Bottomline (EPAY) 30 Jan 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Bottomline's Second Quarter 2020 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 to for XXXX interest CFO. for and remarks. Rick with then, welcome results a afternoon call. in earnings be our questions will financial Booth, following I his quarter's provide Rick and here And fiscal as and detailed guidance quarter always, second the the forward. available review I'm Thank both our your you will our of Rick Bottomline. going

a The set. accelerating booking revenue growth, by second stabilize. The advancement subscription quarter XX%. our revenue highlighted customer continued to quarter, revenue as second subscription was quarter financial growth. the was metrics subscription constant most and seem important of positive the -- In accelerated strong way success, quarter. engagement The currencies to is reported by both growth currency as That's focus in and product

to see and growth over longer to an We're a growth XX% committed in we subscription near-term the of horizon. opportunity and that XX%, least at rate to accelerate term

X X clearly We get if will and to be how to sooner. years, know there. We XXX in revenues that we subscription not see opportunity million

our of results, is execution based the continued product alignment markets. confidence our certain current our Our on and

payments simple, to need Bottomline. and No market or focused capitalize payments one smart business smart is than the secure. and We payment large positioned The growing. simple, secure on is on more and better for exciting, make BXB business

established solutions. improving business have payment We

payments. We deep domain business in of aspects expertise have all

innovating in years to as leading capabilities and globe, have only we're ensure businesses decade aggressively the a but a geographies and partner we for business trusted and five We also actively in have the beyond. around and not seen technology payments customers and today,

some quarter. to of highlight of the I'll opportunity, financial for will I innovations a we're briefly give cover but highlights sense the the first progressing

subscription XX% of already subscription is in our growth constant The As priority. grew both basis. on revenue currency reported our top noted, acceleration rate

the revenue EPS Subscription a step after subscription business, with revenue million. $XXX.X million $X closer targeted. now million. was ended against stock quarter, was strong cash financial million, overall performance $XXX our was we $XX.X annual $XX.X $XX million subscription We're $XXX for acceleration growth a of at million. big was million $XX quarter bookings And EBITDA to $X.XX. were Revenue and million the Subscription all repurchases in so we very metrics. strong in quarter.

cover our base wins. Rick we Innovation the have results business. needs are the our The and going of meet the on key focus my remarks our I'm will and is evident. to future the continuing product expanding quarter's strong to agree. as details thing. today, years, the the customer Choose momentum years more growth to in and X for years long-term will always are They us talked we our When the same X XX and I in much now. goals. who part customers, be but of I from who said for always or

progressive mandate seeing this in businesses. consumer months doubled the and cases past the presence Open moving innovation of Banking advantages geographies. six One mandated million in innovations Europe from close active recently of those to being in is participant is One the the in our usage we're some developed, has strong of passing the UK's ultimately alone We've been UK the and X first payments customers. to Open example The Banking. an beginning,

customers, lower is PISP status, costs, Open account the reconciliation. or Provider, profile piloting we're facilitate and account with leverages Banking bottom which status play. to PayDirect payment Bottomline's Service PayDirect, a The large of to Initiation his ease payments. as payment transparency some of full-fledged high Payment include a direct and line bank benefits

to the large and opportunity, represents. market experience business in can generally. here delivering this clearly uniquely innings change some transformation because bring very our digital as are and the benefits driving product We're We're situated address from see we'll we our we opportunity the innovation in it early the We're to agenda and payments position. actively of aggressively

important and is the in center competitive our most face an banking around platforms biggest traditional the open to being environment. digital of innovating challenges future. increasingly for was will banks business business they banking the model the put payments banks their challenged. transformation. The to address and help face We're imperative The today at face customer Banks

friction. unified and The seamless, same primary the complexity, At banks when is they needs ownership understanding customer relationship fight banks the are customer's time, uniquely rich most important We're customers banks our for and digital providing competition adds for their engaged interests. in. with a are frustrated excessive the by experience fragmentation of business

