EPAY - Earnings call transcript Q1 2019 | Bottomline Technologies Inc

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Bottomline Technologies First Quarter 2019 Earnings Conference Call. Statements made on today's call will include forward-looking statements about Bottomline's future expectations, plans, and prospects. All such forward-looking statements are subject to risks and uncertainties. Please refer to the cautionary language in today's earnings release and Bottomline's most recent periodic reports filed with the SEC for a discussion of the risks and uncertainties that could cause the company's actual results to be materially different from those contemplated in these forward-looking statements. Bottomline does not assume any obligation to update any forward-looking statements.

financial presented Bottomline's basis. a call, this results on are non-GAAP During per non-GAAP constant EBITDA, operating earnings others, include, net growth and These among margins, currency results rates, gross income, share. income, financial measures reconciliation GAAP is Bottomline's in available these of A Investor section www.bottomline.com. to measures Resource of the website, most directly the comparable non-GAAP Bottomline will on guidance call. be the providing forward-looking the the company from summary A is call of the guidance available request. provided during upon Mr. to turn the over I host, would like now to conference our Eberle. Rob Please go ahead.

Robert A. Eberle

First for Quarter and detailed to Booth, going the available XXXX here for afternoon, Earnings I was Officer, a delighted to Good review who'll remarks. guidance Financial the any questions and and Rick I'm Fiscal forward. following quarter's report a Call. welcome provide with Chief our as very Bottomline. financial what his on good then our quarter Rick will results And be of I'm both always,

very start year. and was quarter a both quarter good a very First fiscal good the to

reporting today, back, goals. we've we We and targets on that forward trans while in million A XXXX The million against increased to our once revenue recently another $XXX to our and $XXX targets. results subs having plan. in $XXX our $XXX to execution financial FY FY are plan million of merit consistently again achieve of committed XXXX strategic are and executed QX EBITDA, and track the and for we're against those seen solid step $XXX demonstrate million and results

solutions for strong opportunity, for are and continued growth. focus aligned than touch we for revenues our continued have model and excited and products in grown the over the Beyond market row remarks prospects other on the products quarter the drive I'll let financial the in is future opportunity, quarter. took all momentum I'm XX% first briefly QX about XX%. me and grew the the future market Subscription This XX%. business transaction grew the to fifth for transaction revenue and my product banking our business, first steps performance. more a but highlights these in on even set, quarter, Subscription The now the quarter.

I'll solutions profitability product by be by XXXX, prior in but given will now drive most of from $XX.X And priorities the be was our and expected, for $XXX a FY quarter we'll the growth million, QX plan, banking value ahead rate transaction to we're million that'll above confident growth $XX.X XX% of strategic Revenue live. and Financial was currently million Subscription cash. to was large and XX% $X we're our our quarter million, low alignment success was backlog with we and a year-end, of As set, our then million. some on revenue year million and overall was this year today. our why the market turn EPS run we're the and well $XXX.X initiatives. market key comment product expectation, million. while up prioritizing target to execution. drive the as opportunity, importantly $XXX continuing business. $XX we're updates fiscal EBITDA bringing in $X.XX, in demonstrates the continued seeing and ended of

also we'll to partner as customer And increasingly of and we build attract of at businesses make innings activity. transformation business right U.S. BXB over our recognize technology see or in transformation. that grow the relationships continue digital volume of early XX% still $XX payments. opportunity. a scale, very the upon and payments and brand, It's paper set, their estimated interest check. The product business huge We're leverage in middle increased more are capabilities XX% of We and the payment in digital trillion. by payments of is

different around of reason themes globe. our us number to and we a regularly almost work partners common centered payment from provide is customers in the hear we with products, some always the While

first scale The experience. is and

We have a proven capability and real-world experience.

