BTRS (BTRS) 12 Aug 212021 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen, thank you for standing by. Welcome to Billtrust's Second Quarter 2021 Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise.

Following the speakers' remarks, we will open the lines for your questions.

As a reminder, this conference call is being recorded. turn over to to Dara like begin. now the to call Dierks I'd

you. Thank

I'd you in subject Before may to the set I like does begin, filings materially our remind Relations statements of and our and including not statements. with section forward-looking These forth in risks statements and contain forward-looking These that speak Investor we statements intend them as numerous forward-looking any are available to to SEC uncertainties, the those the forward-looking website. call Actual by except assume company from results or obligation as make any may law. today only differ of update today. today's required

and are call Founder In Chief in GAAP measures Officer; is non-GAAP for today's be the the not company's financial may measures. These website. Reconciliation the Flint Hosting to call release, GAAP call With over earnings Officer. Financial measures. found as Mark Billtrust's include Flint like be addition, and I measure to that, can to available to Lane, begin. would substitute considered today's should turn Executive Chief which Shifke, nearest today's on supplement to as and Billtrust's a

another today. always, quarter for thanks had Dara as Thanks as both and pay-off. Payments Software the our joining marketing. We and we've fueled financially. starting This around the strategically Many third public and investments great everybody share in we strategic and our are business the we to made that call investments company is and channel performance core our sales to a report of earnings saw by in and are great payments thrilled

XX% came growth of revenue year-over-year. million, representing net in $XX.X Our at approximately

payments Total annualized Payments that BPN our increased for moment. second the This quarter segment grew network, discuss year-over-year saw an period TPV in same the growth in TPV the XXX% Our Volume from raise year, saw year-over-year acceleration decision our has of BPN business year-over-year. is billion outperformance $X.X payments the are TPV or in July, $X to of increased Software acceleration in to BPN, growth the exceeds run during strong the which in which TPV. XX% XXX% BPN and a an saw an a quarter, from component year-over-year guidance first the billion. the once XX% Payment the billion a year-over-year, now will volume we TPV quarter, again year-to-date with $XX.X card year-over-year. The from Mark $XX.X quarter. XXX% the by through run After rate informed XX% of in and the $X through the XXXX. Included quarter billion at we from we billion payment credit grew This approximate in first revenue or June

and better One big payments. in of summit in year, This second year we was than BXB of many annual focused future integrated returned highlights of XXXX, quarter bigger Summit. was this the we receivable the and the accounts our but Billtrust canceled the events, on before. Like return

mission and investors Over days smashing sessions shared we're main of attendance including X,XXX course participated participate I'm the services, previous to Heads more attendees record. XX learn eight stage about sessions of also on. over pleased CFOs, four and analysts breakout Finance in that were able and and the

We BPNs to its take added and remittance and including network version mechanisms, existing more underlying of bidirectional ERP accounts open deliver only ecosystem are variety acceptance automation. a and the customers through in their suppliers Billtrust of connects BXB portals more addresses BPN, leverages payments enabling of systems BPN for implementing APIs from XXX and invoice capabilities. network, portals buyer incredible industry. will data changer payable the do major and X.X that direct and and two-sided receivable we systems buyers interfaces, that had accounts as suppliers. our payable delivery point This financial we capability first require to and across accounts them pain to latest process over robotic game the this payments addition is announced X.X During invoicing. payable we Summit, services customers our BPN a be manual a around think in accounts to before momentum work the platform already

to an renowned wrote opportunity in World. business, every Why investor, entire enormous no end-to-end for In our article about that play major Eating Software industry. some Wall receivable in the foundation an BPN about the payments Journal exception Marc disruption platform to talked he order about process. titled software is offering the and just article, and would Andreessen, BXB about. Marc industry-leading spanning the While are Street to want cash XX wrote Almost solution, customers talking time spend Billtrust, represent of an I our the ago, software years payments Accounts what

will a layer e-commerce, we While payments that the mail. the still XML application existed collections solved U.S. are It and this by BXB that and without a none drive consumption the to be rescue. high-value balancing on incredibly reduce unlikely cash haven't It environment is coming digitally the payments. paper. raw focus decades send be choices software. our many industry invoicing, that seems certainty. for for that the plenty and software. help so their well of is have in the believe transacting good problem. rail to good pretty deliver we are payments, to line workers of will is the our why to will We significant with seems new customers sits problem It It established bottom adopt unlikely possible knowledge a infrastructure top an there to The like ultimately to that EDI entire that in be disrupted wonder savings for people materials software as answer U.S. via allows payment solve our speed would like also of Many it. is of are that as exciting, new standard capabilities BXB payment on Standards good all protocols activities. thing customers. continue also That's dramatically some customers it Credit because being also decisioning, this payments for future