engagement in the needs exactly future And learn intelligence offering today to embed continuously tailored, insights. win. experiences systems of deeper to understanding targeted, for capabilities A deliver of personalized, customers and further product allows that investing is with of banks. platforms That's we're The intelligent banks the actionable their and engaging. insightful to and

well you then capabilities doing years greatest of the pursuing. for trusted and the we're history approach customers. come. a We're market gives known so the that innovations to answers ensures It deep business and with leadership in our some market growth and expertise color with by established Hope challenge and and payments

company. vision executing clear vision the reality. We're business make of that a our future for and payments, to a have We

it's said be So this beginning good and occur. of is in growth what growth exciting year, just for We seeing subscription very an will Bottomline. bringing in XX% The time acceleration we're year. summary, a that we're the

We clear to visibility have strong customer demand ahead. and success

drive We're we're years the on to set Beyond to and path plan value. will right we have shareholder drive $XXX in X confident X in year, and revenue million the confident time. coming we subscription technology to a

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

Thank you, on This quarter XX% a expect report another with strong we subscription quarter revenue revenue subscription be XX%. within subscription acceleration quarter year-end growth of I'm which to is to targeted in growth to each Rob. a accelerating revenue pleased to rates. XX% our very

fiscal We primarily above of on revenue beyond. are The see results million. expectations almost grew and subscription growth were Subscription million. were results XX% growth. revenue 'XX we Subscription to subscription quarter focus of the metric. every These evidence in $XX.X on $XX.X revenue bookings

EBITDA $X.XX at and each share, We of earnings core also million produce with up total which revenue of per above million, expectations. or $XX.X $XXX.X

my remarks focus topics. I'll major today on three

the each detail; First, results financial results in to our addition, third And for at detail, our for reviewing reference. briefly in supplementary these our quarter; financial P&L. website providing and your how fit fiscal describing finally, speak long-term business review into 'XX our I'll increased in line results in materials guidance model. our then, posted To in we've

to revenue upper Beginning to a be growth clear our subscription priority. goal. with revenue long-term the constant subscription and both was revenue, Growth our in continues on basis XX%, of of the currency XX% half XX% reported

growth subscription will All at of range. our confident rates within growth today's remain XX% and we targeted our drive XX% are are to or higher, to investments

year XX% percentage quarter additional and ago. million backlog, and drivers, We We expanding equivalent implementation million timing, basis. success the base customers through points drove customer have rate, within subscription X an signed subscription existing visibility our signings. through multiple revenue growth growth including a to $XXX revenue at And from on came from annualized full in total this up of offerings, $XX.X

recurring component design revenue, gives is revenue recurring overall comprised This our upcoming of only other up percentage the of XX% Maintenance results. revenue us revenue revenue, a point small by was business. of to and visibility X year-over-year. License excellent part total

our this license such, $X.X maintenance consistent is $XX strategy was entirely last year-over-year. And recognized software and million As to million million, less subscriptions down revenue is year. than emphasize with $X.X

signed we which led From Paymode-X. $X.X our period. of quarters, help to sales new This us subscription in $XX.X million as last to revenue subscriptions bringing bookings equivalent only sales in total execution. We in same the million $XX of million had four brings quarter, new subscription Services, by bookings $XXX.X the for offer we the revenues to succeed, customers perspective, million. strong a needed were XX%

