BTRS - Earnings call transcript Q1 2022

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Billtrust's First Quarter 2022 Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to John T. Williams, Head of Investor Relations, to begin.

John Williams

operator. you, Thank

differ payments XX, I'll forward-looking begin, our and that call and software the except Form today's regarding required most our Actual the Exchange we XXXX, today, file net December with Relations margin Before These as website. only our Investor retention any dollar including remind our any time Commission contain obligation on and to that from our year and statements Securities recent of report statements, continued outlook, the we March on to long-term or rate does and potential assume full for may forward-looking Exchange of section for the expansion, we growth forward-looking of you business, filed year forward-looking These X, to the Securities subject ended and make not expectations in with are our set from as and reports risks forth medium materially XX-K on in intend available fiscal results by numerous subsequent uncertainties, them may targets. statements time law. Commission XXXX, and including today. those annual speak and company XXXX the statements update

President; now Flint call nearest Shifke, not addition, Chief call begin. substitute today's the to Flint GAAP can Pinado, Chief a call measure Officer; and Lane, as Mark for are Billtrust's to non-GAAP is Billtrust's to Billtrust's may supplement measures. include a and available These Executive measures. I'll be over on turn In release, to today's today's website. Founder Steve which Financial GAAP earnings considered measures should Officer. the Hosting our found be and financial in Reconciliation

Flint Lane

every for drive We've outcomes team make the XXX-plus continue work-from-anywhere customers. our everyone, quo for today. the We and years and live start up fantastic Thanks first to by employees reinvent times, of you, I'd thank meaningful a and happen. Billtrust status who as to to be thanking been day call ourselves who and magic joining as has challenge couldn't the in down proud the trying my like transition and and amazing. to across company, John, Thanks, globe our more public culture strive team the org to that these last a X had chart. I

to on Now results. the

great quarter books, the Another financially in and both operationally.

our our begin well with recent objectives extremely our Shifke, CFO, Steve As finally, our metrics some Overall, the guidance. growth initiatives. to performance Then details highlights. deliver provide Pinado, successfully previously discussed. business we I'll continue is some Mark will discuss first fiscal executed customary, President, against quarter and reaffirmed and we And of key operational our will XXXX and in on

a As given tailwinds continue reaffirming result, and impact visibility, comfort strategy are to confidence good outlook our in strong our our secular that XXXX we business. positively and

for including the accelerated This time number. way more year of XXXX into in Our a transition the to assess that the our occurred revenue last of GAAP basis, Software impact deferred our of growth growth the does because onetime is at I environment. year-over-year, accelerate of appropriate and quarter. platform, the customer impact comparison a of from we payments loss customer, Payments had and think reported accelerated a of XXXX. exclude adequately our the of in to We our purposes. off macro deferred the year through numbers pointed QX BXC year-over-year underlying that was revenue revenue a that On not event reflect XX% is actually which and to QX out business a trends grew continued turbulent onetime segment this software the

revenue PayFac a still through year-over-year with quarterly component BPN We're X.X $X.X will full into the volume, exclusion. grow million long up With grew here. share for customer the solutions, of the quarter, meaningfully which XXX all mind, posted the adjusted up the onetime the transactions onetime yield this yield billion expect XXXX QX QX, our QX loss. least basis and $XX.X value strong term prior credit transaction BPN expect or thrilled TPV, our increased or of payments which the BPN consistent was year move TPV prior growth for that to Direct about a and when we XX% Payments Network, year-over-year the again still software Direct progress year-over-year The payment of loss. quarter. very transactions and XXX% XX% a $X.X against QX comments year-over-year that Our in TPV exceeded is of on that with to platform the Consistent growth year-over-year. was the gross is we adjusted card exceptional growth statements, billion revenue. TPV our ago volume card growth basis in or strong card customer Total XX% of growth in card platform, on points that credit grow payment adjusted adjusted and payments to increased of card revenue, that XX% customer of first from XX.X% impact points. we margins teens when to of in at as larger reflect impact dollar capture of growth. the XXX%. process Business non-GAAP DCR, our processing our through billion versus over We and generate in We or XX% TPV, revenue basis. revenue $XX year margins

