Bottomline Technologies Reports Second Quarter Results
(Thomson Reuters ONE) -
Strong Growth in Subscription and Transaction Revenue Highlights Second Quarter
PORTSMOUTH, N.H., Feb. 01, 2017 (GLOBE NEWSWIRE) -- Bottomline Technologies
(NASDAQ:EPAY), a leading provider of financial technology which helps businesses
pay and get paid, today reported financial results for the fiscal second quarter
ended December 31, 2016.
Subscription and transaction revenues, which are primarily related to the
company's cloud platforms, increased 14% as compared to the second quarter of
last year to $55.6 million, or 19% on a constant currency basis, which is
calculated as discussed in the "Non-GAAP Financial Measures" section that
follows. Revenues overall for the second quarter were $86.7 million.
GAAP net loss for the second quarter was $10.3 million compared to a net loss of
$5.2 million for the second quarter of last year. GAAP net loss per share was
$0.27 in the second quarter compared to $0.14 in the second quarter of last
year.
Adjusted EBITDA for the second quarter was $18.7 million, or 22% of overall
revenue. Adjusted EBITDA is calculated as discussed in the "Non-GAAP Financial
Measures" section that follows.
Core net income for the second quarter was $9.7 million. Core earnings per share
was $0.26, as compared to $0.27 for the second 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.
"We are pleased with the results for the second quarter," said Rob Eberle,
President and CEO of Bottomline Technologies. "The quarter was highlighted by
strong subscription and transaction revenue growth and solid performance against
our profitability goals. Our strategic plan is designed to capitalize on our
leadership in business payments to drive subscription and transaction growth and
expand our operating margins. The results in the quarter evidence our execution
against our plan. With innovative products and a strong market position, we
believe that we are well positioned for future growth and confident our plan
will drive increased shareholder value."
Revenues for the six months ended December 31, 2016 were $169.8 million compared
to $168.9 million in the six months ended December 31, 2015. Subscription and
transaction revenues increased 14%, or 18% on a constant currency basis, to
$107.8 million in the six months ended December 31, 2016 from $94.8 million in
the six months ended December 31, 2015. GAAP net loss for the six months ended
December 31, 2016 was $20.9 million as compared to $9.5 million for the six
months ended December 31, 2015. GAAP net loss per share was $0.55 for the six
months ended December 31, 2016 compared to $0.25 for the six months ended
December 31, 2015.
Core net income for the six months ended December 31, 2016 was $18.0 million as
compared to $19.5 million for the six months ended December 31, 2015. Core
earnings per share for the six months ended December 31, 2016 was $0.48 as
compared to $0.51 for the six months ended December 31, 2015.
Second Quarter Customer Highlights
* 19 leading institutions selected Paymode-X, Bottomline's leading cloud-based
payments automation platform.
* 4 leading organizations, including Dollar Tree and Packaging Corporation of
America, chose Bottomline's cloud-based legal spend management solutions to
automate, manage and control their legal spend.
* Signed 4 new Digital Banking deals, helping banks to compete and grow their
corporate and business banking franchises by deploying innovative digital
capabilities.
* Companies such as Cairn Energy PLC and Holvi Payments Services Ltd 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 SCI and Symetra Financial Corporation chose
Bottomline's corporate payment automation solutions to extend their payments
capabilities and improve efficiencies.
Second Quarter Strategic Corporate Highlights
* Recognized with the award for the Best Instant Payment Service Initiative
from the Banking Technology Awards for the Bottomline Universal Aggregator,
a highly secure, fully outsourced, multi-payment channel platform that
supports the recently accredited Faster Payment Service. In addition, it
provides banks, corporates, governments and non-financial banking
institutions an easy plug-in to an array of payment clearing and settlement
systems around the world, which helps decrease operational risk, improve
compliance and cut costs and inefficiencies.
* PT-X Connect was awarded the 'Email Product of the Year' at this year's
Document Manager Awards. PT-X Connect is playing a significant role in the
digital transformation of customer communication management.
* Entered into a $300 million revolving credit facility which can be utilized
to retire debt and for other general corporate purposes.
* During the second quarter we 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.
