BTRS Holdings Inc. ("Billtrust" or "the Company") (NASDAQ: BTRS), a
B2B accounts receivable automation and integrated payments leader,
today announced financial results for its first quarter ended
March 31, 2021.
"I am very pleased with our first quarter results as momentum
from 2020 carried over into 2021 delivering a strong start to the
year," said Flint Lane, Founder and CEO of Billtrust. "First
quarter results came in ahead of our internal expectations as the
digital transformation of accounts receivable and B2B payments
continues to accelerate, leading us to raise our guidance for the
full year. Our industry-leading solutions position us incredibly
well to capitalize on the massive shift to digitalization and we
are excited about the opportunity to grow and scale our
business.”
Financial Highlights for the First Quarter Ended
March 31, 2021, as Compared to the Same Period in
2020
GAAP Metrics
- Total revenue increased 22.8% year-over-year to $41.9 million
from $34.1 million in 2020. Included in total revenue, segment
revenue, gross profit excluding depreciation and amortization, and
net loss and comprehensive loss was $2.5 million of accelerated
deferred revenue from a customer contract which terminated in the
first quarter of 2021.
- Software and payments segment revenue increased 40.1%
year-over-year to $25.7 million from $18.3 million for the same
period in 2020.
- Gross profit, excluding depreciation and amortization,
increased 43.5% year-over-year to $23.9 million from $16.6 million
for the same period in 2020.
- Gross margin, excluding depreciation and amortization, expanded
by 819 basis points to 56.9% from 48.7% for the same period in 2020
driven by improved operating leverage and an increasing mix of
software and payments segment revenue.
- Net loss and comprehensive loss was $(22.8) million compared to
$(7.1) million in 2020. Net loss in 2021 also includes other
expense of $10.0 million associated with fair value adjustments for
certain earnout related shares that were issued or vested during
the first quarter of 2021.
Non-GAAP and Key Operating Metrics
- Total Payment Volume (“TPV”), the dollar value of customer
payment transactions that Billtrust processes on its platform
during a particular period, increased during the quarter by 33%
year-over-year to $15.1 billion from $11.4 billion for the same
period in 2020.
- Net revenue* increased 35.0% year-over-year to $33.1 million
from $24.5 million in 2020. Excluding the impact of the accelerated
deferred revenue, net revenue increased 25.0%.
- Adjusted gross profit* increased 45.9% year-over-year to $24.3
million from $16.7 million for the same period in 2020. Excluding
the impact of the accelerated deferred revenue, adjusted gross
profit increased 31.0%.
- Adjusted gross margin* expanded by 544 basis points to 73.4%
from 68.0% for the same period in 2020. Excluding the impact of the
accelerated deferred revenue, adjusted gross margin expanded by 329
basis points to 71.3%.
- Adjusted EBITDA* was positive $0.3 million, compared to a loss
of $(3.7) million for the same period in 2020. Excluding the impact
of the accelerated deferred revenue, adjusted EBITDA in the quarter
was $(2.2) million.
Recent Business Highlights
- Billtrust Named a Leader in the
IDC MarketScape for Accounts Receivable Automation Software for
Enterprise
- Business Payments Network ("BPN")
continues to gain traction
- Added a major new A/P partner and
significant new supplier business from partner referrals
- BPN TPV increased 146%
year-over-year, including new BPN 3.0 volume from ACH and
wires.
- BPN Card volume increased 117%
year-over-year
- Billtrust Mobile Deposit capture
approaches $100 million in spend in Q1, less than a year after
launch
- Entered into agreement with The
Commonwealth Group, a major plumbing wholesaler buying group, for
our Billtrust eCommerce solution
Full Year 2021 Outlook
Billtrust provides the following updated financial guidance for
the full year 2021:
- Total revenue between $160 million to $166 million, including
reimbursable costs revenue of $37 million, up from a previous range
of $159 million to $165 million
- Net revenue* between $123 million to $129 million, which at the
midpoint of $126 million would be an increase of approximately 16%,
up from a previous range of $122 million to $128 million
- Adjusted gross profit* between $85 million to $89 million
- Adjusted gross margin* between 69%
to 71%
- Adjusted EBITDA* between a loss of $(14) million to a loss of
$(16) million, including additional public company costs
* Net revenue, adjusted gross profit, adjusted gross margin and
adjusted EBITDA, and the impact of accelerated deferred revenue on
those metrics during the period, are non-GAAP measures. An
explanation of these measures and how they are calculated can be
found under the heading “Non-GAAP Financial Measures.”