Software customers like our connect pay e-invoice solution allows to web invoices and our branded review that through supplier their portal.

large that an suppliers. Software interoperable that way systems, like our allows an payable pay payments who accounts provides use business discover network to and easy framework buyers

is Integrating that are that many with payment road. accept be building lot for. and drive AP with software need spent our solution providers, We simple. them. XX for use solved few like personnel allows years is banks, Software results our meaningful easy mobile of a our work. that and a not I'd solutions almost way to There to cases best-in-class an customers. to on like their the ERPs, This highlight gateways field deposit payment arm customers remittance to of

with the was teams also they payments cost over and thousands year. using this The hundreds cash is They for now of One of Last world's with our deposit solution which Billtrust XX result capture savings allows solution began been unbelievable. application their year. to software user cash receive the of efficiencies have thousands an trying application of are year, of capture, deposit gained of month to higher reduce largest manual customer of we've the was on rates million per of a our also processing labor the thankful solution. The savings They hours road. per mobile automation distributors were to our early mobile payments drives they structure. while foodservice accept automate that the from each said

Pursuant program. more quarter Billtrust to buyer to success a elevating done motivated to faster in amount Global something ACH in, ACH emails and to Connect announced knowledge increase getting other major customers. dealing processing portals is payments enhance Billtrust to level customers need solution, more many ERP recently manual a payments than that all X,XXX managing to Partner corresponding cost, provide like them the expensive requires is X tools are wouldn't accomplishments their drive With the risk truck few we customer experience. have to the and of both was processing. On customers. They're and customers investment top payments customers. which quicker, promote they five this March, experience in paid and and the There offers our customer already remits billing increase of institutional payments often increase for personnel to our efficiencies experience Their Processing new their of remittances. integrated I'd reduce without the X $XX nearly with to improved reasons, efficiencies, our ACH, to digital ACH through for efficient, Billtrust. in cash, modern the level they and highlight. has a are An accelerate it the and going ACH great the to ACH commercial in This payments have remittance and their experience, Since payment process. of lockbox further even they've to accounts capabilities part of customers, is their channel buy Invoice automate significant enabled buyers. buried over held not are over compliance We and card a reducing data XX% strategic to by success leading a international easier leading departments how practitioners processed reality, with has self-service Industry Suppliers channel, and on that We do do that for multinational XX% is demonstrated Program, dealership accounts XX% strategic their for reduce for key Billtrust card million live to processes Wipro, the of of company The are XX% solutions have was these on related opportunity this while they have so A a quarter Billtrust not and growth needed that solutions offer generated, of accept been AR BPN optimization. programs to fair check. capabilities over to some released apply fees to with to crazy. our less their their in to Billtrust in across version paper ACH ACH they training payments their of identified that, and months. signed electronics recognizing research self-service only study department and that rated or our most partners, Among these do digitalization now the and ERPs, payments in detail collection payable strategy. of its for alliance BXB and our This update gap as digital clearly payments payments their enable more processes opportunities outlook. to very as research and is real-time or banks, turn the payments ERP the There acceleration a being and integrated support leverage available. and Mark? commissioned company. really Association modern integrations many paradoxes. new integrated and offer from payments capabilities, the further integrators, companies to the nearly review agreement over AR as our of systems well executed somewhat is portfolio. financial recently with groups, Currently, are or still and provide XX% fintechs, to much and to perception maximize and over go-to-market invoices information a results cash allows between showed like highlights cash and opportunity not teams receivable majority in-depth we advanced efficiency so an there the their growth collectors drive the everywhere research ahead to modernized, seamlessly solution AR with business of is XX card by adding participating flow services and of opportunity their technology With and our I'd their Mark second buying as help The process global more call insights in system are automation payments an partners wires consulting over the We customers.

Thank you afternoon and good everyone.

Flint pleased very As with quarter. mentioned, are accomplishment our this we

offering our ownership of secondary with and institutional This the the a Towards owning underwritten of beginning orderly from longer-term stocks. shareholders began closed the July. June, end registered transition at public of we our investors pre-public company share launched to view transaction which

our investors of as and existing offering The our secondary well position many was with a stock. participating oversubscribed increasing ownership to investors using number opportunity establish as significant of long-only this in positions their new

million, in an quarter QX. was in results our XX.X% of financial $XX.X increase Net to the now Turning revenue year-over-year.