prospective customer or and using scale. of technology customers While others our can thousands idea have at software, may an doing we so existing show partner in a

had We have leading to has of deep open domain in banking, bring accelerated. cybersecurity, a of business payment That valuable expertise payments as payments, area become business payments. payments the has pace faster addressing whether bear expertise. We business expertise or We the automation. particularly in asset that change

leadership. product have We

learning a are machine but business just committed not being new today payments NLP. evolve capabilities product and We with in best-in-market, to continues the to first-to-market leader and and as like innovation market

focused management a that success a trust We're innovation. the verified of trusted of example in-depth see marketplace recent management this we us has couldn't report, industry Our of on only say, number quote, the piece went and customers partners AAT's regularly last alike. They is partner. industry. solutions. product fully I vendor best-in-class was day both delivering it and because and tremendous is and released AAT's a outcomes trust. analysis an become recently history to when and as important on be more demonstrates providers. In to Bottomline every best is our better product delivering by rating. the leadership cash to vendor leadership. Technologies' customer a The us analysts. achieve vendors true The message resonates for the partners on other banks customers Technologies truly innovation opportunity It beat." successful about than and given needs in "Bottomline Customers based record and their cash of Customers has momentum considering the ahead excited are of any replacement Bottomline understanding the We're of seeing

settlement confidence threatening visibility connectivity existing will relationship as our helping is them of ensuring payments. our Connect secure increases able for a the announced offer payment and even ticket bank in extend enhanced and end-to-end our cross-border Visa's BXB example and recently to option with payments rates trust Our FX be is whereby Visa dates. We to capabilities Visa. expanded leverage we're One cybersecurity Visa, large this partnership partners on more environment.

result, strategic a ARR focused a is also, a platform. them key and is serve. Bottomline to of the is commercial this is note business our one of achieve example And objectives. banking example as to has partner, platform bank able of to the What's brought their implementation the The course, seen of and seen thousands customers their revenue. business thus on helping An core seen payment banking evolving already our While business we're CFRM Bottomline major leading leveraging of a This we the the that APIs time in the achieve helping good to of in bank's live is integration, migrated short was opportunities, engaged the standards, highly they a bank customers we've bank successfully purchased achieve was outcomes. expedite major as our in technology, the responding. interesting initiative. quarter with customers grow business this they customer, partner infrastructure expressed Payments as next-generation metropolitan XX%, been or Secure partner goal area add-on. being and changing instead By Whether time we've the outcomes, helping customer

into continued and translate that Through shareholder strong simple. Well, growth. consistent does value? how So

opportunity. We huge a market have

experience. way get we're indicated, the in businesses already unmatched We're and of extremely in pay paid. accelerating I've the an transformation capabilities with business As well-positioned beginning and payment

to an paid. XX% objective. and on a From be XX% higher to every opportunity to The financial way TAM to we're that Everything see drive frankly or get pay XX% to growth doing and for for businesses there. and have opportunity is we potentially XX% is the years trans perspective, even We XX% subs come. focused growth growth

and investments, a of million-plus XX% year that company, have other or on is be grow happens which which focus be plan can our goal, five our can, the outperform valuable rewarded. our course, execution, set, belief financial for growth. can of years, By which the have be that $XXX higher. to and every if is $XXX ambition all I focused year-end, will we revenue even SaaS we streams, so driving will target, next If revenue. subs on that and million, product Our trans shareholders a are XX% we'll million $XXX but one results we And to

We're to market goals. in continued look long-term in huge and shareholder every I success I as drive a these growth value. So create and business, so, capability across see doing this to well-positioned achieve

and So financial And with will be on his that, I'll remarks. both turn us of details our it over the guidance. Rick. He'll to questions for provide following then available

Richard Douglas Booth

including led by Thank you, EBITDA and XX% million and and of Rob. revenue trans our of established XX% I'm another report overall, products, trans XX% subs revenue. of growth successful on growth from delivering or pleased quarter, $XX.X subs

