- First quarter software and payments segment revenue up 16%;
up 34% on an adjusted basis
- Reaffirms Full Year 2022 Financial Outlook
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, 2022.
"Our great momentum continued in the first quarter, led by 16.3%
year-over-year software and payments segment revenue growth and
33.6% adjusted software and payments growth," said Flint Lane,
Founder and CEO of Billtrust. “Demand for our highly profitable
accounts receivable product suite remains robust, and rapid
adoption continues to drive strong results in our core software and
payments segment.”
Financial Highlights for the First Quarter 2022, as Compared
to the Same Period in 2021
GAAP Metrics
- Total revenue increased 8.8% year-over-year to $45.6 million,
versus $41.9 million for the same period in 2021.
- Software and payments segment revenue increased 16.3%
year-over-year to $29.9 million, compared to $25.7 million for the
same period in 2021.
- Gross profit, excluding depreciation and amortization,
increased 12.0% year-over-year to $26.7 million, compared to $23.9
million for the same period in 2021.
- Gross margin excluding depreciation and amortization expanded
by 170 basis points to 58.6%, versus 56.9% for the same period in
2021, driven by improved operating leverage and an increasing mix
of software and payments segment revenue.
- Net loss was $29.0 million, compared to $22.8 million for the
same period in 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 by 45% year-over-year to
$22.0 billion, up from $15.1 billion for the same period in
2021.
- Net revenue* increased 11.9% year-over-year to $37.0 million,
up from $33.1 million for the same period in 2021; when the impact
of the loss of a customer in Q1 2021, including the impact of the
one-time accelerated deferred revenue, is excluded from our 2021
results for comparison purposes (“One-Time Customer Loss”), net
revenue increased 24.4% year-over-year.
- Adjusted for the impact of the One-Time Customer Loss in Q1
2021, software and payments segment revenue increased 33.6%
year-over-year to $29.9 million, compared to $22.4 million for the
same period in 2021.
- Adjusted gross profit* increased 11.7% year-over-year to $27.2
million, compared to $24.3 million for the same period in 2021, and
grew 29.5% when adjusted for the One-Time Customer Loss.
- Adjusted gross margin* declined 10 basis points year-over-year
to 73.3%, versus 73.4% for the same period in 2021; when adjusted
for the One-Time Customer Loss, adjusted gross margin expanded by
290 basis points compared to the same period in 2021.
- Adjusted EBITDA* was $(5.3) million, compared to $0.3 million
for the same period in 2021; when adjusted for the One-Time
Customer Loss, adjusted EBITDA for the same period in 2021 was
$(3.0) million.
- Direct card revenue ("DCR")* was $4.9 million, compared to $2.9
million for the same period in 2021, due to increased penetration
of card payments on our electronic payments processing
platforms.
Recent Business Highlights
- Card payments remain a key driver of our strong financial
performance: Q1 2022 direct card revenue* from card payments on our
electronic payment processing platforms grew 68% year-over-year in
the first quarter of 2022 to $4.9 million.
- Business Payments Network (BPN) growth was strong in Q1 2022
(BPN TPV +86% year-over-year). Expanding participation on both
sides of the network remains a top priority: the recent additions
of American Express and Coupa as BPN participants clearly
demonstrate our progress.
- Our European business integration continued apace in Q1
2022.
- We exited the quarter with $153 million in cash, cash
equivalents and marketable securities, no debt, and significant
capital flexibility.
Full Year 2022 Outlook
Billtrust reiterates the following full year 2022 financial
guidance, which was previously provided in March 2022:
- Total revenue in a range between $195 million and $207 million,
including reimbursable costs revenue of $30 million to $36
million.
- Net revenue* between $165 million and $171 million, which at
the midpoint of $168 million represents annual growth of
approximately 28%.
- Software and payments segment revenue between $133 million and
$139 million, which at the midpoint of $136 million represents
annual growth of approximately 31%.
- Adjusted gross profit* between $121 million to $126 million,
which at the midpoint of $123.5 million represents annual growth of
28%.
