Bottomline Technologies Reports Third Quarter Results
(Thomson Reuters ONE) -
Strong Growth in Subscription and Transaction Revenue Highlights Third Quarter
PORTSMOUTH, N.H., April 27, 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 third quarter
ended March 31, 2017.
Subscription and transaction revenues, which are primarily related to the
company's cloud platforms, increased 13% as compared to the third quarter of
last year to $55.9 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 third quarter were $86.1 million.
GAAP net loss for the third quarter was $6.6 million compared to a net loss of
$4.2 million for the third quarter of last year. GAAP net loss per share was
$0.17 in the third quarter compared to $0.11 in the third quarter of last year.
Adjusted EBITDA for the third quarter was $19.1 million, or 22% of overall
revenue compared to $19.4 million, or 23% of overall revenue for the third
quarter of last year. Adjusted EBITDA is calculated as discussed in the "Non-
GAAP Financial Measures" section that follows.
Core net income for the third quarter was $9.0 million compared to $10.1 million
for the third quarter of last year. Core earnings per share was $0.23 for the
third quarter compared to $0.26 for the third 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 third quarter and our outlook for the
upcoming fiscal year," said Rob Eberle, President and CEO of Bottomline
Technologies. "The third quarter's strong subscription and transaction revenue
growth reflects the value customers are placing on our innovative payment
product set and the solid performance against our profitability goals
underscores our proven ability to execute. We are committed to driving
shareholder value and confident that our strategic plan will deliver solid
returns to our shareholders."
Revenues for the nine months ended March 31, 2017 were $255.9 million compared
to $255.2 million in the nine months ended March 31, 2016. Subscription and
transaction revenues increased 13%, or 18% on a constant currency basis, to
$163.6 million in the nine months ended March 31, 2017 from $144.3 million in
the nine months ended March 31, 2016. GAAP net loss for the nine months ended
March 31, 2017 was $27.5 million compared to $13.7 million for the nine months
ended March 31, 2016. GAAP net loss per share was $0.73 for the nine months
ended March 31, 2017 compared to $0.36 for the nine months ended March
31, 2016.
Core net income for the nine months ended March 31, 2017 was $27.1 million
compared to $29.5 million for the nine months ended March 31, 2016. Core
earnings per share for the nine months ended March 31, 2017 was $0.71 compared
to $0.77 for the nine months ended March 31, 2016.
Third Quarter Customer Highlights
* 18 leading institutions selected Paymode-X, Bottomline's leading cloud-based
payments automation platform.
* 3 leading organizations, including QBE Legal, chose Bottomline's cloud-based
legal spend management solutions to automate, manage and control their legal
spend.
* Signed 5 new Digital Banking deals, helping banks to compete and grow their
corporate and business banking franchises by deploying innovative digital
capabilities.
* Companies such as Leibert Corporation and Banque Cantonale du Valais
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 Regal Entertainment Group and Chesapeake Employers
Insurance Co chose Bottomline's corporate payment automation solutions to
extend their payments capabilities and improve efficiencies.
Third Quarter Strategic Corporate Highlights
* Announced the appointment of Mr. Paul H. Hough to the Board of Directors.
Mr. Hough is EVP and Deputy Chief Financial Officer of American Express.
Mr. Hough's thirty year career at American Express has included finance and
general management experience in the U.S. and abroad. Currently, Mr. Hough
has stewardship for financial management, risk finance, financial strategy
and long range planning for the business and servicing groups. He is a
member of American Express' Operating Committee and Global Management Team.
* Launched a new payment fraud solution for members of the SWIFT payment
network. The solution is part of a package of measures being offered by
Bottomline to help customers meet security requirements from the SWIFT
payments cooperative under its recently announced Customer Security
Programme (CSP.). The new fraud solution goes beyond the mandatory controls
to include real-time monitoring of user behavior and individual messages,
which can stop potentially fraudulent payments before they take place.
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.
