- Reports Q3 2022 software and payments segment revenue of
$35.2 million, up 35% for the same period in 2021.
BTRS Holdings Inc. ("Billtrust" or "the Company") (NASDAQ:
BTRS), a B2B accounts receivable automation and integrated payments
leader, today announced financial results for its third quarter
ended September 30, 2022.
"Our team again executed exceptionally well in a challenging
environment, as evidenced by our strong 35.2% year-over-year
software and payments segment revenue growth,” said Flint Lane,
Founder and CEO of Billtrust. "With favorable secular trends intact
and a crystal-clear value proposition for our accounts receivable
and integrated payments solutions that supports our mission to
digitize and streamline the Office of the CFO, we are confident
that Billtrust is exceptionally well-positioned for the next phase
of our growth.”
Third Quarter 2022 Summary
GAAP Metrics
- Total revenue increased 24.2% year-over-year to $51.4 million,
versus $41.4 million for the same period in 2021.
- Software and payments segment revenue increased 35.2%
year-over-year to $35.2 million, compared to $26.0 million for the
same period in 2021.
- Gross profit, excluding depreciation and amortization,
increased 33.8% year-over-year to $31.3 million, compared to $23.4
million for the same period in 2021.
- Gross margin, excluding depreciation and amortization expanded
by 436 basis points to 60.8%, versus 56.5% for the same period in
2021, driven by improved operating leverage and an increasing mix
of software and payments segment revenue.
- Net loss was $21.2 million, compared to $11.2 million for the
same period in 2021.
Key Operating and Non-GAAP* Metrics
- Total Payment Volume (“TPV”), the dollar value of customer
payment transactions that Billtrust processes on its platform
during a particular period, increased by 34.9% year-over-year to
$28.3 billion in Q3 2022, up from $21.0 billion for the same period
in 2021.
- Net revenue* increased 29.9% year-over-year to $42.5 million,
up from $32.7 million for the same period in 2021.
- Adjusted gross profit* increased 33.8% year-over-year to $31.8
million, compared to $23.8 million for the same period in
2021.
- Adjusted gross margin* increased 219 basis points
year-over-year to 74.9%, versus 72.7% for the same period in
2021.
- Adjusted EBITDA* was $(1.5) million, compared to $(4.0) million
for the same period in 2021.
- Direct card revenue ("DCR")* was $6.5 million, compared to $4.2
million for the same period in 2021, as we continue to drive card
payments penetration on our electronic payments processing
platforms.
- We exited the quarter with $145.9 million in cash, cash
equivalents and marketable securities and no funded debt.
* Net revenue, adjusted gross profit, adjusted gross margin,
adjusted EBITDA, and direct card revenue 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 and in the attached
reconciliations. 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 2022 Outlook" above,
reconciliation of Non-GAAP adjusted gross profit, Non-GAAP adjusted
gross margin, or Non-GAAP adjusted EBITDA to their comparable GAAP
measures is not available without unreasonable efforts on a
forward-looking basis due to the high variability, complexity, and
low visibility with respect to certain excluded items, such as
charges related to stock-based compensation expenses, changes in
fair value of contingent consideration related to an acquisition,
and related tax effects, including non-recurring income tax
adjustments.
Proposed Transaction with EQT Private Equity
As previously announced on September 28, 2022, the Company
entered into a merger agreement with the EQT X Fund (“EQT Private
Equity”).
The transaction, which was approved by Billtrust’s Board of
Directors, is expected to close in the fourth quarter of 2022 or
first quarter of 2023, subject to customary closing conditions,
including the approval of Billtrust’s stockholders, the expiration
or termination of applicable waiting periods and the receipt of
applicable approvals or consents under antitrust and competition
laws and foreign investment laws of certain jurisdictions. However,
Billtrust cannot assure completion of such transaction by any
particular date, if at all or that, if completed, it will be
completed on the terms set forth in the merger agreement.
Upon completion of the transaction, Billtrust’s shares will no
longer trade on the NASDAQ, and Billtrust will become a private
company.
For more information about the pending transaction with EQT
Private Equity, see the Company’s Current Report on Form 8-K filed
with the SEC on September 28, 2022, and the Company’s preliminary
proxy statement relating to the required shareholder approvals
filed with the SEC on October 21, 2022.
Upcoming Investor Communications
In light of the pending transaction with EQT Private Equity,
Billtrust will not host an earnings conference call or provide
financial guidance in conjunction with this earnings release. For
further detail and discussion of Billtrust’s financial performance
please refer to Billtrust’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022, which will be filed later today
with the SEC. The Company plans to continue providing quarterly
earnings releases and will continue to file reports with the U.S.