EBITDA. invest long-term guidance payment and $XXX as gained even In results I'll $XXX position remarks trans strategic and to achieve our growing topics. focus full-year large greater million and and and well are objectives, in us $XXX a XXXX quarter, million growth, to able of business sets growth on of the my strong to well today advanced quarter million XXXX reflection we guidance our of three innovation confidence as and were revenue in our business space, model. potential. in subs our our This attractive fiscal up These the of fiscal

strategic I'll quarter. briefly and our I'll results detail. guidance upcoming finally, in Then QX I'll for financial on our financial the comment First, position. review provide And

clearly mix. for We revenue, to these and I'll current evident strong address consistent we're attractive to the website simultaneously and long-term, allows our review and revenue posted deliver each and the results. in is this is us speak and XX% differentiated subs relationships, we've our products growth growth, through the of million QX business our recorded to have a Beginning investments quarter, growth. partners, and drives strong momentum, us to subscription With and their we XX% our trans This continue to financial that market, ago. trans revenue value shareholder $XX.X model. drive sustainable we subs supplemental our growing sales Our from from by to financial need these of our the and of in trans addition, revenue sold means our an are channel XX% have established growth position. valuable Each priority. P&L, execution offerings, these grew To business and revenue, to Overall million your positions up partner and reference. they results revenue quarter year our come, annualized of value single our XX% on and million/$XXX materials driven and years $XXX a is plan. are from teams make deliver million in model transaction to I'm in for our led customer in subs we quarterly every XX% and strategic equivalent for QX results expand detail, our trusted factors growth valuable It products. subscription XX% subs customers platforms with basis. line use it disciplined and trans today products market by Maintenance with through briefly introduced our our large in to results, target, the have financial $XXX particularly payments, our met innovation our growth product in traditionally to component the since we another customers as grow or revenue proud exceeded came against of

four importance the Given maintenance XX% up the our upcoming $XX.X results. subs to rates. XX% visibility came revenue provides of year-over-year, and quarter combination an $X.X we overall. the we the and a long in our of choose as by Management. by last business. part to to new ramp million relationships, Spend and of with and our brings are growth quarter central is quarters. the to and products small with and customers renewal payments. new to trans customer and Paymode-X In implement million and sales partner us while was revenue, QX, million trusted visibility very applications total future estimates innovation of as us recurring license Legal quarter, to to million revenue this of their provides We Bottomline solid automate bookings the us bookings figures in signed trans led Maintenance overall revenue quarter, enjoy our in $XXX license trans and and revenue slightly $XX.X take subs to time revenue of traditional beyond. revenue $XX trans production, high to And reported had performance only in the License business customers our design XXXX for fiscal up excellent subs We customers full million This from in continued subs in and bookings and

Looking signings. at new customer

as our set annual well We new of which attractiveness new payment product signed to validates Digital million $XX value Banking automation the our in Our being effectiveness recognized the partnerships. Paymode-X payers, our yet as P&L. network and have of which not are added channel our further customer XX approximately another proposition, full subscriptions of

which implementations Our substantial live track continue on fiscal Banking in Digital majority to of bring to this keeps go XXXX. well, revenue us

earnings Management significantly We also commitments Adjusted continuing margin was of XX% growth. and P&L, And $XX.X $XX.X prior drove million to our advance Legal signed operating on EBITDA of network, on share our seven new including EBITDA we PartnerSelect. of long-term another Spend while consistent investing insurers year. $X.XX. per million drive XX% to up was delivered financial income down insurer We solutions year-over-year. and core with our core the of

investing growth while attractiveness model, the So our of in our and results these initiatives. sales us allowing meet to commitments product in business financial total, for evidence

products. valuable, revenue sheet. margin up an XX% the one on gross X points additional toward turning invest the cash represents all Combined, is quarter immaterial. on as and to deferrals growth, targeted this to And gross year-over-year. margin we and year-over-year. long-term just comment growth. to XXX. of brought expense under increased We million product trans or first operations. This million and marketing to It enhancements. year-over-year. Subs sales, $X used percentage reporting our XX% headwind $XX.X marketing the XX% to continue planned more million, expanded revenue, and percentage standard through ASC under subs to invest year-over-year. This This impact We relationships. and XX% up million or spending timely $XX.X this before balance development $X.X margin as of and revenue $X subs of investment marketing, investment, expenses cost in X recognition and $X sales offset planned, for by as a ramped modest of I'll XXX we of $X.X in we a was revenue or And is trans the million of development sustainable make net flow attract overall million trans point Our this to ASC was benefit quarter new million was million, increase by and primarily the expense to $XX.X brought expected, so netted and accounting it as of license was and by sales win long-term roughly P&L

