BTRS - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentlemen and thank you for standing by. Welcome to Billtrust’s First Quarter 2021 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise.

Following the speakers’ remarks, we will open the lines for your questions.

As a reminder, this conference call is being recorded. to conference like Dierks to now begin. to would turn over the Dara I

Dara Dierks

you. Thank

numerous I’d the today. available as begin, call These subject website. with those forward-looking from we to any our in intend Investor any may we by and statements. make materially uncertainties, filings to of Relations set assume are forth statements results SEC Before only forward-looking forward-looking law. speak like the differ These does contain may today’s Actual statements obligation and remind of to the and including in our risks except you that forward-looking not update company today, as statements or them section required

These Flint supplement financial measure call the as on Billtrust’s measures should Officer. available In is like earnings today’s and With to Mark call nearest to in addition, to begin. that, be Executive today’s to to for Chief release Flint GAAP not press are company’s Founder Shifke, Financial over measures. the a I’d Hosting measures. substitute Reconciliations the be found and GAAP the which Chief the Officer; turn call today may can non-GAAP and considered Lane, website. Billtrust’s include

Flint Lane

satisfaction buyers cost to advantage reduced how solutions from cost. order thank heightened how landscape transformation our process. CFOs awareness business. events of And are of increasingly the take last the customer everyone affecting of Dara. the implementing a payments changed home and streamline DSO, are and you efficient call to operate. around automate need departments digital digitize the of The accelerate. about Work the Thanks, have world accounts for cash have improved lower BXB today. The ways and Finance joining continues to receivable customers and invoicing, effective corporations year and their the conduct permanently to policies to

spanning payable Equally solutions efficiently the These the solution financial ecosystem cash provide from an decisioning, platform a our on payments, we collections. of with drive industry to institutions, including credit integrated help leading invoicing, customers our the e-commerce, and mission-critical process, have cash to desire solutions quickly sales. are are generate entire including ERPs, and Our to accounts software end-to-end offers helping flow customers players, number our and important the order application more they we and business platforms teams accelerate solutions. focused outcomes cash customers

switch their to The can e-solutions best analog our proven customers customers business team to paper instance, our small to For helps from electronic supplier checks with accelerated greatly convince to our marketing payments. be digital run campaigns practices. from switch

the Network Our Business to of strong network scale benefit or effects. BBN continues Payments reaping

enormous share this and Taken our capture market. incredibly more than to we're fair of together, growing well-positioned

XXXX over year-over-year with Our XX% revenue, first XXXX our exceeded strong a with quarter for $XX pleased net year. the start our momentum carried quarter representing which We has finished to very expectations. in growth. approximately the into million over We're results

at revenue. that revenue than than on We our call, the normal. think quarter more be deferred the earnings As to we deferred accelerated going making some to was larger a rather quarter first exclude the way we year, noted first last is across fair to had accelerated to the look spread this

grew a XXXX. XX% up big so, year-over-year from do of which revenue step QX is in our you If net quarter the

big segment step compared was QX up. Payments accelerated growth and XXXX another XX% XX% deferred to Software Our growth the in revenue excluding up

operate always in we company, a our with transparent private the a business board investors. and fashion As our

public a to same is the plan company. continue with Our as philosophy

apples allow investors of a do Excluding to to comparison more this performance. accelerated apples our will deferred revenue financial

so for deferred of acceleration a be don't it if make first surprised the that. you XX will us months, of in this quarter, remind we in helped revenue the tough While comp

the On Mark later. the for will outperformance, year, which guidance our we discuss raising full are basis of

progress against growth we of quarter, the the strategies. During number made

We we've hired continue the on aggressive to marketing have over to six last upfront, the months wins started that be salespeople on put and many new the of the board. sales

strong, early the announce that incredible remains year's payable strategy. more and year's pipeline objectives. have from to BPN and our are had automation growing which We're have a and BPN excited Technologies are Our payment partners on Channel quarter XXX% and up partners. and year-over-year expand one supplier of when pioneers will support business. wire should total accounts impact BPN’s Bottom our expansion leads BPN BPN’s Line payment small supplier more earlier the in we but volumes up part today results, also XXX% meaningful to next card this growth volume of seeing ACA first is payments. including fastest momentum their to volume continues was joined year-over-year to our help was particularly

comes can more information e-mail. and ACH X.X. new BPN the cards. remittance with of spent bank handle wire and fair customer's modalities difficulties payment. XXXX via of August discussing these have credit be to suppliers delivered actually and in with payment difficult past recall wire hit virtual as may processing we account amount You in added payments isn't payments I've remittance the time that ACH information a that most because a the often part

the is to match a step two. make sure So between you've got first the

stored you also this retrieve. e-mail. has of could It log could body look attachment a of to different to a If ACH It into the be website task. many is payments could customer formats. no it comes The PDF in in the actually be information thousands be remittance that at month, a easy or per

responding ACH to this customers solution capability. new BPN incredibly process this automates well Our are and

