BTRS Holdings Inc. ("Billtrust" or "the Company") (NASDAQ: BTRS), a
B2B accounts receivable automation and integrated payments leader,
today announced financial results for its second quarter ended
June 30, 2021.
"I am thrilled to share that the second quarter was another
great quarter, including net revenue growth of 23% year-over-year
and software and payments segment growth of 27% year-over-year,"
said Flint Lane, Founder and CEO of Billtrust. "The strong results
were in part driven by great performance from our software and
payments business fueled by our investments in sales and marketing,
as well as many of the strategic investments we have made around
payments and the channel."
Lane continued, "Furthermore, we were excited to unveil the
latest iteration of the Business Payments Network ("BPN") – BPN
4.0. BPN is driving significant payment growth by connecting
diverse buyers and suppliers, and now supports the delivery of
invoices to over 100 Accounts Payable portals. BPN had incredible
momentum before this latest improvement, and we believe this
additional functionality will be a game-changer for the
industry."
Financial Highlights for the Second Quarter Ended
June 30, 2021, as Compared to the Same Period in
2020
GAAP Metrics
- Total revenue increased 16.3% year-over-year to $40.2 million
from $34.6 million for the same period in 2020.
- Software and payments segment revenue increased 27.0%
year-over-year to $24.6 million from $19.4 million for the same
period in 2020.
- Gross profit, excluding depreciation and amortization,
increased 23.4% year-over-year to $22.2 million from $18.0 million
for the same period in 2020.
- Gross margin, excluding depreciation and amortization, expanded
by 318 basis points to 55.3% from 52.1% 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 $(10.7) million compared to
$(2.9) million for the same period in 2020.
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 47%
year-over-year to $18.8 billion from $12.7 billion for the same
period in 2020.
- Net revenue* increased 23.2% year-over-year to $31.6 million
from $25.6 million for the same period in 2020.
- Adjusted gross profit* increased 25.3% year-over-year to $22.6
million from $18.1 million for the same period in 2020.
- Adjusted gross margin* expanded by 119 basis points to 71.7%
from 70.5% for the same period in 2020.
- Adjusted EBITDA* was a loss of $(3.0) million, compared to
positive $0.1 million for the same period in 2020.
Recent Business Highlights
- BPN shows accelerated growth
- BPN TPV increased 160%
year-over-year versus an increase of 146% in the first quarter of
2021
- BPN Card volume increased 123%
year-over-year
- BPN now available to suppliers via a single subscription price
for both payments and invoice delivery
- Announced the new Billtrust Global Partner Program, offering
more tools to promote faster growth and enable the success of the
Company's partners and their customers
- Executed a strategic alliance agreement with Wipro, a leading
global information technology, consulting and business process
services company
- Added support for ACH Payment acceptance in the Company's
Collections solution as part of the Company's #PaymentsEverywhere
strategy
- Hosted the annual Billtrust Summit with over 1,000 attendees
smashing the previous attendance record
Full Year 2021 Outlook
Billtrust is providing the following updated financial guidance
for the full year 2021:
- Total revenue between $163 million to $167 million, including
reimbursable costs revenue of $37 million, up from a previous range
of $160 million to $166 million
- Net revenue* between $126 million to $130 million, which at the
midpoint of $128 million would represent annual growth of
approximately 18%, up from a previous range of $123 million to $129
million
- Adjusted gross profit* between $88 million to $92 million, up
from a previous range of $85 million to $89 million
- Adjusted gross margin* between 70%
to 71%, up from a previous range of 69% to 71%
- Adjusted EBITDA* between a loss of $(14) million to a loss of
$(16) million, including additional public company costs,
consistent with the previous guidance range
* Net revenue, adjusted gross profit, adjusted gross margin and
adjusted EBITDA, are non-GAAP measures. An explanation of these
measures and how they are calculated can be found under the heading
“Non-GAAP Financial Measures” in the Company's Quarterly Report on
Form 10-Q. 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. With respect to the
Company's expectations under "Full Year 2021 Outlook" above,
reconciliation of 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 is not available without
unreasonable efforts on a forward-looking basis due to the high
variability, complexity and low visibility with respect to 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.