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, goodwill impairment charges, stock-
based compensation, acquisition and integration-related expenses, restructuring
related costs, minimum pension liability adjustments, non-core charges
associated with our convertible notes and revolving credit facility, global
enterprise resource planning (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 and revolving credit
facility 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 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 and six
months ended December 31, 2016 and 2015 is as follows:
Three Months Ended Six Months Ended
December 31, December 31,
-------------------------- -------------------------
2016 2015 2016 2015
------------- ------------ ------------- -----------
(in thousands)
GAAP net loss $ (10,346 ) $ (5,239 ) $ (20,854 ) $ (9,492 )
Amortization of acquired
intangible assets 6,090 7,215 12,375 14,494
Goodwill impairment charge 7,529 - 7,529 -
Stock-based compensation
expense 8,656 7,878 16,855 15,466
Acquisition and
integration-related
expenses 522 159 1,771 269
Restructuring expenses - 854 - 874
Global ERP system
implementation costs 2,106 522 4,597 779
Minimum pension liability
adjustments 264 38 541 74
Amortization of debt
issuance and debt discount
costs 3,454 3,213 6,826 6,374
Non-recurring tax benefit (4,461 ) - (4,461 ) -
Tax effects on non-GAAP
income (4,152 ) (4,360 ) (7,130 ) (9,371 )
------------- ------------ ------------- -----------
Core net income $ 9,662 $ 10,280 $ 18,049 $ 19,467
------------- ------------ ------------- -----------
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 and six months ended December 31, 2016 and 2015 is
as follows:
Three Months Ended Six Months Ended
December 31, December 31,
----------------------- ----------------------
2016 2015 2016 2015
----------- ----------- ----------- ----------
GAAP diluted net loss per share $ (0.27 ) $ (0.14 ) $ (0.55 ) $ (0.25 )
Plus:
Amortization of acquired
intangible assets 0.16 0.19 0.33 0.38
Goodwill impairment charge 0.20 - 0.20 -
Stock-based compensation expense 0.22 0.20 0.44 0.40
Acquisition and integration-
related expenses 0.02 0.01 0.05 0.01
Restructuring expenses - 0.02 - 0.02
Global ERP system implementation
costs 0.06 0.01 0.12 0.02
Minimum pension liability
adjustments 0.01 - 0.02 -
Amortization of debt issuance
and debt discount costs 0.09 0.09 0.18 0.17
Non-recurring tax benefit (0.12 ) - (0.12 ) -
Tax effects on non-GAAP income (0.11 ) (0.11 ) (0.19 ) (0.24 )
----------- ----------- ----------- ----------
Diluted core net income per
share $ 0.26 $ 0.27 $ 0.48 $ 0.51
----------- ----------- ----------- ----------
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 and six months ended
December 31, 2016 and 2015 is as follows:
Three Months Ended Six Months Ended
December 31, December 31,
------------------------ ------------------------
2016 2015 2016 2015
----------- ------------ ------------ -----------
Numerator:
Core net income $ 9,662 $ 10,280 $ 18,049 $ 19,467
----------- ------------ ------------ -----------
Denominator:
Weighted average shares used
in computing diluted earnings
per share for GAAP 37,769 37,774 37,854 37,889
Impact of dilutive securities
(stock options, restricted
stock awards and employee
stock purchase plan) ((1) ) 93 585 91 550
----------- ------------ ------------ -----------
Weighted average shares used
in computing diluted core
earnings per share 37,862 38,359 37,945 38,439
----------- ------------ ------------ -----------
((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
December 31,
---------------------------
% Increase
Impact
from Constant
2016 2015 GAAP Currency Rates ((2))
------------- ------------- -------- ------------- -------------
(in thousands)
Subscription
and
Transaction
Revenues $ 55,644 $ 48,632 14 % 5 % 19 %
Total Revenues 86,728 86,048 1 % 5 % 6 %
Six Months Ended
December 31,
---------------------------
% Increase
Impact
from Constant
2016 2015 GAAP Currency Rates ((2))
------------- ------------- -------- ------------- -------------
(in thousands)
Subscription
and
Transaction
Revenues $ 107,776 $ 94,829 14 % 4 % 18 %
Total Revenues 169,812 168,929 1 % 4 % 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 and six
months ended December 31, 2016 and 2015 is as follows:
Three Months Ended Six Months Ended
December 31, December 31,
-------------------------- -------------------------
2016 2015 2016 2015
------------- ------------ ------------- -----------
GAAP net loss $ (10,346 ) $ (5,239 ) $ (20,854 ) $ (9,492 )
Adjustments:
Other expense, net 4,182 3,856 8,117 7,527
Provision for (benefit
from) income taxes (4,478 ) 642 (3,797 ) 1,253
Depreciation and
amortization 4,154 3,248 8,241 6,325
Amortization of acquired
intangible assets 6,090 7,215 12,375 14,494
Goodwill impairment charge 7,529 - 7,529 -
Stock-based compensation
expense 8,656 7,878 16,855 15,466
Acquisition and
integration-related
expenses 522 159 1,771 269
Restructuring expenses - 854 - 874
