EPAY - Earnings call transcript Q4 2021 | Bottomline Technologies Inc

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Operator

Greetings. Welcome to Bottomline Technologies Fourth Quarter and Fiscal Year 2021 Financial Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. the of to Investor turn White, host, now President Vice Relations. will call your over Angela I Thank you.

You may begin.

Angela White

me Angela Good afternoon, XXXX and Eberle, I’m fiscal today’s and made Bruce quarter fourth are Bowden, joining Bottomline White, CFO. CEO; everyone. Welcome earnings to conference Bottomline’s this Rob afternoon on Statements and call call. on assumptions, prospects. our impacts subject to are include statements Bottomline’s about statements economic the global forward-looking and to future uncertainties business These including and conditions. will of related COVID-XX expectations, plans and those risks,

recent SEC on guidance is relate assumptions forward-looking control. macroeconomic and cautionary Our periodic the beyond today’s most environment matters Many based Please We risks reports those assumptions filed our these any in as the not cause to release be language for of to that refer could results our the statements. today. company’s earnings from obligation to materially update different Bottomline’s statements. discussion forward-looking uncertainties do of the these and actual to forward-looking assume to in with contemplated the

non-GAAP share. Bottomline’s from measures reconciliation this net on company These measures basis. income summary of non-GAAP available the our the upon to of income, among during is website. request. are the comparable the the earnings margins, results results most include Investor and per During a directly is non-GAAP others, these EBITDA, GAAP presented call of gross financial financial call, A in available Resources operating section guidance provided A

for me turn his to the remarks. let call Rob Now over

Rob Eberle

call. Good XXXX the Thank Bottomline afternoon. you, fourth earnings to welcome fiscal Angela. And quarter

in we always, Bottomline. As your interest appreciate

in and financial And and detailed acceleration ways CFO. available an quarter an his our will then Bottomline, then had questions. in new for growth both in quarter set, demand offerings PTX, review Bowden, for exciting platforms, in excellent our ambitious made solutions well haven’t advancements Bruce We of our with we will growth, had Bruce XXXX. key is was our subscription bookings, pipeline. Paymode-X we had enhancements outlook. growth seen fourth today the provide FY payment an The subscription me and product strong and both for us we product remarks in to many be current for strong after revenue revenue future a our results our significant particularly Joining positioning and

Year quarters’ was QX up goal EBITDA XX%. quarter in year We strong ability revenue our the achieved $XXX our $XX.X of million continue to quarter Subscription the the in our pleased year. in than execute our revenue $XX.X target. briefly reflecting we XX%. bookings the in in corner in our bookings. the very million in an marketplace significant provide moment. key the and and after fiscal committed QX EBITDA position. for enter about we’re year-over-year cover growth Management, coming $XXX EBITDA update completed area lines revenue from was product we’re position fourth our on growth Spend attractive so and Legal step key achieved results our quarter. have New confident margins expected We QX year-over-year growth first, I’ll post million All-in-all, last million, one was and we in the transaction excited would a just weaker year for Subscription Total I’ll why subscription a and or overall the driving million revenue priority, with subscription were financial But of $XXX to the confident against growth. in a highest our have of about

on a than strong the But had in Management transaction than and expected, we’d key slower growth Legal volumes Management bit slower PTX. quarter, a subscription banking expected, was products revenue Looking occurring, COVID but results year-over-year as compare XX%. acquisition as anticipated. we growth the our growth really in PTX is excluding tough key growth of We Paymode-X Spend was Spend platforms was Legal The a from customer of solutions had set Subscription in Subscription XX%. for payment XX%. a Digital recovery had payment excluding Paymode-X Banking hoped a deeper or based our revenue year growth at and ago. platforms

the highlights lots in So of quarter.