Conference Call
The Company will host a conference call to discuss second
quarter 2021 financial results today at 5:30 pm ET. Hosting the
call will be Flint Lane, Founder and Chief Executive Officer, and
Mark Shifke, Chief Financial Officer. The conference call will be
webcast live from the investor relations portion of the Company’s
website at https://www.billtrust.com/about/investors. The
conference call can also be accessed live over the phone by dialing
877-407-3982 (toll free) or 201-493-6780 (international). A replay
will be available approximately one hour after the call has
concluded and can be accessed by dialing 844-512-2921 (toll free)
or 412-317-6671 (international); the conference ID is 13721381. The
replay will be available through Wednesday August 25, 2021.
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 accounts receivable, 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 Registration Statement on Form S-1 filed on June 28,
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 of financial instruments and other income, (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) other capital structure transaction
costs, (ix) minus interest income.
Investor Contact:BilltrustIR@icrinc.com
Media Contact:Meredith Simpsonmsimpson@billtrust.com
|
Condensed Consolidated Statements of
Operations(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
2021 |
|
2020 |
Revenues: |
(in thousands) |
Subscription, transaction, and services |
$ |
31,589 |
|
|
$ |
25,646 |
|
Reimbursable costs |
8,643 |
|
|
8,945 |
|
Total
revenues |
40,232 |
|
|
34,591 |
|
Cost of revenues: |
|
|
|
Cost of subscription,
transaction, and services |
9,360 |
|
|
7,633 |
|
Cost of reimbursable
costs |
8,643 |
|
|
8,945 |
|
Total cost of
revenues, excluding depreciation and amortization |
18,003 |
|
|
16,578 |
|
|
|
|
|
Operating expenses: |
|
|
|
Research and development |
11,270 |
|
|
8,778 |
|
Sales and marketing |
9,980 |
|
|
5,129 |
|
General and
administrative |
10,478 |
|
|
4,871 |
|
Depreciation and
amortization |
1,359 |
|
|
1,410 |
|
Total operating
expenses |
33,087 |
|
|
20,188 |
|
Loss from
operations |
(10,858 |
) |
|
(2,175 |
) |
|
|
|
|
Other income
(expense): |
|
|
|
Interest income |
131 |
|
|
1 |
|
Interest expense and loss on
extinguishment of debt |
(3 |
) |
|
(1,102 |
) |
Change in fair value of
financial instruments and other income |
5 |
|
|
411 |
|
Total other income
(expense) |
133 |
|
|
(690 |
) |
Loss before income taxes |
(10,725 |
) |
|
(2,865 |
) |
Provision for income
taxes |
(11 |
) |
|
(37 |
) |
Net loss and
comprehensive loss |
$ |
(10,736 |
) |
|
$ |
(2,902 |
) |
|
|
|
|
Net loss per common share,
basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
Weighted average common shares
outstanding, basic and diluted |
157,197 |
|
|
99,854 |
|
|
|
|
|
|
|
|
Selected Segment
Information(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
Print |
Software andPayments |
All other |
Consolidated |
|
(in thousands) |
2021 |
|
|
|
|
Revenues: |
|
|
|
|
Subscription and transaction |
$ |
4,490 |
|
$ |
24,582 |
|
$ |
— |
|
$ |
29,072 |
|
Services and other |