Reconciliations of these non-GAAP measures to the most directly
comparable GAAP financial measures are included in the tables at
the end of this press release. Billtrust has not reconciled its
2021 guidance for non-GAAP adjusted gross profit and adjusted gross
margin to the comparable GAAP measure, or non-GAAP adjusted EBITDA
to net loss and comprehensive loss because certain items excluded
from non-GAAP adjusted gross profit and non-GAAP adjusted EBITDA,
such as charges related to stock-based compensation expenses, the
change in fair value of contingent consideration related to an
acquisition and related tax effects, including non-recurring income
tax adjustments, cannot be reasonably calculated or predicted at
this time.
About Billtrust
Billtrust (NASDAQ: BTRS) is a leading provider of cloud-based
software and integrated payment processing solutions that simplify
and automate B2B commerce. Accounts receivable is broken and relies
on conventional processes that are outdated, inefficient, manual
and largely paper based. Billtrust is at the forefront of the
digital transformation of AR, providing mission-critical solutions
that span credit decisioning and monitoring, online ordering,
invoice delivery, payments and remittance capture, cash application
and collections. For more information, visit Billtrust.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“estimate,” “plan,” “project,” “forecast,” “intend,” “will,”
“expect,” “anticipate,” “believe,” “seek,” “target,” “guidance,”
"outlook" or other similar expressions that predict or indicate
future events or trends or that are not statements of historical
matters. These forward-looking statements include, but are not
limited to, statements regarding Billtrust’s financial guidance and
estimates and forecasts of Billtrust’s financial and performance
metrics, the potential benefits, value and the commercial
attractiveness to its customers of Billtrust’s products and
services, Billtrust’s opportunity and ability to grow and scale its
business, and Billtrust’s technology platform. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of Billtrust’s
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and may differ
from assumptions. Many actual events and circumstances are beyond
the control of Billtrust. These forward-looking statements are
subject to a number of risks and uncertainties, including
Billtrust’s ability to attract and retain customers and expand
customers’ use of Billtrust’s services; market, financial,
political and legal conditions; the impact of the COVID-19 pandemic
on Billtrust’s business and the global economy; risks relating to
the uncertainty of the projected financial and operating
information with respect to Billtrust; risks related to future
market adoption of Billtrust's offerings; risks related to
Billtrust's marketing and growth strategies; the effects of
competition on Billtrust’s future business; and the risks discussed
in Billtrust’s Annual Report on Form 10-K filed on March 24, 2021,
under the heading “Risk Factors” and other documents of Billtrust
filed, or to be filed, with the Securities and Exchange Commission
(“SEC”). If any of these risks materialize or any of Billtrust’s
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Billtrust presently does not know of
or that Billtrust currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Billtrust’s expectations, plans or forecasts of future
events and views as of the date of this press release. Billtrust
anticipates that subsequent events and developments will cause
Billtrust’s assessments to change. However, while Billtrust may
elect to update these forward-looking statements at some point in
the future, Billtrust specifically disclaims any obligation to do
so. These forward-looking statements should not be relied upon as
representing Billtrust’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Non-GAAP Financial Measures
Some of the financial information contained in this press
release has not been prepared in accordance with generally accepted
accounting principles in the United States (“GAAP”). Such financial
information is identified as such within the press release.
Billtrust believes that the use of these non-GAAP financial
measures provides an additional tool for management and investors
to use in evaluating Billtrust’s actual and projected financial
condition and operating results and trends in and in comparing
Billtrust’s financial measures with other similar companies, many
of which present similar non-GAAP financial measures to investors.
Billtrust does not consider these non-GAAP measures in isolation or
as an alternative to financial measures determined in accordance
with GAAP. The principal limitation of these non-GAAP financial
measures is that they exclude significant expenses and other
amounts that are required by GAAP to be recorded in Billtrust’s
financial statements. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management
about which expense and other amounts are excluded or included in
determining these non-GAAP financial measures. In order to
compensate for these limitations, Billtrust presents non-GAAP
financial measures in connection with GAAP results. Billtrust is
not providing a reconciliation of its projected non-GAAP adjusted
gross profit, non-GAAP adjusted gross margin and non-GAAP adjusted
EBITDA for 2021 to the most directly comparable measure prepared in
accordance with GAAP because certain items excluded from non-GAAP
adjusted gross profit and non-GAAP adjusted EBITDA, such as charges
related to stock-based compensation expenses, the change in fair
value of contingent consideration related to an acquisition and
related tax effects, including non-recurring income tax
adjustments, cannot be reasonably calculated or predicted at this
time. You should review Billtrust’s audited financial statements
and the other financial information included in the Final
Prospectus and other documents of Billtrust filed, or to be filed,
with the SEC.