second was software the COVID, the year. improvement quarter returned $X.X expectations, $XX.X later to and again compared Software was modestly towards cost Services segment or print also to revenue of in year-over-year was in net expansion same revenue measures payments. in year net XX.X% segment cost to the driven margin revenue in XX% margin profit of XXXX. to primarily The the million. growing mix or against Adjusted while million year-over-year from which $XX.X payment growing XX% exceeded revenue expectation, tough by shift million million. higher to $X.X some in XX.X% response gross when we began ahead was and margin short-term revenue period the gross our grew to year-over-year last $XX.X comp This million of normal of revenue million $XX.X reduction

quarter. Turning the now expenses our in to operating

growth quarter Summit to in million an million and comp were expenses overall in associated $X.X approximately included our in the increase in We some of were marketing the the percentage slowed from $X.X revenue. short-term year-ago in its $X.X year-over-year to loss ago It a discussed. period. and million in prior-year very each made incurred to $X.X in and hiring million compared the mentioned. in company the QX highly equivalents and Billtrust underwritten million offering accelerate a costs the with to the the marketing case, has larger a research for period. were expenses investments budget to the to cash with loss period. $X decision no secondary development talent. expenses year-ago to G&A Adjusted our includes in $XXX The host a $X million quarter ended the to compared $XXX,XXX was and sales sheet period, been borrowed just has $X EBITDA cost successful million larger of expenses compared reflects in in $XX.X were increase Sales and compared quarter of million balance I a and also stock-based We year million current XXXX on Excluding competitive not that Flint topline a had of expected debt those the by money. market positive strategic

the annual a net Turning million continuing We to range provides our XXXX. year had a raise visibility midpoint the to now in the to strong year of at guidance guidance more full-year as the well with revenue which confidence our on QX us as the narrowed $X momentum the our of of remainder basis with fiscal outlook. XX, July total ending by December

$XXX narrowing We including of revenue of to $XXX a guidance million million are $XXX to from increasing a range million and range million. of our total million costs $XX $XXX through reimbursable revenue

net which is projected of $XXX guidance greater expected We from expected million the at million are previously million our software than than narrowing net now would is and which $XXX also of and growth year-over-year in grow revenue increase represent of payment $XXX increasing range growth. a being midpoint a million to revenue rather range our This XX% million as XX% projected. to $XXX XX% to in segment year-over-year revenue by to net driven $XXX

XX% expected would the of $XX to million back we an points. approximately correspondingly a On is XX.X% to XX%. $XX payment a million be $XX XX% million from be adjusted of gross which XX% midpoint range the year-over-year and at midpoint, million, of to margin to be in XX% mix $XX now range at profit, this higher increase software expected in a Consequently, segment margin shift narrowing the gross range increase of of raising to revenue, our and to or or which range of million are $XX XX basis year-over-year adjusted was to to a

the closer rate be to EBITDA we range. that Flint we if into the adjusted business. of the again, EBITDA expect given end described range $XX We plan hire huge fast we expected higher in $XX enough can negative adjusted quarter's million the even said million. reinvest to continue Lastly, Once over-performance to previously would negative beyond therefore of and to to we be that this opportunity

the softness earlier In terms tempered services. of of payment segment expect see growth we software in in in by to improvement noted the print and year, and remainder nominal revenue

on implies customer and half but in first our a rates half first those discussed a tough the in year-over-year quarter. the quarter, we comp that combination, timing of expect of last call second year unusual As the year growth this consequence from exceed to legacy recognition the in of this the second as the year-over-year the of revenue rates half year

business partnership. think revenue as to of provide XXXX. will through with a our our confidence of our logos These indications term continue in we of in into on volumes, strategy XXs subscription trends begin marketing low trajectory our and executing acceleration an exit we we a our acceleration with acquisition our and assumption the potential that growth the about to well year payment from the payments into in see will new year segment constructive remainder momentum as us in of on business, year, remain mid through in in and trends the in efforts the leading to this sales As both longer next that high degree conjunction software success land-and-expand early economy

call. in question. the discussing you to about be Thank opportunity Operator, We're for to incredibly open your please happy continue We again future. our ahead and the progress look excited the with answer you forward the to joining lines.

comes [Operator with Blair. line Bob Instructions] question. first William Please of your with proceed Napoli the question Your from

quarter of of those eBills lot number volume, nice afternoon, the which talked, you, especially Now metrics in as you a good in Mark. and look so software good metrics, presented Really at revenue, acceleration? Flint see number the payment of is the and there payments second - the the the and would of a - acceleration metrics software Thank the like year be rate of it that that be growth, the at in and the a nice Why other the but in half with could XXXX. acceleration back in XX% seems that correct? high into some payments growth revenue some not to

the Mark. it's Bob, Thanks Hi for question.

it customers think back year-over-year, on on of the look to and we last when to delighted year-over-year and to were of very half payments we took year, relative that. take are is first, - we some couple some are to contributing there subscription that's large nicely we at about first So able things that both comp in the

in seeing we're increase expect of quarter-over-quarter-over-quarter. going makes but we over the tough year a second overall an So to absolute comp that numbers acceleration difficult. continued half And a continue, very