— |
|
— |
|
2,517 |
|
2,517 |
|
Subscription, transaction, and
services |
4,490 |
|
24,582 |
|
2,517 |
|
31,589 |
|
Reimbursable costs |
8,643 |
|
— |
|
— |
|
8,643 |
|
Total
revenues |
$ |
13,133 |
|
$ |
24,582 |
|
$ |
2,517 |
|
$ |
40,232 |
|
|
|
|
|
|
2020 |
|
|
|
|
Revenues: |
|
|
|
|
Subscription and
transaction |
$ |
4,448 |
|
$ |
19,361 |
|
$ |
— |
|
$ |
23,809 |
|
Services and other |
— |
|
— |
|
1,837 |
|
1,837 |
|
Subscription, transaction, and
services |
4,448 |
|
19,361 |
|
1,837 |
|
25,646 |
|
Reimbursable costs |
8,945 |
|
— |
|
— |
|
8,945 |
|
Total
revenues |
$ |
13,393 |
|
$ |
19,361 |
|
$ |
1,837 |
|
$ |
34,591 |
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flows(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
2021 |
|
2020 |
|
(in thousands) |
Operating activities: |
|
|
|
Net cash provided by (used in) operating
activities |
$ |
(904 |
) |
|
$ |
1,423 |
|
|
|
|
|
Investing activities: |
|
|
|
Purchases of short-term investments |
(20,037 |
) |
|
— |
|
Purchases of property and equipment |
(617 |
) |
|
(445 |
) |
Net cash used in
investing activities |
(20,654 |
) |
|
(445 |
) |
|
|
|
|
Financing activities: |
|
|
|
Payments on borrowings |
— |
|
|
(3,113 |
) |
Payments of deferred purchase consideration |
— |
|
|
(524 |
) |
Payments on capital lease obligations |
(60 |
) |
|
(66 |
) |
Proceeds from common stock issued |
2,152 |
|
|
129 |
|
Taxes paid on net share issuance of stock-based compensation |
(258 |
) |
|
— |
|
Net cash provided by
(used in) financing activities |
1,834 |
|
|
(3,574 |
) |
|
|
|
|
|
|
|
|
Net increase in cash, cash
equivalents, and restricted cash |
$ |
(19,724 |
) |
|
$ |
(2,596 |
) |
Cash, cash equivalents, and restricted cash, beginning of
period |
263,927 |
|
|
13,036 |
|
Cash, cash
equivalents, and restricted cash, end of period |
$ |
244,203 |
|
|
$ |
10,440 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information(Unaudited) |
|
|
|
|
|
Three Months Ended June 30, |
|
Increase |
|
2021 |
|
2020 |
|
(decrease) |
|
|
|
|
|
|
|
(in thousands) |
|
|
Total revenues |
$ |
40,232 |
|
|
$ |
34,591 |
|
|
16.3% |
Less: Reimbursable costs revenue |
8,643 |
|
|
8,945 |
|
|
|
Net revenue
(non-GAAP) |
$ |
31,589 |
|
|
$ |
25,646 |
|
|
23.2% |
|
|
|
|
|
|
|
|
|
|
Total
revenues |
$ |
40,232 |
|
|
$ |
34,591 |
|
|
|
Less: Cost of revenue, excluding depreciation and amortization |
18,003 |
|
|
16,578 |
|
|
|
Gross profit,
excluding depreciation and amortization |
22,229 |
|
|
18,013 |
|
|
23.4% |
Add: Stock based compensation expense |
405 |
|
|
57 |
|
|
|
Adjusted gross profit
(non-GAAP) |
$ |
22,634 |
|
|
$ |
18,070 |
|
|
25.3% |
|
|
|
|
|
|
|
|
|
|
Gross margin,
excluding depreciation and amortization |
55.3 |
% |
|
52.1 |
% |
|
|
Adjusted gross margin
(non-GAAP) |
71.7 |
% |
|
70.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information(Unaudited) |
|
|
|
Three Months Ended June 30, |
|
2021 |
|
2020 |
|
(in thousands) |
Net loss and comprehensive loss |
$ |
(10,736 |
) |
|
$ |
(2,902 |
) |
Provision for income taxes |
11 |
|
|
37 |
|
Change in fair value and other (income) expense, net |