to unmatched get recent an will automate virtual it paid payments process solution reconcile card the positive suppliers accounts We our of BXB an highlights large numbers bringing but side remove payable and possible to faster. and exciting suppliers of receivable far virtual payments cash in complete to solution, do merchant to while The to who invoices. call-outs. complexity reconcile is they them to recently in from unsorted, and cards order order-to-cash have growth payments expansion to allowing simple cash believe with track their our virtual complexity for cards to decision as American accept easily accounts everything it significant cards invoicing to to some our easier create to announced making cover of open need relationship let's access that business suite need makes overall We Now Amex Amex-affiliated makes where suppliers accept our collection. Express, application their

focus of entirely expanding win We've our address very accelerate to have is we this clear partner an the new believe opportunity will be on in customers working. lockbox expect and pretty and been a growth, group and to other a Billtrust, it's fantastic digital interested For we distribution we of needs an that big solutions.

who just the Our of a $XX into and platform for the expanded we Integration most businesses that. of and are recent few piece revenue our as that scaling order-to-cash addressable up our will approximately is We're is excited well region. OrderXCash, a expect of grow into initial integration our and are costs and expansion to forward provider in as our Amex availability cash. crucial business. we acquisition announced European with cofounded about of the and in partnership total the Europe examples of key In cross-sell OrderXCash, relationships Marco the the and European million This of to solutions of unlock Head now opportunity Leadership and our in strategy element underway market Coupa expected, Director of a more look region. and Managing cycle our serves expand our broadly scaling are Eeman, opportunities. some KeyBanc February, tracking place. European our to

our Ukraine. is people Russia and but not grieve tragic said, As members do war for affected, previously or we team far, The have so we having war a business in business the impact not material Europe. this we is in on or

our our a most we team, culture at that asset, first. In admit I'll terms of was year pivoted about valuable a nervous ago. I to work-from-anywhere

keep a and family subleasing boundary-less benefit to clearly lets is exceptional the and on teammates capacity. will recruiting. time, them, believe happier office Billtrust, labor here regard new best this of some environment. employees in what Mark the flow profitability. for pivot consequence and an without terms help helps One focus downsides, board our This less the path it powerful geography. for great in too and, is doing us outweigh ones. much across are we're there upsides attract of importantly, tight It the have commuting way of restructuring, our us we While discuss will people cash is notion most more now finding we time, which This in

PayPro, rich scale to higher interest will ago costs, supply then growth an Pinado, most a served Steve John Board the I'd Directors. and recently addition the now software proven well. be of CreditIQ, of results for Finally, X Board and a customers by its track our terrific a we're and TAM, side with difficulties work-from-anywhere boardroom. doing off announce our Billtrust's said we rise shareholder the John He'll land that BXB and forward and recently and are and platform the rates, Billtrust the helping appearance detail to of first of pleased digitization Murray of to to demand sharing who transform start costs joined we growing for Accordingly, President, of to He some value. ahead Chair to we're April, reduce contributions of Strategically like and recent and we be XXXX. business. making we're trends Board of do looking his we'd in well held demands solutions our call benefits company. believe strong to a positioned for was and more operationally, is insights increased a since chain macro appointed secular CEO ever labor the available fortunate years earnings his turn in call payroll great are efficiency. John payment was of privately and is a was more as acquisition Steve generating through companies serving Steve? our the and on Q&A driving Cars.com underpenetrated on themselves. as the speak top integrated automation that Board increasing like as in the and to On and and additional trends are solutions. record and these background meet things increase over

Steven Pinado

approximately that's opportunity already comparable to the recent see we're Flint, organically investors top and President responsible our are growth. of good strategically Thanks, sales include that in in doing low XXXX. in opportunity more a to investment we These investment spend historic M&A success for these I'm expect solutions in sustainable spend customer activities. were to net of our in work a well companies increased our way teams we're all. what professional drive and our of growth. few years begins rate sales, increased our Revenue revenue. the of delivery. the take of afternoon today We're customer scaling and revenue team what at and these marketing, growth benefits and with as which XX% levels I growth We've and Pinado, our massive lead than in our is Billtrust. and one capitalize address. business that Steve I This that services directly to continued seeing as XX% growth mind and areas to market the the areas, for to this we and aligned as are for our minutes in approach on in net marketing of describe want to

and segment of Our increased rate growth Software revenue that from period during XX% million XXXX XXXX $XX to Payments XX% to accelerated in XXXX, XXXX CAGR from an to and $XXX XXXX. Payments and period. Software the Underlying annual over same was million to

more As driving QX, we quarter customer solid QX any history. previous in in In we acquired our than new logos acquisition. call, in our mentioned performance are we

