Bottomline Technologies Reports First Quarter Results
(Thomson Reuters ONE) -
Strong Growth in Subscription and Transaction Revenue Highlights First Quarter
PORTSMOUTH, N.H., Nov. 02, 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 first quarter ended
September 30, 2017.
Subscription and transaction revenues, which are primarily related to the
company's cloud platforms, were $60.7 million for the first quarter, up 16% as
compared to the first quarter of last year. Revenues overall for the first
quarter were $91.3 million, up 10% as compared to the first quarter of last
year.
GAAP net loss for the first quarter was $4.2 million compared to $10.5 million
for the first quarter of last year. GAAP net loss per share was $0.11 in the
first quarter compared to $0.28 in the first quarter of last year.
Adjusted EBITDA for the first quarter was $22.1 million compared to $16.7
million for the first quarter of last year. Adjusted EBITDA for the first
quarter was 24% of overall revenue compared to 20% of overall revenue for the
first quarter of last year. Adjusted EBITDA is calculated as discussed in the
"Non-GAAP Financial Measures" section that follows.
Core net income for the first quarter was $11.7 million compared to $8.4 million
for the first quarter of last year and core earnings per share was $0.30 for the
first quarter compared to $0.22 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.
"We are executing against our strategic plan and delivered strong results," said
Rob Eberle, President and CEO of Bottomline Technologies. "Growth and
profitability were ahead of our expectations. We are particularly pleased by
the market reception to our offerings and the new subscription bookings. We
enter the new fiscal year with a high degree of confidence in our ability to
execute against our strategic plan, achieve our financial targets and drive
shareholder value."
First Quarter Customer Highlights
* 29 institutions selected Paymode-X, Bottomline's leading payments platform
to automate their payments processes, increase productivity, reduce costs
and earn cash rebates.
* 6 organizations, including Knight Insurance Group and AmWINS, chose
Bottomline's cloud-based legal spend management solutions to automate,
manage and control their legal spend.
* 4 banks selected Bottomline's digital banking platforms to help them compete
and grow their corporate and business banking franchises by deploying
innovative digital capabilities.
* Companies such as Banco Santander and Shop & Finance Limited selected
Bottomline's Financial Messaging solution to improve operating efficiencies
and optimize the effectiveness of their financial transactions.
* Organizations such as The Main Street America Group and USI Insurance
Services chose Bottomline's corporate payment automation solutions to extend
their payments capabilities and improve efficiencies.
First Quarter Strategic Corporate Highlights
* Announced expansion of Bottomline's global footprint with a new financial
messaging center in Singapore. With this new center, Bottomline is well
positioned to extend its secure set of core financial messaging capabilities
into the Asia-Pacific region.
* Announced commitment to becoming a Third Party Provider (TPP) under the Open
Banking initiative, to allow customers to access information and initiate
payments directly with participating banks through secure Application
Programming Interfaces (APIs), via cloud-based payment platforms.
* Bottomline's PTX Cloud based payments platform was recognized as an award
winner by the Credit Control and Risk Association in the new product
category for payments and collections
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, adjusted EBITDA and adjusted EBITDA as a
percent of revenue are non-GAAP financial measures.
Core net income and core earnings per share exclude certain items, specifically
amortization of acquisition related 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 may 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 and adjusted EBITDA as a percent of revenue represent 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 months ended
September 30, 2017 and 2016 is as follows:
Three Months Ended
September 30,
-------------------------
2017 2016
------------ ------------
(in thousands)
GAAP net loss $ (4,241 ) $ (10,508 )
Amortization of acquisition-related intangible assets 5,188 6,285
Stock-based compensation expense 8,460 8,199
Acquisition and integration-related expenses 992 1,249
Restructuring benefit (9 ) -
Global ERP system implementation costs 2,076 2,491
Minimum pension liability adjustments 35 277
Amortization of debt issuance and debt discount costs 3,709 3,372
Tax effects on non-GAAP income (4,542 ) (2,978 )
------------ ------------
Core net income $ 11,668 $ 8,387
------------ ------------
Reconciliation of Diluted Core Earnings per Share
A reconciliation of our diluted core earnings per share to our GAAP basic and
diluted net loss per share for the three months ended September 30, 2017 and
2016 is as follows:
Three Months Ended
September 30,
----------------------
2017 2016
----------- ----------
GAAP basic and diluted net loss per share $ (0.11 ) $ (0.28 )
Plus:
Amortization of acquisition-related intangible assets 0.13 0.17
Stock-based compensation expense 0.22 0.22
Acquisition and integration-related expenses 0.03 0.03
Global ERP system implementation costs 0.05 0.06
Minimum pension liability adjustments - 0.01
Amortization of debt issuance and debt discount costs 0.10 0.09
Tax effects on non-GAAP income (0.12 ) (0.08 )
----------- ----------
Diluted core earnings per share $ 0.30 $ 0.22
----------- ----------
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 basic and diluted net loss per share for the three months ended
September 30, 2017 and 2016 is as follows:
Three Months Ended September 30,
--------------------------------------------
2017 2016
------------ -------------------------------
Numerator:
Core net income $ 11,668 $ 8,387
------------ -------------------------------
Denominator:
Weighted average shares used in
computing basic and diluted net
loss per share for GAAP 37,730 37,940
Impact of dilutive securities
(stock options, restricted stock
awards and employee stock purchase
plan) (1) 581 88
------------ -------------------------------
Weighted average shares used in
computing diluted core earnings
per share 38,311 38,028
------------ -------------------------------
(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.