So on that's month-over-month, basis, and into we we we into it a but to a have makes things next acceleration in growth why good that continued said trending I about as continue absolute it quarter-over-quarter, comp. terms, feel great year. difficult some said, see And visibility we are how year-over-year

competitive on Great, on just M&A if front, front. thank now quarters you're opportunities acquisition, I would acquire? and next or the seeing would that know the should and just - there to see in we think, of M&A Billtrust over expect now out And looking active you the to environment be being Where and you significant it's you M&A for what several in very you've another is your thoughts then called acquired. space this I on player out the but maybe

been clear Flint. one the is that very it's that more reasons you Bob, went think we I publicly public be acquisitive. for the of we And Hi we've so Thank could question.

but be this aggressive is intent Our area, to foolish. not in

healthy in prices variety paying. deal, doing a do sake is that to going deal for market sure of just the we're not of for things. a terms are we're So but people It of a at looking a

here, over are next see makes and a we don't got would deal us and going I here. the I deals pretty I expect So to XX that but play our and we few do be belt will that sense get think some things Mark we've would a active start you in months if disappointed under

into payments business X.X clients very and and contributing being monetize the does years? momentum appreciating quick revenue that? the about payments in How on versus What the payment strong growth software do volume our question the next contributing translate growth last is you that would Then X.X then revenue? network. that BPN How revenue it to several X.X or see How over just received? that we and how

a subscription the invoice X.X versus revenue - X.X, in X.X. the get portals, made digital. payments been we delivery to providing here every two BPN We've into site. that accounts those organization bet We've going so move billing talk about differences now and is that and more online more big you included is Yes, if now. scale payable for the need X.X decades with almost that to includes of as in and But pretty

providers and going not that yet. recognize They large use going adjusted is we payments to and payments more buyers are both every software invoices more AP is more to receive that don't digital firmly everybody even pay that, by initiated We acute. pain lockbox. and large know to their to AP at more to supplier the portal, want for AP a getting and also becomes the providers, invoices from send that more are But being need as and believe

payment side both filling invoice acceptance delivery on from a we're buyers. for big and large that need So their really supplier

that software of will payments invoice its BPN obviously revenue. in delivery, the You be monetization. of financials software see our BPN will and X.X additional but lots has as suite payment because specifically

with question proceed with Please Citi. comes line question. Schmidt the Your from your of Andrew next

I correctly Flint, taking Mark think BXC Hi on be expected the underlying one on congrats I of in actually software quarter quarter, fair exclude it clients remainder the XX% Is sort to client, you maybe the something missing growth of am off I of correct, If to thank kind the remember XX%. start of one quarter? the the or growth first of it's and you in would here terms - So dampen year? Wanted growth the platform Thanks. if second was around was higher, for revenue - that's the that that of here in yes and in impact, for underlying the XX%. questions. hi payments acceleration that my that the

without commenting growth no year rate our that in at whether level a a was notwithstanding Sure, customer XX% That numbers right. you're and in it's our QX is or headwind. absolutely XX% not otherwise, payments in on was last software numbers

Got it. to alluded think And then stick you Appreciate sales with the investments release. to out that success is and clarification. thing one I that in the early me really marketing that the

are more it year? I success of half marketing and and then could sales mind, think next we here. expecting seems a more benefit ramp the thing about you in the intuitive you a into from the in bit you're if talk don't little and back front the should So seeing

So maybe accelerating your going a little growth of Thanks. - payments software confidence bit and that how in talk forward? influenced

talked this - you. Flint Andrew Yes is we thank

and a near that we our dividends deals have is and across of live. invest marketing, some to the aggressive terms get and lot about aggressively So from hasn't but record had quarter numbers to the just had talked sales new new even for revenue in investments bookings marketing. paying of We in entire in quarter yet, not we sales logos the showed that and team. itself because people, continue We And we signed. those great a in

down partners that not on about excited our I results very would to and a and and the are for we also Having talked our pedal about big underestimate is deliver So the we marketing channel, continue us, the right. part initiatives - channel business sales what's also we're in expect and getting from keep that growth past. to in the initiatives, happening of

will having well sales on software team our an efforts manifest our our as payments in higher itself time. as channel and growth efforts direct marketing having over impact and So certainly

hear, is to I helps and front, of one rates sneak highlight it's opportunity like on transactions BXB the that time, number some adjusted a of obviously a ticket likelihood Summit, level great in It happening but That's interchange question certainly for but that could been space. your players, seems on big perspective. seems others there like for this from or encourage to still listened sort significant card? more the Billtrust growth curious, in, boost thoughts Billtrust of front? it's that the revenue of sort was What's just rates development sort be visibility to any about and talked in to of I higher interchange higher would it pretty on Flint If there

brands unlikely the the drop versus is but T&E be I a get where and expect a cannibalizing say that change card some today. points of of that rate well, BXB it XXX are that would that redo where hand that brands wouldn't prop rates rates think will that. They be seems they interchange to I'd things want got are in surprising can the we've of basis to all going in build and for there are I is That said, pick there are would expect Yes, in that to the I like banks - and BXB, sudden short-term because to going done. card today and to afraid It will as a that banks continue buyers to that And transact. rate grow. blanket interchange occurring in suppliers to a the any