sustain While we opportunity are have this we pleased scale. growth we results, with revenue as early the these to trajectory

economic attractive continued rationality new the increased investment customers at of and We continue ratios, LTV-to-CAC demonstrating to growth. acquire

will scale demand from further the direct a generation and increased now to on are bookings on our spend to retain brand, indirect existing with actions, our this increase relationships these expanding contribution moment deploying actions. sales strengthen channel, each We I the our focus of customers. investment and our

solutions educated thought engagement reach becoming brand and better leadership, publication base. industry We our We who positioning our and the with the with build of to awareness category the are demand. our brand are strengthening analysts of through in customer our global discipline in and of service through seek

the as as increase We direct continue generation to our size efforts. well the supporting sales of demand team

productivity increased this continued team generation tenured from to demand expect we diversify increasingly as and We see they sources. become our

goes have and on to X front. in team we market each to reasons ways, optimistic channel be Our

what buyers and with that first BPN our providers. efficient pay supplier These are The achieve need payable customers to represent is that to we who companies way objective. the call an find

We increased Coupa include TPV. from of in the Recently this and Arvest. BPN are source, driving our payroll part participation comprises providers which added

The entire lockbox is increase to with we and are the capabilities opportunities BPN our institutions increasingly expanded their of digital a value supplier and by evidenced is our set. of financial for customers. distribution believe These of source Express American with available having second that reach KeyBanc. cross-sell This strong BPN invoice partnerships arrangements and the solution network understand

firms, represent include like which avenue ERPs, Lastly, as channel as efficient BPO advisory well for integrators system traditional software growth. and another enterprise entities distribution opportunities,

area our of this team capabilities with be this business. platform new acquiring with new and to in traction better gaining are go-to-market we our method align as successful We

a customer have with along our We opportunity base. to grow strong ever-increasing

land-and-expand customers percentage our of Our within XXX% This Payments dollar customer XX I'd across in Software up to share year-over-year. X to accounts and path points that ways helps net like existing digital examples can their strategy transformation Evidence along base. XXXX. we rate apparent is our of grow in the all success of retention is of receivable.

North payments new Billtrust we a product utilized services group. position the that payments, company to XX We win created Together, was services to with by dialogue digital about for than but how retain, compelling tremendous enterprise This years. their learn enhanced urgency is transition are them opportunity a Fortune among and global a and and customers the monthly to and than recruit XX application was invoicing payment growth journey. company wide among meaningful that payments approach of company team European people, team X-figure this key-in suite. a global perform we that and countries to train for also existing now XXX more me example the determine check data processing expansion. with in a $XX payment these close and in the team implemented exacerbated We and cost decline our invoicing These result as a of to transformation more incurring highlights prospect It's has It in solutions assisting on for more high led represents My America and fees entire a has us customer. an per tasks. ERP working deployed than example This Billtrust systematic based application for earn upon with multinational as in is to in reach, a the and manually to a customer example act. from the a month and serving that first an them other participant from with a exception productivity solution better this are rich growth cash for had good directly to second deliver XX optimized revenue had cases. a our was costing global one as customer The of we This been and business $XX annual members concentration more led expanding position we've us fashion. applies solution payment billion check automate BPN in of resulting million and that processing conditions several our to in to activity-based set utilization This costly efficiency, our more this the payments. a XXX,XXX them annual also than now BPN that payments. challenge company optimized variety of this payment revenue provide electronic across labor of how Xx for benefits, business serves customers facilitation They third-party additional with them capabilities capabilities. of company. were to historically faster in

focused marketing distribution expanding and are on market. sales accelerating our enlarging Our our addressable investments and growth, capabilities

of to in June on as held outlook. financial our With event. to forward June the to XX our annual sharing positive at XX. more over hand returns. event, quarter be it more will continue that to results virtually a investor vision We'll to and special at our well and our I'll join Insight results that, about debuting that strategic that which as event, periods focused are the we now we're the deliver Mark confident continue and hopeful track deliver for look provide seeing Shifke, will investments Billtrust are coming we that will review our to We first will us our We CFO, entire you be