the You new our excited results for and we as can position why QX we’re our fiscal pleased with understand about year. enter

to major the Spend brand payment leading by our Digital leading are in results Bottomline opportunity. now aggressive BXB cover an I’d market cloud-based evidence positioned platforms, lines. our innovation to player future and take agenda. a Banking moment drive continue quarter trusted is those delivering like product products major Our Across categories, a growth. Legal well to backed in product payments, and

with start product highest payment Let’s of Bottomline. our platforms, our cloud-based growth lines

use solutions that is and address paid then pay Simple, design and payment and business and That PTX vehicle large intuitively platforms business We a seamlessly with a allow in manner integrate Paymode-X the or rich our to smart simple, existing Our Smart, market. are our or partner. payment advantages. and get competitive integrated platform help and capability systems one payment secure. attractive businesses rail our is in intelligent as for best routing of our and optionality. just any given

adds platform. we we technology vendor scale progress fourth An particular of our industries and our for where our size, nothing range leading U.K. critical a the to the platform machine business our capability are world of driving business learning-based as new It’s but leading U.S., to Paymode-X as That and world’s that franchise. of paid are our protection businesses direct a capabilities bring to and and banking, all the innovation. position more bring the capabilities Secure our to the area to payers continue well provider provide released they the them Leading prime who largest payers and We revenue enrollment, leveraging for We payment paid. in platforms In We’ve to leading With quarter focus of business payment a is solution predominant get help provides Bottomline. the see major expand our and the in as a business pay. additional for incredibly, for technology all continue example build the executing the banks. backs PTX we opportunity payments. get new and payment PTX forth make utilize platform fraud customers. cybersecurity just know Businesses wide business pay our the important. Payments offer optimal of customers Finally, in to we debit. is advance electronic business up against secure, is not enhanced both way the rely we made our and across we’ve Pro, enrollment is network. advancements. to open payment in significant signed Vendor valuable to where In business payment U.K., U.K. Paymode-X on to XX payments, a in a

Our revenue cloud quarter. XX% The run of and have platforms is rate these grew million $XXX in TAM capabilities massive. annual an payment for the fourth

ahead. a we super $XX billion future and Some see strong estimate

Solutions. now our Turning Digital to Banking

market. and an the incredibly technology, their the for business product in platforms leader which execution. of interface investment, position. is It’s and sell our banking be customers to vision, and to banks the to them valuable service DBIQ This experience, Our result product with we the continues market

product assets. Digital banks our global expanded During over large in $XXX chose the with our bank quarter, we a three Banking and with relationship billion

are active number our We customers Today, are the business that could XXX,XXX completed, face had and growth businesses. there’s good opportunities. insight their We’ve revenue. solutions on almost region and to businesses sales on non-bank us franchise. success innovation, to and analytics our And XXX,XXX critical be us customer work for Deploying implementations and other retain geography grow of their out of banking share business against with be are when a customers, in banking compete banks They compete, adoption we and with add of capabilities well. of In challenger we’re with significant first on increasingly they and fraud new expanded new new bringing customers. banks platforms compete banks. rely a existing the platform, and all the platform XXXXs and our to platform or opportunities the mission effectively banks is and our the wallet very current from count more grow fintechs and formed against platform one on as

data are doing, that the to what run millions need. points help through With better customers can their of insights technology, gather banks and we into our

current to There a due am which A comparing Bank very projects. market, banking one acquired, solution Legacy We’ll was pleased position a past and fee the While termination COVID, this growth of significant with in tougher uncertainty solution was normalized I banks lower of this and around the we new led naturally which on made embark a ago, hesitant more in year beyond. lot customers’ see quarter. our to to and strategic economy of have the QX the Texas year growth slightly hold year. the QX our

Turning Management. Spend to Legal

simple. the where off after legal claims roads It’s As of having claims activity. litigated there a When of behind That’s fewer I in being on from naturally we recovering level that expected pretty noted the of and are or above, be QX. really lags COVID. volume accidents, we’re function to people not are a recovery

levels. see market This growth profitable, continue a claims normalized we’ll So business. pre-pandemic is we’re great business. as leading very to to return It’s confident

is We as leading acquire and grow revenue very raise set. model customers and domain is even lawyers Customer churn one. We We our low. as more a product rates. grow, volume. with grow tenure have the a team as add a fabulous is they fabulous long and knowledge deep The extremely

to new continue added new continue customers QX we to to new customers. in capabilities the five sign see platform existing We add on insurers we and offer. effectively We

part We’re and expansion. as geographic actively of U.K. insurers working our ramping on implementations new

and have So us quarter, this temporary. a bit outstanding we’re been from a what we back while why truly the the quarter is understand impact results confident held

our or This year variations in payments ahead. or is quarter do So and and business in nuances slight pleased payments with the are complex, another focused way is with in summary, related Everything we I’m on different market position excited geographies. processes. other about the in one

through varying the we are doing paid critical. directly is So to offerings banks But them. to get the what needs. and and pay same address the have businesses help serve We we market core and different