While customers bookings to future implement us visibility good revenue are ramp provides this take production, and time in estimates to revenue figures fiscal and growth beyond. to subscription full and 'XX

new by our partnership secured, Our payers, driven as XX full several direct our their Paymode-X deals network of the added proposition, and This sales by highly force. payment as attractiveness These well deals. approach direct automation validates channel by force. large value channel four augmented were our own sales including partners very

relationships product their additional including new customer our another go-lives recognized with signed for customers with new digital annual XX spend yet customer With four subscriptions, relationship six management additional we are and Management in the our legal DBiQ signed another our P&L. We signed, but insurers and after set, Insights million modules We in of Relationship signing approximately solution. divisions not and have expanded network, a our banking platform those for $XX.X the to adopting digital banking and quarter, solutions. new which a or being us

to high roughly continue will within bookings These go this backlog beyond. to confidence provide growth and targeted that bearing year. This very the give themselves well, XX% investments to of development implementations and to fiscal XX% and quarters us acceleration. achieve fruit signed visibility and our banking are go-live subscription us marketing 'XX expect fiscal within growth product gives and to in The continue revenue we and three visibility revenue confidence sales clear that

to creation gives to in continued Equally four subscription three product payments our important, within our difference and revenue market, of years. the million in $XXX confidence path growing innovation large us and

on expectations. of share While of solutions focusing EBITDA while drive million at higher. to commitments core per operating our and or at delivered or today's on revenue, core rates $XX.X of our above and primarily financial $X.XX million advance XX% growth, all $XX.X of earnings income are investing we're growth we

XX% targeted in marketing tower subscription X $XX.X model flew agenda gross margin. and development was sustainable to scale and through margin manner means consumer's of sales we've And our for as this a in growth. product reflects our year-over-year. XX% investment business pursue Subscription added long-term to revenue of growth includes year-to-date agenda. expansion the we of percentage almost point up This which This gross margin of million

quarter expense was of up sales our revenue marketing $XX.X million expense in capabilities. the $X and was year-over-year. revenue, we G&A as or X% And also Sales expense X.X million $XX.X or of Development XX% slightly year-over-year, million percentage was point revenue. XX% strengthen up or direct of

operating we the quarter. $XX cash into flow cash in of Turned flow, million generated

$XX with shares that our and upcoming XX,XXX quarter we credit quarter. paid the planned, expect be million quarter the million continue We investments cash $XX to to As and for our on within used to and in million repurchasing we repurchase ended facility. $X of active down the share

momentum our revenue to in Turning guidance, longer $XXX and for second short-term, beginning subscription the the fiscal 'XX. million see 'XX drive topics, to years, in solid as the the and well growth we QX in in in fiscal with positions us and four we beyond as major three toward for term, results can

million third million million in share Specifically, $XX expect to to million to core revenue, $X.XX of and a income million core $XX per $XX of earnings $XX million to to $XX of $XXX $XX the we million $X.XX. $XXX overall quarter, operating revenue, subscription EBITDA, to million deliver

year-over-year. is million $XXX of guidance, of to we to overall revenue, $XXX full to to million We'll core $XXX million increase million subscription million and year the $XX full to to each million EBITDA, of per core from needed. million year to an the expect million, $X and of continue million our up $X while up million to XXXX, detailed earnings fiscal previous for as operating deliver $XX evaluating guidance And which to quarter $X.XX. which share million present $XXX increase slightly to will $XXX $X.XX revenue, $X income prior updating an be $XXX

items provide our finally, important in quarter the economics. on my how like perspective tie most And to into the long-term I'd

constant X solid in confidence XX% in focuses both years. drive looking on us primary high combined to million and $XXX our ability revenue to growing the revenue 'XX excellent give subscription and growth, currency visibility, X to with fiscal in and Our subscription

XX% of this Performance the increased million power economic margin. with margin million year-to-date gross as $XX an revenue we for of $XX.X illustrates of added gross subscriptions subscription incremental approach,

and growth scale return. will we subscription As ultimately a of revenue, this become our engine shareholder a powerful

consistent In of fact, are all trends with and strategy our the term long year-over-year model.

points, percentage future and business. well expand of up points. available as Sales as to value X revenue is percentage marketing Subscription customers product is X our for X revenue percentage gross up opportunity percentage a up and points. total the as and up propositions is the expense we is Subscription margin Development the

funding While doing investments. continue growth all attractive of operate at this, while levels to these profitability we

conclusion, the market. in So large we're in well growing and positioned

Our and shareholders We're and guidance financial strong. is in for customers to for very our we're both come. to drive raising ability performance confident value years