flow leaving is cash we $X.X and was free balance which the quarter. million after for and lower the CapEx with and higher. to with $XXX QX $X.X million $XX QX total in flow of and down Operating million, $XX cash Turning of sheet. and and We This our normal credit reported borrowings million, using consistent pay million seasonality of cash investments to are have cash quarter cash flow QX the operating flows our with $XX ended facility, us QX million. after of

XXXX stock our are warrants now Moving and converted with shares XXX,XXX associated remaining of into bond equity, in fully in warrants those to QX, we QX from convertible fully The extinguished. the warrants retired debt offering.

pleased Turning and of I'm deliver well to track on of trans $XXX million to to and $XXX full-year to $XXX guidance, we're that guidance, million million revenue including EBITDA. subs reiterate

EBITDA; million guidance QX of million for to and $XX.X $X.XX core $XX earnings to $XX $XXX and $XX share. million million as Our $XX income; adjusted $X.XX $XX.X to is follows: $XXX revenue; subs total operating million trans per million core revenue; of to to million million

pleased EBITDA. revenue large $XX.X a and successful So including and well-positioned trans We're growing in market. overall growth and quarter, conclusion, on million report we're to of XX% another subs in

to And can in is we investments the and the shareholders that strong, and customers to Our making need we are to value for that, order as years questions. we for with current performance come. create planned, financial call open

Operator

from Thank Citi. our first go question And you. comes Schmidt Andrew from ahead. Please

Andrew Schmidt

they Banking exiting live rate subscription, I'm Rick. you as on could Hey, in XXXX, about so live. revenue growth if you little Digital that just half. you in to Digital question. we then question trans when mean $XX Rob. expect for Quick about what year? not talk subs my run of those a subscription segment, Hey, Digital thinking go and taking Thank the And FY the revenues, for bit Banking back the million Banking the wondering the exit are does

Richard Douglas Booth

Yeah.

Andrew. think it's question, So a great I

seven that So XXXX. we've QX live got banks are in going fiscal and They towards QX. weighted are

that legacy XX% As is subs will from we over you to of fiscal But attrition know, the expect first by business fiscal expect long overall our we XXXX, we Intuit the get XX% Banking Digital we into the trans the half by the year of XXXX XXXX, all this exit and as growing impacted as that that streams at term. be the and customers. of

went live, we successfully The to million progress $XX was fact really so in $XX in million good the that reason So good. feel customers Banking. Digital down bringing really

Andrew Schmidt

helpful. it. in should a off high number about get I on of XXXX. And quarter terms movement And you first Got coming and contracts relative the but to then are cetera. think are Thanks. in quarter? a quarter Since any to bookings it's should bookings think in the robust to quarter, just we pretty et quarter? the I in bookings, the little off in the they number, first signings, curious that of strong hard to the guess fourth bit level quarter very context XXXX context discussions, then in we the number just of the on That's about levels forecast know just – bookings staying coming

Richard Douglas Booth

of going basis. XX-day an There's night would to metric one, versus we pricing order close power no an because quarter-end manage way don't next period. forecast Absolutely, up the give Andrew. Step bookings, never deal we're individual that every to in on I that the to

bookings at a look extended more over always I period. So

in bookings was quarter, trans. over and trailing useful even quarter but a So a four-quarter those as and $XX metric, not revenue. subs trans million QX, were is subs still as this of solid And which one which of XX% we've high booked basis,

our outlook, today's bookings the support growth at and momentum So our levels certainly strong. is

Andrew Schmidt

Got it. about was Banking Paymode-X guess Thank bit little there Banking could integrate that. with I Digital you products. Digital an for question, you opportunity corporate seems Paymode-X, better last sort sort on banks a relationship but to and of Bank And TD products, with talk that then I early of this, thoughts. progressing? discussions – there your but how like sort know it reception and to that's seems the just days, probably it's your of illustrated get the curious like out

Richard Douglas Booth

Yeah.