Net revenue (non-GAAP) is defined as total revenues, less
reimbursable costs revenue.
Adjusted gross profit is defined as total revenues, less total
cost of revenues excluding depreciation and amortization, plus
stock based compensation expense included in total cost of
revenues.
Adjusted gross margin is defined as adjusted gross profit
divided by total revenues less reimbursable costs revenue or net
revenue (non-GAAP).
Adjusted EBITDA is defined as net loss and comprehensive loss,
plus (i) provision/benefit for income taxes, (ii) change in fair
value and other income (expense), net, (iii) interest expense and
loss on extinguishment of debt, (iv) depreciation and amortization,
(v) stock-based compensation expense, (vi) restructuring and
severance costs, (vii) acquisition and integration costs, (viii)
minus interest income.
Investor Contact:BilltrustIR@icrinc.com
Media Contact:Meredith Simpsonmsimpson@billtrust.com
Condensed Consolidated Statements of
Operations(Unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Revenues: |
(in thousands) |
Subscription, transaction and
services |
$ |
33,119 |
|
|
|
$ |
24,524 |
|
|
Reimbursable costs |
8,817 |
|
|
|
9,621 |
|
|
Total
revenues |
41,936 |
|
|
|
34,145 |
|
|
Cost of revenues: |
|
|
|
Cost of subscription,
transaction and services |
9,253 |
|
|
|
7,890 |
|
|
Cost of reimbursable
costs |
8,817 |
|
|
|
9,621 |
|
|
Total cost of
revenues, excluding depreciation and amortization |
18,070 |
|
|
|
17,511 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
Research and development |
10,993 |
|
|
|
9,384 |
|
|
Sales and marketing |
8,936 |
|
|
|
6,422 |
|
|
General and
administrative |
12,450 |
|
|
|
5,248 |
|
|
Depreciation and
amortization |
1,360 |
|
|
|
1,411 |
|
|
Total operating
expenses |
33,739 |
|
|
|
22,465 |
|
|
Loss from
operations |
(9,873 |
) |
|
|
(5,831 |
) |
|
Other income
(expense): |
|
|
|
Interest income |
103 |
|
|
|
16 |
|
|
Interest expense and loss on
extinguishment of debt |
(2,942 |
) |
|
|
(1,183 |
) |
|
Change in fair value and other
income (expense), net |
(9,990 |
) |
|
|
(19 |
) |
|
Total other
expense |
(12,829 |
) |
|
|
(1,186 |
) |
|
Loss before income taxes |
(22,702 |
) |
|
|
(7,017 |
) |
|
Provision for income
taxes |
(92 |
) |
|
|
(80 |
) |
|
Net loss and
comprehensive loss |
$ |
(22,794 |
) |
|
|
$ |
(7,097 |
) |
|
|
|
|
|
Net loss per share
attributable to common stockholders |
|
|
|
Basic and diluted |
$ |
(0.16 |
) |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
Weighted average
number of shares used to compute net loss per share attributable to
common stockholders |
|
|
|
Basic and diluted |
144,207 |
|
|
|
99,804 |
|
|
Selected Segment
Information(Unaudited)
|
Three Months Ended March 31, |
|
Print |
Software and Payments1 |
All other |
Total |
|
(in thousands) |
2021 |
|
|
|
|
Revenues: |
|
|
|
|
Subscription and transaction |
$ |
4,498 |
|
$ |
25,685 |
|
$ |
— |
|
$ |
30,183 |
|
Services and other |
— |
|
— |
|
2,936 |
|
2,936 |
|
Subscription, transaction and
services |
4,498 |
|
25,685 |
|
2,936 |
|
33,119 |
|
Reimbursable costs |
8,817 |
|
— |
|
— |
|
8,817 |
|
Total
revenues |
$ |
13,315 |
|
$ |
25,685 |
|
$ |
2,936 |