Securities and Exchange Commission (“SEC”) until the transaction
has been completed.
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
“continue,” “guidance,” “expect,” “outlook,” “project,” “believe”
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 the timing, expected completion and impacts of
the proposed transaction with EQT Private Equity. 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 secure the required regulatory and
stockholder approvals for the proposed transaction and its ability
to meet the applicable closing conditions; the diversion of
management time relating to the pending transaction; Billtrust’s
ability to attract and retain customers and expand customers’ use
of Billtrust’s services; market, financial, political and legal
conditions; foreign currency impacts; 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; risks related to
expanding Billtrust's operations outside the United States; risks
related to Billtrust's ability to acquire or invest in businesses,
products, or technologies that may complement or expand its
products or platforms, enhance its technical capabilities, or
otherwise offer growth opportunities; the effects of competition on
Billtrust’s future business; the impact of unstable market and
economic conditions, including supply chain disruptions, higher
rates of inflation, higher interest rates, increased volatility in
foreign currency exchange rates, and increased volatility in the
global capital markets, among others; and the risks discussed in
Billtrust’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021 filed with the Securities and Exchange Commission
(“SEC”) on March 9, 2022, under the heading “Risk Factors” and
other documents of Billtrust filed, or to be filed, with the SEC,
including our Quarterly Reports on Form 10-Q for the quarters ended
June 30, 2022 and September 30, 2022. 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, or non-GAAP direct card revenue for 2022 to the most
directly comparable measure prepared in accordance with GAAP
because such reconciliations are not meaningful or available
without unreasonable effort as certain items are excluded from
these non-GAAP measures, such as charges related to stock-based
compensation expenses, changes in fair value of contingent
consideration related to an acquisition, and related tax effects,
including non-recurring income tax adjustments, including
non-recurring income tax adjustments, cannot be reasonably
calculated or predicted. You should review Billtrust’s audited
Consolidated Financial Statements and related notes in its Annual
Report on Form 10-K for the year ended December 31, 2021, unaudited
interim reports, including its Quarterly Report on Form 10-Q for
the three and nine months ended September 30, 2022, and the other
financial information included in 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. Reimbursable costs revenue consists
primarily of amounts charged to customers for postage (with an
offsetting amount recorded as a cost of revenue) which we do not
consider internally when monitoring operating performance.
- Adjusted gross profit (non-GAAP) 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 (non-GAAP) is defined as adjusted gross
profit (non-GAAP) divided by total revenues less reimbursable costs
revenue, or net revenue (non-GAAP).
- Adjusted EBITDA (non-GAAP) is defined as net loss, plus (1)
income tax expense (benefit), (2) changes in the fair value of
financial instruments that do not meet the criteria to be
classified as equity, (3) interest expense and loss on
extinguishment of debt, (4) depreciation and amortization, (5)
stock-based compensation expense, (6) impairment, restructuring,
and related facility costs, (7) acquisition and integration costs,
(8) other capital structure transaction costs, and (9) other
non-operating expense (income).
- Direct card revenue (non-GAAP) is defined as subscription,
transaction, and services revenues, less revenues generated from
segments other than software and payments (i.e., software and
payments segment revenue), less software and payments segment
transaction revenue unrelated to card processing and all
subscription revenue. Direct card revenue (non-GAAP) includes
variable transactional fee revenue associated with card payments on
our electronic payments processing platforms.
- Free cash flow (non-GAAP) is defined as net cash used in
operating activities, less purchases of property and equipment
(which includes capitalized internal-use software costs).
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell
or the solicitation of an offer to buy or sell any securities or a
solicitation of any vote or approval. This communication relates to
the proposed transaction involving Billtrust. In connection with
the proposed transaction, Billtrust has filed with the SEC a proxy
statement on Schedule 14A (the “Proxy Statement”). This
communication is not a substitute for the Proxy Statement or any
other document that Billtrust may file with the SEC and send to its
shareholders in connection with the proposed transaction. The
proposed transaction will be submitted to Billtrust’s shareholders
for their consideration. Before making any voting decision,
Billtrust’s shareholders are urged to read all relevant documents
filed or to be filed with the SEC, including the Proxy Statement,
as well as any amendments or supplements to those documents, when
they become available, because they will contain important
information about Billtrust and the proposed transaction.
