Good morning, and Welcome to Priority Technology Holdings Second Quarter 2022 Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Chris Kettmann. Please go ahead. Good morning, and thank you for joining us. With me today are Tom Priore, Chairman and Chief Executive Officer of Priority Technology Holdings, and Mike Vollkommer, Chief Financial Officer. Before we give 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. 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. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our press release and SEC filings available in the Investors section of our website. With that, I would like to turn the call over to our chairman and CEO, Tom Priore. Thank you, Chris. Thanks everyone for joining us for our 2nd quarter 2022 earnings call. We once again reported outstanding quarterly results, growing both our top and bottom line at a rapid pace during the period. For the 3rd quarter in a row, we saw total quarterly revenue increase more than 33% from the prior year to a record $166 million in Q2. Our exceptional revenue growth drove a nearly 60% increase in gross profit to $55.7 million, and a more than 60% improvement in adjusted EBITDA to $33.9 million. These results were underpinned by a 540 basis point expansion in our gross margin to 33.5%. As you can see on slide four, our strong results in Q2 were a continuation of the positive performance for the year overall. On a year-to-date basis, total revenue is up 34% to nearly $320 million and grew organically by 19.6%, excluding the Finxera acquisition. Gross profit increased by 61% to $107.4 million, and adjusted EBITDA was up nearly 65% to $64.2 million in the 1st half of 2022. Year to date, gross margin of 33.6% increased 560 basis points from 28% we reported in the 1st half of 2021. Mike will go into the segment-level detail on our 2nd quarter results shortly. Before he does, let's look at slide five and some of the company's performance statistics. As we've noted in the past, our unified commerce platform efficiently serves the SMB, B2B, and enterprise payment markets at scale, supporting over 248,000 active merchant accounts, more than 390,000 active bank deposit accounts, and processing total annual payments volume of over $106 billion, with over 80% derived from integrated software products. With our strong foundation and robust pipeline of business, we remain confident in our ability to generate revenue between $650 million and $665 million, and EBITDA of $145 million-$150 million that we projected for 2022, demonstrating Priority's ability to perform in challenging economic environments. Our highly efficient and elegant technology platform, balanced business lines, and industry-leading customer service are clearly resonating with the market, and the results speak for themselves. Moving on. For those of you who are new to the company, slide six highlights how our unified commerce core is purpose-built to collect, store, and send money, combining robust payment functionality with banking-as-a-service capability to monetize the merchant networks we serve. We remain convinced that systems which combine key features of payments and banking to accelerate cash flow to businesses will be table stakes as businesses put greater demands on software and payment solution providers. Leveraging our native Priority Passport stack, we are poised to deliver a full suite of proprietary banking and payment solutions into SMB and B2B markets and provide enterprise partners the ability to embed payments and banking features into their core offering. Our largest segment, SMB Payments, continues to outperform the industry, reporting year-over-year bank card volume growth of 10.9% and revenue growth of 18.5% in Q2. To highlight SMB's outperformance in the space on slide seven, we've included the growth rates of the top five non-bank merchant acquirers in the U.S. As you can see, Priority is growing considerably faster than these peers, reflecting our forward-looking acquiring product and market-leading service offering is resonating with SMBs and consistently winning in the marketplace. B2B payments again reported a strong quarter as it added new partner channels on the strength of our CPX product. For the 2nd quarter, our B2B segment delivered year-over-year revenue growth of 32.5% and operating income increased $700,000. It should be noted that one of our managed services customers will not be renewing their contract and will be winding down in Q4. This anticipated transition supported our decision to focus investment in our CPX product. That focus is paying dividends, demonstrated by CPX's 56% year-over-year revenue growth in Q2 as we continue to harvest and build a considerable pipeline of business opportunities. Lastly, our Enterprise Payments segment, which provides embedded payments and banking solutions to modernize legacy platforms and accelerates software partner strategies to monetize payments, reported year-over-year revenue growth of $18 million in Q2 and $5.5 million increase in operating income. Enterprise Payments is currently supporting over 30 