Reconciliation of Core Net Income
A reconciliation of core net income to GAAP net loss for the three and nine
months ended March 31, 2017 and 2016 is as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
2017 2016 2017 2016
(in thousands)
GAAP net loss $ (6,624 ) $ (4,230 ) $ (27,478 ) $ (13,722 )
Amortization of acquired 6,006 7,226 18,381 21,720
intangible assets
Goodwill impairment charge - - 7,529 -
Stock-based compensation 7,354 7,628 24,209 23,094
expense
Acquisition and integration- 501 305 2,272 574
related expenses
Restructuring expenses 561 48 561 922
Global ERP system 2,076 1,040 6,673 1,819
implementation costs
Minimum pension liability 264 66 805 140
adjustments
Amortization of debt
issuance and debt discount 3,592 3,265 10,418 9,639
costs
Non-recurring tax benefit - - (4,461 ) -
Tax effects on non-GAAP (4,726 ) (5,269 ) (11,856 ) (14,640 )
income
Core net income $ 9,004 $ 10,079 $ 27,053 $ 29,546
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 nine months ended March 31, 2017 and 2016 is as
follows:
Three Months Ended Nine Months Ended
March 31, March 31,
2017 2016 2017 2016
GAAP diluted net loss per share $ (0.17 ) $ (0.11 ) $ (0.73 ) $ (0.36 )
Plus:
Amortization of acquired 0.16 0.19 0.48 0.56
intangible assets
Goodwill impairment charge - - 0.20 -
Stock-based compensation expense 0.19 0.20 0.64 0.61
Acquisition and integration- 0.01 0.01 0.06 0.01
related expenses
Restructuring expenses 0.01 - 0.01 0.02
Global ERP system implementation 0.05 0.03 0.18 0.05
costs
Minimum pension liability 0.01 - 0.02 -
adjustments
Amortization of debt issuance and 0.09 0.08 0.27 0.25
debt discount costs
Non-recurring tax benefit - - (0.12 ) -
Tax effects on non-GAAP income (0.12 ) (0.14 ) (0.30 ) (0.37 )
Diluted core earnings per share $ 0.23 $ 0.26 $ 0.71 $ 0.77
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 net loss per share for the three and nine months ended March
31, 2017 and 2016 is as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
2017 2016 2017 2016
Numerator:
Core net income $ 9,004 $ 10,079 $ 27,053 $ 29,546
Denominator:
Weighted average shares used in
computing diluted net loss per 37,965 38,101 37,891 37,959
share for GAAP
Impact of dilutive securities
(stock options, restricted 379 556 187 553
stock awards and employee stock
purchase plan) ((1))
Weighted average shares used in
computing diluted core earnings 38,344 38,657 38,078 38,512
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
March 31,
%
Increase Constant
2017 2016 GAAP Impact Rates ((2))
from
Currency
(in thousands)
Subscription
and Transaction $ 55,851 $ 49,488 13 % 3 % 16 %
Revenues
Total Revenues 86,099 86,233 - % 4 % 4 %
Nine Months Ended
March 31,
%
Increase Constant
2017 2016 GAAP Impact Rates ((2))
from
Currency
(in thousands)
Subscription
and Transaction $ 163,627 $ 144,317 13 % 5 % 18 %
Revenues
Total Revenues 255,911 255,162 - % 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.
Reconciliation of Adjusted EBITDA
A reconciliation of our adjusted EBITDA to GAAP net loss for the three and nine
months ended March 31, 2017 and 2016 is as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
2017 2016 2017 2016
GAAP net loss $ (6,624 ) $ (4,230 ) $ (27,478 ) $ (13,722 )
Adjustments:
Other expense, net 4,479 3,882 12,596 11,409
Provision for (benefit from) (232 ) (7 ) (4,029 ) 1,246
income taxes
Depreciation and 4,684 3,464 12,925 9,789
amortization
Amortization of acquired 6,006 7,226 18,381 21,720
intangible assets
Goodwill impairment charge - - 7,529 -
Stock-based compensation 7,354 7,628 24,209 23,094
expense
Acquisition and integration- 501 305 2,272 574
related expenses
Restructuring expenses 561 48 561 922
Minimum pension liability 264 66 805 140
adjustments
Global ERP system 2,076 1,040 6,673 1,819
implementation costs
Adjusted EBITDA $ 19,069 $ 19,422 $ 54,444 $ 56,991
Reconciliation of Adjusted EBITDA as a percent of Revenue
A reconciliation of adjusted EBITDA as a percent of revenue to GAAP net loss as
a percent of revenue the three and nine months ended March 31, 2017 and 2016 is
as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
2017 2016 2017 2016
GAAP net loss as a percent of revenue (8 %) (5 %) (11 %) (5 %)
Adjustments:
Other expense, net 5 % 5 % 5 % 4 %
Provision for (benefit from) income 0 % 0 % (2 %) 0 %
taxes
Depreciation and amortization 5 % 4 % 5 % 4 %
Amortization of acquired intangible 7 % 8 % 7 % 9 %
assets
Goodwill impairment charge 0 % 0 % 3 % 0 %
Stock-based compensation expense 9 % 10 % 10 % 9 %
Acquisition and integration-related 1 % 0 % 1 % 0 %
expenses
Restructuring expenses 1 % 0 % 0 % 0 %
Minimum pension liability adjustments 0 % 0 % 0 % 0 %
Global ERP system implementation 2 % 1 % 3 % 1 %
costs
Adjusted EBITDA as a percent of 22 % 23 % 21 % 22 %
revenue
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 non-GAAP to GAAP reconciliations)
within the "Investors" section of our website
at www.bottomline.com/us/about/investors.