story way other customer customers have campaigns one before seamless her done so BPN. shared now their begun is would they've In pay the they ACH fact that to never this which to convince process that

is roster as Billtrust will CEO and you BXB feature as registration including the Summit an to to which at Avid Former is from some that, our well information as Mark? announcements the well to our updated I'll which also JPMorgan. as Before in CEOs invite attend results largest outlook. call head great CTO, our over conference more website. keynote Line week. make solutions. impactful our as I next With Young and our US on Receivable you Quarterback I Industry's experts and to addresses virtually and turn impressive first of the the Former I'd being to Accounts Smith way fintech of Exchange as to from learn well Megan like can really Payment financial provide We've to held Mark industry quarter of The Steve is event ShiftX join found review can Mark, Summit More Bottom all big hope be a summit. over and the details call us. payments about turn been known detail Billtrust NFL

Mark Shifke

and Flint, everyone. afternoon, good Thanks,

very are with we quarter results. mentioned, Flint As pleased first our

get portals and where buyers subscription we like business revenue payments. well These Before invoices like AP our processing billing of credit bundled and the for delivered as we connection number in is buyers by made customer our derived payments paid. particular monetize including to payments larger where didn’t determined tiers BPN processing through solution well payments. the a make card as take invoices Billtrust virtual with model interchange clarity as in fees generate invoices payments. usually payments I'd we buyers into as further and by subscription or at how providers details, and provide either at card Subscription gateway some around portals are smaller from are from payment number the revenue of ACH

credit process these cards we through addition In portals.

Given a through receive three volume monetize as service. we fee on gateway in of portals somewhat where we we PayFac we a similar years, for a process became as this in the the as monetized ways only to that are customer last portals. We payments the payments most BPN card

fees from again First, we BPN on determined tier paid. based invoices supplier subscription number platform generate by customers the of our subscription

our on Second, And ranging volumes card basis discounts we we three XX the on to XX level generally savings, look those PayFac to from can points. and level while two offer customers interchange generate basis virtual are processing. from points we

Finally all PayFac on only gateway within providing access At the AP growth cards and we our TPV payments highest the on basis highest to providers is services, for card receive Putting card together time, volumes. card same suppliers from that growth is points volumes is fees given single-digit and BPN. our of driver providing services. revenue of accepting our largest such history the long from them

the processing to from bundled break transactions generate ACH providing payments from is fairly network. subscription payments and portion. it have related we out a not consistently is revenue, material yet This the we BPN revenue determined and but with revenue subscription other addition, way and In revenue

XX% results; financial was an quarter in first Turning million of now to quarter increase our revenue $XX.X net the year-over-year.

mentioned, result this into QX, accelerated XX% net the grown across of distributed includes in into net throughout of Flint the As Normalizing evenly year, otherwise excess impact would quarter revenue previously year. revenue compressing reminder revenue would been full have a revenue the have the what as year-over-year.

revenue year-over-year been gross Absent year-over-year of towards million, of segment driven XXXX. year-over-year $X.X compared XX% year-over-year realization or services. have declined a quarter. to XX% the million as payments accelerated impact million grew XXX% professional by in shift benefit million software again and quarter first margin Adjusted or higher gross the to of combination have for and improved of million. and revenue been of well mix to expectations to total was quarter $XX.X Services into profit acceleration was of adjusted $X.X X% payment total year-over-year of $XX.X Software profit by XX% growing gross revenue would improvement revenue and revenue gross in of of the would and closer as revenue print margin margin XX%. year-over-year ahead XX.X% the grew a margin revenue was segment XX% the the excluding $XX.X higher revenue The adjusted in increase while

expenses XX%. in increase year-over-year Turning now research and the million, our were of operating $X.X $XX to expenses as an compared development to million quarter,

were million period. Sales up million quarter the $X.X and year compensation first were million, year. R&D marketing expense, stock-based expenses the million Excluding XX% to in $X.X $X.X from approximately compared ago expenses $X.X in last

larger accelerate stock compared top in year has increase made an budget ago a a Excluding million $X.X million were million line than ago company in period. to to expenses from compensation or revenue. the to decision were expenses growth and to General year The $X.X period. in sales reflects of overall strategic the million administrative the $X.X double increase $XX.X based more percentage adjusted expense marketing year-over-year and

line in G&A cost and increase million becoming a with is net company costs to expense, expect in attributable expenses with compensation would associated public the were compared of the $X.X ago preponderance year see period. not these based million grow stock The to Excluding revenue. the $X to we

of impact the quarter, a into With the period. positive $X.X of EBITDA $XXX,XXX in the was to prior million compared loss adjusted accelerated revenue approximately year

the EBITDA sheet and in debt Excluding $X.X the with ended and of adjusted investments was borrowed of our $XXX quarter equivalents and loss accelerated balance the in a the revenue, impact on term million million. money. short quarter deferred We no for cash

now outlook, annual raising the $X are guidance revenue we Turning by full and our to million. year total net