Mark Shifke

everyone. good Thanks, Steve, and afternoon,

We are net our grew revenue very with XXXX a results. XX%. year-over-year reported basis, On pleased QX

grew Software Software for of profit the a and in quarter. basis acceleration continued saw of ago of for with XX%, the increase Adjusted we after was the of million, the revenue year-over-year year from loss, and by segment the an a the quarter This XX% XXX period. customer for its On impact the customer in expansion of Payments adjusted XX.X%, and onetime and profit of the Adjusted organic basis onetime Payments basis, was basis loss. the XX% market $XX gross and but Payments net a and the our decline growth adjusting was gross onetime impact year-over-year expansion driven highly point revenue profitable margin adjusted business revenue adjusted Software revenue previously XX%, gross segment growth segment a XX quarter, grew XX%. net during point customer on the in mentioned, a of of gross margin reported loss XX.X%. impact growth XX%,

$XX and year-over-year million, TPV increase of was retented year-over-year strong This increase a and in XX%, performance driven card million, card revenue. by was of gross dollar accelerating profit Software a and XX%. net strong $XX adjusted Payments and growth revenue was direct

operations As as a to stock-based This impact year. over line reflects tracked drive addition as of with we declined at percentage head at continue the net internal to that comp, when full revenue. revenue Despite OpEx $X is jump, digital. million, million. each expected, of QX the expenses, our line Services XX% operating $X million In in particularly increasing to our the increase volume item were our X% as year excluding line expectations, with our as print up last was course of year-over-year. European looking well flat revenue print year-over-year forecast, percentage of count $XX

Our of QX adjusted for EBITDA a in to as the the $X a million loss adjusted compared loss of onetime was $X customer period. million prior year loss when

pleased are towards XH last We we be year, XH year, adjusted to that profitability. results on this focus relative expect unlike as improved EBITDA managing to we sequentially

comp, $XX EBITDA, in year prior the versus including period the investment by contractor stock-based in marketing that $XX million development million research includes the adjusted development XXXX. Excluding additional year. prior primarily in back last X This QX driven R&D related expenses that year efforts. product and administrative and expenses $XX expenses expenses, were quarters General were first in Sales added also our versus $XX amounts to and in due million of were European channel to $X not million and period, million versus calculation were and are million $X higher costs. to operations distribution sales direct

physical has work-from-anywhere As policy footprint. including restructure to mentioned our Flint opportunity many our benefits, earlier, the

in our Colorado now and have our reduced headquarter offices space. Jersey and have Chicago New closed We

will going EBITDA. in adjusted closed the permanent print on used QX and modest and will ended These print $XXX equivalents savings no volume. the benefit reduction sheet drive that short-term but Note actions cost We our due overall and addition, forward Illinois we we acquisition facility to complete during cash million with marketable In Lockport, the balance securities approximately to OrderXCash. quarter that of $XX million our debt. in directly

money Our shares, was issuable shares XXX common including diluted estimated RSUs. the potentially all million XXX and employee current share million end count to at and basic quarter shares in options tied fully

Now to guidance. our on

at be year in outlook. year year our full Our we remainder point unchanged, we'd the remain confident where were in is of thought this the XXXX outlook and

quick net middle Finally, guide of XXXX. a at net percentage our the was revenue a XX% squarely for XX%, to few in as our notes expected of the cadence full midpoint range. expected on QX revenue XX% of year

For QX. XX% QX, the XX% in QX, expect XX% and year, XX% balance in XX% to we of to the to in XX%

For adjusted to and midpoint. XH we to margin, above and adjusted gross gross expect be be profit XH still the below

like For significant QX both adjusted EBITDA, a and sequential followed improvement we expect QX QX will in QX. roughly by look

recently long-term first sometime half in as our quarterly earnings medium- outlook, reprinted investor to and expectation QX become EBITDA Our our our adjusted of as supplement, back deck XXXX XXXX. the in and released in are the of positive reiterated unchanged to half

seeing no to fruit strategy bear any to happy that we're major Operator, forward to Our targets of look is and our spending. in year we a again answer our disruptions for efforts macroeconomic reevaluate lines. open us exclude and the and the call, impact Thanks the the please This great M&A future might or to joining assume ahead. start, off your cause months questions.

