔 SMB 交易量的 40% 左右，從整體收入的角度來看，這對我們來說顯然意義重大。我不想。

Yes, but the answer is it that's right, it there hasn't been material changes in those metrics in the S&B segment?

是的，但答案是正確的，S&B 部門的這些指標沒有重大變化嗎？

Nothing that we wouldn't expect. Obviously, there's some seasonality in certain subsectors. You think of package stores and certain food stores, right? You're going to see a little bit of a bumper on the holidays. And then that tails off a little bit more and it gets normalized levels in Q1. So we saw some of that activity which we expect, but outside of that, no other real meaningful shift in the volumes you buy on market.

沒有什麼是我們意料之外的事。顯然，某些子行業存在一定的季節性。您想到的是包裝商店和某些食品商店，對嗎？假期期間你會看到一些豐收的景象。然後，這一數字會逐漸下降，並在第一季達到正常水平。因此，我們看到了一些我們預期的活動，但除此之外，市場上的購買量並沒有其他真正有意義的變化。

Right. And then the only other question I had from the financial perspective, based on your adjusted EBITDA guidance. What is the anticipated range of free cash flow and then can you discuss capital deployment priorities for that cash flow?

正確的。然後，根據您調整後的 EBITDA 指導，我從財務角度提出了唯一的另一個問題。預計自由現金流的範圍是多少？然後您能討論一下該現金流的資本部署優先順序嗎？

So I think the overall free cash flow for the year is going to be pretty consistent with Q1. So we had some working capital swings in Q1 just given timing of the quarter end, but if I think about cash flow more as an adjusted walk down to free cash flow, if you take out the cash interest, taxes, CapEx, take out the non-recurring expenses. We had about $20 million of free cash flow in the quarter.

因此我認為今年的整體自由現金流將與第一季相當一致。因此，考慮到季度末的時間，我們在第一季出現了一些營運資本波動，但如果我將現金流更多地視為調整後的自由現金流，如果你扣除現金利息、稅金、資本支出和非經常性支出。本季我們的自由現金流約為 2000 萬美元。

I think you'll see kind of consistent levels of cash flow compared to the EBITDA we go through the year. So you know $80 million plus of free cash flow for the year on that basis. Working capital swings may impact that a little bit, but that's mostly time related. We don't have a lot of working capital in the business outside of just when the quarter happens to end and it usually normalizes the next quarters, things reverse if it ends mid-week versus on a Friday or Monday.

我認為與我們全年的 EBITDA 相比，你會看到現金流水準比較穩定。因此，您知道，在此基礎上，今年的自由現金流將超過 8000 萬美元。營運資金波動可能會對此產生一點影響，但這主要與時間有關。除了季度結束的時候，我們的業務中沒有太多的營運資金，這通常會使下一季正常化，但如果它在周中而不是周五或週一結束，情況就會逆轉。

And if $80 million is that number, how much to debt reduction and how much for other purposes?

如果 8000 萬美元是這個數字，那麼有多少用於減債，有多少用於其他用途？

We'll continue to evaluate debt reductions throughout the year. Obvious we've made a $10 million prepayment in Q1. We'll continue to look at deleveraging over time, but we're also seeing some pretty unique opportunities in this market, given some of the dislocation we've seen out there. And Tom's referenced a few and markets on prior calls that we have interest in.

我們將全年繼續評估債務削減情況。顯然，我們在第一季已經預付了 1000 萬美元。我們將繼續關注隨著時間的推移而出現的去槓桿現象，但考慮到我們已經看到的一些混亂，我們也看到了這個市場中的一些非常獨特的機會。湯姆在之前的電話會議中提到了一些我們感興趣的市場。

So we'll remain nimble around capital deployment, but I assure you the team here is very focused on the balance sheet to continue to focus on the leveraging if there's not some other meaningful value enhancing activity out there available to us.

因此，我們將在資本部署方面保持靈活，但我向你們保證，如果我們沒有其他有意義的增值活動，這裡的團隊將非常關注資產負債表，並繼續關注槓桿作用。

Great. Thank you.

偉大的。謝謝。

This concludes the question-and-answer session. I would like to turn the floor back over to Tom Priore for a closing comment.

問答環節到此結束。我想把發言權交還給湯姆·普里奧雷 (Tom Priore)，請他做最後評論。

Thank you very much. Just want to, once again, thank everyone for their participation on the call. We appreciate everyone's support. And ask any further questions, we'll get back to work. So I hope everyone has a great rest of the week. And thanks again.

非常感謝。我只想再次感謝大家參加這次電話會議。我們感謝大家的支持。如果您還有其他問題，我們會繼續工作。我希望大家本週剩餘時間過得愉快。再次感謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。