revenue the For total $XXX costs XX% of expect at to would the be million. Net year million fiscal including revenue reimbursable million million to range growth. to which ending year-over-year a of $XX million December in of million $XXX represent $XXX $XXX XXXX, revenue we XX, midpoint $XXX between

in $XX range the the to year XX% year-over-year to benefited We increase onetime period gross cost-cutting million measures the profit in to to relatively and year-over-year be XX% XXXX the to adjusted continue adjusted $XX or be adjusted of million unusually creating $XX an from were an or of at margin tough XX% ago million gross expect of margin gross as midpoint midpoint, would flat million at to comp. $XX

in to to higher negative range. expect the continue of range expect to be be We of quarter's we to that adjusted to the into over performance million million. $XX Lastly, negative the closer EBITDA reinvest adjusted $XX this plan to end so EBITDA business,

X.X costs reversal by company reduced the salaries D&O in As sales those the insurance. such for of decrease of to partial million as and approximately is and and in an a year-over-year primarily of in combination year becoming a with $X phase, public attributable costs excess a onetime a attributable EBITDA discretionary COVID-related marketing cost spend to of increase adjusted driven reminder,

revenue As to typically no the and as discussed well seasonality expect ordinarily to material is last quarter-over-quarter there year-over-year. we quarter, business grow as

for to revenue roughly Given exceed the discussed the revenue over net increasing the the recovered XX% of in year-over-year that last of and the a year in in half on we XX% accelerated we quarter-over-quarter each the the expect call, revenue COVID year comparison be quarter will second the half first And driven growth in our performance accelerated throughout impact. expect quarter the rates rather recognized to year well the of rates as throughout the total revenue by in subscription quarter, first following revenue of in the as remainder year. as generally half as initial of the year tougher second those XXXX the than

about to continue We look happy the your please call open lines. Thank progress answer we're the discussing with forward incredibly to be in joining the Operator you the ahead our and excited opportunity you to and again for future. questions.

Operator

Citi. you. proceed. first Thank [Operator Our Schmidt with Instructions] Please is from Andrew question

Andrew Schmidt

see to hey, an in Hey, here. a business. Congrats really acceleration that good results Flint, on Mark. great It's

Mark Shifke

Thanks, Andrew.

Andrew Schmidt

acceleration that, wondering and in drivers payments this. software underlying so – you I a growth don't Could in for you the But split. could Thanks. the payment and the first XX% could XXXX. dig of you software little I and expectation So discuss about a kind bit the growth. I into if if and the payments I'm to you of little missed talk sorry disaggregate I'm of software in then quarter know want detail

Mark Shifke

Andrew. came on subscription hitting in in is so the revenue everything cylinders, quarter the Thanks, the expected. It as really was growth

the came in comps year stronger the half given that said as strong the XXXX see payments expect well. came half And that bit to we year relatively it. We as subscription a growth have the the of in of be will where growth in we'll previously in we than the in first second

both – they So to led performance. that to the nice

at in that the In and terms looking still range. we're of full-year growth payments I XX% software think probably

Andrew Schmidt

why Okay. underlying pick bit the Thank to the particular understand software not of understanding the given monetization, higher there Thanks. And should momentum continue step get sales at up payments kind the tougher a up to factors here, reason just trying underlying you. that is marketing and investment little in gating or revenue? any payments and given the maybe comps

Mark Shifke

that just want We're which where this whole customers to we're ready the know year. pick plays dividends And not see certainly to with space so are one quarter growing we year from pandemic our things recovery. going behind is out as to distribution get in with are the and wholesale customers us pandemic though. this we've as of the Certainly have look the pay how volumes to many we manufacturing this we're means starting unknown emerging for up over how full say emerging of ahead strong. recovering, were also well all exposure, about don't invested to ourselves recovery that starting construction much are but We

Andrew Schmidt

you've look question, the comments seen – already just and be That makes like Understandable. to one prudent the ticking force? up like shaping sense sneak sales a just How can sales environment. given What is that sounds new sales of traction observations kind in last I with lot investments just helpful. And when of the And the good ticking the on does the be off with any some it front, like? I if from marketing the and pipeline conversation – things customers, wins. force would some it

Mark Shifke

but aggressive our plan not and certainly investors clear so. be spend doing Sure. sales and we marketing foolish We've we to going with that are been with on

reps. well. on So we've enterprise corporate on had partner front good some the the traction side. good different and of the And traction we've had the as in the categories traction good had with new We've both

business very know from our suppliers leaves to payments us you which new on network partners has the the pass to that us we strong. needs been get Andrew As

those aggressively. So, excited them channels about we're growing all of and all of

Andrew Schmidt

comments. right. you, for that. the Thank you All Thank Mark. Appreciate

Operator

question next with William Blair. Please Our from Bob is proceed. Napoli

Bob Napoli

while Product ago you. Question Development know Flint Lender. the Head you of a a I Mark. – afternoon Thank and think Good from on Hansen new I Greg Precision hired

little that for more – are to a Just discussion like product you you to in on would make innovation your are Where looking little on roadmap. investing? set? product color Where a