- Adjusted gross margin* between 73.2% to 73.8%, which at the
midpoint of 73.5% represents annual expansion of 40 bps.
- Adjusted EBITDA* between $(14) million to $(16) million, which
at the midpoint of ($15 million) represents (9%) adjusted EBITDA
margin, or a year over margin expansion of 150 bps.
* 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.
Conference Call
The Company will host a conference call to discuss first quarter
2022 financial results today at 4:30 p.m. ET. Hosting the call will
be Flint Lane, Founder and Chief Executive Officer, Steve Pinado,
President, and Mark Shifke, Chief Financial Officer. The conference
call will be available via webcast at investors.billtrust.com under
the heading “News & Events.” To participate via telephone,
please dial 877-300-8521 (toll free) or 412-317-6026
(international). Following the call, a replay of the webcast will
be available on the Billtrust investor relations website. A
telephonic replay will also be available for two weeks following
the call by dialing 844-512-2921 (toll free) or 412-317-6671
(international) using conference ID 10166195.
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 Billtrust’s financial guidance 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, and Billtrust’s opportunity
and ability to grow and scale its business and 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; 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; 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 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, 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 months ended March 31, 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 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.
Condensed Consolidated
Statements of Operations (Unaudited)
Three Months Ended March
31,
2022
2021
Revenues:
(in thousands, except per
share amounts)
Subscription, transaction, and
services
$
37,049
$
33,119
Reimbursable costs
8,582
8,817
Total revenues
45,631
41,936
Cost of revenues:
Cost of subscription, transaction, and
services
10,325
9,253
Cost of reimbursable costs
8,582
8,817
Total cost of revenues, excluding
depreciation and amortization
18,907
18,070
Operating expenses:
Research and development
15,105
10,993
Sales and marketing
10,716
8,936
General and administrative
14,728
12,450
Depreciation and amortization
1,861
1,360
Impairment and restructuring
13,854
—
Total operating expenses
56,264
33,739
Loss from operations
(29,540
)
(9,873
)
Other income (expense):
Change in fair value of financial
instruments
22
(9,995
)
Interest expense and loss on
extinguishment of debt
(1
)
(2,942
)
Other non-operating income
67
108
Total other income (expense)
88
(12,829
)
Loss before income taxes
(29,452
)
(22,702
)
Income tax expense (benefit)
(425
)
92
Net loss
$
(29,027
)
$
(22,794
)
Net loss per common share, basic and
diluted
$
(0.18
)
$
(0.16
)
Weighted average common shares
outstanding, basic and diluted
162,974
144,207
Selected Segment Information
(Unaudited)
Three Months Ended March
31,
Print
Software and Payments
All other
Consolidated
(in thousands)
2022
Revenues:
Subscription and transaction
$
4,241
$
29,861
$
—
$
34,102
Services and other
—
—
2,947
2,947
Subscription, transaction, and services
revenues
4,241
29,861
2,947
37,049
Reimbursable costs
8,582
—
—
8,582
Total revenues
$
12,823
$
29,861
$
2,947
$
45,631
Segment revenues growth vs. prior year
(3.7
) %
16.3
%
0.4
%
8.8
%
Segment revenues growth vs. prior year,
adjusted for One-Time Customer Loss
(3.7
) %
33.6
%
0.4
%
18.2
%
2021
Revenues:
Subscription and transaction
$
4,498
$
25,685
$
—
$
30,183
Services and other
—
—
2,936
2,936
Subscription, transaction, and services
revenues
4,498
25,685
2,936
33,119
