Bottomline Technologies, Inc. : Bottomline Technologies Reports First Quarter Results
(Thomson Reuters ONE) -
Strong Growth in Subscription and Transaction Revenue Highlights First Quarter
PORTSMOUTH, N.H., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Bottomline Technologies
(NASDAQ:EPAY), a leading provider of cloud-based business payment, invoice and
digital banking solutions, today reported financial results for the fiscal first
quarter ended September 30, 2016.
Subscription and transaction revenues, which are primarily related to the
company's cloud platforms, increased 13% as compared to the first quarter of
last year to $52.1 million, or 16% on a constant currency basis, which is
calculated as discussed in the "Non-GAAP Financial Measures" section that
follows. Revenues overall for the first quarter were $83.1 million.
Net loss for the first quarter was $10.5 million compared to a net loss of $4.3
million for the first quarter of last year. Net loss per share was $0.28 in the
first quarter compared to $0.11 in the first quarter of last year.
Adjusted EBITDA for the first quarter was $16.7 million, or 20% of overall
revenue. Adjusted EBITDA is calculated as discussed in the "Non-GAAP Financial
Measures" section that follows.
Core net income for the first quarter was $8.4 million. Core earnings per share
was $0.22, as compared to $0.24 for the first quarter of last year. Core net
income and core earnings per share exclude certain items as discussed in the
"Non-GAAP Financial Measures" section that follows.
"Our results in Q1 were a solid step forward and a good start to the fiscal
year." said Rob Eberle, President and CEO of Bottomline Technologies.
"Subscription and transaction revenue growth, adjusted EBITDA and core EPS all
reflect disciplined execution against our plan. Strategically, we entered into
an important new relationship with Mastercard which further validates our status
as a leader in business payments. Our continued growth in subscription and
transaction revenue gives us visibility to future recurring revenues and
confidence that our strategic plan will drive increased shareholder value."
First Quarter Customer Highlights
* 18 leading institutions selected Paymode-X, Bottomline's leading cloud-based
payments automation platform.
* 11 leading organizations, including Hiscox Inc and Tower Hill Insurance,
chose Bottomline's cloud-based legal spend management solutions to automate,
manage and control their legal spend.
* Signed 7 new Digital Banking deals, helping banks to compete and win
business in their corporate and SMB segments by deploying innovative digital
capabilities.
* Companies such as Secure Trust Bank and Atom Bank selected Bottomline's
Financial Messaging solution to improve operating efficiencies and optimize
the effectiveness of their financial transactions by utilizing the SWIFT
global network.
* Organizations such as Chegg Inc and Charles Schwab chose Bottomline's
corporate payment automation solutions to extend their payments capabilities
and improve efficiencies.
First Quarter Strategic Corporate Highlights
* Announced a strategic alliance with Mastercard focused on creating the
optimum way for businesses to pay and get paid. The combination of
Mastercard and Paymode-X creates a universal business payment solution,
Paymode-X with Mastercard, allowing customers to automate payments of all
types through a single platform while increasing revenue opportunities,
efficiencies and control.
* Recognized as a top 100 global provider of financial technology on the 2016
IDC Financial Insights FinTech Rankings, as well as in the 2016 FinTech
Forward rankings compiled by American Banker and the Bank Administration
Institute (BAI).
Non-GAAP Financial Measures
We have presented supplemental non-GAAP financial measures as part of this
earnings release. The presentation of this non-GAAP financial information
should not be considered in isolation from, or as a substitute for, our
financial results presented in accordance with GAAP. Core net income, core
earnings per share, constant currency information and Adjusted EBITDA are non-
GAAP financial measures.
Core net income and core earnings per share exclude certain items, specifically
amortization of acquired intangible assets, stock-based compensation,
acquisition and integration-related expenses, restructuring related costs,
minimum pension liability adjustments, non-core charges associated with our
convertible notes, global ERP system implementation costs and other non-core or
non-recurring gains or losses that arise from time to time.