|
$ |
41,936 |
|
|
|
|
|
|
2020 |
|
|
|
|
Revenues: |
|
|
|
|
Subscription and
transaction |
$ |
4,786 |
|
$ |
18,339 |
|
$ |
— |
|
$ |
23,125 |
|
Services and other |
— |
|
— |
|
1,399 |
|
1,399 |
|
Subscription, transaction and
services |
4,786 |
|
18,339 |
|
1,399 |
|
24,524 |
|
Reimbursable costs |
9,621 |
|
— |
|
— |
|
9,621 |
|
Total
revenues |
$ |
14,407 |
|
$ |
18,339 |
|
$ |
1,399 |
|
$ |
34,145 |
|
1 Includes $2.5 million of accelerated deferred
revenue in the three months ended March 31, 2021
Schedule of Changes in Cash, Cash
Equivalents, Restricted Cashand Short-Term
Investments(Unaudited)
|
Three Months Ended March 31 |
|
2021 |
|
2020 |
|
(in thousands) |
Net increase in cash and cash
equivalents and restricted cash |
$ |
246,008 |
|
|
$ |
8,300 |
|
Cash and cash equivalents and restricted cash, beginning of
period |
17,919 |
|
|
4,736 |
|
Cash, cash equivalents and restricted cash, end of
period |
$ |
263,927 |
|
|
$ |
13,036 |
|
|
|
|
|
Summary of
cash, cash equivalents, and restricted cash, end of
period: |
Cash and cash equivalents |
$ |
261,013 |
|
|
$ |
9,761 |
|
Restricted cash |
2,914 |
|
|
3,275 |
|
Total cash, cash
equivalents, and restricted cash |
$ |
263,927 |
|
|
$ |
13,036 |
|
|
|
|
|
Short-term
investments |
$ |
25,000 |
|
|
$ |
— |
|
Reconciliation of GAAP to Non-GAAP
Financial Information(Unaudited)
|
Three Months Ended March 31, |
|
Increase(decrease) |
|
2021 |
|
2020 |
|
|
|
|
|
|
(in thousands) |
|
|
Total revenues |
$ |
41,936 |
|
$ |
34,145 |
|
22.8% |
Less: Reimbursable costs
revenue |
8,817 |
|
9,621 |
|
|
Net revenue
(non-GAAP) |
$ |
33,119 |
|
$ |
24,524 |
|
35.0% |
Less: accelerated deferred
revenue from terminated customer contract |
2,470 |
|
— |
|
|
Net revenue (non-GAAP),
excluding accelerated deferred revenue |
$ |
30,649 |
|
$ |
24,524 |
|
25.0% |
|
|
|
|
|
|
Total
revenues |
$ |
41,936 |
|
$ |
34,145 |
|
|
Less: Cost of revenue,
excluding depreciation and amortization |
18,070 |
|
17,511 |
|
|
Gross profit,
excluding depreciation and amortization |
23,866 |
|
16,634 |
|
43.5% |
Add: Stock based compensation
expense |
443 |
|
33 |
|
|
Adjusted gross profit
(non-GAAP) |
$ |
24,309 |
|
$ |
16,667 |
|
45.9% |
Less: accelerated deferred
revenue from terminated customer contract |
2,470 |
|
— |
|
|
Adjusted gross profit
(non-GAAP), excluding accelerated deferred revenue |
$ |
21,839 |
|
$ |
16,667 |
|
31.0% |
|
|
|
|
|
|
Gross margin,
excluding depreciation and amortization |
56.9 % |
|
48.7 % |
|
|
Adjusted gross margin
(non-GAAP) |
73.4 % |
|
68.0 % |
|
|
Adjusted gross margin
(non-GAAP), excluding accelerated deferred revenue |
71.3 % |
|
68.0 % |
|
|
Reconciliation of GAAP to Non-GAAP
Financial Information(Unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
|
|
|
(in thousands) |
Net loss and comprehensive loss |
$ |
(22,794 |
) |
|
|
$ |
(7,097 |
) |
|
Provision for income
taxes |
92 |
|
|
|
80 |
|
|
Change in fair value and other
(income) expense, net |
9,990 |
|
|
|
19 |
|
|
Interest expense and loss on
extinguishment of debt |
2,942 |
|
|
|
1,183 |
|
|
Interest income |
(103 |
) |
|
|
(16 |
) |
|
Depreciation and
amortization |
1,360 |
|
|
|
1,411 |
|
|