Billtrust’s shareholders will be able to obtain a free copy of
the Proxy Statement, as well as other filings containing
information about Billtrust, free of charge, at the SEC’s website
(www.sec.gov). Copies of the Proxy Statement and other documents
filed by Billtrust with the SEC may be obtained, without charge, by
contacting Billtrust through its website at
https://investors.billtrust.com/.
Participants in the Solicitation
The Company, its directors, executive officers and other persons
related to Billtrust may be deemed to be participants in the
solicitation of proxies from Billtrust’s shareholders in connection
with the proposed transaction. Information about the directors and
executive officers of Billtrust and their ownership of Billtrust
common stock is set forth in Billtrust’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2021, which was filed with
the SEC on March 9, 2022 and in its proxy statement for its 2022
annual meeting of stockholders, which was filed with the SEC on
April 22, 2022. Additional information regarding the participants
in the proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise, is included
in the Proxy Statement and other relevant materials to be filed
with the SEC in connection with the proposed transaction when they
become available. Free copies of these documents may be obtained as
described in the preceding paragraph.
Condensed Consolidated
Statements of Operations
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenues:
(in thousands, except per
share amounts)
Subscription, transaction, and
services
$
42,508
$
32,732
$
120,157
$
97,440
Reimbursable costs
8,854
8,625
26,112
26,085
Total revenues
51,362
41,357
146,269
123,525
Cost of revenues:
Cost of subscription, transaction, and
services
11,255
9,368
32,729
27,981
Cost of reimbursable costs
8,854
8,625
26,112
26,085
Total cost of revenues, excluding
depreciation and amortization
20,109
17,993
58,841
54,066
Operating expenses:
Research and development
15,943
13,453
46,922
35,716
Sales and marketing
11,591
10,310
34,030
29,226
General and administrative
19,613
9,838
49,426
32,766
Depreciation and amortization
2,191
1,205
6,218
3,924
Impairment and restructuring
4,636
—
18,520
—
Total operating expenses
53,974
34,806
155,116
101,632
Loss from operations
(22,721
)
(11,442
)
(67,688
)
(32,173
)
Other income (expense):
Change in fair value of financial
instruments
360
—
122
(9,995
)
Interest expense and loss on
extinguishment of debt
(15
)
(2
)
(22
)
(2,947
)
Other non-operating income
916
277
1,171
521
Total other income (expense)
1,261
275
1,271
(12,421
)
Loss before income taxes
(21,460
)
(11,167
)
(66,417
)
(44,594
)
Income tax expense (benefit)
(251
)
27
(970
)
130
Net loss
$
(21,209
)
$
(11,194
)
$
(65,447
)
$
(44,724
)
Net loss per common share, basic and
diluted
$
(0.13
)
$
(0.07
)
$
(0.40
)
$
(0.29
)
Weighted average common shares
outstanding, basic and diluted
164,175
158,316
163,586
154,303
Selected Segment
Information
(Unaudited)
Three Months Ended September
30,
Software and Payments
Print
All other
Consolidated
(in thousands)
2022
Revenues:
Subscription and transaction
$
35,153
$
4,106
$
—
$
39,259
Services and other
—
—
3,249
3,249
Subscription, transaction, and services
revenues
35,153
4,106
3,249
42,508
Reimbursable costs
—
8,854
—
8,854
Total revenues
$
35,153
$
12,960
$
3,249
$
51,362
Segment revenues growth vs. prior year
35.2
%
(0.2
) %
37.9
%
24.2
%
2021
Revenues:
Subscription and transaction
$
26,009
$
4,367
$
—
$
30,376
Services and other
—
—
2,356
2,356
Subscription, transaction, and services
revenues
26,009
4,367
2,356
32,732
Reimbursable costs
—
8,625
—
8,625
Total revenues
$
26,009
$
12,992
$
2,356
$
41,357
Nine Months Ended September
30,
Software and Payments
Print
All other
Consolidated
(in thousands)
2022
Revenues:
Subscription and transaction
$
98,298
$
12,680
$
—
$
110,978
Services and other
—
—
9,179
9,179
Subscription, transaction, and services