From advantaged business we to the landscape revenue there’s strong in fourth We’re addresses market subscription and on this better A Board. shift. and with quarter payments growing we see market, quarter. a ways by focused provides no an business many in set we more growth no and that product and digital strong and We We revenue EBITDA. offer a Paymode-X was said Every a quarter competitively acceleration we processes in shift or payments accelerating as and compete we growth, posted had bookings position. favorable business driven good where product across particularly in excellent an The very solid had PTX. large

Our Year target plan focused for the driving in New revenue subscription our growth range. XX% to XX% on is

be execute will We’re shareholders plan that rewarded. that against confident we’ll and

over Now I’ll remarks. financial us turn will both available his following call then and results to questions of the review to Bruce for our be

Bruce Bowden

year with XXXX. I’ll fiscal today. And and three I full leave and to Rob. for afternoon our this for Thanks, the you QX guidance I’ll start all messages fiscal year then by cover our QX basic reviewing performance. want

of very performed all to our Legal respects, have almost and First, in Management, we would QX temporary but challenges our targets. business Spend for hit all well in

FY platform payment as have that confident Second, and we on shining our Paymode-X they in rate and third, stars quarter. are we primary now growing remain million our and and XXXX over will And run XX%. we $XXX relatedly, products portfolio been our guidance PTX last projected achieve well

of start fiscal results for XXXX with Let’s QX and full the the year.

with We’re across business. pleased the performance our

this market. we to growing leadership with in investing our We’re discipline grow seek position as and large

guidance profit committed level. share. investments per products revenue maintaining to earnings goal. during positioning and healthy push total we for go-to-market our is levels We’ve in sustainable us growth XX% fiscal which margin, XXXX. EBITDA and a our are to to achieved revenue, QX to also a subscription We did This Our XX% primary our

to the several metrics is years performance a hit structure. ability teams, our of in the Our business, these very our consistently our and cost testament primary to our across the proficiency past of managing conscientiousness durability

in results growth. financial points was Subscription earnings the year-over-year XX% of revenue, QX. revenue than $XXX some year are our million, XX% was period Here total a reflecting Subscription ago. of X revenue key million, same per higher was for $XXX.X which operating revenue. to million, of translates was Adjusted Total $XX.X of $XX.X from up $X.XX share. fiscal XX% revenue or million XX% EBITDA QX was And income XXXX. core of

XX% up year, was million, $X.XX gross and million, was $XXX For revenue XX points, the per revenue $XXX revenue $XXX was million margin subscription or share. XXXX fiscal basis was was EBITDA total EPS of

strategic been growth As of and has for revenue you terms also us year-over-year in subscription percentage focus revenue. a a both overall as key know, on higher, of driving our

year of revenue of fiscal QX, subscription subscription platforms. the growth mix strong our our temporary overall as XX% saw growth as exited subscription objective, our XX% product Our of our revenue QX In guidance. were performance total came XX% slightly consistent subscription very and headwinds of Drivers our we we payment a in in expected, most strongest of to below now lines revenue growth a in revenues are revenues. And XX% with from few others.

are understand for leading about and markets European investor which the community our We U.S. and Paymode-X the have market interest from noted respectively. platforms PTX, to payment strong more

As and and was $XXX subscription offerings PTX indicator run very the seeing These annual now on million of XX%. growth attractiveness QX in competitiveness a growth continued Rob of in our mentioned, promising The trend. products the on Paymode-X a of rate strong rates we and are combined are is an revenue. year-over-year they’re of

four platforms. quarters XXXX, fiscal of growth to payment accelerate these continued the Over across

LSM the with fee, of in We on solid Banking declining termination Legacy will continue in interest of response products Management from the expressed. our year’s resulting to with for was you QX progress subscription XX%, the Spend in important many Texas. acquisition Legal keep grew continue to growth X% year investors year, revenue at the Digital to updated for despite slightly connection have last these the saw see lag some picked see QX. as we up But of to year to expect COVID but products from the impact this we the in throughout This early in X% of accelerate the year Rob of mentioned. suite in transaction continued growth continue. the recovery dynamic revenue, and did and

in streams was Banking, Management XX%. growth QX exclude XXXX, Legal over Excluding XX% subscription of QX Spend grew revenue we revenue XXXX, and if our subscription