I our picture, of increasingly theme that the to together think see are full is capabilities. looking big I coming of suite advantage take banks

of some who on we're have their And the to that such the working Banking ways Banking is, management same exposing the within wants functionality Paymode-X right example, can a of specific that our banks that platform, within full for portal. bank X.X present Digital with as Digital platform cash APIs

So you're beautiful customer. doesn't it competitive talking – but network one, a that the versa, changing against vendor scale dynamics. it powerful when helps the One, of game. payment becomes really you're our the just And a things. does vice overall When someone who's single, management a changes or it two, And face business. couple to cash you're competing have

relationships next level. So it that. takes the a Citizens is good example to of our

Robert A. Eberle

the ground pointed those to fraud How of quite Europe? many questions. on do we in which, few anybody just breadth ranges is actually the examples banking, what the have of are a there's from of than banking Rick cybersecurity Yeah, And U.S.? different that out, that open compete asking and they're example, looking with. because that. we like as What's And we where for the solutions, open U.S. in going look to financial breadth would so – underscore messaging I'm banks to

table So we're geographies. bringing at those the all we're more and of of as more and with level, talking together and more the customers more bringing those we're in technology to

Andrew Schmidt

guys. lot about, to a continuing and talk when the discussion to forward Sure. look you I see Yeah, next certainly week

Richard Douglas Booth

lot. Thanks a

Robert A. Eberle

you. Thank

Operator

Thank you. ahead. Davis Raymond of And to go now from John the Please line James.

John Davis

relationship? details partnership? BXB to is you what purely guys the help maybe that afternoon, there guys. brings, with bringing is you anything bit there the Connect just dive you're give little table, on Rob, understand, wanted this Visa maybe what maybe a Understanding partnership and deeper Good Visa. economic or on any in can with an And exactly can is to to more this bring color you the Hey. strategically Visa us

Robert A. Eberle

their Visa Well, more lot. a close first Messaging can with ability ability technology global that an off, bring Financial the Visa connect we is global last and payment BXB organization the easy is in banks payment unique. to from I that mean, capability platform. the those and We our connect, That's of bring to than is Connect Visa brings the kind mile part help We will, you a technology bring them of brings brand. if for obvious lot. standpoint a brand. – the to a brings to that the there (XX:XX). What lot banks.

how for that just So and answered and The and them question connect it's This example, capabilities we kind a a just last And actually of all they different where it's throughout to important Europe had the of breadth number out customers. of have the conversations partner bear banks get do can the we exact to this in will the example is to an perspective time. bringing our where a be of capabilities we payment capability? about actually problem was same they and of that interesting. cross-border

nature that's So really the partnership. the of

John Davis

to of of And to spoke run you on rate that gradual Okay. to That's of? growth, kind then kind the XX% Andrew's next is subs XX%, should get set expect trans and to understanding follow-up question, ramp this solutions helpful. a Rick, on maybe banking the year a we year the

Richard Douglas Booth

QX QX guidance. you from Yes. be as actuals weighted, back-end It'll can see, and

QX those So you'll in QX, up. that see deals to tick if and start live go

John Davis

of firepower you. out is for Rob, maybe, here. M&A, have transaction today. that's then hot. pacing a There a And obviously, Okay. BXB On you lot was guys

look is? think it it M&A Is there at about or product your you need, gaps? about color the or thought be that would I Just Is anything where I it distribution? focus opportunistic? any Is should guys how there purely specific you as have helpful. strategy, So is

Robert A. Eberle

Yeah.

customer need are gap competitive always Where bar capability. but we the that we're where customers? need, high at see as well can would but a we technology, places gap again a we to can we things our of M&A looking stronger. can we're add perspective. from we the What financial, we're I we terms bring, always always more And of customers we at is of can our that looking new theme, about differentiation? can doing to culture, if their or looking from where extend kind our can there's and with we're new So today? are on don't capabilities similar a in bring we bringing an M&A where extend perspective capabilities pretty to So what things breadth have integrate all

John Davis

and you is standpoint, there may out there then vendors able to your there? or bring distribution think you distribution be a And more anything broaden from Okay. anything

Robert A. Eberle

extend We'd gap we stronger be even today. or All do at opportunity see at geographic be opportunistic. I We look for or set. It's those. look would but Where look a customer at distribution, hole We'd further? look even more at don't We'd see presence. technology. us, rationales those all to an can

John Davis

All Thanks, Okay. guys. right.