Flint Lane

variety There’s business to sites it's Summit speaking to probably not at virtual our accounts too we anybody session know the into whether Connect you focus that, encourage is continue actually it's payments going that Clearly a this detail aggressively. a on Greg call. grow we next to free already. which billing network so solutions Billtrust have much big little be to Yeah. I'd week, sign a you innovate called can online which we and you that go as But for is up us receivable the a continue is to do if of Invoice that for, just on. well haven't

new have the Our our cash deposit year have where cell for app acceptance field phones on last to from who road. out a just we rolled solution who payments accept mobile customers personnel

week we're So sharing we'll innovate stack entire of be a those product across lot at to summit. details trying next the and

Bob Napoli

then investing the that of And was there aggressively and I Okay. software acceleration becoming plan acceleration? into I and about in in acceleration payments for marketing an in been XXXX? in it's the fall you high-XXs acceleration in was growth ago a been XXXX. and since for last maybe that bigger since software do think not and your into And BPL know an I it's I think put How business. payments acceleration good growth sales revenue I the part you're revenue is and the and feel year quite pretty software not payments quite mean pretty it's had last in out a guess you good fall

Flint Lane

want Mark, do to one? you take that

Mark Shifke

Sure.

so we're guide And going This we're upside and growth we payments not far with this to XXXX. assumptions all and to hitting that in we're to that at XXXX potentially growth last – continued while had seeing was growth – accelerated year, everything underlying to getting our point, the XX% XX% into cylinders – respect year. around software we're So, on that. accelerated

Bob Napoli

I a a question. Lazar Thank that's then also channel Channel think can and Head over of how partnership medium about think And Gwenn important you do Partnerships you. of in new developing? just first your you – – that Head is long-term? talk December. Channel And or hired maybe you I a the know last strategy last new I Head, how think would I to maybe the

Mark Shifke

Yeah. Sure.

strategy It is solution a for channel had are with terms There products. our for time. to elaborate. a elements part of our SAP, quite integrating we've One So do those – what like some strategy. related Epicor – ERPs – in trial Oracle, Infor, different those of we is

Another the what part card the – we're the of with is Visa. channel like doing strategy brands

Billtrust accounts today flowing reach They side. payments announced – can network. model but As issuance continue volume with in you the on to that partnership the the which – partnership more one payable continue accounts even major the of we innovators a banks. side. the area big the Technology them see around of issue And a side, vendors, the the payable not it their that announced also we momentum a who payable around partnering with a with are have by – earlier we've is know Bottom we're with is banks And the the great first accounts through certainly what the And extra final Line Visa, business doing the part area supplier final add only the folks cards, giving on there. And software to value the recognize we treasury means is is business

Bob Napoli

that the from And you you. volume give on seeing on the you providers color Thank the into Can – can there? any talk BPN. momentum about AP just are the they AP, you're

Flint Lane

Yeah.

volume. of total north BPN out correct think I'm but might I me XXX% wrong if I growth like it's broken we've that And the believe XXX% [indiscernible] So Mark payment growth. overall it's be

Mark Shifke

Yeah.

Bob Napoli

guess. I Okay.

Mark Shifke

quarter was account the take beyond XXX% as into I year-over-year XXX% and in growth the this alone when ACH Flint mean – said yeah card volumes. you

Bob Napoli

Appreciate Thank you. Right. it.

Operator

with Company. question & Please from proceed. is next Our George Mihalos Cowen

George Mihalos

wanted questions. sort more this patterns environment, thinking course year just my hit to the of taking for of the last approach throughout to of obviously thanks Good the pricing sort on how sort and pandemic pricing guys, you be normalized now cautious ask are and how as call year? afternoon, I you a just today. to think first are overall COVID post back guys we I that Good of playing the took curious out about

Mark Shifke

our we year Last annual year and far said as usual we approach XX so took our increases or we months so what you on for business are usual good. George to as back a price this so pause

George Mihalos

know – you you the you’re helpful. on what add How there? close Okay. that’s trigger of be And then on wanted That’s to kind Flint just thinking about to something M&A, might pulling build that the of some any we've guys. peers all of potential any consolidation seen – some in Thanks in impact thoughts on the the from your trust? to and space to at

Flint Lane

not XX been acquisitive clear be went Yes we public big recently acquisitions reason so acquisitions to bill.com exciting acquisitive. done we've category continue to so and sure. last years in take part of deals. it's bill.com be at and competitive [indiscernible] in a there's their and that can don't We've so is the that we on for more And eight we why intend all the Most some very threat. been deal. our with compete We

and of we and go time ready about We're a going have announce -- material wait ready focus talk going here not opportunities to have we're but We something to we're before a cooked full we till deals. anything. pipeline any to

George Mihalos

Congrats, Okay. guys. Thank you.