(5 |
) |
|
(411 |
) |
Interest expense and loss on extinguishment of debt |
3 |
|
|
1,102 |
|
Interest income |
(131 |
) |
|
(1 |
) |
Depreciation and amortization |
1,359 |
|
|
1,410 |
|
Stock-based compensation expense |
5,706 |
|
|
680 |
|
Restructuring and severance |
317 |
|
|
101 |
|
Acquisition and integration expenses |
— |
|
|
83 |
|
Other capital structure transaction costs |
498 |
|
|
— |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(2,978 |
) |
|
$ |
99 |
|
|
|
|
|
|
|
|
|
|
Outlook (Mid-point) for Full Year 2021 |
|
(in thousands) |
|
Total |
Total revenues |
$ |
165,000 |
|
Less: Reimbursable costs revenue |
37,000 |
|
Net revenue
(non-GAAP) |
$ |
128,000 |
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information(Unaudited)Three
Months Ended June 30, 2021 and 2020 |
|
|
|
|
|
|
|
GAAP |
|
Stock-BasedCompensation Expense |
|
Non-GAAP ExcludingStock-BasedCompensation
Expense |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues: |
(in thousands) |
Subscription, transaction and
services |
$ |
31,589 |
|
|
$ |
25,646 |
|
|
|
|
|
|
$ |
31,589 |
|
|
$ |
25,646 |
|
Reimbursable costs |
8,643 |
|
|
8,945 |
|
|
|
|
|
|
8,643 |
|
|
8,945 |
|
Total
revenues |
40,232 |
|
|
34,591 |
|
|
|
|
|
|
40,232 |
|
|
34,591 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
Cost of subscription,
transaction and services |
9,360 |
|
|
7,633 |
|
|
405 |
|
|
57 |
|
|
8,955 |
|
|
7,576 |
|
Cost of reimbursable
costs |
8,643 |
|
|
8,945 |
|
|
|
|
|
|
8,643 |
|
|
8,945 |
|
Total cost of
revenues, excluding depreciation and amortization |
18,003 |
|
|
16,578 |
|
|
405 |
|
|
57 |
|
|
17,598 |
|
|
16,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
11,270 |
|
|
8,778 |
|
|
1,091 |
|
|
139 |
|
|
10,179 |
|
|
8,639 |
|
Sales and marketing |
9,980 |
|
|
5,129 |
|
|
961 |
|
|
117 |
|
|
9,019 |
|
|
5,012 |
|
General and
administrative |
10,478 |
|
|
4,871 |
|
|
3,249 |
|
|
367 |
|
|
7,229 |
|
|
4,504 |
|
Depreciation and
amortization |
1,359 |
|
|
1,410 |
|
|
|
|
|
|
1,359 |
|
|
1,410 |
|
Total operating
expenses |
33,087 |
|
|
20,188 |
|
|
5,301 |
|
|
623 |
|
|
27,786 |
|
|
19,565 |
|
Loss from
operations |
(10,858 |
) |
|
(2,175 |
) |
|
5,706 |
|
|
680 |
|
|
(5,152 |
) |
|
(1,495 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
131 |
|
|
1 |
|
|
|
|
|
|
131 |
|
|
1 |
|
Interest expense and loss on
extinguishment of debt |
(3 |
) |
|
(1,102 |
) |
|
|
|
|
|
(3 |
) |
|
(1,102 |
) |
Change in fair value and other
income (expense), net |
5 |
|
|
411 |
|
|
|
|
|
|
5 |
|
|
411 |
|
Total other
expense |
133 |
|
|
(690 |
) |
|
|
|
|
|
133 |
|
|
(690 |
) |
Loss before income taxes |
(10,725 |
) |
|
(2,865 |
) |
|
5,706 |
|
|
680 |
|
|
(5,019 |
) |
|
(2,185 |
) |
Provision for income
taxes |
(11 |
) |
|
(37 |
) |
|
|
|
|
|
(11 |
) |
|
(37 |
) |
Net loss and comprehensive loss |
$ |
(10,736 |
) |
|
$ |
(2,902 |
) |
|
$ |
5,706 |
|
|
$ |
680 |
|
|
$ |
(5,030 |
) |
|
$ |
(2,222 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BTRS (NASDAQ:BTRS)
Historical Stock Chart
From Jun 2024 to Jul 2024
BTRS (NASDAQ:BTRS)
Historical Stock Chart
From Jul 2023 to Jul 2024