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

Please Instructions] [Operator of our line Financial. from with Citi go first question And Andrew the Schmidt ahead.

guys, to see progress here. Hey questions and sales with the Nice assumption my for the taking thanks direct acceleration force. trends

So quarter about just in the some be that level, that about down bit be just into the a If to there? could if this acceleration little helpful? you just could, drivers talk what the the digging drove by you would and if key unpack you could -- the subs don't in a product, of but growth you know quarter, I products bit always wondering and established little trans talk

a say, seeing Brexit, wants strong And reason in I'll and and Rick strength Brexit. he keeps Brexit I to. surprisingly anything the everyone Europe. we're comment give can general telling it us say really surprisingly, I'd

We Europe very in quarter was to see and in the continue Europe strength strong.

growth really a Yes, rate, LSM continued trends the of financial building strong strongly, it the of a some same from say and not that year. we've but lots to year-to-date, Paymode-X. would and quite in I platforms, been be contributing our was messaging European continuation of

So to see first in what quarter. pretty similar you trends the

year subs trans. Understood, on that's outlook helpful. us And the then for full and

grow at sort the the want confidence. fourth I sort into drive your just decel mid of in quarter of target, the to about outlook, being you have a implied If I it of go-lives? dig XX% looks that typically then just intermediate absorb upper maybe like outlook, talk visibility that term, there's implied rev bit and higher as a especially look little you your there. take subs sort visibility And that know, bit of and the these and end towards some of perhaps little the guess of or to but XX% a you trans towards I factors

I that think our take with going complex period that that to from six XX% plus conservative account, of not Andrew. When have only now about a going but into talking at prudent, implementations QX now, range. our there's live that months we're we a we're to that's large me be no it's part guidance, worried little that's least XX%

can round then just of the it assumptions. might what you related, that's outlook? probably takedown talk drove the through And well operating out in in in outlook, income just Understood. as just income the but operating the some I you assume investment reduction

Sure.

Banking. and things product the and pretty Those Open we're intelligence of doing digital also in of some all, are but market. places, that by aggressive two highlighted selling piece doing opportunity the of transitions, agenda. with a of two we're around services banking, of other of insights in is software that by less some just I just is First design what course, model and the the

February's team capabilities. additional whole for coming We in product have a on development team

market. we're It's be So in payments. to great the into time a leaning BXB

fabulous We've got to accelerate a want of making our investments and to growth the expertise. domain have that. key We rate set wonderful technologies. further We

This to to our platforms possibly hiring is adjustment of in can We're And add-on that financial up one have of capital million we're talking the that opportunities at share I'd from offset. as start and end and talking thing quite returning about existing investment the to to capabilities I've seen do. a produce internal we've opportunities about with it's into perspective, right to continuing you because couple dollars businesses worked shareholders salespeople an as putting payoffs. with investments ROI what already the where limited a clear and had short-term do. to plus could an highest invest we well seeing you We're

I've in confident in never more the life. So, been my decision

will And go Davis John ahead. the Please question with line our next be James. from Raymond of

on bit a up follow to wanted just last I question there. little Andrew's

million call, expect $X way. other think midpoint, the revenue, outside or go EBITDA the kind I lowering, it would at given $X and the roughly to million million $X So, of by

of that I I'm kind just magnitude see million, So, surprised the of change. to $X guess

real So, months opportunities that six increase you step three a direct seen I the is, last going since the warrant into level your you're so question this what people to Paymode-X have double and outwork you've hiring given sales guess the fact us there. in up are at performing that high your to

six little three talk to until maybe a from a now, to what ago, changed kind incremental Just warrant lot, about of that months spend? bit

change dollars three magnitude said don't I there's from the we million a of that of ago, First change, we if mean, there's the four I to never upsides months had a think and would lot very clear, quarter, increased alignment. more met I've and in of and on driving a investors growth, be focused we this subscription the with last piece, revenue the I'm over EBITDA and few