Flint Lane

Thanks.

Operator

with Our Company. Please next Tandon and question is Needham from proceed. Mayank

Kyle Peterson

Hey. question. and Good Thanks for in taking really for is This Mayank. Obviously Kyle revenue the Peterson the see evening. good to coming payments strong. software actually

the of what should on in ramp the -- like think know kind base? it How new monetization wins? Was that color within customer logo any about give strength. Was existing could growth? you increased drove it new you if we wondered Just between split a that

Flint Lane

-- it performance strong the board, was think Yeah, right. was I strong it across

[indiscernible]. So we at landed

until we live. get is affect revenue logos landing the Really doesn't interesting. So business It

go our than A can in live before. VPN can faster a now of some our lot of just deals deals much few go weeks. live So,

close we'll more So, an lot driving digital. and in fashion. big analog more payments their risk live, quarter CFOs that things digital is payments recognized a they do There as of a at go acceleration, businesses are in see to things deals push it was when make

to that, or from BPN growing certainly as running drive more whether in will shift our it payments the on than revenue. sides, business just card anything So, on payments shift through monetize to drive been digital the more BPN AP The more when our supplier revenue will and will Even drive very business aren't well. BPN PayFac both are gateway paper folks our we've if revenue to that digital opportunity from digital them with through charging PayFac there lockbox. there's additional the the revenue. And we side is faster it side through from ample BPN getting sell who we're clear delivering

across there’s the performance strong board. So,

Kyle Peterson

parlaying growth. there guess that I just and the how is kind just Good ACH story? opportunity quick follow-up see you or side of helpful. card of way see of the some an strong guys look trends part kind we Is on do as then, either BPN of think big how of BPN. on the your at Billtrust longer-term of for and TPV into TPV the monetization the to That's And a a really it. Got you side can

Flint Lane

that? want to you take Mark,

Mark Shifke

on greater is to well continue of come to companies, ACH coming terms both payments – large buyers either suppliers looking as opened on for remittance. of X.X up the of on the creating be or complexity key with continue small year, the be system that for as the BPN in and those deal it's as of payment a we greater to in with able to well its seeing as as and we're success last opportunity are aggregation behalf successful they providers the the complexity companies to Look as make large more well in Sure. stress payments of

all opportunity suppliers that open buyers in a simply BPN providing the all see for interest. of connects with as network sort growth wonderful our is to great that we So and very to of

So opportunity there. we’ll see great

Kyle Peterson

quarter. helpful. That's guys. right. All Thanks Nice

Operator

see Beck next from Please your is and line Josh question check Josh, if Our with is proceed. muted. KeyBanc.

Josh Beck

I with I have mute about on. Sorry for go the that. back comments respect team Thanks the wanted some on to surely to question. Flint to volumes. taking COVID did impacts a your of

at of you So are line terms Just see as how if shaping us to full sight a of point where could you we've we that's a entered wondering an give this recovery? up. year in update

Flint Lane

Yeah.

– how performing So since we year-over-year on volumes a were were basis. we've March been customers and our tracking

we the we closely and from volumes to, fact a monitor volumes more terms and on about that cohort does XX%, the volumes, cover digital down saw are analysis bounced we sort frame, So time and of of that back that like of July par, covers May, by those drop digital, up. way of and had that were their in business are we the to March of sort end it June, not then just volumes the now health overall of back

is back digital where levels to higher. volumes. we actually are in which sort are So pre-pandemic we terms volumes, But of total monetize of volume

Josh Beck

maybe pipeline, And fine. But, just helpful. curious, the just when you you discussions very Okay, at, look could characterize the if that is activity. maybe qualitatively – you're inbound the having

Just is shaping historical help curious, just versus us understand if how could pipeline? you Maybe up? that

Flint Lane

strong. is pipeline the So

prospects. both in team SVP well and mid-market across and mentioned as our new past hired last Sales our super year, we've to as our focuses enterprise strong on segment, of early think focuses team our we that I the has on and customers that build he continued that a new team

I from get of of leads lot passed-in four all goal segments is cranking. get our those to a So discussed. partners, We our as

are come goals. months weak relatively achieve that deals when in. first some in When We quarter super hard have you're bookings to are internal we're have lumpy, You some sales right? working to ample can they an certainly our progress because months very come enterprise pipeline have that targets strong, bookings in we're is that big super towards around achieve. and But with the the pleased

Josh Beck

the Okay. full-year $X helpful, to just let's range. understand million with really to and the previous respect of upside then Really guidance

we are swing year of Now higher end of end, to the we or factors going about the some the new be from customers, key what are the towards that end that the move what logos. higher towards could to lower performance be versus thinking say levers of drive should going new the performance final some lower Should key the be that range? about thinking the the contribution be BPN,

Flint Lane

want you to one do Mark take that please.

Mark Shifke

Yeah, delighted.

think particular though right the just So in if place we In look all now. of what have about we above.