Non-core charges associated with our convertible notes consist of the
amortization of debt issuance and debt discount costs. Acquisition and
integration-related expenses include legal and professional fees and other
direct transaction costs associated with business and asset acquisitions, costs
associated with integrating acquired businesses, including costs for
transitional employees or services, integration related professional services
costs and other incremental charges we incur as a direct result of acquisition
and integration efforts. Global enterprise resource planning (ERP) system
implementation costs relate to direct and incremental costs incurred in
connection with our implementation of a new, global ERP solution and the related
technology infrastructure.
In computing diluted core earnings per share, we exclude the effect of shares
issuable under our convertible notes to the extent that any such dilution would
be offset by our note hedges; the note hedges would be considered an anti-
dilutive security under GAAP.
Periodically, such as in periods that include significant foreign currency
volatility, we present certain metrics on a "constant currency" basis, to show
the impact of period to period results normalized for the impact of foreign
currency rate changes. We calculate constant currency information by translating
prior period financial results using current period foreign exchange rates.
Adjusted EBITDA represents our GAAP net income or loss, adjusted for charges
related to interest expense, income taxes, depreciation and amortization, and
other charges, as noted in the reconciliation that follows.
We believe that these supplemental non-GAAP financial measures are useful to
investors because they allow for an evaluation of the company with a focus on
the performance of its core operations, including more meaningful comparisons of
financial results to historical periods and to the financial results of less
acquisitive peer and competitor companies. Our executive management team uses
these same non-GAAP financial measures internally to assess the ongoing
performance of the company. Additionally, the same non-GAAP information is used
for planning purposes, including the preparation of operating budgets and in
communications with our board of directors with respect to our core financial
performance. Since this information is not a GAAP measurement of financial
performance, there are material limitations to its usefulness on a stand-alone
basis, including the lack of comparability of this presentation to the GAAP
financial results of other companies.
We also disclose Subscription and Transaction bookings. This amount reflects a
comparable metric of sales activity despite variations in contract lengths and
terms. This amount is defined as the one-year value of new order invoicing,
excluding installation and other one-time fees, which are contractually
obligated or anticipated to recur on an annual basis once the customer is fully
implemented and is fully utilizing the system. It is not a non-GAAP measure.
Non-GAAP Financial Measures (Continued)
Reconciliation of Core Net Income
A reconciliation of core net income to GAAP net loss for the three months ended
September 30, 2016 and 2015 is as follows:
Three Months Ended
September 30,
2016 2015
(in thousands)
GAAP net loss $ (10,508 ) $ (4,253 )
Amortization of acquired intangible assets 6,285 7,279
Stock-based compensation expense 8,199 7,588
Acquisition and integration related expenses 1,249 110
Restructuring expenses - 20
Global ERP system implementation costs 2,491 257
Minimum pension liability adjustments 277 36
Amortization of debt issuance and debt discount costs 3,372 3,161
Tax effects on non-GAAP income (2,978 ) (5,011 )
Core net income $ 8,387 $ 9,187
Reconciliation of Diluted Core Earnings per Share
A reconciliation of our diluted core earnings per share to our GAAP diluted net
loss per share for the three months ended September 30, 2016 and 2015 is as
follows:
Three Months Ended
09/30/16 9/30/15
GAAP diluted net loss per share $ (0.28 ) $ (0.11 )
Plus:
Amortization of acquired intangible assets 0.17 0.19
Stock-based compensation expense 0.22 0.20
Acquisition and integration-related expenses 0.03 -
Restructuring expenses - -
Global ERP system implementation costs 0.06 0.01
Minimum pension liability adjustments 0.01 -
Amortization of debt issuance and debt discount costs 0.09 0.08
Tax effects on non-GAAP income (0.08 ) (0.13 )
Diluted core net income per share $ 0.22 $ 0.24
Non-GAAP Financial Measures (Continued)
Reconciliation of Diluted Core Earnings per Share
A reconciliation of our non-GAAP weighted average shares used in computing
diluted core earnings per share to our GAAP weighted average shares used in
computing diluted earnings per share for the three months ended September
30, 2016 and 2015 is as follows:
Three Months Ended
September 30,
2016 2015
(in thousands)
Numerator:
Core net income $ 8,387 $ 9,187
Denominator:
Weighted average shares used in computing diluted 37,940 38,004
earnings per share for GAAP
Impact of dilutive securities (stock options,
restricted stock awards and employee stock purchase 88 515
plan) ((1))
Weighted average shares used in computing diluted 38,028 38,519
core earnings per share
((1) )These securities are anti-dilutive on a GAAP basis as a result of our net
loss, but are considered dilutive on a non-GAAP basis in periods where we report
non-GAAP net income.