Now make flow and those if does it to so - how of money regardless right. said that, going we've we're payments

making digital digital and thrilled monetize card. are payment money for or move accelerated moving they any card rates faster, it's more we're or whether and But ACH. checks showing are to that we on our As that digital we money we're can payment ACH making whether card paper are it's

Tandon Needham the of with from line Company. question your question. Mayank Please with and next Your comes proceed

for on Kyle questions. Mayank. This actually the Peterson for is Thanks taking

the the alluded that of about hiring the to of in the touch dip with which think we bit a shift the next over guys on few impact there some - should the that gross second of little sequential little of that the year. on bit a a guidance Sort implies the gross of you quarters? there'll Is be half is of revenue or a some adjusted mix like margins margins

Yes, it's a observation. good

we hopeful I the of very just shift that feel little bit a a the the midpoint. where about overall in performance, We them second results bit, little we're quarter so conservative tamper very be tremendous in and and we're at think to a might the them on repeat about might half, margins XX.X hard it. had pretty it's little so back bit mix I'm comfortable with - good but tamp but gross on down level being the still first still

investing you and And then maybe priorities build kind you know product new term? some priorities initiatives, clients I the the for near your increasingly asking What been what have are like really product heavily in just the are are to higher question, in suite, focusing what's on guys key that and out in of a trying guys higher-level like? of R&D

of there's two call Yes, work and so continuous them flavors discontinuous things innovation. we innovation We on.

innovation two-sided asking of those in discontinuous doing we're was products ago things BXB existing these is the always to and to support payments. are related So our that every which we We instance, existing we that continuous nobody BPN us that new a into The products. few our ACH solution asking aren't that for for, and added relatively innovations is launched for for our solve features whopper were capabilities capabilities new announced collection product in stuff instance, the asking customers customers for. years for we are problem releasing quarter, this a market

is what's but as plenty want capabilities about we we're and about on we've solutions. those invest things of per other continue some one as kind there's. to year in on what well to talk of share innovations effort new average discontinuous our major BPN don't always next there, spending There's We those well. to some or So in

the comes question. Cantwell from your question next Jeff Guggenheim Please Your Securities. line proceed of with with

does Thanks about why, for reasons taking we models What about calling some we time highlighting game generation? the my which change that trying single updates. revenue revenue? color spend so BPN this as feel mean Thanks. meaning our give what for to for you Just more also subscription on on you're want to some a your to Can we And on implication presentation? being suppliers that some I How questions. clear about that like into Flint, you available us might via differentiated should price this. think X.X and it? now BPN get about be the in talk a more you're be can changer, what's your means these thinking

Yes.

A before. has be network. with the some out network. So then everybody SiriUs glue of networks not Ultimately, trying ATM sort trying to NYCE. money and network. when already we of We're from the not trying wanted you only NYCE the be the all first then to digital payments Visa only network. not Back to to ACH that your and out network, SiriUs we're if take the stitched you only the this There's We're and the the to payment and trying an and done the can BPN, exist it in why the today, ATM today a the stitch that's one and is never they you whether Ariba changer. interoperable you withdraw a exist network. on This Those there to We're cash to market launched it's and could wants we been your to exist started it that network, will like were network, but networks to back now to was still which in BXB allow is doing payments a provide that networks We're so example and those doing network, framework the on networks you think did that go the at of not. exist this were the no to could interoperate game it new world. we together of the that private payments. payments we BPN, not together great only two-sided delivery invoice day, whether network did be network is yield is and plenty ones networks thing bottom-line take look interoperable Avid to or see before are card bank money higher

the is to to of money. signing to subscription. in we can our use delivered the of more will elements make then the terms three They BPN the as starting and every model that BPN towards built of and another that and invoice piece counts It In without we've the BPN. component or of customers BPN easily that tier one tiers, Many card, every revenue, contribute subscription be with start payments revenue of by subscription upgrade tiers could they paper ACH invoicing. another just will through it those subscription those go

it salesperson more money, them As more and we go will require go to sell else. something digital, things make doesn't

Interesting.