Operator

of And Stephens. from you. to now Brett the ahead. Please Huff Thank line go

Brett Huff

nice congrats and on Good and taking for evening, quarter. Rob Thanks question Rick.

Richard Douglas Booth

Thanks, Brett.

Brett Huff

and that model, that? are business-to-business if take to with distribution – your verticalization distribution like maybe M&A be business will and question to that specialization partnerships I'm it some maybe could see there's networks BXB a in bit market asked via maybe there drive with picture and we're interesting maybe a going maybe about a Paymode-X extensibility enough networks. somebody bigger Is just Is of still and very through payments, via payment wondering in little networks. economics what be acceptance? there guess that help on is M&A, maybe And I on seems the serve other It opportunity some there profitable partnering question A a interoperability pockets certain seems it verticals. and there there overall interesting and

Robert A. Eberle

you'd issues. there be issues, model are but could technology There's some also have – business to there's

network around Or I'd we're is network opportunities, the on use automating How more a card? is something Well, vendors anything, that AR say paying distributed? more So a partnership that but the we that approaching are do is not fee? side. suggesting and just how or doing network a I'm probably committing

So a in if vendor vendors that and a that there's together I those that's receivable, if – around doing that – logically. true there's payable pretty two has in capability U.S. has the technology side, mean, That's things we're come can there's accounts provider on accounts Europe, true the

I'd more connecting would see than multiple I partnership around that So opportunity networks.

more a and that's talking are the it I model multiple networks but out about APIs and model technology formats think further there's what has like of accepted revenue opportunity, you're resolved. connecting or an and probably more issues on when becomes more and a revenue single

a other opportunity capabilities we see broadening more focusing with we would networks. on connecting around bigger So than and the AR vendors side for

Operator

the from to All ahead. William line right. Thank you. And Bob now Please go Blair. of Napoli

Robert Paul Napoli

try, I your It it of Maybe grow, deal out giving the you think I it could, side to difficult if Is that or would in specifically, specifically? think out break be business Thank it XX for we was about as company helpful this that possible if too Paymode-X a had give just to revenue. it continues might, went that this I XX times revenue. the revenue, mean, you. afternoon. today, Good just times market XXXX is

Robert A. Eberle

advantage are for these engaged. changing part of products us a No. doing really They're I from Everything sale piece competitive out be I just would think to what our Management, really breaking we diminish talked or our wouldn't we're see about, Cash a a – it's we and more reporting standpoint. partners, customers and capabilities Payments less. to the cybersecurity we linked And broad now. had to It's attractiveness, capabilities. if importantly in

think is see you're of only that to that the in Bottomline. transactions, business being in what seeing expressed we're other and I and beginning value strategic payments as

XXX kind our the write. multiple there that You attractive and that be really take But could you applied to subs that's that and would piece range. was the of apply trans, a well, you

that as see a you're continue ahead think and that's Bottomline, for of we up market, more you'll from I seeing growth particularly today put to more in of the the up perspective. we numbers that occurring put

Robert Paul Napoli

– you likely the I or more accounts to side, are the think receivable on you're partner. payable you side that Rob, suggested accounts

build specific a there expect out to partnership. maybe a So, – specialists receivable like make Billtrust I I there I to should it accounts that are good mean, as a opposed few I seems mean, business companies partner would that natural side like we and I guess see. are there mean, that or a