active integrations, managing over 390,000 deposit accounts and over $500 million in deposits. Our Enterprise Payments segment is consistently piling up integration wins in sectors like real estate and construction, treasury software systems, and legacy payment operating platforms. Construction, in particular, is a vertical where we see huge opportunity in the years ahead. This thesis was reinforced by our learnings from the Construction Financial Management Association's annual conference in May. Cash flow management was a key area of focus, with surveys showing nearly 85% of construction firms have experienced cash flow issues over the past year. Priority's integrated payment and banking platform provides a perfect solution to their ongoing cash flow challenges. Before turning it over to Mike, I'd like to briefly address the frequent speculation among economic pundits regarding the current and impending economic downturn. While we can't predict the future, we hope our insights and performance reflect that we are diligent observers of leading indicators influencing the macroeconomic environment and are positioning Priority to capitalize on trends before they materialize. For the better part of the last two years, we've highlighted our expectations that weaker economic conditions would emerge, and we're building Priority with intention, seeking to remain lean and positioning our innovative agile technology to leverage a combination of traditional and counter-cyclical assets, serving broad segments of the economy. As the saying goes, adversity does not build character, it reveals it. Despite the adversity of COVID, we grew top and bottom line results. As the inflationary and recessionary environment arrived, we have only accelerated our growth trajectory. Our organization strongly believes that our unique and diversified technology and product offering sets us apart from the competition and positions us for greater success than virtually any payment company out there. The results speak for themselves. At this point, I'd like to hand it over to Mike, who will provide further insight into our performance during the quarter, along with current trends in each business segment. Mike? Thank you, Tom, and good morning. Our MD&A, included in the Form 10-Q, provides a discussion of our comparative 2nd quarter and year-to-date results. A link can be found on our website. As Tom mentioned, we had strong financial performance across all business segments in the 2nd quarter and 1st half of 2022. As I review the segment-level contribution to the consolidated 2nd quarter results, please refer to the supplemental slides for further details. Consolidated revenue of $166.4 million increased 33.1%, driven by strong growth across all segments. SMB payments revenue of $142.5 million increased 18.5%, driven by bank card dollar volume growth of 10.9%, 9% growth in transactions, and 1.7% growth in average ticket. Merchant onboarding trends were strong. New monthly merchant boards averaged over 4,500 in the quarter, consistent with historical monthly averages ranging from 4,300- 5,000. The average merchant count of 247,500 in the 2nd quarter of 2022 grew 7% over 2nd quarter 2021. Specialized merchant acquiring continued renewed merchant growth in the quarter and is expected to continue on this planned growth trajectory throughout the 2nd half of the year. B2B payments revenue of $5.3 million increased 32.5%. In CPX, strong volume trends within existing and new customers drove a 56.3% revenue growth. In managed services, revenue grew 16.7%. Enterprise payments revenue of $18.6 million increased $17.9 million from $0.7 million in the prior year. CFTPay, acquired in September 2021, drove this growth. Gross profit of $55.7 million increased 58.2%. SMB gross profit of $35.5 million increased 9.2%. B2B gross profit of $3.2 million increased 28%. In Enterprise, gross profit amounted to $17 million, which increased $16.8 million from $0.2 million in the prior year. Gross profit margin of 33.5% increased 540 basis points from 28.1%. The results of Enterprise drove this overall margin expansion. Other operating expenses of $42.6 million increased 53.2%. This increase is primarily driven by acquisition and business growth. Salaries and benefits of $15.8 million increased 51.9% from $10.4 million as a result of a nearly 70% increase in headcount, mainly driven by the 3rd quarter 2021 acquisition of Finxera. Additional headcount has been added in connection with growth initiatives. SG&A of $9.3 million increased 38.8% from $6.7 million. Acquisition-related increase was $1.6 million, and the remaining $1 million increase is driven by business expansion. Depreciation and amortization of $17.5 million increased 63.6%, driven by the 2021 acquisitions. Operating income of $13.1 million increased 77% from $7.4 million. SMB operating income of $14 million declined 2.8% from $14.4 million, due largely to a $1.7 million increase in salary and employee benefits due to higher headcount and stock-based compensation, a $1.2 million increase in SG&A expenses, and a $0.6 million increase