Operator

The Instructions] from Schmidt Citi. question first [Operator Andrew with comes

Andrew Schmidt

benefit hearing Steve, there's volatility just job relative some whether been demand in could you're some appreciated. just -- the of or general. out your consistency there of tough from But quarter. just on just to trends. has some hearing XX Flint, high-level just I much good would Billtrust you're environment for actually perspective, be the to demand customers. which Obviously, changed incremental the of what in and just wondering, what from start and thoughts sales Any want ago, -- that a days the factors the products Mark,

Flint Lane

he it's is parts business. I'm let Pinado take on want you to of Andrew, for that? Thanks focused do Steve, take since the question. Flint. growth going all to Steve the this

Steven Pinado

Got it. Andrew.

are that had a as optimistic terrific We as sales would quarter I perspective. say -- a are We ever. we from

build pipe. to continue We

our seeing not So cycles demand we while there's been generation. volatility, our fair a it sales are in in or market amount of

Andrew Schmidt

acquisition. customers this -- seeing to the maybe in economics Steve, you're your the like sounds other customer in in side, little alluded of and obviously to LTV, deals I in you unit marketing it wins terms but bit seeing But efficiency. existing in -- recent and customers. and investing continue the and how both might commentary, comments what of early you're relatively the with just new it's Very unit on know just be up terms you're few see you more on clear. Maybe a seeing favorable sales but And a economics trending? tick what

Steven Pinado

early Yes, to in are detail, but Bringing exciting in tell it's momentum. logos a the continued quarter we our history bit us. just to in in very pleased first our with new most is the

differences, huge and no So just grow. execution performance us helping continued continued that's

Andrew Schmidt

identified. Perfect. the saves question one incremental the of profitability time It modified. cost doesn't last were just And line on that was like sound then

just those think growth? fairly savings it could reinvested sounds So be those to like And savings it fair being be where is reinvested? of might Because meaningful. those in about some items

Mark Shifke

Mark. Sure. Andrew, it's

course the factored we into that the guide process we to we think We contemplated during of done, that for provided the quarter. to the had year. were this and in get able the year, the able that we're that start savings I be would

most the bit they've I'd more management cost going in. our for little on in what's a on But broadly been structure. so And part, focus factored

to XX% think, probably the about of and basis, on If that it's going a G&A remainder you I at X%, the level for think year. down, stay quarter-over-quarter

focus components manage we many So broadly, cost we just -- structure. our and of on to have one trying just more that's

Operator

Tien-Tsin from JPMorgan. comes question with Huang next The

Tien-Tsin Huang

do seeing you what the call. new what were I'm most given have continue logos being channels Steve, sort Since And you're you. mentioned the logo performance on on to ground? a for you there? curious expect productive Any surprise you that good of the here new record,

Steven Pinado

surprises particular no Yes, channel. across

working in we're where we're As building it the in my from. we pipe. came that hard And remarks, real continued bring to diversify no but on surprises mentioned and I channels execution

we're expect continue continue that so. So momentum can and the and the we to hard we working keep doing trajectory,

Tien-Tsin Huang

Got it.

like tracking you all GDP slowing business with and know thought here understand here. earnings change cetera. perspective what was fears no the withstand that, have weighed market additional what given about is us Do in as the So outlook. consideration macro Just you asking et were on I and to past telling the may a seen formulating better of the quarter that feel the your trying Any concerns, the built on as this line how from been I've guidance, is you you've and stock calls, in to cycles? inflation much you outlook

Flint Lane

it's Flint. Tien-tsin, for the Thanks question.

So the we've years And saw I started of countercyclical business, the been since business. in more lot financial and through actually crisis a we in is economies, focused that businesses pick savings tough to way. business, in the got them When for time on growth. looking for line kind we're XX are on from. lots global 'XX, and 'XX, more we've during cost measures, top In they're

to financial team have his performance, plenty offer them. So are Steve things of improved for looking businesses and that

we marketing. macro impact Mark on affect sheet. not the stock. balance chest environment worried terms with great as still about It sales our stock price, But ability particularly certainly we're war our to the do may of in a M&A So have out, does and which pointed

Operator

with Cowen. Mihalos George from comes question next The

Georgios Mihalos

with expectations comment guess quarter? the the or I guys that And April, you a through how from performed -- that better, housekeeping perspective, if was willing a in tracked was you're in break have Just of contribution you're and item seen revenue maybe little Great. out what what far that line that. curious thus -- on has can seeing less? has first international to

Mark Shifke

Mark. it's George,

with haven't as out segment. Europe far in expectations, line we tracking So a broken are things

a our time. so material at I think becomes as doing it that consider overall of component more results, would then we