Robert A. Eberle

Billtrust is There's that number That that there companies handicap are a a solid we partnership, could wouldn't then are a on out we'd At is that but to anybody underscore particular I it, time there. announce today. had or a in Sure. effective number AR the side. be want company. such one. of

Robert Paul Napoli

the that pretty revenue the mean confident, just board? million in the Rick, you that so half you just good And seem I really Okay. from guidance, �� coming guys then, on on trying order coming of ramp-up that get need for back to the is year. banking, which And to a $XXX year, to in the

Richard Douglas Booth

And continue very the I go we get a confident. get lift We from that year. some so about XX only that guidance. through and days in banking, QX feel monitor we'll to questions we we'd and QX Yes. in, as significant We're expected

Robert Paul Napoli

or think just the more payment there's John code, question mentioned, space. the And tension Thanks. industry a in lot cracked is BXB piece what the like an of I And or the the definitely the last you for it combination had the like or you WEX seems like Bottomline versus Digital would with the FleetCor as It really – Avid does has Is differentiation world? how – it Bill.coms the explain for if would. Rob, differentiation primarily? Banking

Robert A. Eberle

I of things. think number there's a

as firm I and I questions have of one capabilities on, of we the a Rick have think is that breadth couple have commented on a touched.

cash and in capabilities Paymode-X. payments to yes, So, our management and addition

We've you an again. through cybersecurity, incident, other things. agencies – partners, government resiliency, the as in Some time as there's channel of engaging reviews all reviews bank those it's of remarks, so made physical scale of what one been and well they have, you're security, or through with and different in many experience. those opening I reviews of my all time those the comments with been partner We've a customers. When scale, do the

So by the there's capabilities product trust experience. and I innovation. security trust scale driven secure will And we that be as and is domain set. of both have. knowledge There's think then there's There's which organization and cyber, with trust, an things our fraud, us

really advantage come So markets those engaged give together all of each of to us we're competitive the in. in things

Richard Douglas Booth

them point payments. it the look None pick just for easy point B, underscore from they are BXB key think at card. one at And that, around – it's and the be in thing would managing handle to to A do easy Paymode-X, Card I is have any you just go, cards. that may the example. of very dealing there doing payment-oriented inherent capabilities companies to that large people And money matching. They oriented often is ACH. companies, simple not with into to primarily they of are be moving get don't all. It of around mostly who that transaction information basic via all The Well, metadata.

So when reading it's further lot looks it away a like you're than press releases.

Robert Paul Napoli

Rick. Appreciate it. Thanks, Rob. Thanks, Great.

Robert A. Eberle

you. thank Well,

Operator

of First from Berlin And ahead. now Please to go line the Larry Analysis. you. Thank

Lawrence Berlin

Good evening, all with well today. you guys. Hope is

Richard Douglas Booth

It is. Thanks.

Lawrence Berlin

Good. Hey.

and moving other do competition? Napoli you to Just space. Mastercard helping from Visa Or into up these how as you BXB or curious, and announcements follow them? Do adding banks all view Mr. asked, as on those with you and just WEX what see the

Richard Douglas Booth

the We for Visa form that industry. continues as make check. true. about I accelerates to adoption. right that about about think started making it's and is businesses underpenetrated now, so of and more payments It this of you driving with two-thirds industry half in greenfield it's what's good is saw noise of When onboarding helpful. paper it, Anything the think more hold to it very or their Mastercard

Robert A. Eberle

payer accommodating can other include an capability, fact and our they that. their up work I achieve payables appropriate to and partnering we're accommodation allow to all them think of payment integrative what's a partnering, particularly payments, to the and while card, execute helpful end continue which that payments payments network over through types the to full the for really is vendors that we're that

market a more they difficult the are be much that today, in weren't it they So for if, us Visa. fact, partners particularly would

Lawrence Berlin

different Financial English the what's forth? on driving and so payment on then And the and curious how slightly it area Europe, rules And European track, the Cool. a just Messaging especially in for growth quarter? was the