Constant Currency Reconciliation
The table below is a comparative summary of our total revenues and our
subscription and
transaction revenues shown with a constant currency growth rate:
Three Months Ended % Increase
September 30, Impact Constant
from
2016 2015 GAAP Currency Rates ((2))
(in thousands)
Subscription
and Transaction $ 52,132 $ 46,197 13 % 3 % 16 %
Revenues
Total Revenues 83,084 82,881 0 % 5 % 5 %
(2) )Constant currency information compares results between periods as if
exchange rates had remained constant period-over-period. We calculate constant
currency information by translating prior-period results using current period
GAAP foreign exchange rates.
Non-GAAP Financial Measures (Continued)
Reconciliation of Adjusted EBITDA
A reconciliation of our adjusted EBITDA to GAAP net loss for the three months
ended September 30, 2016 and 2015 is as follows:
Three Months Ended
09/30/16 9/30/15
GAAP Net loss $ (10,508 ) $ (4,253 )
Adjustments:
Other expense, net 3,935 3,671
Provision for income taxes 681 611
Depreciation and amortization 4,087 3,077
Amortization of acquired intangible assets 6,285 7,279
Stock-based compensation expense 8,199 7,588
Acquisition and integration-related expenses 1,249 110
Restructuring expenses - 20
Minimum pension liability adjustments 277 36
Global ERP system implementation costs 2,491 257
Adjusted EBITDA 16,696 18,396
Adjusted EBITDA as a percent of Revenue
A reconciliation of GAAP net loss as a percent of revenue to adjusted EBITDA as
a percent of revenue for the three months ended September 30, 2016 and 2015 is
as follows:
Three Months Ended
09/30/16 9/30/15
GAAP net loss as a percent of revenue (13 %) (5 %)
Adjustments:
Other expense, net 5 % 4 %
Provision for income taxes 1 % 1 %
Depreciation and amortization 5 % 4 %
Amortization of acquired intangible assets 8 % 9 %
Stock-based compensation expense 10 % 9 %
Acquisition and integration-related expenses 1 % 0 %
Restructuring expenses 0 % 0 %
Minimum pension liability adjustments 0 % 0 %
Global ERP system implementation costs 3 % 0 %
Adjusted EBITDA as a percent of revenue 20 % 22 %
About Bottomline Technologies
Bottomline Technologies (NASDAQ:EPAY) helps businesses pay and get paid. We make
complex business payments simple, secure and seamless by providing a trusted and
easy-to-use set of cloud-based business payment, digital banking, fraud
prevention and financial document solutions. Over 10,000 corporations, financial
institutions, and banks benefit from Bottomline solutions. Headquartered in the
United States, Bottomline also maintains offices in Europe and Asia-Pacific. For
more information, visit our website at www.bottomline.com.
Bottomline Technologies, Paymode-X and the BT logo are trademarks of Bottomline
Technologies (de), Inc. which are registered in certain jurisdictions. All
other brand/product names are trademarks of their respective holders.
In connection with this earning's release and our associated conference call, we
will be posting additional material financial information (such as financial
results, non-GAAP financial projections and GAAP to non-GAAP reconciliations)
within the "Investors" section of our website
at www.bottomline.com/us/about/investors.
Cautionary Language
This press release may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, including statements
reflecting our expectations about our ability to execute on our strategic plans,
achieve future growth and profitability, expand margins, increase shareholder
value and repurchase shares from time to time under the share repurchase
program. Any statements that are not statements of historical fact (including
but not limited to statements containing the words "believes," "plans,"
"anticipates," "expects," "look forward", "confident", "estimates" and similar
expressions) should be considered to be forward-looking statements. Actual
results may differ materially from those indicated by such forward-looking
statements as a result of various important factors including, among others,
competition, market demand, technological change, strategic relationships,
recent acquisitions, international operations and general economic conditions.