back I So in it's wouldn't A all to want is not. sales that? making to lot where because this step product I Paymode-X of certainly go are when team you now we suggest in and ask, market. capabilities it

we're data, but we're digital That's bringing our What all and how what we're bringing intelligence, banking, insights around management in you're solutions platform? and predictive how our all we're and into intelligence expensive, the doing into leaning platforms. doing pieces those cash So analytics, payments that. on across

that across our for it's really of some years. some the announced, are three talking product to XX going five, growth piece. And not we've -- which we're there's yet really of are objectives. those So, which drive capabilities, board, a new about That's

quarters to an next standpoint. the two in Now get EBITDA we're going from

Okay, fair enough.

agree. everyone think I

bookings the number You make as I correct just maybe at quickly, opportunity Rick, ahead. I to heard XX.X. have sure tremendous want

That's correct.

Okay.

right revenues kind help. of trailing months subs trans it, XX call, let's of XX% and So call at

to from vary the guide your way Anything going should to to any the in just to is think talked the specifically the think to change reason it, call that. that about year. I out XX% in why that making half XX% sure about think which there's the about you've kind no of way in that of back past, or to bookings,

before in Rick comment that one also I'll can Well, that our throw growth. as and comment grow customers is we remember

example, won't of more and legal through seeing have that sourcing volume a through volume customer spend, if more for payment we bookings. flow through So we're see

But of we're to up that is numbers. there's important how It takes show ways growth it's the an element one bookings ramp. that bookings other to So don't estimate. through grow, time driving

probably didn't because it more. complicates the probably help So thing

Rick turn But really the I'll Now it a our number reality over to is only do. of they as the that's of component booking growth.

Yes. And as pointed bookings. you never guided John, out, we've

believe We takes they'll a build it couple in a are to investing that more be and quarters effective. pipeline. we salespeople, But than of

not your guidance. policy it's So going to not and change

we Okay. in Anything, last, seen over number you fair of call it, a of obviously, think a and to give pick talked in six you're here. the if be the and give three folks you from And BXB of can an steam models? Paymode-X, movement up your any just about pace the growth if to to Fair up last exact at can I The hear. of incremental you're I color going helpful. had new enough. signed kind commentary months pickup pay of Paymode-X trying of classics and kind I the just wondering, I you that kind But think vendor have kind quarter. of adoption? some not I'm any of one, them Just numbers think industry to. to picked the But clients seeing

interest market capabilities were these in -- part a investing. we're with the us. we'd reason We're there agree which today, explaining not more where BXB That's lot again, the for I'd Well, not times of seeing We're payments. that. be

before, as seen so, newer One last and I've but months, it's that cyber fraud maybe six this security catalysts definitely of and the the mentioned new in we've events. or

don't effective that list a and sending by a So know for a environment. handling more of be established just to maximize efficient, move part a bank in and others that of that ring. before you're payment secure more paid payers now a new the one payer if payments that account to us want the as means you're to is to more will come they they more account, a is monetization. And top an fraud Of want you to

the Paymode-X, Are definitely who's paid never somebody paid is I an a of business visibility million, we there's received to paying you're that with tailwind market. in someone Has them that has? And never that. so, fraud can a a X that? around they before? amount a million When part that real piece creating provide lot the a to pair think you dollars consistent Have

And our next question with Craig-Hallum. George from Sutton ahead. go Please

George. on. This you more afternoon. hoping Thanks share mentioned I currently good that? little Rob, questions. on my you was on UK is that PayDirect for details Hey, for a Adam taking the you could going trial have

where pilot The new Bottomline. so we're is though on is, in Well, customers. capability I of corporate there the a payments some covered there's comments technology just Open go with. payment more leveraging and is, with Banking, to it. What banks point BXB couple of of it, we're I'm the for we're not really changing is that positioned into to pilot changing, a for going well doing are provide This marketplace. account-to-account many working opportunities details.