Robert A. Eberle

well a as of couple One a Well, Also banking Geneva. there's how done been bring of have different in add things. type use London, platform our our excellence and we a growth our new say customers we new to this? a what's payment capabilities, do in as and together change, can is has to Bottomline able because another as well payment is is, center requirement type payment and or and And you standards always driving excellence us. open in answer to navigate we've changes and another our when center payment

platform. You our use

around Messaging, well doing payment Europe, of probably challenges we're that's like underneath that, acceleration Financial to very the business because you've on other a well kind or change. look in we're payments Brexit doing I got think economy despite they're you've same continue the appearing that in bigger and got So may very Europe, factor and going in

payments. lot You've and got of PSDX, open banking, that's coming a change into

Lawrence Berlin

Thank you, it. guys. Appreciate

Operator

Davidson. from Please Heckmann ahead. from final And comes of go line our you. Peter Thank question today

Peter J. Heckmann

of fragmentation taking works that some wins, platforms, can Bottomline know that SWIFT, of with networks, eating how on But could how terms Good multiple payment you win? I in with an kind about networks? some potentially you inter-messaging and talk payments real-time afternoon. up talk about question of a alternative some you SWIFT Thanks as talk question. bit for fragmentation the follow Larry's the regards to into about little volumes. and how, of networks payment I my Can and depending in made benefit working from on participate and that can multiple bets maybe who multiple still you multiple talk you about

Robert A. Eberle

different We ways. benefit in a couple

we off, thought leader. First as benefit a

the in those will that happen will say do real-time us to the going and U.S.? markets? is you organizations think example, How breadth occurring what have us change and allows prospects we to to What the them adopt customers second, experience technology have will to to So thought So work? provide for and desire? What alike. see you payments, with requires leadership come to that. customers in Then

be have across platform, can dialogue and leadership board. revenue. it's for then It's we that So really from other it's new can leave it's to be of sales course, a so to ultimately, come thought that vendor and can the to Bottomline, reason them and

Richard Douglas Booth

which we Financial have conceptually We a feeding essence acting into our as And networks. capability business, That multiple Paymode-X. networks. similar a tremendous in the with what different interoperates of it's universal with XX very Messaging payment to payment aggregator do is

our in that makes a opportunity. record it track So proven clear

Peter J. Heckmann

in couple period? on just Could Great, Rick. conversion? as great. And ERP quarter, issues as then FX about for the then revenue And update any the you, housekeeping quantify an could for within well headwind, you give talk a the this acquired timeline us the you or

Richard Douglas Booth

Yes.

ERP know, in those implementation major was phases. as order, our taking So you two

going quarter effort quarter. going ASC down the being ASC see We've XXX, XXX. first was tail with live the now the we'll begin and to our with reported under ASC dedicated live The to first upcoming so ERP the that's was second in XXX

with that, So fiscal XXXX. see guided we'll I very is what we've think which consistent for

You Sorry, there. Pete, questions you what was your second had three question?

Peter J. Heckmann

Sure.

acquired revenue in period. and headwind any FX Just then the

Robert A. Eberle

Currency.

Richard Douglas Booth

last this to about was a QX, headwind. was than from was $X.XX QX that one. couldn't we small average sequentially but was Currency $X.XX yeah. nothing higher down, Oh, It for down quarter The year-over-year overcome.

Peter J. Heckmann

the then And acquired revenue? Okay.

Richard Douglas Booth

Small and but contribute less slightly than amount $X.X materially The acquisitions didn't a million. accretive, financial revenue of from perspective.

Peter J. Heckmann

Okay. Thank you.

Operator

closing to like over remarks. the our Thank you. I conference would now back to turn hosts any for

Robert A. Eberle

call. for for quarter Bottomline, start you look everyone, we the the in you, interest and reporting QX. strong have in strong thank reported and fiscal We're year, delighted a to similar attending results a to forward your and Thank to strong

you. thank So,

Operator

Thank Thank and AT&T you. does for And, ladies your conclude you and Executive conference for using Teleconference Service. today. participation our gentlemen, that for

disconnect. You may now

Bottomline (EPAY) 8 Nov 182019 Q1 Earnings call transcript