in depreciation and amortization. Now, the increase in headcount in SG&A are attributable to growth initiatives. B2B operating income of $663,000 increased $641,000 from $22,000, driven by gross profit growth of $627,000. Enterprise operating income of $5.7 million increased $5.5 million from $0.2 million in the prior year. Corporate expense of $7.3 million approximated $7.2 million in the 2021 quarter. Both quarters include non-recurring expenses, $1.7 million in the 2022 quarter and $1.8 million in the 2021 quarter. Adjusted EBITDA of $33.9 million increased 61.4% from $21 million. Interest expense of $12.3 million increased $5 million from $7.3 million. Higher comparative debt levels, driven by the 2021 acquisition financings drove the increased interest expense. Now, our debt levels continue to decline. Net debt of $606.1 million declined $5.7 million from $611.8 million at March 31st, 2022. Now total debt of $628 million at June 30th, 2022, included a $12 million temporary five day increase in revolver borrowings during the last week of June. However, total debt has subsequently been reduced to $613.8 million, with the entire $14.5 million previously outstanding on the revolver being repaid. We've had a total debt reduction of $34.7 million since acquisition of Finxera in September of 2021, and this is comprised of scheduled amortization payments of $4.7 million and revolver payments of $30 million. We currently have the entire $40 million of borrowing capacity available under the revolving credit facility. The senior preferred stock on our balance sheet of $220 million at June 30th is net of $21.9 million of unaccreted discounts and issuance costs. The 2nd quarter preferred dividend of $7.7 million is comprised of $3.57 of cash, $4.16 of PIK, and it's supplemented on our income statement with accretion of the discounts and issuance costs of $0.8 million. I'd like to turn the call back over to Tom. Thank you, Mike. On slide 20, we've laid out the key reasons why Priority is extremely well-positioned to win, both in the current market and the years ahead. Priority has been purpose-built and is managed with precision. The numbers, particularly our results through the economic ups and downs of the past few years, reinforce the effectiveness of our model. Forward-looking decision-making of our organization. Importantly, I would like to take an opportunity to thank the Priority team for their hard work and dedication to getting the job done. None of our success over the past several quarters could have happened without a full team effort to meet the needs of our customers in today's rapidly evolving marketplace. Thank you to the team for all you have done and what you continue to do daily. On a personal level, and on behalf of all my teammates at Priority, I'd like to extend my gratitude and utmost appreciation to Mike Vollkommer, who we announced will be retiring from the CFO role in early September. While we have several highly qualified candidates that we are excited about who will ably fill the position, Mike Vollkommer has been a catalyst in the evolution of Priority as an up-and-coming public company and a fantastic partner. While Mike Vollkommer will be stepping away from the CFO role, we're pleased that he will remain with the company in advisory capacity, ensuring a smooth transition in the years ahead. He'll also be assisting us in executing strategic projects and advising young companies that we are accelerating. Thank you, Mike Vollkommer, for all you've done and everything I know that you'll continue to do to make Priority a great company. Let me conclude by stating what I believe should be abundantly clear. Priority is positioned as a payment powerhouse. The numbers bear that out. With the technology and infrastructure we've built, we are much, much more, and we're really just at the early stages of liftoff. Priority is now a payments and banking technology business that offers clear advantages for business to accelerate cash flow. We're laser focused on delivering a unified commerce solution through the combination of payments and banking on a single platform, and we will continue to deliver on that vision going forward. We appreciate your time participating on today's call and the ongoing support of our investors and analysts. Operator, we'd now like to open the call for questions. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The 1st question will be from Steve Moss from B. Riley FBR. Please go ahead. Good morning. Morning, Steve. Maybe just starting with the, you know, good uptick here quarter-over-quarter in B2B volumes and enterprise volumes. You know, the revenues maybe didn't quite follow at the same pace. Just kind of curious if you could give some color around the dynamics there and how you're thinking about it for the 2nd half of this year. Steve, perhaps you could shed a little light on the observation where you that revenues didn't track at the same pace. Just, are you referring to something specifically? Referring to just Enterprise Payments volumes, for example, up call $387 million versus $216 million last quarter, I think, in terms of payment volumes. I'd have to take a look at the volumes that, you know, you're referring to. I, you know, I'd say that, you know, we're outperforming our internal targets. I'll marry up those volumes because I don't have that readily available. Yeah, let me just speak just about volume more generally. I think actually what you see if you kind of dig into the trend, like across the business, say acquiring volume was up, you know, 10%, but you know, revenue organically in that channel grew 18%, you know. We're actually seeing margin expansion from, you know, some of our higher margin sectors. If you look at, you know, B2B similarly, that, you know, volume is outperforming expectations and, you know, has grown by with revenue growing 56% year-over-year. On the enterprise side, I'm not sure you mentioned it specifically, but we're actually seeing, you know, tremendous growth in that channel that is also, you know, I'll just say, trending above our expectations. Mm-hmm Given the countercyclical nature of that asset class that does you know very well in you know as economic times become a little bit more challenging on the consumer side. That's why I'd like to you know maybe take it offline and just understand specifically what you're looking at because we're... Yeah we'll drill into it because it may be a mix of ACH and card volume and you know that drives different top line. Right. Okay. It might be just the way we're marrying up on my end. In terms of the, you know, gross profit margin, you know, the nice trends there. Just, you know, kind of any updated color on your expectations as we head into the 2nd half of this year. Look, we've had expectations that would trend up through the year. We think that'll continue. That'll be, you know, particularly driven by the growth in enterprise, which is just by virtue of the segment higher margin. You know, we're seeing only accelerating growth in that channel. As specialized acquiring continues to rebound in the SMB segment, that'll also add to margin. We think those two segments specifically will be a catalyst to expanding margin through the 2nd half of the year. Okay, great. Well, thanks very much for the color. I'll step back there. Thank you, Steve. The next question will be from Brian Kinstlinger from Alliance Global Partners. Please go ahead. Great. Thanks for taking my questions. Mike, just want to express you'll be missed on these calls for sure. Thank you. The 1st question I've got is the consumer payments processing volume increased 11% year-over-year, and revenue in that segment increased 19%. Can you walk us through the difference? I assume this could be specialized merchant acquiring, where you're taking on more risk, or maybe touch on the mix that's driving better revenue growth and volume growth year-over-year. Sure. That is a contributor. We've also seen some, you know, some margin increase in other segments of that that are just, you know, higher producing segments in our book. You know, as you may recall, we probably participate less. You know, if you were to look at, let's say, the U.S. economy in its totality, we're probably underrepresented in the restaurant sector, and we do more in, you know, retail and hotel, wholesale trade, and business services, which, you know, are higher margin. Of course, we do that for a reason. We think, you know, the product needs in that sector are more sophisticated, and our products, you know, deliver a really tight solution in that segment. Yes, you are right. We're seeing expanded margin from the specialized sector. The only thing I would clarify for you is that's actually not a riskier sector for us. In the course of our history in this segment, which is, you know, well over 10 years, we've actually never had a loss in it. The way we manage that segment is with our partners, they actually take 100% of loss responsibility. Through the combination of reserves at the merchant level and at our partner level, that has always, and we anticipate will continue to, cover any potential for losses. You know, largely speaking, that segment has a great deal of supportive analytics for the way we position merchant reserves. We use that to protect our partners as well. They don't incur losses either. That segment is really borne by the merchants operating in that sector. That's the way the market operates. There's very few peers in the space that you know do it well, but there's a handful of us. Just to kind of clarify on that risk point. Yeah. Let me add one point. In specialized, there's revenue is driven not just by volume, but also chargeback fees, which is not volume related. You'll see as that continues to grow, as it has in the past, you know, into Q3 and Q4. It'll drive a bit of a spread between, you know, card volume and revenue growth. Brian, maybe to put a fine, like a really kind of granular level point on this, if you think about our role within the sector, we're in effect providing transaction insurance. Well, if a merchant has greater chargebacks, you know, think of it just like, you know, insuring