Legal So, number tough reacceleration platforms, for our payment contrast good slower lap again, expected for banking of of Spend reflects than the XX% really but growth Management. and a from the quarter

we to achieve were on plus of Let’s fiscal turn is we substantial are to bookings. million. growth many reasons quarter’s XXXX. a last million, Subscription quarter of revenue bookings for bookings for pickup increase the one $XX.X $XX.X bookings subscription This over that XX% believe in target track our

Rob we we us the As chose and our Management customers five our solutions mentioned, customer Legal our in and to new banks banking three noted as Banking, as Paymode-X In during release, quarter, product. added XX Spend chose their Digital clients provider base.

year XX quarter, by Now, let’s fourth In same the total about ago. basis profitability. our from points talk margin increased period a gross the

scale demonstrates with margin are to of we subscription continue margin was the growth higher means For is accelerate XX.X% gross total us year year, XX and that to full the last our business the expand and product growth. providing to our combination again and expansion set and points revenue investing in of margin revenue. basis than increased The gross achieving

trend a future. expect the continuation in We of positive this

year. combination and drove development and marketing, continue platforms increased which in points During UI and in QX year, our year, million, the year, EBITDA teams. hosted core products, revenue capabilities, the learning for are data and is go-to-market of than to This focus we teams which which analytics and technology and XXX gross improved QX Sales organic to and XX.X% was machine revenue. QX our last on XX.X% basis the as we in with and revenue full and driving our last adjusted that expanded and XX.X% margins for of XX.X% the QX growth and the Product of enhance including last investments revenue. consistent in higher bookings increased products, revenue our is year, expanding UX investment was expanded of $XX.X of of

EBITDA $XX revenue last of of million For fiscal versus year, the million, adjusted XX.X% revenue was full XX.X% or year. $XXX

cash in sheet line cash $XXX million $XXX million. and the to our of Turning we drawn on with with of year and ended balance and million credit equivalents, the revolving flows, cash $XXX

capital the million operating other million. $X of turn quarter, quarter had flow for shares. cash and we our were uses We flow million, and the cash expenditures fourth was free not to repurchase For XXXX. $X no was noteworthy like cash $XX during now to QX did I’d outlook

to million XX% We XX% to revenue million, year-over-year expect $XXX of growth. subscription $XXX reflecting

$XXX of to $XXX million or year-over-year revenue X% total expect We to million X% growth.

We core of to to $XX to revenue. million million and XX% XX% of EBITDA to income operating of $X.XX. is adjusted $XX $XX Core expect million, $X.XX which of $XX EPS million

QX for the continuation Banking the and guidance bit of termination slower than our that from Management XXXX compare of Legal on year-over-year factors Digital Our in Spend singular impact recovery some more expected a Solutions.

QX our it expected reasons, not those XXXX For as guidance. we confidence our full growth will year in and be does compromise

lower projected our Our even quarter target with level, this the revenue. slightly remains at for EBITDA

The implement reflect Today, first had also expenses reaffirming our as which quarter been will full COVID. we guidance entirety. its are during in we postponed increases compensation increased fiscal year salary XXXX

EBITDA expect We $XX for to driven year-over-year $XXX be on is take to subscription or XXXX XX% revenue like year EPS. expectations. $XX EPS $X.XX. full is growth our operating income to to I’d more be Core core one XXXX focus operating and million income guidance and least fiscal platforms. expected reflecting of of Total providing to to million growth moment revenue XX% expected to $X.XX revenue. Today, by strength our also the of million XX% $XXX $XXX of year-over-year payment we’re continue million, growth at million and continued XX% adjusted to

profiles. lines of know, you we set a with product growth have different As

XX% potential in PTX our to execution as with and and grow that between well the market. payments as of consistent and sell Paymode-X XXXX, together the our plans expect market XX% to into products We

XXXX that banking XXXX the other growth expect our and and to over XXXX QX to overcome them of perform XX% revenue likely level fiscal XX% below and perform both we legal products range. are but the term, spend overall impacts in Some expected subscription temporary within are longer QX on to management to our

are confident XX% business margins. XX% overall, growth to revenue result, while attractive maintaining subscription remain driving we a that to sustain we As our

year with excited progress We a new are teams implies growth of and creation very customers, value to shareholders. our continued the outlook and start for happy that our and

messages well in business now again So our QX. our and million three, performed basic Paymode-X revenue FY guidance. confident of XXXX recurring Two, $XXX XX%, One, remain well very today. will and we PTX achieve that we comprise three over growing

call the for open questions. we’ll Now

Operator

Thank question question. the Schmidt proceed you. Our comes your with Please [Operator of from Citigroup. Andrew Instructions] first line with