Minimum pension liability
adjustments 264 38 541 74
Global ERP system
implementation costs 2,106 522 4,597 779
------------- ------------ ------------- -----------
Adjusted EBITDA $ 18,679 $ 19,173 $ 35,375 $ 37,569
------------- ------------ ------------- -----------
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 and six months ended December 31, 2016 and
2015 is as follows:
Three Months Ended Six Months Ended
December 31, December 31,
-------------------------- ------------------------
2016 2015 2016 2015
------------ ------------- ------------ -----------
GAAP net loss as a
percent of revenue (12 %) (6 %) (12 %) (6 %)
Adjustments:
Other expense, net 5 % 4 % 5 % 4 %
Provision for (benefit
from) income taxes (5 %) 1 % (2 %) 1 %
Depreciation and
amortization 5 % 4 % 5 % 4 %
Amortization of acquired
intangible assets 7 % 8 % 7 % 9 %
Goodwill impairment
charge 9 % 0 % 4 % 0 %
Stock-based compensation
expense 10 % 9 % 10 % 9 %
Acquisition and
integration-related
expenses 1 % 0 % 1 % 0 %
Restructuring expenses 0 % 1 % 0 % 1 %
Minimum pension liability
adjustments 0 % 0 % 0 % 0 %
Global ERP system
implementation costs 2 % 1 % 3 % 0 %
------------ ------------- ------------ -----------
Adjusted EBITDA as a
percent of revenue 22 % 22 % 21 % 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 and increase shareholder
value. 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 Six Months Ended
December 31, December 31,
-------------------------- -------------------------
2016 2015 2016 2015
------------- ------------ ------------- -----------
Revenues:
Subscriptions and
transactions $ 55,644 $ 48,632 $ 107,776 $ 94,829
Software licenses 3,492 5,862 5,613 9,977
Service and maintenance 25,920 29,913 53,593 60,697
Other 1,672 1,641 2,830 3,426
------------- ------------ ------------- -----------
Total revenues 86,728 86,048 169,812 168,929
Cost of revenues:
Subscriptions and
transactions 24,782 21,373 48,668 42,107
Software licenses 196 288 324 576
Service and maintenance 13,416 13,291 26,701 26,269
Other 1,178 1,155 2,056 2,490
------------- ------------ ------------- -----------
Total cost of revenues 39,572 36,107 77,749 71,442
------------- ------------ ------------- -----------
Gross profit 47,156 49,941 92,063 97,487
Operating expenses:
Sales and marketing 19,325 22,280 38,200 42,435
Product development and
engineering 13,082 11,765 26,017 23,025
General and administrative 11,772 9,422 24,476 18,245
Amortization of intangible
assets 6,090 7,215 12,375 14,494
Goodwill impairment charge 7,529 - 7,529 -
------------- ------------ ------------- -----------
Total operating expenses 57,798 50,682 108,597 98,199
------------- ------------ ------------- -----------
Loss from operations (10,642 ) (741 ) (16,534 ) (712 )
Other expense, net (4,182 ) (3,856 ) (8,117 ) (7,527 )
------------- ------------ ------------- -----------
Loss before income taxes (14,824 ) (4,597 ) (24,651 ) (8,239 )
Income tax provision
(benefit) (4,478 ) 642 (3,797 ) 1,253
------------- ------------ ------------- -----------
Net loss $ (10,346 ) $ (5,239 ) $ (20,854 ) $ (9,492 )
Basic and diluted net loss
per share: $ (0.27 ) $ (0.14 ) $ (0.55 ) $ (0.25 )
------------- ------------ ------------- -----------
Shares used in computing
basic and diluted net loss
per share: 37,769 37,774 37,854 37,889
------------- ------------ ------------- -----------
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
December 31, June 30,
-------------- ---------------
2016 2016
-------------- ---------------
ASSETS
Current assets:
Cash, cash equivalents and marketable securities
$ 115,221 $ 132,383
Accounts receivable 58,032 61,773
Other current assets 16,818 22,385
-------------- ---------------
Total current assets 190,071 216,541
Property and equipment, net 53,665 51,029
Goodwill and intangible assets, net 339,536 366,958
Other assets 18,207 16,682
-------------- ---------------
Total assets $ 601,479 $ 651,210
-------------- ---------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,431 $ 10,218
Accrued expenses 24,324 27,512
Deferred revenue 59,092 74,332
Convertible senior notes 176,657 -
-------------- ---------------
Total current liabilities 269,504 112,062
Convertible senior notes - 169,857
Deferred revenue, non-current 21,197 19,086
Deferred income taxes 15,907 28,147
Other liabilities 26,612 27,271
-------------- ---------------
Total liabilities 333,220 356,423
Stockholders' equity
Common stock 42 42
Additional paid-in-capital 608,717 591,800
Accumulated other comprehensive loss (46,608 ) (37,668 )
Treasury stock (89,483 ) (75,832 )
Accumulated deficit (204,409 ) (183,555 )
-------------- ---------------
Total stockholders' equity 268,259 294,787
-------------- ---------------
Total liabilities and stockholders' equity $ 601,479 $ 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: 01.02.2017 - 22:05 Uhr
Sprache: Deutsch
News-ID 521466
Anzahl Zeichen: 34971
contact information:
Town:
Portsmouth, NH
Kategorie:
Business News
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