color. great that's Okay,

There's your from you to guess you're we right, a going interacting they're externally, thing we it change, staff, hire think always about the maybe to competitive customers, is can competition, focusing to customers your try it's perspective other course, I internally, terms ask things wanted about, how of right, about also environment how in you're competitive really when on environment think control, and control but cetera. I et of Flint, so maybe like things never that's and The can it's you product. where with it's meaning new and been

in question ahead, your my thoughts give would to you both Can hear is, driving at externally? you you're you're you're terms of environment about and in do some We the is Thanks. us what you environment. doing how love can about maybe how competitive adopting? staying internally this what there to Billtrust So talk thoughts

healthy. better. competition makes on think perform is and It I listen, and keeps your you toes you Yes,

large of in a companies to customers group they on peer if whether like aggressively things, There's on is If and figure at to that is. there win, our around duking of you within for a XXX is going that been innovative believe it rolling versus on I most you at where the going all specific we space a side focus AR business time. quite probably have We the the We've it AP where there. accounts certainly are go-to-market there Billtrust. the a out how got look person small we're think legacy they're even maybe look have and side specific vertical strategy after verticals verticals, bunch long of out is and and focusing focusing payable folks elements

about bring in are it's advantage So leading terms to terms gives which of of innovation, us several-year the execution. market. we Ultimately, in we though believe capabilities we a

if You can executing, you as it but be as not you're visionary want, really doesn't matter.

across because we for nearly been we XX fronts, believe So execute we all doing that years. have can

So as our It will like enormous player of not disappear. us competition our I would need it fair to healthy do the is have be we more only get competition for much is to to market. certainly share an market. as We and than the

just and Yes, quick... a

run on example Jeff, exist I in an and context. it's and just BPN observation of Five execution. annual of process didn't volume. of billion $X mean Flint's On ago, years an vision today, rate

of to So that me a is Flint said. what great example

Right.

if could And a great. I last Okay in. squeeze one

with about optimism you is you're that go that talk a revenue it little might guide, say Is it that, to increased from the increased just Thanks. thought greater want it back the bit great. the the greater attributing about break clear to just we How this the double BPN base? Can about I have on check growth the I customer what On have one make right. you the is growth? to? you fair of optimism be want with I be that that wanted that Maybe, to would just to economy a causing to related Is - half about momentum, year, your out forward. rebounding? that guidance. sure

Sure. question. Great Yes.

is say the board I it and So Payments our Software in would segment. across

really As Payments how for are Software delivering transactional much and the I and looking on is software services course, of of said, we're and out and We're print. focused not outperformance coming, payments.

card but really some We're transactions come it that's more the through it getting back So components ACH system the outperformance subscription, and on transactional. is we've and customers strong. seen also transactional who are running

would I QX, think some we this optimism after cautious that had continue.

I July momentum that very We rest heading good into the year. seeing the think about after QX, feel continuing we of July. into

of with Your line the next with proceed Please your question question. from George Cowen. comes Mihalos

the level, I I to wanted a ask high Flint. thing at guess first just

over in depth growth. term? benchmarking an just talk Global can a us potentially of success you could little you meaningful bit you're of sort a about kind of how that, to quantify if going acceleration on how in you're give an Partner If drive acceleration and more maybe and that not Maybe sense there Program, talk the of longer

be can meaningful. successful, if it So incredibly

So we drive can to from prove business have that we significant channel. the

XX,XXX we think different we AP their business is getting we had The company go-to-market a hiring direct the by with BPN talked us resell integrations channel and who get and the been just ERPs. is supplier providers who by strategy we salespeople. So to way was things, the Last and it partnerships influence XX,XXX, we've signing not to I about with ERPs around always number customers We're XX,XXX to arming customers more was but ERPs this a is ultimately channel Its It digital customers XX,XXX, banks those friendly time, solution. had, that a and treasury business. the clients. lockbox want have with X,XXX.

here, strategy consistent importance the it announced but don't yet, have We great partnerships. about we've proven about time spend here. talking So channel. have companies significant made hires a is proven speaking changer. other we that so big been We've too our we about us it we game here, things is and of to if want a channel haven't is for success successful interoperability, potential are BPN deal execute a with channel to the some much classic

XX% revenue margin, the margin. guess if it's at Okay. prior in the the of to saw and wanted comparable, I better than year, appreciate the back it's a on there. with we question enthusiasm half to on gross half second Mark, the I second looking the gross the over what net back similar I'm quarter just color circle

pushing it? the to year? of now down? as the you. that want cushion just channels of I half that you sort conservatism? you're of Is think So I just it be there think it Thank understand is back make about would And Is have what seeing impacting as that you are you to that a something kind or just want sure some

is making concerned the half that margins gross you of on pressure seeing about year. back the not We're Sure.

catch had just and we on pressure things pressures to are there we should we looking up those are performance think to seem great right them some investments, some any not the hiring, gross but some first of now. possibilities half. so different could me, some put margins, in I make on seeing on perhaps that factor in We're

brings of said we've XXs As that's down and print, against before, how they're into our what the and the payments, mix and it's are in margins a gross in bouncing it already up just and really software services XXs. somewhere

question. from line Joseph Please Your your with with of the Canaccord. Vafi comes next proceed question

second through that? Hi, Flint. your follow here Nice on congrats quarter, public Hi, on Mark.