Georgios Mihalos

guide. what reiterated quarter push from And second last maybe I know half know that is of Or expected -- you just guess, guys then you bit little taking was appreciate Mark. And to to could that expectations you? was If into looking But I with Anything Anything there question, that. I just in the out, always second a maybe half. our like to at just a longer to stronger. I Okay. be It kind a full second of anything seems line there originally? relative little we're the thinking surprised year ramp? out is were there? call

Mark Shifke

push we what some it's QX a expected have It's and to modest And QX out QX. from in might of timing. just

Some of and to little big doing just the implement push. big but things we're no no surprises longer bit a taking are

Operator

comes with question Canaccord. next from Vafi Joseph The

Joseph Vafi

results Nice quarter. this here

Just could new wins? the right? my second if quarter again. record Was memory consecutive you that this of Is refresh logo

Flint Lane

that's believe I correct.

Joseph Vafi

Yes.

drilling or in of bit of out more, a to clients some on just call there, anything terms kind so of characteristics down just new And that cetera, of those versus et little the Flint. size,

Flint Lane

just it last we're because our business. over all time year, about still have don't to see expect in aggressively quarter. you also -- want that you enterprise-class about I'll going but We We there last and biggest ever. pay sales about record logos last how remind we the to from we of about a mid-market Express the sign in spoke that there's this to starting deal is also early would the We're think the it the marketing channel. is continue lots logos, on what says signing But when to these hitting talked I'll cylinders, But new as quarter, we be of number deal relatively drive talked Yes. well all were customer and and would talked channel I we investing a land there, from that there's team logos. channel, as quarter. as the the of contribution deals. dividends Coupa I American We contributions to

for financially parties third motivated are us, drive who and there to So that's business new helping. are

Joseph Vafi

on Flint. that the it. you then large signed Got updates on any that while we're there And quarter, customer, progress last on ramp

Flint Lane

No. No updates, nothing...

Joseph Vafi

everything... But

Flint Lane

or positive updates, planned. It's as negative. going No

Joseph Vafi

it. Got

on updates there and and is then branding the digital progress of well? it then kind bank on And lockbox as and of on any go-to-market the the there Okay. that channel

Flint Lane

lockbox Yes, that I from get would those I partnership financial great to Express interested the expect more channel. sort a with clients. in that resonating continue release bank deal their would with did the continue what bring wants suppliers, us say have of they to an We've about digital BPN, we capabilities them great around with institution of bank and strong their call parties. The offering channel American digital talked and about to third lockbox a We is interest banks the merchants. the to the KeyBanc treasury to example expanded to more and press

scale digital a supplier of more mean e-mail are going as a entire process. good. from automates payments check-based to process, virtual ACH and move electronics. to lockbox card that believe need digital expensive to continue lockbox and that to We more every or is Electronic doesn't a very payment An

product the answer pose to the clients. treasury sign that want So them we for is, set their clients? in be continue and has banks, to you're to the to banks relevant talking do And your been can sign question resonantly, And this when and we banks this we with prove the treasury can you yes. need

going be that's are for indications a going to early Our to be us. strong contributor

Operator

The Cris next from question comes with Kennedy William Blair.

Cristopher Kennedy

that little journey? wanted ramping I are bit productivity force. we to on direct more hear about the a Steve, Where sales your of

Steven Pinado

Yes.

about in be takes to generally rolling of contributing so. continues ramping lot year months it X and really, they're and and product. It to effective get a before people really have a We

logo you've contributing think that we've now and continue growth grow. time result is more ago in made we we've folks as the And the are that really seen of part I the team So effective. performance hired some to a

expect that continue. So we to

Cristopher Kennedy

bit And And change the in go-to-market talk a the little then Europe? strategy there. about Europe does Fantastic. your Okay. And talk versus about just U.S.? can you

Steven Pinado

were continues. We in growing Europe, Sure. and acquired that businesses that well

had that multinational customers have that gave of good Billtrust our one one, Now the earlier base is we a and the remarks the my I several. is example serve And to within in already. opportunity we

the you things component you So as through set, branding, that and block of and need integration, all and the the tackle those is well the go-to-market, bringing team to when integrate underway. strategy solution and of part another a together all businesses acquired a

effort businesses we not of only to in global growth to see kind the but from organic to our years get sales come. our So acquired some through acceleration expect work and same global the through we branding, integration