As we exposure of to pick plumbing. very parts great to economy see the economy no have strong on that we homebuilding, up continue coming the are certain customer

those upside So some see some in things well. invoicing, could of upside of print as our you in payments see actually you could

lot us transactional percolating. with economy of the a that aspects of too say early So way year happen. along up Again to is opportunity an it's to business tick have the confidence for the in the the will with

transactional a us more think the So other to we're that. the higher of range. push waiting payments our around business and can to bit aspects of visibility But I little get know end

Josh Beck

you. Thank team. helpful Really

Operator

Genuity. Canaccord proceed. next from Vafi Please with question Our is Joseph

Joseph Vafi

question Great Hey Thanks Flint results. good the and Mark, for time. afternoon.

last I think Just Line that so quarter said you integrated Repay well. as with they you announced Bottom

up. if the that left conversion seeing there on a of you're attraction the the of how continues side AP detail like accelerate just maybe on seems it have kind then in bigger the Maybe little and this grow. talk there out more out about provider what's could provider So what's momentum a follow I of AP helps to kind side deals and you

Flint Lane

Yeah. That’s a great question.

get to model, partners. The flowing is get the easy the partner the volumes part in any harder through relatively part is to network. actually So the

But announced them fire to get we Line wonderful everything. we've on And today, that's got them got the So Bottom to in all now and paying up. the we've of network. suppliers

AP more that While sure to as that continue are more to we're doing we the onto networks knows we suppliers suppliers those they of make and growth. on network, pay drive that, to all then the also want more supplier which them we will the drive drive can side supplier growth need

having want part participants side, network We’ve have value proving onboard model, most network now on issuing on are a in imagine just onboard and that software some payment reached to business out we getting partnership companies can independent onto certainly want the key isn't that. add the getting of them. there is great. not on we But saturation So we big them many it can that still there And is we you a banks network. there's right, proven of and step need side transact we're that to And that enough, discussions a wonderful a the to now, network many do certainly to significant the We on to effect. the to declares is of that with that their the to

by for can participants the need done which certainly us volumes them. we we we've add with with today we show while network driving additional did we payment Now value to them the bottom-line a who've announcements some that volumes like been drive leads on additional which to for can exciting that

Joseph Vafi

That's good color.

follow bank now, that – what continue what that with I'll right But more banks got need because all a big across partners. you up fintech fintech partner to because mean like, accounts see have bank maybe maybe we channel that does does Bill. and to more that I So couple look pipeline and just know of they've on I the

be color just would great. there So some

Flint Lane

Yeah.

on issuing the payable and there's more that strategy. onto issuing on banks of parts announced banks are of the signed two XX issuing the top So bank we've virtual BPN. folks accounts that bank a the previously are five side. our – inside There was We've cards of really the

digital to much payments like the going payments. are be lockboxes, going we bank that's payments to ones are digital had need and That we've corporates, think clear with another But the lockbox. – with so it's treasury that of are well called of corporates to going there's as is dealing we automated there. the check need digital corporates with think lot So bank to that's success side a automate automate to a

the them payments direct clear the So our and to digital we is that sell banks. who the force be be going other also that allows to Billtrust but this side card and sell acceptance acceptance. virtual of corporate. automate lockbox it ACH What's sales It could all business is is the network could that to not

– we corporates in should the want are to to but was more category, the this banks we initial they they be relevant we've to if was solution a some success banks, offer side. don't, convince payment for there, their making going on and our need somebody So to on them the is had continue, because the but not something [indiscernible] to that concerted push that this don't to is they sell

the better departments solution. need to job the reselling around plus So, bank we getting bill a do digital lockbox treasury

Joseph Vafi

of Flint. relative sales the color That to makes this model you now now balance. had right and your you good CAC And but kind right big that of think your I past and sense, kind numbers of doing of relative another deal know lot, about staff great? Thanks think that really see and in attractive a relative be what to And it’s for some gear now the kind the level I little LTV and you on switching of staff just you're enough high part or ACV little of bit, with then, I to ability have there might a kind metric the to positioning your about marketing kind ACV public P&L long I a you while wins don't guys. revenue of would to maybe made know do think maybe but you kind growth. to how talked And it been about

Flint Lane

to Mark, do want you take you. Thank this?

Mark Shifke

Sure.

starting sales the question, things great having getting are concerted and Joe. some effort around look we're the indications marketing. Early nice. inbounds. Yeah, of stages So, are We're in to early made still

terms just and last early results of it's effort tell pipeline. over as end the positive the of early we course we considered Flint have mentioned year We started because But in started year. to of too just the this

expectation to to continue to that's we in And we've those spend and once anticipated well. cautiously to that the to so our where if pivot try optimistic budgeted LTV kind figure far is get types would had out, we'll out proved and returns to we of go to right results. So But didn't we'll that the continue we're expect to do CAC that continue and past. have good, we'll we've as of right now quite get something spend need the to as wisely more

have sales partnership. great You expand. to we've partnership in in Well area team. a We're making progress the right been the

So there. feel about very we the positive opportunities

Joseph Vafi

That's great. Thanks, Mark. Thanks, Flint.

