Strong Growth in Subscription and Transaction Revenue Highlights Second Quarter
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.