Operator

The comes from with Josh next question KBCM. Beck

Madison Schrage

wanted about Coupa little to bit I is talk This the Josh. for on Maddie just partnership. a

mid-market is opportunity how growing into base. their segment could then follow-up little most guys that And Coupa and fit across larger are the with customer on they my some the seeing curious Coupa Pay you which guys obviously, If on give the within a offering. presence. that customers have product market color Wondering ties you

Flint Lane

X tell Coupa Yes. sort you partnership. that What we of there's can about is parts to

that pay have And electronically. the pay they side. accounts common is all of variety on call more those both banks a and to of inclusive in have what we companies desire organizations We of pros, which is people companies payable operate software that

large like Network has Coupa access pay business So Payments the what for looking which ability many GE many, Healthcare Staples more. the to very some suppliers, and and is FedEx to is and Directory,

it So digital BPN they pay and adoption. increased are to want access directory for to willing drive to

but The yes, is take convince try digital you to your when got. often e-mail, okay, digital payments, second what objections part payment one I'll they accept I to relationship don't that else of want recognize they the is, supplier it get a that of to be they an

that in lockbox can us large it So digital make for there is a them referral where more a sale the for payment. accept element to into they partnership to interesting supplier to bring digital that

Madison Schrage

That's upmarket it. compared any more. your additions, And With just notable new I are maybe if to Got respect seeing customer base? to could one shift ask installed you super helpful. the

Flint Lane

take that? Steve, do you want to

Steven Pinado

Sure. Yes.

I upmarket acquired base. to XX we've our customer that to the we compared relative move years, think base over the last continue to installed entire

we're trend. a not targeting I the it's go and segmenting It's but where think that that new markets continues, certainly to So we're after.

certainly, base, customer in continue customer existing and terms size. to the we go deal versus So upstream size of

Operator

Mayank with comes question from Needham. next The Tandon

Mayank Tandon

about you. card the to teaming the quarter. for stream on ask Mark, wanted revenue just most you revenue. up I and the Flint lucrative Congrats, I'm

should So our chart been I How to look that yield in that way handicap you slide of the have overall model? the we deck, over Any just trending sort up. time impact when your that growth? to in TPV has at think relative about

Flint Lane

on our print, the Both not and high first case. revenue, me that's actually me both services XXs both so fantastic and lucrative, our is to comment compared stream. margins revenue most incredibly they're let lucrative the let Well, -- first, software and revenue payments

revenue just very growing is payments is it's faster and reason fast, and than because not we it's growing lucrative, it the The call out is TPV. So it payments.

continue Now because part monetize we to of is payments that effectively. more

that PayFac of business transitioning book gateway we're payments model. over on model is time We our to that have our a

In to most contributes new addition, of PayFac. that term. over to in business that long we time teens signed yield over increased guided the the we've goes the being on Each

Mayank Tandon

maybe what the a on Flint, BPN. BPN, helpful, attraction on then on are new strategy And Or very the get different reminder to side. of these onboarding incentives is for the partners? just the me. That's the some is terms What good the you more in Understood. players provide? strategy of for that What to

lay out strategy just over playing and If that's could out you how onboarding maybe time. the

Flint Lane

on there's the mean supplier buyer flavors I and on side. side X general It's on BPN. the of partners

On ongoing many the an the with already buyer access, already most side, companies software is challenge. pretty Getting of BPN. on we suppliers, them good X. of many just there BPN the is have But and step banks to density on them getting

to upon. paper that they're down are suppliers, As always want payments don't have get offer and the the we on BPN. to going value sure comes them If that we we improving we they're a suppliers paying But they can payments, those continue all add make it BPN. muscle cut additional more is of And today can to we more route them. we that those prop to digital and through check, course, have to

that is offering that recognize sure we be ACH the I'll the digital the recently, is lockbox supplier just side, that making that's support lockbox. digital that this something important. incredibly partners, part you banks, On going as remind of mostly started it to

volumes deck, fast to the there of ACH very, a lot are the for growing payments been that numbers out look at handle. you very are there If have because tough we shared ACH businesses that in

lockbox, So ourselves. we best continue sign digital a do to to partners by to need way that them want to their convince customers that the and is

this So customers leading listen, banks we charge go say, lockboxes this you're not if could to signing here. the successful these be your and Think party these you transaction. on digital were how and to already we're

Operator

next KBW. with The comes Sanjay Sakhrani question from

Sanjay Sakhrani

bit are seeing have valuations deals come to is question as I'm opportunities industry, first in a in some quite guess if the you acquire companies. do I guys and wondering

