Bottomline (EPAY) 9 Aug 192019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Bottomline's Fourth Quarter 2019 Earnings Conference Call. Statements made on today's call will include forward-looking statements about Bottomline's future expectations, plans and prospects. All such forward-looking statements are subject to risks and uncertainties. Please refer to the cautionary language in today's earnings release and Bottomline's most recent periodic reports filed with the SEC for a discussion of the risks and uncertainties that could cause the company's actual results to be materially different from those contemplated in these forward-looking statements. Bottomline does not assume any obligation to update any forward-looking statements.

financial presented Bottomline's basis. a call, this results on are non-GAAP During per non-GAAP constant EBITDA, operating earnings others, include, net growth and These among margins, currency results rates, gross income share. income, financial measures reconciliation GAAP is Bottomline's in available these of A Investor section to measures Resources of the website. most directly the comparable non-GAAP be providing the Bottomline guidance will call. on forward-looking A the company from summary is call available of the the guidance request. provided during upon

go Mr. ahead. to turn the over Rob I Eberle. host, Please would like now to conference our

Good for quarter and XXXX who'll his be will with both you our review afternoon. to earnings welcome questions going remarks. for and Rick available results detailed CFO, guidance here always, Bottomline, Rick Thank of forward. in and interest your financial as following the I'm the I Booth, fiscal fourth a our quarter's provide call. Then,

with quarter our in success strong results financial in solid line bookings, featured FYXXXX. to in or a which well Fourth ahead Quarter growth market targets our and us trans meet was expectations. quarter of or subs position exceed

our XX% the As XX% fiscal strategic trans acceleration our is growth growth subs have year our we'll And new primary we in objective target we of and focus. every It's and and driving range. confidence enter top plan. the priority achieve to our

S&T we base and we'll and will multiple. see larger growth, both produce the revenue acceleration benefit a As multiple expansion. from Shareholders higher

stock $XX today's considerably an our FYXXXX. is a announced in we'll see buying by price Our happens, growth very confident underscored trading We're higher today. million opportunity. We excellent that confidence reason. see announced When be it in future the as buyback We the simple recently buyback. than the for is will acceleration

financial product constant on transaction my quarter. remarks the the But currency new on brief advancements. of then was quarter. I first, our review wins XX% the a in revenues have in overview Subscription key start of I'll and the highlights a fourth quarter and with to several basis focus today

particularly just target a see XX% ago. our enter is to range. We XX% strong quarter target our we're comparing back we'll XX% to this of year to confident While outside growth accelerate to XX%, FYXXXX

added $XXX Subscription million year. $XXX four annual and a revenue platform business Paymode-X deals to a year's was business the quarter to now That's We're subs franchise. result new and transaction was plan Subscription million were for deals, to transaction million. $XXX XX and digital for three driven a million the payment million $XX and and our bookings trans revenue for $XX.X The time. largest including with in DBIQ strong three by new platform, which ever. our valuable banking bookings get

Revenue overall was million. $XXX.X

ago. million $XX and over million for target was years the and our we year investment and ended demonstrate the the expectations, we fiscal set results quarter EPS product for million of and quarter was the two our our our The target plan, set in $XXX ambitious the EBITDA above market seeing we're $X.XX, the our with strategic in opportunity, execution. financial cash. alignment achieving $XXX

give the Paymode-X. saw starting of we bookings. quarter, trans and market the translate subs demand we quarter, with in I'll some During broad-based the saw strong into success examples

get large be way Paymode-X opportunity the businesses and a have with We to pay paid.

Payables. During on signed to the Paymode-X signed payers quarter, for we that payers several new including Paymode-X, XX Visa with

new breadth manufacturers, a athletic care well-known brand, universal providers the the leading auto shoe top-tier on and the the major The one shows include of a grocer, universities. appeal and health several hospitals payers of payers New two system of platform.

strong. As the from in of Bank was past, contribution the America

channel Bank, and our TD sign-ons saw UMB. partner, through news also We Citizens Third, Fifth

quarter signing new quarter. five well legal deals as sales in solid the in a management had We spend

major and platform we and the strong DBIQ strong legal quarter in a digital a three market our sales position. nothing leading for continue which it. highlight It leadership very win banking digital to of was platform. accompany signed grow We the speaks quarter offerings, and the market deploying for louder product platform was launching our to additional spend deals banking, The and by

quite of meet $X major bank the by three needs by global to range more largest relationship. One a of regional ends our be is one a That's we're the excited banking in largest uniquely what's across market. $XX-plus single up It bank, a world; a being billion in the I DBIQ commercial the wide shows banks billion wins bank; with major cannot of represented combination But range these the quarter. wins. a business exciting and super-regional of a one more qualified the the global bank. the of wins: spectrum

you billion opportunity. market When all to one the banks global you $X of see range, largest consider quarter, one in the huge the

in the year. year. million $XX of our a of in coming basis are subs and confidence QX, plan this the acceleration million $XX in and the FYXXXX bookings With These source in our we bookings total growth growth trans of the bookings had