Reimbursable costs
8,817
—
—
8,817
Total revenues
$
13,315
$
25,685
$
2,936
$
41,936
Less: Segment revenues from One-Time
Customer Loss
—
3,333
—
3,333
Adjusted segment revenues from One-Time
Customer Loss
$
13,315
$
22,352
$
2,936
$
38,603
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Three Months Ended March
31,
2022
2021
(in thousands)
Cash flows from operating activities:
Net loss
$
(29,027
)
$
(22,794
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,861
1,360
Provision for bad debts
(29
)
54
Impairments of fixed assets
3,649
—
Loss on extinguishment of debt and
amortization of debt discount
—
2,799
Impairments and reduction in carrying
amount of operating lease right-of-use assets
10,663
—
Stock-based compensation expense
6,078
8,826
Change in fair value of financial
instruments and other expenses
8
9,995
Change in fair value of contingent
consideration
133
—
Deferred income taxes
(430
)
92
Changes in assets and liabilities:
Accounts receivable
(2,694
)
(3,743
)
Prepaid expenses
(3,680
)
(3,382
)
Deferred implementation and commission
costs
306
132
Other assets (current and non-current)
1,053
1,512
Accounts payable
(1,413
)
668
Accrued expenses and other
(4,679
)
(2,730
)
Operating lease liabilities
(774
)
—
Deferred revenue
(1,782
)
(2,604
)
Other liabilities (current and
non-current)
629
(102
)
Net cash used in operating activities
(20,128
)
(9,917
)
Cash flows from investing activities:
Purchases of marketable securities
(39
)
(25,000
)
Purchases of property and equipment
(454
)
(503
)
Purchase of business, net of acquired
cash
(59,456
)
—
Net cash used in investing activities
(59,949
)
(25,503
)
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
(3,156
)
261
Payments on finance leases
(23
)
(65
)
Proceeds from common stock issued
845
2,032
Taxes paid on net share issuance of
stock-based compensation
(49
)
(4,013
)
Net cash provided by (used in) financing
activities
(2,940
)
281,689
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
30
—
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(82,987
)
246,269
Cash, cash equivalents, and restricted
cash, beginning of period
212,809
38,843
Cash, cash equivalents, and restricted
cash, end of period
$
129,822
$
285,112
Summary of cash, cash equivalents, and
restricted cash, end of period:
Cash and cash equivalents
$
107,839
$
261,013
Customer funds
19,385
21,185
Restricted cash (included in other current
assets)
2,598
2,914
Total cash, cash equivalents, and
restricted cash
$
129,822
$
285,112
Cash and cash equivalents
$
107,839
$
261,013
Marketable securities
$
45,156
$
45,117
Total cash, cash equivalents and
marketable securities
$
152,995
$
306,130
Reconciliation of GAAP to
Non-GAAP Financial Information (Unaudited)
Three Months Ended March
31,
Increase
2022
2021
(decrease)
(in thousands)
Total revenues
$
45,631
$
41,936
8.8
%
Less: Reimbursable costs revenue
8,582
8,817
Net revenue (non-GAAP)
$
37,049
$
33,119
11.9
%
Less: net revenue from One-Time Customer
Loss
—
3,333
Net revenue (non-GAAP), excluding One-Time
Customer Loss
37,049
29,786
24.4
%
Total revenues
$
45,631
$
41,936
Less: Cost of revenue, excluding
depreciation and amortization
18,907
18,070
Gross profit, excluding depreciation and
amortization
26,724
23,866
12.0
%
Add: Stock based compensation expense
438
443
Adjusted gross profit (non-GAAP)
27,162
24,309
11.7
%
Less: gross profit from One-Time Customer
Loss
—
3,333
Adjusted gross profit (non-GAAP),
excluding One-Time Customer Loss
27,162
20,976
29.5
%
Gross margin, excluding depreciation and
amortization
58.6
%
56.9
%
Adjusted gross margin (non-GAAP)
73.3
%
73.4
%
Adjusted gross margin (non-GAAP),
excluding One-Time Customer Loss
73.3
%
70.4
%
Three Months Ended March
31,
2022