Thank you.

pump really mean Could a deep kind bit of what customers points maybe a George's can on my your software, some one your some some and remind leads channel. from little I or great solutions kind channel and more help, prime of just to of then being have point of of follow-up you here the question like on at it on Maybe at great on some is you've little they're how the consulting partners of now get from and this pain point? developed the view, installed customers kind I'll your there? to us kind follow-up able new color big your a your the solutions relative seems and of this doing is channel the how

most the example think BPN digital obvious lockbox. the is I Yes, around

to is that So believe way to need efficiently. electronic enterprise every ultimately, a going large accept we payments

it about a coming right. payments you today, think If the hot way electronic mess, is

and virtual ACH in separately coming their email You've got with cards via is account deposit delivered into bank in being remittance. email.

our many automates that. remittance and that website lockbox into BPN the have digital of log on customers got all details stuck to You've

everybody problem going As payments becomes that so ultimately go more is digital, believe that need that. to more worse, we and

and digital up this a than just want like have of blocked to lockbox role and on want we've aggressively to don't out challenging should groups to out banks in of basis Banks relevant. be We these solutions think think have to they sort corporates we a is that offer offer that signing their blocked a clients. more want were they depository banks that to be they to treasury got payroll. regular So They of sell that. treasury

like generally of the they and have So challenges new for that with logo. new are we customer, time, could one you building software us a signing stay is company relationship and a we a that we as sign - landing long cross-sell with a Once to a already got something but facility surprise that. credit they've no these have new us. or additional the able relationships don't big they things, is relationship logos, have levels, hard Banks at because highest often

to So like it's a digital the much easier with interesting an to lockbox. people right for bring stories get them audience

early far. So but work we've best we're that's why I it's excited the do, think We've it's to pretty innings, got about so made so transformative.

you you if a this and How you've here, institutions. lot systems that of some partners financial got can sort for there Sure do channel probably got integrator, - talk out? about Flint, have you've but whole you area while, a

not is Yes, who partners network partners. key of now part have dial like goal our implementations. the it's partners. expected, sorting but solutions bank hiring that around We've of got as The been discontinuing partners. different partners and we a are have who Lazar She because this we're different our we from the to partnership, the Gwenn performing and inherited introducing through scalability We performing things success. have we sure aggressively the inherited the earlier the some some announced goal we got of expect not year are Billtrust is into some is we one and partners them, can X,XXX making because to partners. keys are to us implementing We've turn off Visa

sure partner, really sure something doing about perform. to it don't them, want the not you sides for that of around partnerships. skin you know just do out We've XX making need making you to We're kind been both stuff. in on of making so there the want very in game excited press there what that years. for release is So sure both is We

and for partnerships will deliver for partner. looking actually that we're us So both the results

of Huang question next the from with Tien-Tsin your proceed question. line comes Your with JPMorgan. Please

you. thank Yes,

sales tougher. comp of great add for second and ground sure in partner in half me here. Let a the and channel the lot raise the in hear a results covered I the and investments, the you there to with backlog But ask replenish here pipeline? I do the little bit the wanted what additions in the you second large that, can see customer in just given like feel you you some half on

the I don't new think sale.

Go ahead.

not year, mean see Tien-Tsin. a back customers Mark, you're material of going If impact. to the a little half in we start, I that hi signed any the

that great quarter us. of but we've - So visibility a We've into certain the Mark sales we behind an tailwind have shown we've first got addressed terms happens. revenue, certainly great think what second got had accelerated and and will has impact on I - payments in

the So, year. I know contribute in we half of expect to the that all back

quantity size Got general share translate just fair right to in sort it. see point from interesting us as of the pipeline - general in compress of curious I the in anything of that just as you quickly, some just But wins the the beyond of then if but with the of well there logos, can logo on quality there. what the is

were growth year it I QX year, that XX%. able revenue. in put year-over-year we're but to this full net we If guide about way, growth I finished we're think it to now XX% was don't guess following last in and where where went we visibility context. raising year-over-year, we into to let's Yes, with the we Nevertheless, year sharing. think think XX% about I

XX%.