Flint Lane

the on comment the hunt could sense. So X months, acquisitions. for or X always why on the last focused we -- We've went opportunities, but that be more strategic X we in continue acquisitive. that one to of future we be public on so and something we reasons We've makes got M&A don't done is we're deals

that do have trickle our the has to just is into I industry think also most board not the we but which down, started public across hunting. valuations, of valuations where come private

more with a So prices that for if I targets I man, down. was would see those betting in. valuations bet We'll we're some coming reasonable interested

Sanjay Sakhrani

you when can has to stool? just what know guess I think might do? been should bolt-on? another leg add deals seek you I Or to like international more be to you possible How might you maybe do, would speak interesting. you to a think And we point, guys about they the about would but might what be focal

Flint Lane

Yes.

those there's There's geographies a executed underrepresented. which just geographic expansion, bucket we've categories. few many but we on think into where I we're different too,

in certainly needs is other receivable there. the that ago, things continuing about equipment the for we've accounts or plays. bought that just heavy market product It like talked are underrepresented automation, that is industry, in There may are and we company we a several not vertical So we the years sales leader offer, very past. was an something roll-ups were order so We, there. instance, on extensions, that area

footprint that base companies some we're do we're able supplier there of then them, strategic increasing have to different around expanded growth of a and lots types so around there's BPN, we've And into plays quite and at. through our lot that whole So substantially. cross-selling looking M&A, of acquired

Sanjay Sakhrani

Great. Okay.

changed stock. with last to as to earlier a the just your maybe if I'm about saves And that far, mentioned that into profitability. there was about then, the or are Clearly, relative but some thus you you've Just you on questions. profitability hasn't nothing been market profitability very obviously, the and those. sort one your thought stock could about valuations you macro time some of how process follow-up seen positioning. was an There the has thinking and changed Maybe play cost curious some focused you even of just disposal. your quarter, question, changed, that? question speak know does determining levers extent weakness, you're to at has thinking has to to Mark, line I of that last to accelerated but a And path have

Mark Shifke

Sure.

we're toggling top I now more growth think between line and previously focused, even profitability. and

this We and to, are marketing R&D. a and G&A I focus at able than with business on of bit sales little our more point, think, manage

right short-term on really real them to now, undermine for burgeoning channel as just critical don't them. a not certainly reasons feeding want but but showing opportunities think we our those direct X sales our all there, are focused of are sudden we're I fruit under that and

than We international were have well are in they opportunity an basis a available ensure on our as before. products better cross-border to even that

is that don't like. person on need bursting where for can get are side sure spend. those focus from I've trying for as said real to G&A So card we're we're and focused volumes spends, we from the get are to the before, the we And ensuring making you seeing But grow another profitability more thinking hire benefits the leverage. operating benefits tier more than actually realizable the about direct on and to to before

for it. focused just there's ensuring runs that just we're right business incremental been on incremental spend, in the needing we more more for any hire And built people lot have to a without of So than into the results might of getting before how growth spend. terms we're

Operator

a Was there follow-up?

Sanjay Sakhrani

any beginning but of view like profitability, mean you think how for your haven't -- maybe clearly, changed just the of guys you sort of a are terms line is that part, on accelerating maybe that in No, I being time change that? way

Flint Lane

the not change about changing profitability. any the quarter comments the of first and I year, the It's Listen, about in of numbers. we have comments think no made any future we've

profitability. into an probably save there's measures a indication focus can of taken, commentary You is there which more are we've on the that read cost that some where

Operator

JPMorgan. the The Tien-Tsin question? Huang, next Tien-Tsin Huang rejoined did Mr. you've question with additional follow-up an muted queue? Perhaps is phone. from have your You a you

question-and-answer be can [Operator would This conference over session. question Flint any to the offline. concludes taken like Perhaps remarks. Lane for Instructions] to our turn the back I closing Okay.

Flint Lane

drive results call. we of everybody, the Once happy We're adjusted the exact thank the in you, we've The that. terms direction in forward everybody. want. you, this the of growth first joining you'll think software very number is over trying higher payments growth the journey and And We're to We quarter. with in to headline materialize for with you. time, the I see continuing Thank business, more again, and that in XX% succeeded doing of look profitability.

Operator

The for conference now attending Thank has you today's concluded. presentation.

disconnect. You may now

BTRS (BTRS) 14 May 222022 Q1 Earnings call transcript