Cautionary Language
This press release contains "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-Qs and Form 8-Ks 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 Nine Months Ended
March 31, March 31,
2017 2016 2017 2016
Revenues:
Subscriptions and $ 55,851 $ 49,488 $ 163,627 $ 144,317
transactions
Software licenses 2,735 5,777 8,348 15,754
Service and 26,344 29,100 79,937 89,797
maintenance
Other 1,169 1,868 3,999 5,294
Total revenues 86,099 86,233 255,911 255,162
Cost of revenues:
Subscriptions and 25,867 22,461 74,535 64,568
transactions
Software licenses 265 165 589 741
Service and 12,607 13,276 39,308 39,545
maintenance
Other 835 1,317 2,891 3,807
Total cost of 39,574 37,219 117,323 108,661
revenues
Gross profit 46,525 49,014 138,588 146,501
Operating expenses:
Sales and marketing 18,976 20,419 57,176 62,854
Product development 13,057 11,934 39,074 34,959
and engineering
General and 10,863 9,790 35,339 28,035
administrative
Amortization of 6,006 7,226 18,381 21,720
intangible assets
Goodwill impairment - - 7,529 -
charge
Total operating 48,902 49,369 157,499 147,568
expenses
Loss from operations (2,377 ) (355 ) (18,911 ) (1,067 )
Other expense, net (4,479 ) (3,882 ) (12,596 ) (11,409 )
Loss before income (6,856 ) (4,237 ) (31,507 ) (12,476 )
taxes
Income tax provision (232 ) (7 ) (4,029 ) 1,246
(benefit)
Net loss $ (6,624 ) $ (4,230 ) $ (27,478 ) $ (13,722 )
Basic and diluted $ (0.17 ) $ (0.11 ) $ (0.73 ) $ (0.36 )
net loss per share:
Shares used in
computing basic and 37,965 38,101 37,891 37,959
diluted net loss per
share:
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
March 31, June 30,
2017 2016
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $ 140,940 $ 132,383
Accounts receivable 62,333 61,773
Other current assets 17,678 22,385
Total current assets 220,951 216,541
Property and equipment, net 53,909 51,029
Goodwill and intangible assets, net 336,231 366,958
Other assets 17,945 16,682
Total assets $ 629,036 $ 651,210
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,268 $ 10,218
Accrued expenses 26,210 27,512
Deferred revenue 77,384 74,332
Convertible senior notes 180,141 -
Total current liabilities 293,003 112,062
Convertible senior notes - 169,857
Deferred revenue, non current 20,795 19,086
Deferred income taxes 15,008 28,147
Other liabilities 27,186 27,271
Total liabilities 355,992 356,423
Stockholders' equity
Common stock 42 42
Additional paid-in-capital 616,119 591,800
Accumulated other comprehensive loss (43,955 ) (37,668 )
Treasury stock (88,129 ) (75,832 )
Accumulated deficit (211,033 ) (183,555 )
Total stockholders' equity 273,044 294,787
Total liabilities and stockholders' equity $ 629,036 $ 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: 27.04.2017 - 22:05 Uhr
Sprache: Deutsch
News-ID 538976
Anzahl Zeichen: 29361
contact information:
Town:
Portsmouth, NH
Kategorie:
Business News
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