revenues
98,298
12,680
9,179
120,157
Reimbursable costs
—
26,112
—
26,112
Total revenues
98,298
38,792
9,179
146,269
Segment revenues growth vs. prior year
28.9
%
(1.6
) %
17.5
%
18.4
%
Segment revenues growth vs. prior year,
adjusted for One-Time Customer Loss
34.8
%
(1.6
) %
17.5
%
21.7
%
2021
Revenues:
Subscription and transaction
$
76,276
$
13,355
$
—
$
89,631
Services and other
—
—
7,809
7,809
Subscription, transaction, and services
revenues
76,276
13,355
7,809
97,440
Reimbursable costs
—
26,085
—
26,085
Total revenues
$
76,276
$
39,440
$
7,809
$
123,525
Less: Segment revenues from One-Time
Customer Loss
3,333
—
—
3,333
Adjusted segment revenues from One-Time
Customer Loss
$
72,943
$
39,440
$
7,809
$
120,192
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
(in thousands)
Cash flows from operating activities:
Net loss
$
(21,209
)
$
(11,194
)
$
(65,447
)
$
(44,724
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,191
1,206
6,218
3,924
Provision for bad debts
95
29
144
94
Impairments and reduction in carrying
amount of operating lease right-of-use assets
4,409
1,222
15,817
2,086
Impairments of fixed assets
1,300
—
4,949
—
Loss on extinguishment of debt and
amortization of debt discount
—
—
—
2,799
Stock-based compensation expense
6,940
5,914
20,293
20,446
Change in fair value of financial
instruments and other expenses
53
11
116
9,996
Change in fair value of contingent
consideration
(371
)
—
(122
)
—
Deferred income taxes
(210
)
14
(935
)
106
Changes in assets and liabilities:
Accounts receivable
(1,787
)
(485
)
(7,800
)
(6,549
)
Prepaid expenses
1,247
75
(2,139
)
(2,036
)
Deferred implementation and commission
costs
(402
)
(9
)
(373
)
227
Other assets (current and non-current)
(402
)
(579
)
(432
)
896
Accounts payable
547
361
(2,524
)
556
Accrued expenses and other
8,035
6,063
9,688
10,228
Operating lease liabilities
(1,131
)
(1,222
)
(2,757
)
(2,086
)
Deferred revenue
(2,244
)
(183
)
(4,492
)
(4,713
)
Other liabilities (current and
non-current)
333
(211
)
1,429
(1,059
)
Net cash provided by (used in) operating
activities
(2,606
)
1,012
(28,367
)
(9,809
)
Cash flows from investing activities:
Purchase of business, net of acquired
cash
—
—
(59,456
)
—
Purchases of marketable securities
—
(40
)
(57
)
(45,077
)
Proceeds from marketable securities
—
—
45,174
—
Purchases of property and equipment
(442
)
(450
)
(1,364
)
(1,570
)
Net cash used in investing activities
(442
)
(490
)
(15,703
)
(46,647
)
Cash flows from financing activities:
Payments on borrowings
—
—
—
(44,663
)
Business Combination and PIPE
financing
—
—
—
349,638
Payments of equity issuance costs
—
—
—
(19,936
)
Debt extinguishment costs
—
—
—
(1,565
)
Payment of deferred purchase price
—
—
(557
)
—
Change in customer funds payable
(6,102
)
(5,330
)
(5,590
)
(1,636
)
Payments on finance leases
(78
)
(52
)
(223
)
(177
)
Proceeds from common stock issued
1,155
1,467
3,274
5,651
Taxes paid on net share issuance of
stock-based compensation
2
(96
)
(48
)
(4,367
)
Net cash provided by (used in) financing
activities
(5,023
)
(4,011
)
(3,144
)
282,945
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(80
)
—
(125
)
—
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(8,151
)
(3,489
)
(47,339
)
226,489
Cash, cash equivalents, and restricted
cash, beginning of period
173,621
268,821
212,809
38,843
Cash, cash equivalents, and restricted
cash, end of period
$
165,470
$
265,332
$
165,470
$
265,332
Summary of Cash, Cash
Equivalents, Restricted Cash, and
Marketable Securities
Balances
(Unaudited)
September 30,
2022
2021
(in thousands)
Summary of cash, cash equivalents, and
restricted cash, end of period:
Cash and cash equivalents
$
145,915
$
243,448
Customer funds
16,951
19,288
Restricted cash (included in other current
assets)
2,604
2,596
Total cash, cash equivalents, and
restricted cash
$
165,470
$
265,332
Cash and cash equivalents
$
145,915
$
243,448
Marketable securities
—