that So look like there are making there it the are that fact comps deceleration. is tough

we said, And our to payments and growth grow. have are we're for low business the as to good visibility other in that's at a us that with year-over-year right level where the year-over-year bring there why basis I on that past right grow with over that and think next play year relative in a on looking software - but backlog then could levels. sort mid-XXs that a same taking I the story higher. into the four it then the of lower finished we seen to possibly we've a at continues how the things think saying things We're basis comp, into and

feel have around visibility good pretty software business. are about payments we our we and we So where the

heard sounds ask that think times. certainly the everyone's if mind, you question don't Last I theme, no Yes, way. just one, this million side, been hiring a on me that's

right finding in get the that lean for feel I talent looking ask you front? this on war like to and you just on people investments, So to you can are who for do guys the folks

take that want Mark, one? do you me to

Yes.

it's for with great great there a companies great you, are lot culture to tough a there labor to yes market people. and out filling of Thank we're get environment trying and a a we that offer sure want aggressively, at spots people certainly but work

certainly we're of positions, people of couple marketing hiring sales positions, lots We're new to people. fill every positions. R&D class So weeks admin positions, landing

team we've those So and - great we're got pedal-to-metal on filling a recruiting recruiting that's spots.

it. glad to it, and hear I'm Got

And the effort. we that have good news budget, that will accommodate as a

you. Right, you thank guys. for update, the Thank

Thanks.

question. your question with comes line Beck Josh of Capital Instructions] [Operator with Your Markets. the next proceed Please from KeyBanc

the wondering you Josh. again. connected just able quarter for of you taking for are that [Marianne] Congrats on question. cover I is wanted the and to that? thanks portion to circle accounts that XXX payable BPN what think portals, was X.X you're This my over guys - now back I to with market to

portals, no well but of talked We the requests payments. I'm I as question. It's for of new getting as of start are for great number. quickly our BPN. it but XX% potential we're is metric I surprise volume to but all about of making share - the a I XX%. around we into portals, exact they're invoice number, with with it's north Mark system, going sure a could that would we delivery it's up Yes the what don't the and different be - another those north talked biggest probably know customers it's are added metric

marketing, I was in future? in shifting wise see to in could just but you go-to-market things mix investing I sales where back any on also your guys more of if team. color then just investment guess And partnerships, you're you in go give that mix to the your internal your and wondering sales as

we in I in we're specific that, in those investing our marketing, force mix sharing investing our investing aggressively don't sales all channel. of aggressively but in things, aggressively aggressively think and investing direct are

making dividends, into that So that opportunity we growth, all somewhere there factor if our we will an to is investments. we're think believe pay and invest will

a cash As is with of million bit on over balance sheet. war on public a going sitting we're chest, the $XXX

Some of lot growth initiatives is a that is certainly that of earmarked earmarked for M&A, for but too.

different evaluating we growth are So of initiatives. lots internal

Joseph question Vafi next with Canaccord. is proceed Your from follow-up a your with question. Please

on but some that answered I deploy a could areas question is into there know LTV was you and good to the area direct of lot highest a already now into kind in could sales, lot mean, of of the you allocation, I deploy the Thanks. deploy may - think maybe you channel, a capital mean effort? I any right lot have could be a previous that I on CAC a I ROI, you mean, your into lot perhaps

jab take a you to want do Mark, that one? at

in a it's being candy a almost kid store. mean like I Yes,

What today, return chasing about spending products should market, we the And our which in be - us. products our to which strategy, because are we we on. will future, is go-to-market same are of of view customers the the at which on fantastic weighing for play off somewhat a doing equally many and sort product more and the best We next we have looking very so what what all investment be opportunities each other later time customers which makes taking they nicely. be in buy today, the Joe, we're is direct - channel investment what of types going we're at sense should in our deliberate

think So spend. discipline to I impose trying we're to how on

those to But and that I on We accelerate short-term, that answer we'll know out just which budgets for than. don't to can for that we're how on a direct of what from see channel We investments to also to we're to acceleration return to radar into bring within the we are then investments only year. differently greatest next is timing want the year longer-term product opportunity, do trying and stay this the was layer that. the making somewhat said the we If screen growth. originally looking in and of which budgets already other get the we question they when get variance

good Mark. Yes that's color,

staying so think here. opportunities important just it's - very market, what's opportunistic it's of lot think we're there's and growth and I is active it's very just a just focused a just all I we're - -

what That's doing. we're

of and call reached to to end Ladies and gentlemen, the question-and-answer remarks. the session I'd management we for have the like back turn closing

Once everybody in again, participating call. earnings this thank you for

are reinvent We put and up as ahead we but about quarter, BXB excited continue receivable second about results the the excited accounts a future incredibly the great more we to night. Have payments. in

conference. today's concludes This

this your your You Thank at time. you for participation. lines all disconnect may