For additional discussion of factors that could impact Bottomline Technologies'
operational and financial results, refer to our Form 10-K for the fiscal year
ended June 30, 2016 and the subsequently filed Form 10-Q's and Form 8-K's or
amendments thereto. Any forward-looking statements represent our views only as
of today and should not be relied upon as representing our views as of any
subsequent date. We do not assume any obligation to update any forward-looking
statements.
Bottomline Technologies
Unaudited Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended
September 30,
2016 2015
Revenues:
Subscriptions and transactions $ 52,132 $ 46,197
Software licenses 2,121 4,115
Service and maintenance 27,673 30,784
Other 1,158 1,785
Total revenues 83,084 82,881
Cost of revenues:
Subscriptions and transactions 23,886 20,734
Software licenses 128 288
Service and maintenance 13,285 12,978
Other 878 1,335
Total cost of revenues 38,177 35,335
Gross profit 44,907 47,546
Operating expenses:
Sales and marketing 18,875 20,155
Product development and engineering 12,935 11,260
General and administrative 12,704 8,823
Amortization of intangible assets 6,285 7,279
Total operating expenses 50,799 47,517
(Loss) income from operations (5,892 ) 29
Other expense, net (3,935 ) (3,671 )
Loss before income taxes (9,827 ) (3,642 )
Income tax provision 681 611
Net loss $ (10,508 ) $ (4,253 )
Basic and diluted net loss per share: $ (0.28 ) $ (0.11 )
Shares used in computing basic and diluted net loss 37,940 38,004
per share:
Core net income( (1)) $ 8,387 $ 9,187
Diluted core net income per share( (2)) $ 0.22 $ 0.24
(1) )Core net income for the three months ended September 30, 2016 and 2015
excludes charges for amortization of acquired intangible assets of $6,285 and
$7,279, acquisition and integration-related expenses of $1,249 and $110,
restructuring expenses of $- and $20, stock-based compensation of $8,199 and
$7,588, minimum pension liability adjustments of $277 and $36, global ERP system
implementation costs of $2,491 and $257, non-core charges associated with our
convertible notes of $3,372 and $3,161 and tax effects on core net income of
$2,978 and $5,011.
(2) )Shares used in computing diluted core earnings per share were 38,028 and
38,519 for the three months ended September 30, 2016 and 2015, respectively. In
computing diluted core earnings per share, we exclude the effect of shares
issuable under our convertible notes to the extent that any such dilution would
be offset by our note hedges; the note hedges would be considered an anti-
dilutive security under GAAP.
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
September June 30,
30,
2016 2016
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $ 127,888 $ 132,383
Accounts receivable 52,689 61,773
Other current assets 17,130 22,385
Total current assets 197,707 216,541
Property and equipment, net 53,718 51,029
Goodwill and intangible assets, net 360,470 366,958
Other assets 16,538 16,682
Total assets $ 628,433 $ 651,210
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,313 $ 10,218
Accrued expenses 26,311 27,512
Deferred revenue 63,616 74,332
Total current liabilities 99,240 112,062
Convertible senior notes 173,229 169,857
Deferred revenue, non current 19,231 19,086
Deferred income taxes 21,276 28,147
Other liabilities 27,710 27,271
Total liabilities 340,686 356,423
Stockholders' equity
Common stock 42 42
Additional paid-in-capital 600,022 591,800
Accumulated other comprehensive loss (38,767 ) (37,668 )
Treasury stock (79,487 ) (75,832 )
Accumulated deficit (194,063 ) (183,555 )
Total stockholders' equity 287,747 294,787
Total liabilities and stockholders' equity $ 628,433 $ 651,210
Media Contact:
Rick Booth
Bottomline Technologies
603-501-6270
rbooth(at)bottomline.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bottomline Technologies, Inc. via GlobeNewswire
Datum: 02.11.2016 - 21:05 Uhr
Sprache: Deutsch
News-ID 504626
Anzahl Zeichen: 27453
contact information:
Town:
Portsmouth, NH
Kategorie:
Business News
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