with then, more. making positioned well will of And be years investments and we're growth X, that XX X,

UK. requirement voluntary either time. is in the some Open So U.S. believe geographies, Banking come to a the mandated is including that or to form mandated going over of We other

an them, is having than for that with capabilities market. experience the developing even actually that bigger just So

we PT-X know, the you the time for platform growth in changes every and these is regulatory as a driver sweep UK growth. Banking-ready strong been a through Open has see And catalyst platform or

learned I it's have What having still so you've you feedback far? from but so good then, I'm the some unit early sure And direct days force, had know for that Great, sales thank you. far.

in -- learning we're off what getting just trail Oh, end of to sorry, the that.

where and gives just necessarily been. we have into supplies. I us sales the is think markets us direct channels might name some other It force gives of not the

for thing that's us. interesting that's So really one

more also think into me, as we're us mid I moving was helping it market. to

So solution. And and team in with invoicing that well. payment we've mid as situated that added next market us helping well a the is

So, market a it's it's mid-market. to more also new and moving verticals, it's intelligence,

And weren't of directly you is learned you've with that channel? just really there anything that from working interesting aware the them

I'd reasons finding say came advantage. they're that one here very the And competitive are our No, they in we've, of of understanding And our our terms that's capabilities true. thing validated very, actually direct in good is their our we force, partners and more the about that the into we lean sales more aggressive see getting leaning training sales more team. how they are

is And the Mayank our line next Tandon question Company. Needham of with from and

could Rick, I about Rob context, that in swift and and mentioned digital not down financial get other legal Maybe breaks as you you opportunities the break messaging one if areas banking expansion talk growth, you pieces? down? in existing focus that may same Paymode-X obviously wins client as with and and few both much the or and earlier future client that terms think with think about how the and of new

existing So, clients. there's with a couple different we ways grow

could volume. First have off, they more

something legal like platform like more to will rational see base So that. a growth Paymode-X spend more transit,

we customers is the need is important, to way providing so The existing capabilities new be with successful. other them they grow we're

customer the not for understand cash banks type, that's next items. comes if as That's we out solution, else a selling we're provide it sold. to something payments customer we've our for but a management that into and them, new looking to something better insights are platform, analytics giving actionable out a we're payments, and time that payment we're real them example, for to and So us bringing as

lifetime customers. the what the value platforms I oftentimes by we sell the So, hear customer way, from for won't

to you're means most our for at sell more us one look platform they're as vendors. changes. market to to have as That we the capabilities, an important opportunity solutions most them You're of changes new technology because going our critical continue for

be not want application single grows there grow. critical to capability a missing as customers to of kind feature or here So that that be you what is your want selling

see that's then increase a we things ramp an as see in couple some different division, we apart technology and firm one see LSM can multiple or we'll technology providing or insights, It's verticals. ways add and playbook, same it product transactions that acquisition by of in so whether a in across like capabilities, we're So also banking new analytics, same oftentimes new product. wouldn't select, law break that partner similar really I the the

I digital it's will banking, that's when think little there's shy pivot And then rate established transition Okay, do lumpiness to get perspective the want running be bit little time. trends a products on from quarter like it helpful. some Because if the of but I over? quarter, a just to been you know could over to growth seems and

versus So when maybe the see piece called the and do out we that maybe as being now with transitioning end even accelerate potentially of established it's part start to separately so transitions a area?

about out highly similar confident until commitment And I several we that it to achieve and we'll I growth it I'm would think by it end the that's of made think that combined started years loaded end here a we go great at We we with look 'XX, in the performing remember, back break it come agree a first ago haven't at a all year. But question is yet. all we'll Mayank. fiscal good rates. our we to feel growth that just more made decisions half any that level this lives gap,

to Thank more question R&D in ramp okay. is going or towards going costs weighted continue marketing this will on Last forward? extent that you. quarter the Right, be

bring board We senior some sales We investment over to next We opportunities some up. couldn't development and on be expect heavily pass had the quarters. the incremental had talent. more few marketing to