2021
(in thousands)
Net loss
$
(29,027
)
$
(22,794
)
Income tax expense (benefit)
(425
)
92
Change in fair value of financial
instruments
(22
)
9,995
Interest expense and loss on
extinguishment of debt
1
2,942
Depreciation and amortization
1,861
1,360
Stock-based compensation expense
6,078
8,826
Impairment, restructuring, and related
costs
14,054
6
Acquisition and integration costs
2,234
—
Other capital structure transaction
costs
—
—
Other non-operating income
(67
)
(108
)
Adjusted EBITDA (non-GAAP)
$
(5,313
)
$
319
Less: gross profit from One-Time Customer
Loss
—
3,333
Adjusted EBITDA (non-GAAP), excluding
One-Time Customer Loss
$
(5,313
)
$
(3,014
)
Adjusted EBITDA margin (non-GAAP)
(14.3
) %
1.0
%
Adjusted EBITDA margin (non-GAAP),
excluding One-Time Customer Loss
(14.3
) %
(10.1
) %
Reconciliation of Full Year
2022 Outlook (Mid-point) (in thousands)
Total revenues
$
201,000
Less: Reimbursable costs revenue
33,000
Net revenue (non-GAAP)
$
168,000
Adjusted EBITDA (non-GAAP)
$
(15,000
)
Adjusted EBITDA Margin (non-GAAP)
(8.9
) %
Reconciliation of GAAP to
Non-GAAP Financial Information (Unaudited)
Three Months Ended March
31,
(in thousands)
2022
Subscription, transaction, and services
revenues
$
37,049
Less: Non-software and payments segment
revenue
7,188
Software and payments segment revenue
29,861
Less: Software and payments segment
revenue excluding direct card revenue (non-GAAP)
24,966
Direct card revenue (non-GAAP)
$
4,895
2021
Subscription, transaction, and services
revenues
$
33,119
Less: Non-software and payments segment
revenue
7,434
Software and payments segment revenue
25,685
Less: Software and payments segment
revenue excluding direct card revenue (non-GAAP)
22,770
Direct card revenue (non-GAAP)
$
2,915
Direct card revenue (non-GAAP) growth
68
%
Software and payments (ex-DCR) (non-GAAP)
revenue growth
10
%
Reconciliation of GAAP to
Non-GAAP Financial Information Excluding Stock-Based Compensation
Expense (Unaudited) Three Months Ended March 31, 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
$
37,049
$
33,119
$
—
$
—
$
37,049
$
33,119
Reimbursable costs
8,582
8,817
—
—
8,582
8,817
Total revenues
45,631
41,936
—
—
45,631
41,936
Cost of revenues:
Cost of subscription, transaction, and
services
10,325
9,253
438
443
9,887
8,810
Cost of reimbursable costs
8,582
8,817
—
—
8,582
8,817
Total cost of revenues, excluding
depreciation and amortization
18,907
18,070
438
443
18,469
17,627
Operating expenses:
Research and development
15,105
10,993
1,225
1,222
13,880
9,771
Sales and marketing
10,716
8,936
754
1,332
9,962
7,604
General and administrative
14,728
12,450
3,661
5,829
11,067
6,621
Depreciation and amortization
1,861
1,360
1,861
1,360
—
—
Impairment and restructuring
13,854
—
13,854
—
—
—
Total operating expenses
56,264
33,739
21,355
9,743
34,909
23,996
Loss from operations
(29,540
)
(9,873
)
21,793
10,186
(7,747
)
313
Other income (expense):
Change in fair value of financial
instruments
22
(9,995
)
—
—
22
(9,995
)
Interest expense and loss on
extinguishment of debt
(1
)
(2,942
)
—
—
(1
)
(2,942
)
Other non-operating income
67
108
—
—
67
108
Total other income (expense)
88
(12,829
)
—
—
88
(12,829
)
Loss before income taxes
(29,452
)
(22,702
)
21,793
10,186
(7,659
)
(12,516
)
Income tax expense (benefit)
(425
)
92
—
—
(425
)
92
Net loss
$
(29,027
)
$
(22,794
)
$
21,793
$
10,186
$
(7,234
)
$
(12,608
)
1 Non-cash expenses include stock-based compensation expense,
depreciation and amortization expense, and impairment and
restructuring expense.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510006369/en/
Investor Contact: John T. Williams IR@billtrust.com Media
Contact: Meredith Simpson PR@billtrust.com
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