a home, right? If you know, if a home is in a high hurricane area, right, you're gonna pay more for insurance. Well, that's the same way it works here. If you are exhibiting behavior that just makes it riskier, then you know, more reserves flow in, chargeback expenses, you know, are debited to the merchant, and you're paying more for processing. That gives us the ability to what I'll call risk-based pricing, and then along with the reserves, make it, you know, a really, you know, kinda aligned approach to the way the merchant's managed in the market, but not, you know, expose our platform to merchant conduct. Thank you. When you talk about margin, I think you're talking about net take from gross 'cause actually, what I'd love on the 2nd question for you, too, is to reconcile what you've said there and why revenue is growing faster than volume. If you look at the gross margin on consumer payments, it's actually down year-over-year, the reported gross margin. Maybe you can speak to that, Mike. Yeah. That's you know, what Tom is alluding to, you know, what's driving the top line, is pricing. Right In those sectors. You know, you know, there's a mix of ISOs that drive a lot of that. In the recent quarters, there's been a shift to the higher commissioned ISO. Yep partners of ours. That puts a bit. That's when we talk about mix, it's really ISO mix. That does- Ah. ...have a bit of depressing effect on the margin. But you know that'll become a bit overshadowed as we go into the 2nd half of the year with you know the expansion we expect from specialized merchant acquiring. That's helpful. Thank you for the clarification. Can you update us on the timing of the launch of your new cross-selling banking-as-a-service platform to offer instant cash to your merchants through Finxera? How should we think about when that might begin to materially impact the segment revenue? We expect to be in beta towards the beginning of Q4, end of Q3. We'll continue to perfect that through the quarter for anticipated launch in 2023 with specifically the feature you just described. We are active with, you know, what I'll describe as the banking-as-a-service tools and acquiring through, you know, our PayFac channel, which is live with customers kinda utilizing the banking-as-a-service and the virtual account features. We're launching through PayFac, payment facilitation. We'll continue to test their rollout, beta on testing with, I'll call it traditional acquiring merchants, and for a more full-scale market launch in the beginning of 2023. Great. One question on CPX. I think if you look at the revenue, if you adjust the 1st quarters, they're pretty similar in the 1st and the 2nd quarter for CPX. I think you've talked frequently that it takes time to onboard and opt in and bring in that volume. Can you update us on where you are in that evolution and when you might expect to see a hockey stick potentially of processing volume increases? Sure. If you know, if you look back, let's just use as a very tangible example. In the previous quarter, we onboarded a number of large network partners, Premier, Inc. being one, Procurement Partners being another, you know, both in the healthcare space, Century Bank, SYSPRO, which is in the manufacturing space. This last quarter, we've been busy integrating the ERP technology of those partners into our CPX platform. Those are largely complete across those network partners, and now we go out and begin to harvest. On some of those, you know, leads have already, you know, begun coming in that we're you know sales activation teams are working to activate. You know, we expect that to start to boost toward the latter part of Q3 and early Q4. Then that'll give us some better intelligence around conversion timing, so we can project their volume growth into 2023. You know, as I think you can appreciate, we've been very conservative about their activation trends and are likely to continue to be because they're chunky. Yep, understood. The last question is just following up on the 1st question. I think, Mike, if you look at processing dollar volume of integrated partners in the 1st quarter was $216 million. In the 2nd quarter, it was $387 million. That's a huge increase. Revenue increased yet to a much smaller degree sequentially. Is that a bunch of ACH because that's a fixed fee on a large volume? And should we not expect revenue to grow with the volume? That's, I think, essentially the question. I'm gonna take a look into that volume. You know, in Enterprise, it's a lot of, you know, with CFTPay, you know, it's fee-based revenue and volume. Yeah. While there is volume, of course, but the volume processing, that's not a driver of revenue. Right. It could be growth. What could be driving that, and I'll take a look at it and revert back to you. It could be, you know, MRI's activities as well. There may be. We'll take a look because, like as I said, in CFTPay, volume isn't the driver as much as, you know, the account fees and the transaction numbers. We'll need to make sure that we're putting out the right metrics. I'll take a look at this question