and innovation we will million $XXX in reach FYXXXX, will leadership it's the next that wins drive years. product the to ensure While FYXXXX QX three our bookings and four technology

agenda. at I'll juncture. some the now items of innovation an on most significant highlight We're our exciting

this consumer Systems and by enterprise of in Today's they make be the and events user But in radical. is and replaced ML that recommendations, do They the use the to and AI markets several and it systems we're experience the segments a user's and already software. they world some engagement really isn't predict engagement future. next outcomes. within transformation. This years, work, We've of seen the of goals. major intelligence systems record of intelligence. and Over learn will the will the

transformation Bottomline in ahead markets. of our this is well

and as and who ahead, they to as changes extend We for is are us as where have recognize opportunity agenda larger and an we'll innovation of open engagement from TAM. we protect today be The up buy intelligence for a and move major and Customers tomorrow. a to designed opportunities our systems new revenue Bottomline. growth the leadership much

has Let clear large solution the leading established me Starting been leading and the our to corporate position then particularly examples. invoice medium payers. payment for pay always capabilities, more payers. we and been businesses we highlight continue mid-market. offer security. and And us recent our And market mid-market Paymode-X has expand most Paymode-X BXB with way there's as on SMB to get Paymode-X, which well paid. for integrating some what focus We've the for secure

customers and are payments by data unique security Paymode-X billion flow transaction produced are catalyst importantly, $XXX we prospective ever the than basic insights that value not for payer proposition payer produces network. the known with as is paying a the more and data in payment is There Customers That join payers a network amount history year. others can of the whether that as is a consistent and, raising from through to vendor. payments provide score paying have the whether vendor or our network, payment with paid each the for example, what with at, others the looking the in each

and well valuable payment unknown previously payments score the insights received the fight vendors to network-only New above a and fraud. make range tool payments other network of

platform could we're part be of security paid FYXXXX case positions well insights and and as our partnerships get compelling. capabilities, driver in and market as into for leveraging key going payer of legal beyond. large a growth Innovation available well. is size scale, momentum only Paymode-X of the The we'll and No features, spend year increased network. our way data gets With management their more are to Paymode-X the own. and the the in as see the combination secure is on pay Importantly, coming

observes learns or and annually. process feedback are review patterns. when Firm through bill With and Law be application in for especially platform made time, bill process. and Analytics. adjustments learning $X learning The repeated user considers the the to the a the machine bill then review powerful our results process. today's approve new results automates legal refine a over exceeding using machine-driven highlights, as to spend to Bottomline perceived that machine what software are this this levels. We're Over Two detects provides It's billion actual offering, as one flows bill of that efficiencies comments ML, technology, thumbs-up, the review in far thumbs-down, and

proposition. data and analytics and Firm We're XX drive this launched enhanced We also case past already Analytics, win, on quarter. and client key grow actively visibility our a retain We've relationships. Law metrics have billing offering, important new ultimately, value of the part to pilot making and customers signed and, major

drive customers, legal increase New for allowed TAM. expand us innovations growth value in suite and the spend have to

most The solution complete with acquire, integrated profitable and account all of the all channels, deliver performance customer and standard-based the intelligently insights I'll set on touch learning and which a suite, bank's risk augmented our objective. customer relationships, across experience view and product with critical cash and XXX-degree a their external by by and fraud customer consists products insights inclusive heart an machine powered provides deepen sources. opening integrated to Banking and last experience and on DBIQ customers, API, Open and platform. engage on-boarding, services to of data and in digital empowers relationships. internal of bankers management, targeted, banking a volume banks DBIQ unified customers, management, and The actionable payments management, of relationship combines is It grow customer of goes

We're in will bring to for confident in drive time revenue plan and growth in technology an four years. it's in subs the strategic plan value. and with our $XX buyback. confident coming three summary, the right drive set We're $XXX Bottomline. exciting a acceleration in million the our plan to an And to growth. to we in trans plan year, back in shareholder it's coming have million So beyond know year a We

Rick, now and questions available over both So turn following us it with be his that, for remarks. will to of I'll then

I'm both $XXX.X and of which a revenue our guidance three were pleased major of We or remarks million a with high on on million expectations. to the core $XXX on delivered and focus million quarter, million, which rate of line and basis, subs and share per revenue end $XX.X of you, $X.XX, total of I'll today Thank my of guidance run Rob. in solid at report exceeded $XX topics. earnings range. trans EBITDA

review First, I'll QX results detail. our financial in

based on first quarter outlook. provide on in established of confirm I'll the our And new full guidance XXXX our buyback year. the guidance the Second, and confidence comment fiscal for program finally, I'll the for

ago. on to speak in comes addition, revenue our And subscription six our clear drove transaction And from First basis. million of website our we materials in year revenue our in million financial full Beginning $XX.X convenience. and supplemental priority. up the your briefly points to review subs equivalent and our is for XX% posted at We I'll line subs to revenue, trans quarter, detail, each with is to offerings, of P&L. in results rate, which from annualized an revenue $XXX percentage this a trans and