Andrew Schmidt

little talk Bruce, Rob, Hi, questions legal throughout commentary. Could you I my for us to just seeing and And in and could for the there. the the Angela. be then with trend appreciate how it question more how just if quarter-to-date. volumes additional wrap to get just sort on to and there of disclosure should taking tricky volumes I start one on want Thanks out flavor the quarter, progressed bit you’re maybe spend. a

great. indicated more you in but you explicit of you’ve terms legal -- that your kind baked would I what’s little of outlook think Thanks. your improvement gradual if in I in think a be there be in -- in could XXXX FY spend,

Bruce Bowden

the quarters see four Yes. for the the Yes. question. volumes course the It’s of of LSM Thanks We year. Bruce. steadily recovered Hi, did over Andrew.

As in grew but in LSM year, QX. comments, the X% my mentioned grew X% we for I --

know, products. XX% or we to Nevertheless, the you of idea all that our revenue into that to toward expect XX% range or an growth you subscription get of gives inflection. we -- target So for of as LSM kind the

good still and but we see week-by-week we’ve to not trends it’s it So, we want be, been watching and month-by-month. where do

good so going far into And track we’re on QX. a

Andrew Schmidt

could remarks, investors in amount is the of us backlog or the more hitting going of XX% right mentioned confidence, That’s just to for it recover. is I kind of to I of bit more great but part know what’s throughout you script exceeding if sort it that sort volumes consistency you for would I what of hear. us detail prepared the the driving confidence part be could detail in give little take help terms confidence achieving outlook the is of But in is confidence presumably are look can any subsequent Okay. in a terms XX% you And to And particularly giving provide the think FY assumption in terms in and that the to then the Thanks. of we think helpful? us -- XXXX numbers. of you

Rob Eberle

some make I’d can that then on guess well. I comments Bruce and as comment

That’s that excluding we the what reasons recurrent growth we what returns really if we is One could gave a particular of area would the of area to see. expect.

normalized growth So that’s happens our quarter LSM way the just see for LSM XX%. LSM by the LSM way, you example, excluding leaving removing Banking our you Banking similarly if and Solutions, but Well, was as XX%. subscription can what performance, to out this compare, for take returns tough in

the So got confident we a situation a we’re on we’re very held where move well Banking we on some PTX finding spend bit continuing goes exceptionally slower you’ve first to away were on Banking, we’re in most comparing and and as a and management. very, up expect by and well back would quarter the Paymode-X year-over-year a cylinders this after LSM and recovery the legal year-over-year volumes quarter know comparing LSM see really

we a I know about there’s it, of -- think next would that’s of high year. helpful. big got looking we’ve confidence a and how part but else don’t picture, at big those sorts the so I as detail, programs just So much at then initiatives a it. But numbers, why why level, that’s and that’s everything gave we That’s why if all

Andrew Schmidt

could hop one context, for That’s Bruce in If before more helpful. for I the queue. I in Rob. sneak that back Thanks

for Bruce there been You’ve time now. some

sort anything, if kind you Just for curious and -- of get you if but, would as know you to XX% of anything business, the just algorithms, term probably to it I revenue thinking could just you you on growth term top share guys Thanks. bottom-line view look said, business just see but as helpful. subs kind it of perhaps margin be XX% longer and longer the a around that

Bruce Bowden

for really Thanks, mean, it’s Yes. me, simple. Andrew. I

across we the XX business how that place towards margins if spectrum of a on And be, had the will fiscal our think revenue of of progress quarters. valuation towards and that Rule very, I we’ve around course getting I we’ll will products up will the XX%. XX% growth say EBITDA in favorable dynamics couple we can subscription XXXX very XX% also drive very attractive point. the financial see XX% the past messaging Paymode-X be over PTX and

good the tremendous I in as we, if quarter. banking, on of this have as the for LSM a hiccup a the a think we said Just LAP re-acceleration in times not couple would really in there call, been and

Andrew Schmidt

All comments I’ll back Thanks a queue. the in right. Thanks Bruce. hop Rob, I lot. appreciate the Bruce.