in detail and get back to you. Great. Okay. Thank you, guys. Again, if you have a question, please press star then one. The next question is from Albert Ragsdale from LCA. Please go ahead. Morning. I have a couple questions for you. First I'd like to hear a little bit more about how you think a potential recession could impact your results. Sure. Well, I mean, look, we've, I think as the numbers bear out, obviously a recessionary environment's gonna certainly have impact on the U.S. consumer. It's already begun to. I think, you know, you've heard some others in the payments arena start to reflect on its impact. We, you know, while we recognize it's there, we are winning market share, and that's just the case in the numbers. We anticipate we'll continue to. Our onboarding trends have been very consistent. The merchants that elect to come on to the Priority platform have an attractive profile when you look at sort of the small merchants in the U.S. You know, they tend to be on the higher end of volume with you know, monthly card volume exceeding you know, 20,000. Most of our you know, peer group has the average merchant volume that's probably you know, slightly less than or half of ours you know, based on the statistics I've seen. It just competes very well with you know, stable merchants, right? Merchants doing more volume, they're healthier merchants. We you know, kind of expect to remain on the trend of boarding 4,500 you know, 4,900 merchants a month and you know, that'll lead to net growth in the book. Where I think our opportunities kind of skew more towards the upside is, you know, we have made a conscious effort to get into countercyclical, or early stage, segments of the economy for digital payments. Rent payment, perfect example. You know, we're seeing very good growth there. In difficult environments, you're gonna find, you know, renters are more likely to finance their rent over two payments by putting it on their credit card or, you know, trying to find other means to extend, you know, payment terms. So, you know, we see benefits there as more converts to digital. More property managers are looking to get their cash faster, so they're opting into digital payments and utilizing software to collect from renters where in years past they haven't. High 70% and, you know, most recent stats, 80% of rent payments are still paid by check, so there's a lot of wallet share to grab there. Then the other segment I would highlight is, look, our CFTPay business and consumer finance segment that serves consumers that are engaged in debt consolidation and debt settlement, as you might expect in a stressed economy, we see more consumers electing to enter into such programs. At the height of the COVID stimulus, we were seeing, you know, boarding of new consumers that were probably in the, you know, high teens thousand, maybe, you know, touching occasionally 20,000. That's, you know, nearly doubled. That is a countercyclical trend we don't see changing in the near term, or I'll say in the medium term. You know, we think those are segments that will make Priority a performer in challenging economic environments because these are segments that are designed to perform well in such environments. We don't, you know, we're not gonna predict the timing of everything but, you know, we think we've got a strong setup. Hopefully that gives you some granularity around, I'll call it the whys of our performance through difficult economic cycles. Yeah. That's helpful. Thanks. For my 2nd question, I know you touched on the pandemic economy a little bit earlier. I was wondering if you're still seeing a COVID impact on the business. You know, we're seeing a continuation of trends that we've seen albeit at a slightly reduced level. For instance, there was a lot more in-app and online, you know, purchase activity through COVID that, you know, has started to go more to card present, right? You know, we're seeing mix change a little bit between card not present, card present, you know, in the acquiring space. You know, while that margin shift affects us, you know, a bit, we're also just seeing new merchant growth, right? Just new businesses are being formed or were formed at the tail end of COVID. You know that, as often happens, you know, weaker businesses get culled out in those difficult economic environments and new ones take their place. You know, that is, I would say at this point, that's the only, you know, kind of shift we've seen. You know, I don't think that'll. You know, COVID has made some permanent changes in the SMB space. Where we're probably seeing the most pronounced impact and continuation of the COVID influence is in the automated payables arena. Business models in the middle market to enterprise segment, you know, have been permanently changed, and those businesses are looking to drive automation. The influences there are twofold. One is certainly COVID and remote working and just driving automation, just given the working environment. Of course, the other is businesses are now looking for every area that they can reduce cost or, you know, pick