Subs and below to But with XX% growth prior from XX% the trans growth and to expectations. note products was tough basis. compare and goal revenue percentage and slightly an from subscription, exceptionally on converted I'll a due guidance in was trans XX% overall our consistent subs constant year, XX% reported a fully to perspective, that our currency

As signings. XX% we our into will range, confident XXXX, impact we implementation the back by this fiscal that we're and existing of into see year-over-year customers existing additional growth driven to signed head from backlog, XX% of growth accelerate

visibility business. This is as a combination subs the and with year-over-year. And QX, is million only and up revenue, trans gives XX% trans expect upcoming part the with recurring us we subs recurring level is or of maintenance of revenue. revenue and percentage we reported what us revenue revenue overall license five provides $X.X offerings. XXXX excellent component of results. consistent we points License by Maintenance revenue This In of revenue. to prioritize for other fiscal our design small of X%

$X our were guidance. Services, offer mentioned, in as quarter. And million I the to as million above total revenue which was help only we needed $XXX customers our of succeed,

brings million new signed quarter. the led same addition trans in us in of four banking trans to This to million period. our and quarters, and subs digital subs subs of the bookings for In We revenue XX% bookings in the execution solid $XX.X $XX.X results, by and equivalent sales and trans to had last we new Paymode-X. revenue

us figures this and trans booking and in to growth customers and revenue future beyond. provides fiscal and and to XXXX estimates take visibility ramp full While time are production, subs to with implement

three the We that signed banking digital to significant including new customers six set, our Rob deals platform product described.

P&L. go-lives and digital in With these being have which signings the signed approximately of in but quarter, our $XX.X banking we after recognized annual not subscriptions, yet are million

more two within high us live This banking and we go that customers growth banking digital achieve gives continue to implementations well, XX% will fiscal XXXX. Our visibility XX% brought in to the quarter. confidence

partners, our legal new drive We our full Law and called payers partnership channel XX set. UK further multiple Our We additional This value management the robust new insurer product partner, including channel Paymode-X in network UMB. highly and new of to the offerings channel across new signed continued automation pipeline secured five to added another proposition attractiveness growth approach. have validates insurers our offering spend network, launched including of this a Firm in a Analytics payment

to At subs and an confidence acceleration years. competitive importantly, overall us in and $XXX large sign Equally level, XXXX. differentiation four revenue payments our within to trans in gives us three of in growth product the market continued excellent path our million these and innovation growing bookings give backlog to fiscal revenue visibility and business

million, and financial core Continuing EBITDA XX%, end were income $XX down margin of solutions both with fiscal adjusted plan $XXX of high drive $X.XX long-term and advance EBITDA. to earnings Core complete while our XXXX our delivered our of commitments our us EBITDA consistent the was and operating range share investing was allowed to the million and million on growth. $XX.X P&L, and per expectations. with at of we

of Our our And million margin year-over-year. full was subs revenue. up XX% gross or XX% and overall margin trans gross of was percentage two $XX.X points

margins agenda. sales as development aggressively planned, As marketing and pursue expand, gross as funded we with and our growth innovation we

when revenue, year-over-year. will in up We percentage from this XX% development XX% up XX%. the to for of was will was revenue, down be point expense quarter from $XX.X point fiscal revenue, we revenue, or of Sales one percentage one approximately see Development fiscal almost XX% this continuing to continuing year-over-year. point of up XXXX full today's or one G&A or be today's expense when was the net XX% see approximately million year-over-year. XX% almost XXXX for and XX%. revenue, of expense $X.X the million million $XX.X And up development of percentage And quarter X.X% quarter into marketing

Moving was cash end investing of only million flow to quarter, investments flow, cash to million $XX.X allowed $XXX the outflow And from quarter cash with of the net in $X profitability million. on this cash operating and with us hand.

us with as the our and Turning we second $XXX solid three and and to to the well momentum term XXXX. for in term for growth fiscal four in guidance topic, QX we that drive results touch the in XXXX beyond position subs as can million towards see major years and short fiscal the in beginning longer of trans revenue and

recent changes. need currency, in there Now for update the we do the other pound, but given guidance British to are no declines

$XX million of million to materials operating we've QX, core revenue, $X.XX. FX and per $XX of earnings subs transparency, on to million provided trans share core adjusted In $XXX of to For $X.XX we million our $XXX impact million website. to revenue, income, bridge supplemental overall million our $XX the and at a $XX in current EBITDA, to to expect $XX million rates, million $XX deliver

guidance. to Other fiscal currency, year there full than is change no XXXX

detailed We guidance proceed our updating needed. the continue expect set. each with We'll prior trans the to we evaluating target as including to our new as growth range, through quarter year going XX% and continue within trans live digital XX% while acceleration and present subs to subs and customers banking and to full year

targeted $XX our of With confident conviction exciting authorization outlook This in in drive with recently a financial $XX first our we're The the buyback that our million million value. in strategy and the buyback innovations our year. the authorized quarter be bookings, completed solid confidence underscores will product strong performance, specifically shareholder to strategy. and Board new highly

in think In long-term struck solid subs are about I pleased I'm toward including as of and run our the back conclusion, in trends rate and four that step model. with P&L, year-over-year I'm quarter, strategic moving million, all consistent in Further, years. revenue total three and million of to to million report our plan $XXX a million $XX a driving $XXX and revenue, $XXX trans EBITDA

trans percentage G&A and Development up point, and points margin in points is up market. is point. marketing and expense Subs a Subs is is total as is gross and six percentage down one of year-over-year. one up revenue year-over-year. two Sales and trans point. percentage revenue percentage positioned large expense a percentage percentage growing well one up We're

shareholders in Our for strong. to our value drive current ability come. customers performance And years financial we're and confident is for to

that, with can And we call questions. the open to

of Financial. come ahead. Our Instructions] go from [Operator with Citi Schmidt Andrew question the line Please will first