And our next question ahead. from the line of go Christopher Blair. Kennedy with Please William

two. my taking Hey, just guys, questions, thanks for

is -- of the banking long-term banking what the talk objectives business, about profitability the On you that can for segment?

year for been banking in that at noticed level the a operating the year. than lower prior you of first profitability has of did it the Absolutely, half

we're software revenue banking in scales see year, Of the from of back the in revenue recognizing significantly. as half And licenses. the you'll course, prior improved perpetual year, profitability

improving And vendor typical? Okay, initiatives several about from what a we there you year, seeing lot be is investments last you. Are going today? would more Or one acceptance, S&B that have that's helpful. still on just market, those different after Paymode-X the benefits then talked automation, you. improving the Thank

to are around than Certainly, also we're capabilities sometimes those technology vendors value vendors getting rolling much our more our vendors vendors platform, I'd have in capabilities disagree and payer providing significant. an on those and a AP segmenting a that shop, at the referred to identifying vendor the either bristle payment. effective. a side, because that to it's side, We'll as around those say network that's the just that we're ton as of be important if the that, it's of as providing sort want value you or

types So those remittance on we're payment, we're capabilities to vendors. to providing we other that visibility vendors and make continuing investment detail, of be to things can to providing all what

Yes, Customers this and value bank security. partners value true banking that. that is our grade

we'll Markets. next to Capital from Dan And go RBC Perlin

you It's you to back in about originally Yes, the Circling and quarter Dan. were the and good sales misinterpreting evening. were the we people planning actually am Roswell Matt increase more than in hire available? I because When that mentioned. force in they marketing for sales did you think Or it, remarks?

driving and simply Paymode-X to I marketing the products. spending look all and higher direct our across or more at attribute sales No, marketing that's mean, all I growth line that wouldn't of on And and sales we're team. sales rate. a

is when any particular board investments, can I Okay. that or is And you, R&D the to across in guess area? the then, that it comes

directions. it in two think different goes I

the going. across technology capabilities is is represent one board that where So,

my that how things are So things other pieces referenced along And lines. systems, those connectivity, all products. APIs, those investing specific that's about have in learning of I and of areas analytics our It's uniform there we're comments. all in like then, across that's machine

that trend. but trend a we be their also as we analytics, which would customer example, insights. relationship actionable but be as Insights, flavors, see their specific global a see not for UK, DBiQ, in Banking, with to would on knowledge run but a Open bank and the around insights customer, intimate visibility just different in ultimately product global more given example about And

a within dynamics across Open see particular we're opportunity have platform around an may new area And Banking the make sure capabilities a So again, then the it's whole specific banks. leading in like to we it's changed that technology or an market.

year now, activity PD. Has market seen change? you of look a core of in competitive seen a lot among there been activity ago, the processes If We've M&A. to of lot say, we've any compared at terms a in

change is and investing think us it that biggest we're moves further leaning more, in ahead. I the

the can competitive that But our if I forward. forward insights and not with think mean things aggressively, those more need. we that It can environment on more does move we more forward focused not organizations the customers move is moving similar. are also matter that

a in of can't stronger us wonderful we're or second product to I we're our where position, I somebody sets. market than think all competitive a think major bigger of across

investment on to to we're in that driving all that's So, accelerating great will, making and that about extending a is Go if further in Rick. and the lean position ahead, be product, you growth.

drive automated that these accounts whereas and is Further, high-volume try our A anyone and see I focused closely. problem way. payments only, is are secure BXB transactions the the how you edges lot I as of payments we primarily hear as we to do or track don't you card, relationships. which have account the on card a of in of on central see and press competitors fairly highly