Stock-based compensation
expense |
8,826 |
|
|
|
481 |
|
|
Restructuring and
severance |
6 |
|
|
|
181 |
|
|
Acquisition and integration
expenses |
— |
|
|
|
53 |
|
|
Adjusted EBITDA
(non-GAAP) |
$ |
319 |
|
|
|
$ |
(3,705 |
) |
|
Less: accelerated deferred
revenue from terminated customer contract |
2,470 |
|
|
|
— |
|
|
Adjusted EBITDA (non-GAAP),
excluding accelerated deferred revenue |
$ |
(2,151 |
) |
|
|
$ |
(3,705 |
) |
|
|
Outlook (Mid-point)for Full Year 2021 |
|
(in thousands) |
Total revenues |
$ |
163,000 |
Less: Reimbursable costs
revenue |
37,000 |
Net revenue
(non-GAAP) |
$ |
126,000 |
Reconciliation of GAAP to Non-GAAP
Financial
Information(Unaudited)Three
Months Ended March 31, 2021 and 2020
|
GAAP |
|
Stock-BasedCompensationExpense |
|
Non-GAAPExcludingStock-BasedCompensationExpense |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
Revenues: |
(in thousands) |
Subscription, transaction and
services |
$ |
33,119 |
|
|
|
$ |
24,524 |
|
|
|
|
|
|
|
$ |
33,119 |
|
|
|
$ |
24,524 |
|
|
Reimbursable costs |
8,817 |
|
|
|
9,621 |
|
|
|
|
|
|
|
8,817 |
|
|
|
9,621 |
|
|
Total
revenues |
41,936 |
|
|
|
34,145 |
|
|
|
|
|
|
|
41,936 |
|
|
|
34,145 |
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription,
transaction and services |
9,253 |
|
|
|
7,890 |
|
|
|
443 |
|
|
33 |
|
|
8,810 |
|
|
|
7,857 |
|
|
Cost of reimbursable
costs |
8,817 |
|
|
|
9,621 |
|
|
|
|
|
|
|
8,817 |
|
|
|
9,621 |
|
|
Total cost of
revenues, excluding depreciation and amortization |
18,070 |
|
|
|
17,511 |
|
|
|
443 |
|
|
33 |
|
|
17,627 |
|
|
|
17,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
10,993 |
|
|
|
9,384 |
|
|
|
1,223 |
|
|
100 |
|
|
9,770 |
|
|
|
9,284 |
|
|
Sales and marketing |
8,936 |
|
|
|
6,422 |
|
|
|
1,333 |
|
|
74 |
|
|
7,603 |
|
|
|
6,348 |
|
|
General and
administrative |
12,450 |
|
|
|
5,248 |
|
|
|
5,827 |
|
|
274 |
|
|
6,623 |
|
|
|
4,974 |
|
|
Depreciation and
amortization |
1,360 |
|
|
|
1,411 |
|
|
|
|
|
|
|
1,360 |
|
|
|
1,411 |
|
|
Total operating
expenses |
33,739 |
|
|
|
22,465 |
|
|
|
8,383 |
|
|
448 |
|
|
25,356 |
|
|
|
22,017 |
|
|
Loss from
operations |
(9,873 |
) |
|
|
(5,831 |
) |
|
|
8,826 |
|
|
481 |
|
|
(1,047 |
) |
|
|
(5,350 |
) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
103 |
|
|
|
16 |
|
|
|
|
|
|
|
103 |
|
|
|
16 |
|
|
Interest expense and loss on
extinguishment of debt |
(2,942 |
) |
|
|
(1,183 |
) |
|
|
|
|
|
|
(2,942 |
) |
|
|
(1,183 |
) |
|
Change in fair value and other
income (expense), net |
(9,990 |
) |
|
|
(19 |
) |
|
|
|
|
|
|
(9,990 |
) |
|
|
(19 |
) |
|
Total other
expense |
(12,829 |
) |
|
|
(1,186 |
) |
|
|
|
|
|
|
(12,829 |
) |
|
|
(1,186 |
) |
|
Loss before income taxes |
(22,702 |
) |
|
|
(7,017 |
) |
|
|
8,826 |
|
|
481 |
|
|
(13,876 |
) |
|
|
(6,536 |
) |
|
Provision for income
taxes |
(92 |
) |
|
|
(80 |
) |
|
|
|
|
|
|
(92 |
) |
|
|
(80 |
) |
|
Net loss and comprehensive loss |
$ |
(22,794 |
) |
|
|
$ |
(7,097 |
) |
|
|
$ |
8,826 |
|
|
$ |
481 |
|
|
$ |
(13,968 |
) |
|
|
$ |
(6,616 |
) |
|
BTRS (NASDAQ:BTRS)
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From Jun 2024 to Jul 2024
BTRS (NASDAQ:BTRS)
Historical Stock Chart
From Jul 2023 to Jul 2024