And thanks of Rick see. Other FYXXXX, confidence momentum my sales derail to factors, with that this step-up and for wondering your UK subs visibility was specifically, the I At growth. and good the there. of dig question. Rob terms then, wondering, for see transaction macro Starting on It's potential in your just a in where discuss about level, into acceleration. trans in good you could growth can taking the that think level terms was trans if just – and congrats here. when I just Hey you the about outlook I from? and and coming high I think, And subs factors of

is this Rick. Andrew,

that very our XXXX. is to XX% live, contract assigned One of that signed today but us $XX.X fiscal the business million deals model of things great almost live give yet high year. banking the is digital going about not are visibility Of within upcoming

Now extremely end high gives visibility loaded, it's us and back that confidence. admittedly but

and the as then next progresses. of cadence which I more the acceleration think was quarter little talk the the the say, timing just growth. year just outlook – of acceleration should I of you and Understood, guess We just versus, back actually guess part the of the question, year the bit answered a quarter. first my second I should just half full expect outlook a about we taking together,

as would grows, invested starting much first so development we'll innovation product our confident in quarter. Yes, revenue also that I for but revenue this see from a the our in margins growth note very so revenue We're even we've that perspective, increase.

So we're slightly otherwise without below where would investment. we be that

then about year. I are Understood, investment. out areas you more of think things about just spoke some But rolling this and you that incremental talked –

the investing growth As XXXX, some about beyond are about as in year? you're current what what today we beyond think or things just think we the just

is your a on Well, from and question A in of markets of there the if tells investment, the engagement we to intelligence. participate going that systems transformation you is in data think major product record I system record what is. of systems

You can user, the recommendations pull user, future you or give reports the make it to that. and possible doesn't the But know workflow. outcomes, like. make will doesn't predict doesn't recommendations It events and

see And that and built in AI you we kind already will – see consumer some of applications. ML in

they're them operational is see for customers. of coming focused on our across of coming had strategic marketing, next You the but areas to in to And is deliver top of our XX that. for offer some ability all and that And today's systems with our bank around That we're well focused excellence, very ahead capability, a board enterprise example. next generation equally markets. on digital generation of platforms just that's advisory which engagement. We

Appreciate Alright, thank you that. guys.

question come John Financial. will The ahead. Raymond line Please from Davis go with the next of James

the does housekeeping not include I a want just I'm for question. just but wanted guidance assuming afternoon XXXX fiscal buyback, confirm that Rick, quick with updated start to off Hey good to The guys. that. –

impact prices, on at We EPS. a won't have today's on material never share it But guide until count correct. repurchased. it's That's

similar on sorry, account-to-account some And Okay. Mastercard's impact And Nets guess any commentary your Is your or see I buying commentary high business? Europe. just you transaction? announcement maybe business quick Do in different from on to – of Rick, then, that? Rob, that level just the year-over-year

was a up little It of breaking Mastercard's on to I'm some Nets. going JD, were so You bit, the repeat commentary acquisition question.

their infrastructure, of VocaLink, for Right, more so acquisition consistent that's with more payment example. sure. That's actually about

and helping as So it it's of is But we doing Bottomline rails receive rails. onto rails. think payments organizations put rails those we're be kind of to payments from the the to is – aren't – going need ourselves. those the is What

acquisition or gives they've So we like. And and aren't going capability. VocaLink, a that done of That's to that's NationalACH what run them that system clearinghouse what or – past. in which kind the – that the

example, Yes. rails Europe financial of we think different to types When XX you about over our today. connect for in products,

So the add. our the value rails higher more there are,

see. for Okay. lot million And several lot a allocation of Obviously, in then Anything your on on, to sheet being flexibly. up competitors buyback M&A strong of capital potentially transaction? bigger a you of a front, obviously, interest any have balance the There's of guys the very a with doing $XX is – changing going rumors nice sale.