Bruce Bowden

Thanks Andrew.

Operator

proceed Please line question your Craig-Hallum. question. with next Sutton George of comes from the with Our

Unidentified Analyst

James This for [ph] George. Hi, is guys. on

or can to wanted incremental the BillTrust, on the you how of terms sort sort of opportunity. you’ve any how provide color progressed of partnership volume scope Just that on-boarded in ask that’s on any suppliers detail with just brands about of

Bruce Bowden

Sure.

vendors you leverage true process once their along volumes business way to past Paymode-X We’re the that transactions a If continue and or payments. business networks, a BillTrust but over about talked supplier for those see platforms to and BillTrust in across disclosing between lines, it automation it’s or our I extend can really think network. I’ve leverage this SaaS a you multiple something network network time, and not way. payment get we’ll that enrolled to interoperability like more positive

I well. a So, going for first us. step And it’s it’s think

But the it’s think other over Paymode-X time, amongst of that see days. I networks like more the course XX and over I relationships you’ll not next think So including Bottomline.

Unidentified Analyst

take of then XXX,XXX I to that implementations. the Can And XXX,XXX. how businesses number perform Rob, up two or in grown quickly you years. number you how wouldn’t one I mentioned last sort you on has talk about DBIQ. guess And can it. that Got the

Rob Eberle

two pieces Well, there. different

more could back perform integrating will as different we’re customers. be provide in and that, can systems that occur data months because so to the nine and as for We environment the many all a in that’s and implementation that’s double bank’s quickly complex visibility and office

that’s the terms process customers on. our a bring In function they how ramp, will really of function technology, and a the not of that’s bank’s of their

We subset that of on that’s driven their will very that us much really migration a then time, customers ends over ramping but strategy. the driven of customer being be by bank up part and not and bringing by

Unidentified Analyst

Got That’s it? it Thanks, me. guys. for

Operator

from Our next with question with comes proceed Research. of Gary your Please Barrington question. line Prestopino the

Gary Prestopino

on like Did [Technical Hi, Rob and business Good afternoon, accidents that crashes spend call Difficulty] driving everyone. right? and legal mentioned that I predicated you stuff on the somewhat the management was hear and that.

Rob Eberle

sure. Sure, that Well, that types defending. of will be absolutely. one That’s the sequence of will be -- our insurance companies

Gary Prestopino

you’re the are get What had whatever. pre-pandemic. that accidents all legal here? I’m clogged the idea. same as are an of issue do because with courts to spend having backlogged or is trying up really doesn’t it have or drivers the either, level But with more not and just So, less driving to you courts being the anything some

Rob Eberle

because there’s something it’s stretches got is drivers. all claims that mix Because while there think traveled process And has airports litigation, rather indicator, a occurred, then someone is also I some something of if trailing is occur claim, instantly. out. everyone trailing open you’ve the then filed an travel indicator. a feels has will so a up, event, safe second But and

be the are I able are courts, which things activity resolved. trailing, level the to why in of of activity referenced level being with those speed the it’s all claims the you that’s So that think the contributors, and claims are themselves,

we the much really we just that I think they’re little we’re optimistic seeing That’s aggressive would difference. in how one a approve or QX. we all as and were contributing. thought improve, indicated, that But

Gary Prestopino

because sales Okay. force? apply expense fiscal we marketing increasing you’re about that then QX, as XX% and whole throughout sales year. -- was was at XXXX highest level Is of your XX.X, of in percentage to level the your And as investment in a the something as should your it sales

Rob Eberle

Yes. Thanks, Gary.

think overall. very the money bit it and is we’re the We on marketing the also of product. about and really level. way EBITDA XX% whole, shifting where cost to time, level the and XX% focused maintaining on programmatically a forth through that between over the sales EBITDA might maintaining I little But move and think the people is back

Gary Prestopino

Okay. Thank you.

Rob Eberle

Thanks, Gary.