Operator

Our Please Cantwell from Securities. Guggenheim is Jeff proceed. next with question

Jeff Cantwell

you How okay? me hear Hi. Can you? are

Flint Lane

Yeah.

Jeff Cantwell

I growth questions results our are to Nice volume that payment expectation asked. I if there. accelerating $XX.X in then the because is Great. of Most specifically could my wanted quarter here. billion being you see Great. about the ask this about came

can you So that Is from some like your pretty more what momentum of in grow little it to it's the bit is our customer as driving quickly nice and about is talk this of looks sort think BPN you performance. as mentioning a seeing continuing reopening terms you're significant here quarter. base very

maybe versus the you seen talk right you us and on years. perspective color Appreciate what tell that Flint, you point company great. why might there for forward? Could environment some would be mean going think that put have Billtrust So past now what Any the that. can at might over And for XX about it. maybe you the some operating

Flint Lane

Yes.

get mail was the So or US for won't it’s reasons slowed pandemic been office businesses invoices slowdown whether that think is for their dependent system delivery which down. were opening I eye to on the I don't run their a were accepting US in a throughout they means widespread think bit I knew businesses. that cash the that There's post variety CFO how of flow postal corporations a checks. being dependent on generally the into US delivering for

know has via my God, call wakeup been a stop that of US bit doing a There outside paper So of oh and to you Billtrust. certainly things mail. need we there

So that helping. is certainly

acceptance I which corporate for to capitalize solutions is think or it's on departments likely to log about deposit XX bills online look sure year on payments initiatives site whether whether focused what best had on focus We that session focused the last we AP the mobile online our for small Network solution allow it and is we the the our sites to big it's billing pay strategy to that where we that the collecting bills whether into our months. Business want next have talked like at were on Payments that businesses large road. aren't a SMB a

phone we want emails everywhere. an whether collections it payment be somebody a every a it do. is literally it is touchpoint We whether in delivery whether is of e-mail to payment at the call doing inside that them payments to over we calling able somebody collect One is of payment

any have are we touchpoint with customers’ really to our sure make collect hard So that payment an trying opportunity we the customer. through to possible

the In BXB terms of opportunity the world specifically of woken the certainly up to operating payments accounts it. this has receivable side environment and more

in players category. more are the there know now You

point that of are are sort You’ve doing got solutions that it. companies

people like integrate some trying do us got receivables. You've are that to

excited know brands You've are BXB who about you card got monetizing payments.

to from from Because big So want last to And a think there's more, people to shift opportunity like because payments going more that's analog attention to it's opportunity really make to going capitalize I really payments like digital. sense. digital. that And the to want that's people here capitalize it's make a the I makes last ton of analog a which big think shift

Jeff Cantwell

second is in my the a to different this to prior then a way. one follow-up And I one, of wanted great. this slightly Okay question. ask

thought few out And So to as Can strategy customers. expansion in methodical partner regarding a tell understanding you're my have calling little I back interesting one this quarters. a us an maybe from partner AP the look seem your that, a you bottom more we new on thoughts over major because about line. [indiscernible] was past bit you

going a partnership that it about would be I just And about see be Anything able how again. guys. qualitatively. for forward are for wanted get great about partnership feel you both us that anything you you would So thinking tell great. Thanks quantitatively to if tell can us to you're to might be how reflected

Flint Lane

Sure.

routing do we AP it. suppliers correct private a to They not they're bank believe part number, that do clear your creating What's accept I you BPN everybody And because is not line is providers a Under been directory metric. busy able of and And on of the the are quantity be pay. what So on you your around hey big I'm saying do our card. here up does We've to accept can strategy supplier picking the building bottom supplier suppliers AP all what’s side calling conditions card? pay directories. account, electronically. you for

X,XXX better or If a going are you what's you to small reach. the a enormous businesses businesses better, have give XXX,XXX well which

WEX Bottomline the they They it's providers different we want suppliers formats. So don't and largest them important think to them others and and want we've JP in Morgan to and want largest that to send of want coming a the all Because Avid AP payments and to all reach payments type better single reach and like announced the deal BPN. getting suppliers. get we XXX with remittance them different to who one all Comdata people by get and great Calm help send through

right. ago think three that strategy side that can AP has recognized corporates made I proven and for now So better that years We've we the was do payments that. large these we

trying were network to BXB to business a interoperable connect framework trying visa everybody's there's the there's that We're payments ACH replace payments we so network. that a an because thought in seamlessly. network, right, network, network. the replace participants got network their to there's some not We're think more I provide can trying anybody's

Jeff Cantwell

looking all all at to Okay. the and Great. Congrats very for your again color. you much Thanks forward seeing summit.