interest and Just Or buybacks continued anything tuck-ins? doing go-forward a any tuck-ins on we in basis? than more should expect

think tuck also think ins, it's I it's technology. I

So company we're and recent acquisition but capabilities new marketing, sales and our combination really expense or development doing extend was today. that adds that pre-revenue most fabulous and a get what we

you'd So pure tuck-ins see plays. of I technology think some both and

Okay. for me. And last one

the base. maybe see much near lot that on I gross it, the outlook, like with try margin Just of to of leverage what not expense we're a margin expansion of longer-term bridge – years as about expansion XX% margin like and it looks margin But kind in you and comes for that confidence the just gives guidance, XX%? of the you the fixed that of guess gross driving XX% and couple to looks what next XX% longer-term from term, a that XXXX it call XX%, lot as XX%, specifically and talk profile

dev in one Well, that Rob, his an I'd the into remarks away, expense. we comment see move as is in referenced this I Rick think, increase of that we'd right things year

not about product only in I've of to product we're initiatives. be some not on things the there, terms leverage talked spending will going of actually more see So we and already

is to on priority XX% We're I definitely as and on XX% We drive this we big we We're will for growth in solving growth. focus thing over trans that's move the subs target move to our our on margins time the gross as range, say and going and commented this have driving we growth. FYXXXX. But before, see margin quarter. into

Okay, thanks guys.

line of Sutton Next will with George ahead. be from Please Craig-Hallum. question go the

Guys, you you. other non-BofA specificity the more channel just us and partners, your from partners. to an then side? the give sales how on encouraged into have was see channel a those partners been in Thank bit BofA active I the update of your breadth other Could little quarter also

Sure, very active we're them. they are active very and with

of channels. One the makes successful engagement is those our programs channel with that things our

So couple We've training. sales board that's That's just advisory at strategic last making calls hosted directly. meetings. our just That's strategic week. banks those a of

very engaged. So is think which I saw really one across what like board, sales my in as the I of we're that's is so see. widespread, great, And the to keys we we comments which referenced

And America active as well. just of clear, remains Bank to be

So...

Absolutely.

Absolutely.

rowing you if people boat More the will.

in see an the So if you investments can wanted over And in we just the thought the to on mentioned last making of of timing I in were I get a kind significance on that three-year period. the you're making Paymode call process platform? update you investments Rob, terms that particular of and in your

be we're our platforms, making investments, across analytics, Those across making all platforms. both. to personalization, the all our comment leveraging of I'll are intelligence, Well, on – common themes of clear investments so data. We're

been and from platform. come more is is the much the a very is been we're But security Paymode-X, customers to hearing but of recent more a We've more onto of that of We've businesses security. selling hit that processes, lot against people come things in doing we've what fraud some of last on saw to catalyst when terms – secured with always we're had Then which was check antiquated done that and always year payment thing really In on. love payment XX% I a inefficient becomes catalyst the because reported are incident, a they the kind fraud real most platform. that.

more So doing fraud. things we're around

network score, have about we on the you nobody example, we have, For think own. their that our else network can payment data get if which,

with first and have anybody vendor vendor? paying vendor this time, more a has so If you're you're pay you've they there's that's suddenly an paid? – the else – amount others, So about others out have consistent this paid before inconsistent to do aircrafts? And paid if that accounts that's do but they for or – them well much that Or normally maybe what an a been payment make is that they compromised? something with dollar sell receive multimillion that's what

in, a a platforms larger and around now we better always Other we the had a for adding Bottomline – protection that expertise invoice your invoice in small a look would. of a broader lot network, built So mid-market That's or small now And the and the payer to so of lot we're than that into is more have midsize things a and huge never We've that. could our corporates for market own. Paymode-X, in solution capability. We've fraud Paymode-X. fully market addresses have do integrated for building specifics, pay. you things at we're needs on much because advantage just invoice they

side, things. on direct as And a then the So marketing of are supplement well. bank sales to teams we're those couple adding and channels additional the sales

sales both Paymode-X. on product and investment and and So marketing

more I banking the if One digital side. could question Super. on

with Can mentioned banks. at Or just size upsells you point? to transactions So bank? that the of additional of you? this world's of the working the And a you a relative the you this signing Does of give any just up that sense largest is of significance are you traditional entirety in portion give one for us of terms bank?

the it's the subscription, a just largest just for a region of It's our actually bank. portion It's Yes. and bank.

single So very exciting. Part platform capability of there. that, by more the we're way, is adding with that

ability insights, previously automation have insights the secured fraud, payments, protection, we banks – opening, payment the have risk which of we'll online had. level customer now gives not to account So have you the cyber our and

deal some and This larger the So of capability can real-time sellers. had are that combination of of a platform. us secured payments payments, to a nice those things DBIQ get our

Super, thanks guys.

Next question will ahead. Needham Mayank Tandon Company. be Please go line of & with from the

taking Mayank. Hey on Peterson actually Kyle good question. is Thanks evening. for for my This

of mostly plays. some questions wanted kind the are Just been deals you to have potentially up M&A, guys know some doing in that on I technology of follow interested earlier,

Just all, necessarily lot in if of elevated cadence that for the Would there. investments guys front still a the R&D wanted we'd there kind out timed a that to of see at just is a while? impact, you say, buy right higher Or runway development R&D or decision? see your stuff build

front, are clarity features. such new development from isn't looking I occurs vision. That we're absolute or then clear see innovation standpoint an M&A think capabilities. spend. make know going. This applications and that on and the those product we such what got really an confidence is appetite for there's This to because we've a if And agenda our we which where speculation