45,117
Total cash, cash equivalents and
marketable securities
$
145,915
$
288,565
Reconciliation of GAAP to
Non-GAAP Financial Information
(Unaudited)
Three Months Ended September
30,
Quarterly Increase
(Decrease)
Nine Months Ended September
30,
2022
2021
2022
2021
(in thousands)
(in thousands)
Total revenues
$
51,362
$
41,357
24.2
%
$
146,269
$
123,525
Less: Reimbursable costs revenue
8,854
8,625
26,112
26,085
Net revenue (non-GAAP)
42,508
32,732
29.9
%
120,157
97,440
Less: net revenue from One-Time Customer
Loss
—
—
—
3,333
Net revenue (non-GAAP), excluding One-Time
Customer Loss
$
42,508
$
32,732
29.9
%
$
120,157
$
94,107
Total revenues
$
51,362
$
41,357
$
146,269
$
123,525
Less: Cost of revenue, excluding
depreciation and amortization
20,109
17,993
58,841
54,066
Gross profit, excluding depreciation and
amortization
31,253
23,364
33.8
%
87,428
69,459
Add: Stock-based compensation expense
587
436
1,646
1,284
Adjusted gross profit (non-GAAP)
31,840
23,800
33.8
%
89,074
70,743
Less: gross profit from One-Time Customer
Loss
—
—
—
3,333
Adjusted gross profit (non-GAAP),
excluding One-Time Customer Loss
$
31,840
$
23,800
33.8
%
$
89,074
$
67,410
Gross margin, excluding depreciation and
amortization
60.8
%
56.5
%
59.8
%
56.2
%
Adjusted gross margin (non-GAAP)
74.9
%
72.7
%
74.1
%
72.6
%
Adjusted gross margin (non-GAAP),
excluding One-Time Customer Loss
74.9
%
72.7
%
74.1
%
71.6
%
Reconciliation of GAAP to
Non-GAAP Financial Information
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
(in thousands)
Net loss
$
(21,209
)
$
(11,194
)
$
(65,447
)
$
(44,724
)
Income tax expense (benefit)
(251
)
27
(970
)
130
Change in fair value of financial
instruments
(360
)
—
(122
)
9,995
Interest expense and loss on
extinguishment of debt
15
2
22
2,947
Depreciation and amortization
2,191
1,205
6,218
3,924
Stock-based compensation expense
6,940
5,914
20,293
20,446
Impairment, restructuring, and related
facility costs
5,383
35
20,262
358
Acquisition and integration costs
702
257
3,900
257
Other capital structure transaction
costs
5,802
—
5,802
498
Other non-operating income
(726
)
(277
)
(982
)
(521
)
Adjusted EBITDA (non-GAAP)
(1,513
)
(4,031
)
(11,024
)
(6,690
)
Less: gross profit from One-Time Customer
Loss
—
—
—
3,333
Adjusted EBITDA (non-GAAP), excluding
One-Time Customer Loss
$
(1,513
)
$
(4,031
)
$
(11,024
)
$
(10,023
)
Adjusted EBITDA margin (non-GAAP)
(3.6
) %
(12.3
) %
(9.2
) %
(6.9
) %
Reconciliation of GAAP to
Non-GAAP Financial Information
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands)
2022
Subscription, transaction, and services
revenues
$
42,508
$
120,157
Less: Non-software and payments segment
revenue
7,355
21,859
Software and payments segment revenue
35,153
98,298
Less: Software and payments segment
revenue excluding direct card revenue (non-GAAP)
28,659
81,079
Direct card revenue (non-GAAP)
$
6,494
$
17,219
2021
Subscription, transaction, and services
revenues
$
32,732
$
97,440
Less: Non-software and payments segment
revenue
6,723
21,164
Software and payments segment revenue
26,009
76,276
Less: Software and payments segment
revenue excluding direct card revenue (non-GAAP)
21,784
65,431
Direct card revenue (non-GAAP)
$
4,225
$
10,845
Direct card revenue (non-GAAP) growth
54
%
59
%
Software and payments (ex-DCR) (non-GAAP)
revenue growth
32
%
24
%
Reconciliation of GAAP to
Non-GAAP Financial Information Excluding Non-Cash Expenses1
(Unaudited)
Three Months Ended September
30, 2022 and 2021
GAAP
Non-cash expenses1
Non-GAAP Excluding Non-cash
Expenses1
2022
2021
2022
2021
2022
2021
Revenues:
(in thousands)
Subscription, transaction, and
services
$
42,508
$
32,732
$
—
$
—
$
42,508
$
32,732
Reimbursable costs
8,854
8,625
—
—
8,854
8,625
Total revenues
51,362
41,357
—
—
51,362
41,357
Cost of revenues:
Cost of subscription, transaction, and
services
11,255
9,368
587
436
10,668
8,932
Cost of reimbursable costs
8,854
8,625
—
—
8,854
8,625
Total cost of revenues, excluding