Operator

is JPMorgan. Our proceed. [indiscernible] from with question Please next

Unidentified Analyst

the Hey. see Thanks so Glad to much. here. acceleration

digging questions a lot gotten I don't a mind the of you've that first on lot just Just question of on a know if couple clarification of guys. questions pipeline. and you deeper

things how ACH prospects about days wire it just on and on like that more that there How versus also side recruitment love on into any of outs and went to hear side I that that but nine payback is little bit just what's bit supplier know BPN, deals. the happening progress or just has a you for little curious I'm looking call supplier a knowledge ago? Just the changed

Flint Lane

Yes.

much. I payback on on Mark wrong me to decision quarterly made a the I’m our basis, that correct going percentage share move an not just that if think we've it we're basis doesn't annual

Unidentified Analyst

Yep.

Yeah. Okay.

Okay.

Flint Lane

that with volumes will I ACH which nominal this had you share very BPN year. before

to We actually lot need had have they’re automation accepting business, they part the our have orders driving solution. our solution, of a card BBPN – of not for their ACH even a cards, ACH need but also sold automate virtual – recognize BPN, and many successfully we’ve success suppliers they card

where those volume. those seeing we So where problem, have we’re strength businesses I far to or getting along digital we payments saw ACH not both of in payments solutions, easy accept is because card wire is for

Unidentified Analyst

is up a for Which we're of supplier why Agreed. hoping lot the you've gotten because already. pick also partners [Indiscernible] side

hear On the change guidance the business revenue into the putting million money putting correctly didn't raised I sorry, rest. that difference back $X there? – Did the the you’re is you're that reinvesting

Flint Lane

Yes.

year. to a – where where some margin. the mix could some can this same timing, come terms margins they at transactional the year over looking the adjusted be of So they gross some gross of it of not performance great were for of shift we had more the gross margins It leaving business rest the margins over into necessarily of the in performance and have it more performance quarter reinvest back raised

continue. an services in it's have if impact contributing So print gross or That we on part would that's as margin.

it as So was. marginal we we range the thought difference for the you know give

Unidentified Analyst

you XX% margin around glad because I see. high. it's looks incremental when Because it the pretty said at I'm the running looking gross reason like that I'm

revenue If profit. exclude adjusted even the if is gross a to lot net – your dropping down revenue, so of accelerated you you deferred

if I reason your maybe sustain ahead quite seems should that wouldn't be or does, because gross like : if running it you'd of any that ask why sustains So Yes. margin… that

Unidentified Analyst

…target Well. : if that continues.

Unidentified Analyst

I Since you do No. If Mark. my : here – Yeah. logic you're follow at then I saying. what follow

acceleration into – everything look gross our of at the you we If margin the or taking revenue I XX% think quarter, into is more adjusted account. were to if like out back

because in accelerated significantly is in. lot it of to cost payments bring Software and without came revenue incremental a that higher,

So, the outcome for the an I quarter. – I think that's sort for inflated – of giving us

Unidentified Analyst

luck the with Got that. it. you Thanks. Good : week. Thank for next

Operator

Bob William with have Please final we follow-up from And proceed. Blair. a Napoli

Robert Napoli

Thank : so And PayFac. volume, is higher PayFac your the rate the thoughts think that I was you wondered just card you're I gave grow payments of since – should than us that were and not volume thought answer to volume, XX% kind that, Yeah. on you think of I time mix or and XX%? that I dollar – you so the go growing contribution or up outsized a XX% But payments over card quarter and What's question, revenue volume just per my Q&A. – on going rest I much mean we is – for should faster But see the of the baseline to the take than payments PayFac? of the revenue any volume PayFac by XX% should last thoughts good what said. that XX% – given the just or I off on, –

So, you about revenue just outstripped talk you well volume to caution outpace and – I payments you – said would card payments separately. ACH would I and

Robert Napoli

about talk Sure. Right. ACH card to you Caution separately. and

Robert Napoli

you I within my might from I remarks, of growth fastest again certainly card, to strategy. think is are PayFac. much subscription part in incentive our as it, business and we we Sure. Because fees the try payback have drive you every and points Rich. Right. world making we executing the part did that back think a of my possible it's ACH : say I to that we're – basis on to drive payments as model. can everywhere in not prepared assure as -- coming our of to go : on

to we can it. we're that a And of control continues lot ensuring extent so, putting to the that way it into to effort go

Robert Napoli

Great. Thank you. it. Appreciate

Operator

reached the for to over remarks. conference I closing would the turn Lane session. back like have question-and-answer We of to end Flint our

Flint Lane

Have Hopefully want interest you what for and night, at. be appreciate and call. that get conferences week in we're truly Billtrust. just one presenting doing thank at the It's your everybody. great investor a at we’ll of again summit I Billtrust humbling everybody next support we Great. to to joining I the here at see upcoming or

Operator

conference. Thank This conclude does you. today's

participation. You your thank you and time your may this for at disconnect lines

BTRS (BTRS) 13 May 212021 Q1 Earnings call transcript