So us very where need go. and clear targeted, customers it's very we're to going our where

So It's where – M&A We're you're on that we're about the is not capabilities. randomly what respond talking a at looking for. specific I what We It's side? we're We technology. know looking hope to spectrum. looking across going. know

you pound Or Yes. wallets That's guidance helpful FX purely kind you just or then and from noise? know just Have color. I is kind operational on whether guys tweaked hearing guys their clients disruption has just noise of the Thanks in UK, for given guys that. Brexit of the follow-up And one just are any with that verbally seen changed you anything? weakness. or anything just it

Rick but say I'll referenced this, well. as it

thing economy. of of We what economy, things get are and we businesses itself an But of principal coming is economy of the an in Brexit see pay we get not up and And do grew a of evidence that is help businesses paid. in out is economy, slowness the of fine. paid. seems on XXXX reason In One kind that. down as paying how we

on going is Banking Europe, more thing then well than the across things in moving. PSDX, with in the second anywhere standards, else payments UK is with and in Open that The changes are payments

it's The unfortunately looking growth the earnings reported are cetera. And looking So on people say a rate to know does and, was, calls – we're progress we're I fabulous that's currency are is that screens. can UK. at constant the can time the They element shout in unfortunately, et really dumb Rick what us hit The at We volatility numbers. making. and – one currency business of be in currency.

color. Alright guys. yes. helpful Thanks That's

with the from [Operator Instructions] be Please go Stephens will Next Brett ahead. line Inc. of question Huff

Thanks question. Good for guys. afternoon taking my

Brett. Hey

you that kind them aggregator then like bigger question process, stuff, a talk asked would of, automation corporate where et Can bit all stuff if value you about about about a you see talk to about of process kind chain? of sort in little a whether me. the expenses you, you talk an Can how picture little and for into and Rob. to on and kind also kind that approvals of but of at ultimately get focus or for playing cetera go okaying within for a deep help One before on-ramp? in network of networks you yourself an being – that, Two bit of

network on or we're actually both. so Right, on active –

types In different in take So places, aggregating, we're places Paymode-X, be in example. some we'll payment – a for our we're rails. different Aggregator, network we'll like other like Universal

help customer's to going needs is whatever going angles, both are to play can accommodate actually the customer, whatever we the be. So

What that's terms to this that's invoice we be said correct? Is in that about receipt, process that's that you to made? our When we the there already think you occurs? be do a legal spend what capability, Is adjustment all are automation lot If paid? Is of I invoicing approval. management, AP of In invoice type process. mentioned handling and of do workflow. process, how

have on side. a on ends, of we process So strong and capabilities on lot the and payment both approval the side

for you. that's one Thank you, helpful. Rick, then, And

on lot it gotten sure questions make want we've right. bookings. I just of bookings, the have the On to a I

up that the to year-over-year $XX put million, $XX number compare. the right use? quarter $XX in Is is million guys that million, this You

million, XXXX, it yes. $XX.X was In so QX

– of an just know know improved it's lumpy. the of estimate naturally – thumb them. I it of, you got thoughts think any – hard year-over-year acceleration in But can it That's future? from kind they're But you bookings terms I in how sequentially sort we about dramatically or know about the think the as should strong Optically, I And we a to in give Okay. pipeline. growth. on know, bookings? rules terms difficult. of I us is talked don't about there of

that's for a revenue this signal. quarter. be. but we're a seeing are and very same on to that it was look to strong I'd are we're bookings XX-month, that a guide noted, to they lumpy. where our the I'll note subs of as XX%, XX% were right XX% We period, little if basis. want at you not trans bookings in because, And like so we XX-month try XX% ahead that It the to trailing hard them trailing we of just

for again the what Okay I needed. time. that’s Thanks

other The we by on of I'd add only remember many in is way, cases, growth have upside bookings. that, that, to the thing

volumes model will other in acquire So, have bookings do a a go if or spend legal ever for contract new business bring or those on on management, new other Paymode-X sort that rarely division or things, up a of if and that transactional-based number. example, pricing

outside – straight see we So of growth of bookings actually see of revenue. can lot a into conversion

you Thank that’s Great, guys. helpful detail.

Next Please the with question ahead. Company. Cris of go Blair line Kennedy will from be William &

Thanks about taking wanted follow-up that and how on talk Open are And guys of just guys. that you positioned? opportunity kind you for your in how hey comments be? can Yes Banking the to about opportunity Rob, Europe. just material question. Can

has really to change change because very material. work payment. is over that be stand then how but the time the evolve, accommodates And exactly for in us software that No always very and payment that's knows potential will will one world that how we're significant. the to the Well, good

the they make the the be. requested that What owner deal so then of banks Banking may new corporates bank understand it. API. help that standard mandates that we next or account whatever – definition for the So A is through account with everyone, piece available if Open that

other for providers that with that what So example, means can account, is then API. that leverage access aggregators, information –

opportunity it that with whether they're banks in for U.S., of not. some of not and regulatory may platforms banks standpoint Banking Open a challenger forward and more from – banks So force next banks. has provide us that work that that's to we generation some kind to been level for allows capability decide a leveraging the provide a in that capability that the we places expecting kind of as thinking or bank do the probably our come We're to UK. and infrastructure, challenger capability, of an to directly some platform that thinking us would that that the have provide or banks But architecture way

So it's actually a product opportunity as well.

go businesses? And Okay. That's versus business is of can you. how the about the different? talk you as landscape kind And competitive different then guys helpful. on is down the just kind Thank larger you of market, how Paymode-X,

Sure.