up incremental revenue. Automated payables is a pretty fruitful area to look, particularly given suppliers' needs for accelerated cash flow and willingness to, you know, perhaps accept some pricing discount or the cost of digital payments to get cash faster into their businesses. You know, we think that's a secular shift that's gonna continue for a while. We're probably most excited about that as a long-term trend. Thank you. Yeah, let me clarify that Enterprise volume and revenue, guys. The reason why I was a little caught off guard is because that's really not the driver of the revenue. We disclosed that to disclose total bank card volume processed. The drivers in that Enterprise Payments, the key drivers to the revenue are different metrics. We will take it on ourselves to start to publish those metrics, which we can link to the revenue growth for y'all. There's a disconnect between bank card volume and bank card transactions in that segment to the revenue growth. We'll clarify that as we go forward. Thank you. The next question is a follow-up question from Brian Kinstlinger from Alliance Global Partners. Please go ahead. Great. Thanks. One question on the B2B business. You mentioned you're gonna be winding down a customer at the end of the 4th quarter, I think is what you said. So can you just help us, for modeling purposes, understand the size of that customer, how material and, you know, maybe revenue in 2022, and were they evenly split quarter to quarter? Yeah. In the 2nd half of the year, it would've impacted us by $1.5 million, you know, at a normalized run rate. Meaning quarterly revenue is about $1.5 million each quarter? No, I'm talking in the 2nd half. EBITDA. EBITDA is impacted by $1.5 million. What about revenue? Yep. You know, that business, the margin is much lower. I don't have that number offhand, but it's all considered in our guidance. If you're trying to model that out, let me see if I can put my finger on it. It's probably about $5 million. 5 annual run rate. In the 2nd half. In the 2nd half. $5 million 2nd half, which generates, just to be clear, about $1.5 million in EBITDA. Right. Yep. Okay. That's helpful. Just wanted to understand that. Thank you again. Just to be clear, Brian. Yep That was in our guidance. Yep. It was an expected transition that we had anticipated in the way we were managing the business. Got it on an annual basis in 2022. This didn't just happen. Let me add, there's a lot of folks in that business 'cause it's an outbound call center. We, you know, will save some expense on. There's a high turnover in there, so, you know, there's a lot of hidden costs that might not get totally allocated there. You know, we'll be rationalizing some other costs to offset that. It was all built in, as Tom said, to our guidance from the beginning of the year. Yeah, it's you know, on a personal note, you know, or maybe related to the personnel in that business, you know, the fickleness of that partner at times kinda led us to be, you know, very conservative about, you know, just the uncertainty that sometimes they would present. Yep. I remember you ramped up and ramped down. Yeah, I remember you had to call up ramping up and ramping down without naming a customer. I assume it's the same customer that maybe leads to some unpredictability over time. Yes. Yes. Exactly. Yeah. That is correct, Brian. Okay. All right. Thanks again, guys. Thank you. Thank you. The next question is also a follow-up. It's from Steve Moss from B. Riley FBR. Please go ahead. Just one more. Circling back, I just wanna touch on CapEx, just kind of any updated thoughts on CapEx here. I know talk in the past fairly consistent here, but just curious with all the partners that you've added, Tom, if maybe there's a little bit of a step up or, you know, kinda still $8 million-$9 million, if you will, on an annual basis. Yeah. You could see in our cash flow statement, you know, the software, that's the annual- Yep. That's the development of capitalized software. So you could probably double what's in there for the full year. The other items are, you know, basically earn-outs that we had with some residual purchases in the past. On the capitalized software, you're looking at about the run rate in the 1st half. Okay. Perfect. Just to be specific around that, we don't have technical debt that we need to rationalize. I only see that coming down as a percentage of revenue. Right. That's right. Thank you. Ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to Tom Priore for any closing remarks. All right. Well, thank you very much. In closing, I just wanna thank everyone for your ongoing support of our business and interest for those of you new to the story in learning more about Priority. We are excited about not only the way we closed the 1st half of the year, but our anticipated performance through the remainder of the year. Look forward to our next opportunity to speak. Hope everyone has a great closeout to the summer, and we'll look forward to speaking to you on the Q3 call. Thank you, sir. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.