Operator

the from Mayank proceed Please Our Tandon Needham. your with question. next with question comes line of

Kyle Peterson

the think How Hi. guys ARR convergence disclosures. revenue clients was impressive guys. I Thanks on it and should questions. clients in we Peterson new signing Good really Kyle about the had evening, taking have of for wonder, ARR especially how Mayank. just payments new the COVID? some kind on helpful given see the of the Actually you for momentum during quickly ramp, to

Rob Eberle

Yes. so ramp ramp will will by all bookings up our The products. vary of cannot vary,

for management through the firms been more three have the a made vendors payments platform where are a outlined Management subscription. in have we’ll of to are And system and when a brought that go more customers though I’ve where their in or we even full being the Paymode-X, revenue on a that banking year more transaction, time processed much already, As platforms we bills Legal of for over be think like ramp, they’re live, platform. Paymode-X, to ramp, example, as legal generally spend really case realizing coming Spend through on, that’s not be this ramping our a of in law

others some by So to be more three -- a have cycle implementation some the an sets will driven of that’s subscription. ramp, year a full product

Bruce Bowden

Bruce. It’s Kyle. Hi,

some suggesting $XXX actual I sure because which about ARR we is to disclosed Paymode-X want is your on hadn’t that platform gave information the call on clear gave that So the QX the we PTX. levels, million just that run question, and you payment bookings number, number I I’m were think revenue rate from make before we the from

XXX. So what we in four and of revenue for $XX is XX that means Paymode-X is, million did QX times PTX

Just each make want we past other that on didn’t didn’t talk sure to miss one. we that that

Kyle Peterson

Yes.

signed, to go thanks live, cycles there. the then, digital pipeline. for misspoke would time the on quick I the visibility up longer implementation describe And degree should pipeline banking, correct. a You’re right how deals just know you of the And in for I we follow and But kind given that clarification. contributing now yet, year? live of progression the kind revenue? deals think and for of about not of how in what’s but through kind the

Rob Eberle

comment a in couple things I Well, there.

made I implementation off, technology, work the want idea bad you bank a four whatever it that powerful long whether for in and It’s actually investment, time, commitment, other is, us the that with all all or to First of resource our really six, away is that’s go wouldn’t time three quarters, investment retention five, quarters, where that’s is done, cycle platform. thing.

customers one its the many hold on a of the our to lifetime I just in the implementation, that of drives piece part technology light. view decade the that’s new we at would commitment the expect So value for part, all. to things that as more. retention, But first not a where our customer wouldn’t That’s in or negative that’s

is that drives one the pipeline, number that In terms thing of product. the

for We have digital product banking. the the market top in

business leader analysts. Our any the platform, clear is by DBIQ industry

so that. grow banks product, ways drive related banks looking increase to are are plays we share, around for to revenue, customers have wallet as retain competitiveness, And offerings looking that then that new as to and all

as right and banks have of the full-year, What have uncertainty now commented credit there their have back was we only So if base think the are risk, said a going strong was you on both to ago, strong we pipeline. a much their year be very we the economy, about clients. more customer course more where as and

where the that’s of or softness We So forward. look was. more concern

once year the QX, solutions. posting strong expect clear in be for the to excited banking we we results comparing We’re

Kyle Peterson

All That’s guys. Thanks right. helpful.

Operator

the of with your comes William Chris proceed question Kennedy Please Blair. next line from question. with Our

Chris Kennedy

Thanks questions for disclosure. the the and taking Hi, appreciate guys. additional

platforms payment about that XXX the Paymode-X On evenly and revenue is that PTX? between split

Bruce Bowden

Hi, Chris. It’s but bigger, they’re different a Paymode-X bit little not in hugely size. Bruce. is

Chris Kennedy

can a it. legal you How Got management that? going? on guys. And update an And U.K.? then an of to can Okay. the on is give bit Thanks, update give little moving spend that the you business

Rob Eberle

Yes. real well. That’s going

U.K., on customers And in specialized process but of We couple going there. a with implementing we a significant a we a specialized presence team. have team. have and Obviously, in live we’re of brought the

for us. very that’s So very, gone well

Chris Kennedy

been yet. historically a No. implemented digital kind given have hasn’t Stick that’s the banking signed an of Do right. one backlog, All in more but your that? lot. revenue Thanks on you update

Rob Eberle

$XX number now is that right Hi, Yes. million. Chris,

Chris Kennedy

Okay. Thank you.

Operator

comes with next proceed Davidson. John from Our with of Please question line question. Rodriguez the D.A. your

John Rodriguez

for John Pete on is Heckman. This

growth revenues from with volume payment one Just specifically Paymode-X? for

Rob Eberle

I’m sorry, that? repeat lost John, We could you that.