I different. too, think be you'd couple mix things payments there's of see that would

You you're can see moving more as card down market.

a So with partnership Visa. we have

We payments. also can accommodate Mastercard

you'd that. So see across more card payments

looking capability You'd see not just a payments. for broader

micro through small invoicing You'd are or there that look some then the And of mix on other. MineralTree focused and AvidXchange and are for business competitors more payment. business,

advantage our scale I the size a think and real of there we have network. security, is

Another relationship. channel advantage we have our partner is

So banks opportunity that customer now further into their with down has an to success market have us take Bottomline base.

And key the it can on bookings, about just from... of any help is drivers last perspective And way there there think $XX put is whether way banking? year, the the just Okay. percentage one Great. be you and that, can Paymode-X for one. million any The us you

there, right And right, hit the two then great opportunities just banking. for Paymode-X and represent forward. two You really digital so that's they us exactly going biggest

I'd move to to our bookings. year, next be our them we as So continue into in lead – expect leaders

guys. a great. Okay, lot Thanks

Capital of Dan Please Perlin RBC will Next from be Markets. line question go ahead. with

Roswell Congratulations with especially actually headwinds. It's evening. the good nice for on Matt a Dan. FX in quarter, Yes,

terms wins banks banks? a you changes nice getting American between North or larger, smaller digital banking. Is some picture question, bigger any in see can demand banks, there banks, global in you're In demand kind differences in very of of versus European

franchise are demands to the think I grow universal. your banking business

of small mandate. truly real large. a That's bank, or whether part a they their important that's anybody, For are

in you could a billion asset see and billion then Bottomline, then $X a global bank quarter a this assets and $XX-plus major So it with bank bank.

So as common. that will see

size us focused gives more of the to that ability fits today the America. to technology price Our scale those point and each scale on We're North capabilities banks.

other a banks more the customer requirements, pieces. rest in We're find – Europe and And globe. We have the in of us Europe that as addressing not presence usually bring well. will we

of that's really And market so us ton what there's for North we're in a and opportunity Europe, on. and focused America

Have of you with of in noticed large up competitiveness, noticed push, processors cetera? et core bank their kind acquisitions, changes you their – tied some in the have any two

been a other focus. What that other always distraction I pattern couldn't in the a specifically. becomes tell you that past we've seen with is always that that's competitors, cores, a

really though, they relevant is we're happening I to think whether be or going speeding us down what's slow for because what's instead is happening not less up.

I else about There's with DBIQ platform in one bringing talked nobody to the customer There's those kinds capabilities. platform, you listen integrated bringing we're capabilities what doing nobody If insights. of else these that. on all

about seen benefit a to solution we're theoretical truly some appropriate advantage bringing market I moving if growing that core distracted. and capabilities is new a not that that they're probably beyond there's you're circumstances, specifically. yes, So ambitious the even that, couldn't we've but But in your fast or banking so say franchise. many so business

does with help or model? do kind kind that move transition? like stand downstream to hurt And to of Paymode-X, over interchange we the move the the where Shifting of

is helps downstream That that at or point. move model And paid That today. helps a the community. on is card interchange to They're used a transition transition. paying And vendor and more because ticket. this an it's our this a – not a on a smaller being

model, So of or to I a fee use. think whichever you a pay we network acceptance higher see terminology dividends use vendor model, want

So obviously think is – model. the moved clients sort What percentage kind you Paymode-X model? that has volume are new on that to of of of do

on vast the is model. the XX% majority, of traditional kind that's still majority number. of They a large traditional vast still on – by a model, a still It's

for rate for question the the on a And numbers year. Tax Okay. Rick.

think seem rate. I talked that Does about still reasonable? last quarter a you've XX%

there. it's still and did, we Yes, Correct.

Excellent, thank you very much.

Thank you.

of line Heckmann next D.A. will ahead. with Davidson. from Peter go the Please Our question be

what K, year. Good some afternoon first track segments. will in in of Legal like be seems gentlemen. in trying up? that It it growth did Could the of three but the quarters it you put the of the was really outperforming to type sure – spend the quarter, just I'm

the throughout times, of strong the on a legal be spend, go-live. been performer lumpy timing can has year, The depending which at Yes. customer

a So bit we internal slowed down reasons. out little customer their large actually one had that roll for

growth impacted that our so rate. And

will So it a be little off bit.