Reconciliation of Adjusted EBITDA
A reconciliation of our adjusted EBITDA to GAAP net loss for the three months
ended September 30, 2017 and 2016 is as follows:
Three Months Ended
September 30,
-------------------------
2017 2016
------------ ------------
GAAP net loss $ (4,241 ) $ (10,508 )
Adjustments:
Other expense, net 4,463 3,935
Provision for income taxes 457 681
Depreciation and amortization 4,668 4,087
Amortization of acquisition-related intangible assets 5,188 6,285
Stock-based compensation expense 8,460 8,199
Acquisition and integration-related expenses 992 1,249
Restructuring benefit (9 ) -
Minimum pension liability adjustments 35 277
Global ERP system implementation costs 2,076 2,491
------------ ------------
Adjusted EBITDA $ 22,089 $ 16,696
------------ ------------
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 for the three months ended September 30, 2017 and 2016 is
as follows:
Three Months Ended
September 30,
-------------------------
2017 2016
------- -----------------
GAAP net loss as a percent of revenue (5 %) (13 %)
Adjustments:
Other expense, net 5 % 5 %
Provision for income taxes 1 % 1 %
Depreciation and amortization 5 % 5 %
Amortization of acquisition-related intangible assets 6 % 8 %
Stock-based compensation expense 9 % 10 %
Acquisition and integration-related expenses 1 % 1 %
Global ERP system implementation costs 2 % 3 %
------- -----------------
Adjusted EBITDA as a percent of revenue 24 % 20 %
------- -----------------
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 earnings 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, achieve financial targets 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, 2017 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.
Media Contact:
Rick Booth
Bottomline Technologies
603-501-6270
rbooth(at)bottomline.com
Bottomline Technologies
Unaudited Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended
September 30,
-------------------------
2017 2016
------------ ------------
Revenues:
Subscriptions and transactions $ 60,714 $ 52,132
Software licenses 2,365 2,121
Service and maintenance 27,342 27,673
Other 875 1,158
------------ ------------
Total revenues 91,296 83,084
Cost of revenues:
Subscriptions and transactions 27,411 23,886
Software licenses 170 128
Service and maintenance 12,232 13,285
Other 667 878
------------ ------------
Total cost of revenues 40,480 38,177
------------ ------------
Gross profit 50,816 44,907
Operating expenses:
Sales and marketing 19,305 18,875
Product development and engineering 13,815 12,935
General and administrative 11,829 12,704
Amortization of acquisition-related intangible assets 5,188 6,285
------------ ------------
Total operating expenses 50,137 50,799
------------ ------------
Income (loss) from operations 679 (5,892 )
Other expense, net (4,463 ) (3,935 )
------------ ------------
Loss before income taxes (3,784 ) (9,827 )
Income tax provision 457 681
------------ ------------
Net loss $ (4,241 ) $ (10,508 )
Basic and diluted net loss per share: $ (0.11 ) $ (0.28 )
------------ ------------
Shares used in computing basic and diluted net loss
per share: 37,730 37,940
------------ ------------
Bottomline Technologies
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
September 30, June 30,
--------------- ------------
2017 2017
--------------- ------------
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $ 128,331 $ 126,542
Accounts receivable 61,505 64,244
Other current assets 19,362 16,807
--------------- ------------
Total current assets 209,198 207,593
Property and equipment, net 26,138 26,195
Goodwill and intangible assets, net 365,048 365,980
Other assets 17,174 17,671
--------------- ------------
Total assets $ 617,558 $ 617,439
--------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,235 $ 9,013
Accrued expenses and other current liabilities 27,236 29,179
Deferred revenue 62,123 74,113
Convertible senior notes 187,281 183,682
--------------- ------------
Total current liabilities 287,875 295,987
Deferred revenue, non current 22,122 22,047
Deferred income taxes 15,838 15,433
Other liabilities 22,522 22,016
--------------- ------------
Total liabilities 348,357 355,483
Stockholders' equity
Common stock 43 43
Additional paid-in-capital 632,490 624,001
Accumulated other comprehensive loss (31,083 ) (32,325 )
Treasury stock (111,565 ) (113,071 )
Accumulated deficit (220,684 ) (216,692 )
--------------- ------------
Total stockholders' equity 269,201 261,956
--------------- ------------
Total liabilities and stockholders' equity $ 617,558 $ 617,439
--------------- ------------
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: 02.11.2017 - 21:05 Uhr
Sprache: Deutsch
News-ID 566518
Anzahl Zeichen: 28111
contact information:
Town:
Portsmouth, NH
Kategorie:
Business News
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"Bottomline Technologies Reports First Quarter Results"
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