John Rodriguez

Yes. What rate for specifically was Paymode-X? the revenue and growth payment volume

Rob Eberle

different model. Well, volume revenue in doesn’t to It’s revenue we correlate in payment haven’t a PTX.

that $XXX transaction legacy majority we know, On but at today, That’s really still as you and going the be on then relevant disclose that it probably particularly about would annually. is volume Paymode-X manner. model. network wouldn’t case through something Paymode-X we’re in of the So billion the

Bruce Bowden

on plus rate for the John, XX%. QX And was growth PTX Paymode-X

also I think that. you were that’s asking

John Rodriguez

so you Thank it. much. Got

Bruce Bowden

Okay.

Operator

Next from your with line up a the Please question is Citigroup. question. proceed of Andrew question Schmidt with follow

Andrew Schmidt

don’t I of ask Hi, that. wanted talk pipeline question, but does up. relative quarter? Can kind Thanks. across a you sales guys. sales And that first up current product sort of the spectrum. pipeline, to to how question Thanks the a sort about of I the score you for in to one know talk little up. follow follow bookings for But bookings expectations of just I’ll pipeline terms ask to taking my just bit the

Rob Eberle

for on quarter sales strong we’re mix pipeline and one at that of marketing in real success and the pipeline team our presence our across things digital first digital That’s looking was a with very Well, fourth team. of we’ve I piece a is got marketing is happy in the the drives in fabulous products. XX.X bookings sales success number Number, us. a comment just of

of a outstanding content tools. have way digital and We

that FY you’re We QX us QX board. And in pretty numbers again, familiar strong, same and is of leading the selection we’ve investments very thing the where So and be very going we’d drive ultimately our product. and to what’s the made the expect XXXX. show as sit going top throughout have funnel And the with across always good. to products we feel

job a will of agenda. we good us where show it years, is in three powerful. the Everybody technology’s And our What thing from We we really current do product. where not years mentioned a commit will are innovation today. knows five customers year, winning and the we is those last is opportunities, are on because I’d in just can now, saying see from where to

a So what going choosing to X,X,X choosing who’s the you’re and to today a vendor the be as XX choose you want or someone partner if vendor someone vendor, years. and and right right you want

big, important agenda. a of our innovation that’s part So

Andrew Schmidt

And just then of EP, topics just AR, what Paymode-X for to of around sort our get know to evolving or just you from you kind I shots to to wondering set it evolving you’re have that, full get the stack and that. more And but holistic help up, a can Thank competitive the the Great. more sense And and talk about across that. depends having you question on EP, of part are kind then follow pipeline environment two treasury is on your then perspective, a an on then management, environment how Paymode-X. product. selling whether

before. to alluded So

Rob Eberle

are vendor The doesn’t we perspective. better sole the and things off or We was enterprise there not small or we for team don’t we an you platform platform first them. cyber-fraud a a accounting that soon we from bring will built and have you technologies really you me we critical than let financial solutions get or better there a business to proprietor, see solution on fraud we accounting clearly intuitive. an me working of Let to things function a right get office plays for there. for cyber and competitive differentiate the do a anybody. soon was have CECL enterprise, we from to do a we ability than capabilities businesses But standpoint, level, function, That as are run things Paymode-X most as and standpoint, [ph] and that we’re if for APAR Bottomline, at from enrollment, as anyone feel an as are competitive other any it a

full and The and expand your right, the payments receivables. a because then and be get the second could Bottomline CECL to shots They on customer, for platform. goal multiple come treasury and the customer you’re part be [ph] and could expand expand somebody receivables, Treasury we payments question, of a

So that it’ll that’s to of strategy. phrase way goal. absolutely get interesting an it, definitely more on part We’ll more. shots It’s but generate the

Andrew Schmidt

a Rob. it. lot, Appreciate All right. Thanks

Operator

remarks. I’d of Thank question-and-answer Rob you. back to We’ve over come session. closing our hand to the for to like end it Eberle

Rob Eberle

Year. your and for quarter everyone. excited for Well, very attention. fourth we’re head was The into as New really Bottomline you the we good Thank quarter thank you, a

again as attention. appreciate look and and on So your we QX reporting time forward forward, go to

Operator

gentlemen, you Thank your and Ladies this participation. does teleconference. today’s for conclude

disconnect time and your this may day. have You a wonderful lines at

Bottomline (EPAY) 11 Aug 212021 Q4 Earnings call transcript