depreciation and amortization
20,109
17,993
587
436
19,522
17,557
Operating expenses:2
Research and development
15,943
13,453
1,469
1,210
14,474
12,243
Sales and marketing
11,591
10,310
637
984
10,954
9,326
General and administrative
19,613
9,838
4,247
3,284
15,366
6,554
Depreciation and amortization
2,191
1,205
2,191
1,205
—
—
Impairment and restructuring
4,636
—
4,636
—
—
—
Total operating expenses
53,974
34,806
13,180
6,683
40,794
28,123
Loss from operations
(22,721
)
(11,442
)
13,767
7,119
(8,954
)
(4,323
)
Other income (expense):
Change in fair value of financial
instruments
360
—
—
—
360
—
Interest expense and loss on
extinguishment of debt
(15
)
(2
)
—
—
(15
)
(2
)
Other non-operating income
916
277
—
—
916
277
Total other income (expense)
1,261
275
—
—
1,261
275
Loss before income taxes
(21,460
)
(11,167
)
13,767
7,119
(7,693
)
(4,048
)
Income tax expense (benefit)
(251
)
27
—
—
(251
)
27
Net loss
$
(21,209
)
$
(11,194
)
$
13,767
$
7,119
$
(7,442
)
$
(4,075
)
__________________
1 Non-cash expenses include stock-based compensation expense,
depreciation and amortization expense, and impairment and
restructuring expense.
2 Includes acquisition, integration, and impairment,
restructuring and related facility costs, as well as other capital
structure transaction costs in the period of $0.3 million in
research and development, $0.1 million in sales and marketing and
$7.1 million in general and administrative expenses, which are
excluded from Adjusted EBITDA.
Reconciliation of GAAP to
Non-GAAP Financial Information Excluding Non-Cash Expenses1
(Unaudited)
Nine Months Ended September
30, 2022 and 2021
GAAP
Non-Cash Expenses3
Non-GAAP Excluding Non-Cash
Expenses3
2022
2021
2022
2021
2022
2021
Revenues:
(in thousands)
Subscription, transaction, and
services
$
120,157
$
97,440
$
—
$
—
$
120,157
$
97,440
Reimbursable costs
26,112
26,085
—
—
26,112
26,085
Total revenues
146,269
123,525
—
—
146,269
123,525
Cost of revenues:
Cost of subscription, transaction, and
services
32,729
27,981
1,646
1,284
31,083
26,697
Cost of reimbursable costs
26,112
26,085
—
—
26,112
26,085
Total cost of revenues, excluding
depreciation and amortization
58,841
54,066
1,646
1,284
57,195
52,782
Operating expenses:4
Research and development
46,922
35,716
4,187
3,524
42,735
32,192
Sales and marketing
34,030
29,226
2,362
3,276
31,668
25,950
General and administrative
49,426
32,766
12,098
12,362
37,328
20,404
Depreciation and amortization
6,218
3,924
6,218
3,924
—
—
Impairment and restructuring
18,520
—
18,520
—
—
—
Total operating expenses
155,116
101,632
43,385
23,086
111,731
78,546
Loss from operations
(67,688
)
(32,173
)
45,031
24,370
(22,657
)
(7,803
)
Other income (expense):
Change in fair value of financial
instruments
122
(9,995
)
—
—
122
(9,995
)
Interest expense and loss on
extinguishment of debt
(22
)
(2,947
)
—
—
(22
)
(2,947
)
Other non-operating income
1,171
521
—
—
1,171
521
Total other income (expense)
1,271
(12,421
)
—
—
1,271
(12,421
)
Loss before income taxes
(66,417
)
(44,594
)
45,031
24,370
(21,386
)
(20,224
)
Income tax expense (benefit)
(970
)
130
—
—
(970
)
130
Net loss
$
(65,447
)
$
(44,724
)
$
45,031
$
24,370
$
(20,416
)
$
(20,354
)
__________________
3 Non-cash expenses include stock-based compensation expense,
depreciation and amortization expense, and impairment and
restructuring expense.
4 Includes acquisition, integration, and impairment,
restructuring and related facility costs, as well as other capital
structure transaction costs during the period of $0.3 million in
research and development, $0.3 million in sales and marketing and
$11.1 million in general and administrative expenses, which are
excluded from Adjusted EBITDA.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221107005434/en/
Investor Contact: John T. Williams IR@billtrust.com
Media Contact: Meredith Simpson PR@billtrust.com
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