And that less is XX% growing, the I in that's but really total it's came payments. today. -- Card focus certainly than still mean of

target rates impressed the see we're right now. seeing But using anyone very I the growth by we I'm that don't as at center of squarely a are. So the

half the rate for should tax question, the modeling the And quick how year? think of of we back

Tax range rate a structure. have the Remember, important efficient we roughly XX% in is, cash of the of will for And be XX% course, less very year million the we're taxes. tax expecting for most to than $X back half the non-GAAP. of

And the next you. question Thank from will of ahead. D.A. with be Please line our Peter Heckman go Davidson.

afternoon, with of insight network Paymode-X, Good metrics at some XX, the are this at dollars how more as bit the Could the maybe in affiliated gentlemen. give time? for process us the on a little network many you into well as payers calendar example,

our strongly. of XX%. Sure, are similar that growth Peter. that to Without portion I in the are And continues perform moved at certainly a little paid experiencing extremely you XX% we more the growing to but metrics all vendor see in we the marketplace bit model. getting into flavor. give we away can people Paymode from,

adoption So, similar a performing channel additional good across partners bookings. our comments, to strongly. It's previous of very and all got Paymode-X is robust

Alright.

doesn't vendor growing there. Paymode-X growingXX overall and is what is to model am pay somebody So XX% put -- If the to XX% Does that XX. missing I there?

half certainly it is the described. by to the just is was roughly So, rate growing at that growth, model design the XX% I and static is half Paymode other our of in classic is XX%

M&A my And bit last the up just little mid-tier. then Bank Okay. has in question. ticked

that there potential we've terms for you, effect think seeing anything might one be you but losses? seen an are I in of

that's It's a always can an loss, It be fine. opportunity.

the the We're M&A have do systems? platforms. to overall might think and How generally What think do actually I strength these overlap a to do bank stumble momentum. it opportunity. through that and our going really a of on how with you to not you one existing helping how want combine business offer we systems? over event But is we're strong capabilities

So often opportunity growth us. been more not a than for it's

the And our stronger the -- positioning. remember, the stronger bank, we're larger

So, to as a we combined, tend banks net be gainer.

our of Kiwala Terry line question with from next Analysis. the And First

open. line Your is

And Hey, for question. afternoon. taking good my thanks

product insight process future seen the sales more project -- product wondering, to periods? into close in any in additional evolution sales you've its a and declines in just in get in development the continue sales staff, so wanted you then Just or probably to little in if sales to stages. met you any features. made cycle, which the is add you've early and I'm you've and if cycle, And sales time the the direct timeline investments as the the

Sale example be we organization time. to period of We find a product decline it's sales move depending a for system can in depending will a a seen particular haven't can the cycle in certainly sales needs. We in on vary cycle. fast and cycle on see complex sales that the finding cycle can If off for product. disadvantage, themselves long competitive or bank wants the

patient sales best going over the We're about driving. actually And win sort time. solution have we working. cycle we're because it's It's the of to

have So us good capabilities that to in need. the that's to customer and been they who not a And for when want come someone pushing close, strategy we the a we're very us. recognize is

to Thank speakers our you any closing and I'll back for comments. turn it

Sure.

we for just growth, XXX your should subscription good I time. reward be It's to that's what certainly payments time the we've for got you BXB around year. So very revenue and thank for level believe, subscription beginning million exciting going growth the an subscription everyone shareholders. And Bottomline a as, know and of XX% of

So on thank you and reporting I look forward to QX.

runs today you. conference made Thank will gentlemen, ladies replay of call it date and that as and begins And be XXth. through this a reminder, the and available February for

code numbers XXXX-XXX-XXXX International executive participants To access XXXXXXX. system, access with and again dial replay again XXXXXXX. entering and AT&T access enter XXX-XXX-XXXX, the XXX-XXX-XXXX, access XXXXXXX; parties code may dial International XXXX-XXX-XXXX may the you code the

That will disconnect. conclude for you may you today. participation for our your AT&T using for We teleconference And and thank conferencing. now