yes. it then, talk later talking we're but tonight, think we I can about

me Okay. and the question networks settlement you fourth within Paymode-X like it the shift course, And the a the leads but looks segment. grow deceleration. it basis? depending And your to like there? takes that XX%, – big line model my know solution what aren't accelerating. It other seems But business appears see looked impact business. upon And it how and out, annual line that's give quarter is it cloud we came saw to are of currency or interchange there small like Why that that solution messaging item there, SWIFT it a as seeing we the decelerated. I on should Paymode-X, on actually XX% outsource

Two pieces.

decline And certainly then First and the call pound networks. in exceptional an as QX very, quarter payment within business. in other foremost, is the And it strong. very SM impacts the the was the even we referenced being thing

Okay.

range Okay. there? your cash That's with And XXXX guidance. implied us flow help that you Can the helpful. might be by free then just a

in of me. have flow the cash free don't front I

insight to just did little one an in new it's deal bit by anticompetition – order just an a this Can small small with? see interesting be some the. give issue Maybe would of Okay. concerned closed acquisition you us I segregate around authorities. an a the anticompetitive exactly investigation that they it's in a deal, made or and but the antitrust that more such business. there know result what We might – into and

information for confidential them around customary type. the closely stored the to same order. in order example, transactions working us CRF. And More of specifically with can't the them requiring We're for is That some there misperception certain hold be entirely customers, it's simply review Yes, separate. in review. is recent this to

course. normal So it's

Okay.

that so. or quarter next in hopefully see should in we So resolved

Company. of will question William from next The the Blair & be Napoli line with Bob

are the Just working wanted mean, to more for color virtual little direct building Paymode – force you are that. – sales direct who a can you ask of on of build and sales on out And sales give cards? I what force? the with plans virtual are adoption the you Any the cards bit out force. on more that on

asked strongest We a you always it'll our and chance with because Mastercard had always certainly question channel-driven force the Visa. had first. support direct a are give as partnership I'm Well, sales We've work We've glad and well. me force. to direct with clarify. sales is a with

adding we'll if and channel. a force. We're on more that, conflict be So horsepower there's directly often just back the step to direct go going that to behind let sales that

And of Paymode card virtual Okay. percentage comes just from your in is the virtual what card? revenue on

part well. payables Nothing, solution, when it insignificant because accommodate card seeing for is then we us that type very little we'll though today. that It's today. now Part to, to the very allows I mean strategic payer. it went payment portion of of a would added be to an integrated see begin – a more as we're from

We separate have of that our number card. would else everything outside in the where a platform. part of handle be other past than a We'd payers

well. solution, easier Now a the on then payables as much integrated start with revenues can payer. for makes see flow card Paymode-X, we'll everything full through the to it And

much that card? Is than think, mean card I would the is I on yield or… off higher, And higher. revenue be the not revenue it much

of partners other in share but payout there's No, that there's take because terms we On the that. interchange, a a the the we're in much engaged and have sharing a higher fee then bank there's network a largest a of payer, And of we a with higher rebate. use where ACH+, that. number are

really payer drive history. advantageous specifically payment Bottomline. wants we're But what to accommodate with for for want to than rather type would for – the be profitable more what's the of kind we're – do us network look the still be would ACH+ most So

on I what you Is and sub trans don't Paymode. last of that the be? know would color if and... is. have that – And it Okay. the question Rob, just could you us rate And it business on think above give growth you target some you what if

breaking growth – out average one higher And for Yes. for rates plan. than big product our rate rate. not it's confidence and but year, we'd plan next absolutely, growth – that's higher yes, next our it's year than expect That part a product targets, drivers be The We're growth the of the absolutely. higher by big will it.

line from Kiwala question the First Next of with Analysis. be Terry will

great would your the process structuring impact Congratulations choose, quarter. potentially banking how goal? is sub that trans speed question on investments and to and in on-boarding – process three-year regarding a that you're to four-year digital My development and how that speed

and technology. and of and The generation product we're investment It's into that investments like But give the systems. we're next layer functionality and integrated infrastructure It's insights platform. about single API there with working making us things other with faster multiple frame the integrations an on So systems. bulk the is are capabilities making in around a that time as fact you're steps. isn't about implementation and customer much the bank, fully about working the core an

is There There's a is as much reviews a isn't that. testing cycle. the as about human process. compressing plan. There those is of about technology it And

nine-month we've I think So today. seen implementations

functionality more breadth that provide their more know insights moves customers. next to even more, Perhaps. capability investing I But think is investing that's They move What banks, that's we're defensive for. and actionable up a so they determine they would customer. they can have great slightly? not what of deliver about more to that more their can target. sales we're Could that make,

there of of we're principal architecture. or the making. principal AP speed in in driver So elements the integration not some benefit investment it's has the But

At turn call to this closing Eberle for I'll questions any comments. further over is the time, back in the Mr. there no queue.

Thank we've couldn't couldn't Well, We confident be the buyback well. we're time. that, more And million coming you the will post. in. as got for we thank heading $XX position the that place And more your we'll with be you so be for year, much. into we're excited our results for excited in

And go back forward fiscal the we thank subsequent quarters on So clearly, year and to time. forward. we your look for reporting again as we everyone

flow I that, Rob, the to And support the can that $XX million will add buyback. free cash

you. Thank good. Very

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