BTRS Holdings Inc. ("Billtrust" or "the Company") (NASDAQ: BTRS), a
B2B accounts receivable automation and integrated payments leader,
today announced financial results for its fourth quarter and full
year ended December 31, 2020.
"I am very proud of our record fourth quarter and full year
results," said Flint Lane, Founder and CEO of Billtrust. "We
believe that Accounts Receivable and B2B Payments are in the midst
of a transformation. We've invested aggressively in our team and in
our software solutions so that we are positioned well to capitalize
on this shift from paper to digital. During the quarter we saw
continued strong adoption of our comprehensive B2B payments
solutions, demonstrating the significant value we create for our
customers. As we look ahead to 2021, we remain excited about the
enormous opportunity to scale our business, building upon our
world-class end-to-end integrated receivables platform.”
Financial Highlights for the Fourth Quarter Ended
December 31, 2020, as Compared to the Same Period in
2019
GAAP Metrics
- Total revenue increased 7.0% year-over-year to $38.7 million
from $36.1 million in 2019
- Software and payments segment revenue increased 17.8%
year-over-year to $22.1 million from $18.7 million in 2019
- Gross profit, excluding depreciation and amortization,
increased 17.4% year-over-year to $21.2 million from $18.0 million
in 2019
- Gross margin, excluding depreciation and amortization, expanded
by 485 basis points to 54.7% from 49.9% in 2019 from improved
operating leverage
- Net loss and comprehensive loss was $4.3 million compared to
$5.6 million in 2019
Non-GAAP Metrics
- Total Payment Volume (“TPV”), the dollar value of customer
payment transactions that Billtrust processes on its platform
during a particular period, increased 23% year-over-year to $15.7
billion from $12.8 billion in 2019
- Net revenue* increased 12.0% year-over-year to $29.6 million
from $26.4 million in 2019
- Adjusted gross profit* increased 17.7% year-over-year to $21.3
million from $18.1 million in 2019
- Adjusted gross margin* expanded by 343 basis points to 71.8%
from 68.4% in 2019
- Adjusted EBITDA* was positive $0.2 million, compared to a loss
of $1.5 million in 2019
Financial Highlights for the Full Year Ended December
31, 2020, as Compared to the Same Period in 2019
GAAP Metrics
- Total revenue increased 6.8% year-over-year to $145.7 million
from $136.5 million in 2019
- Software and payments segment revenue increased 17.9%
year-over-year to $81.2 million from $68.9 million in 2019
- Gross profit, excluding depreciation and amortization,
increased 18.0% year-over-year to $76.0 million from $64.4 million
in 2019
- Gross margin, excluding depreciation and amortization, expanded
by 497 basis points to 52.2% from 47.2% in 2019 from improved
operating leverage and services segment margins
- Net loss and comprehensive loss was $17.0 million, compared to
$22.8 million in 2019
Non-GAAP Metrics
- TPV increased 25% year-over-year to $54.7 billion from $43.9
billion in 2019
- Net revenue* increased 12.6% year-over-year to $108.6 million
from $96.5 million in 2019
- Adjusted gross profit* increased 18.2% year-over-year to $76.3
million from $64.6 million in 2019
- Adjusted gross margin* expanded by 333 basis points to 70.3%
from 66.9% in 2019
- Adjusted EBITDA* was a loss of $2.2 million, compared to a loss
of $11.0 million in 2019
Recent Business Highlights:
- Strong momentum in Business
Payments Network ("BPN")
- Expanded partnership with
AvidXchange to provide additional services to suppliers through
both the AvidPay Network and BPN
- Partnered with REPAY increasing
the network’s reach
- Extended its partnership with Visa
to provide qualified Billtrust suppliers with flexible pricing
models.
- Continued product innovation
- Enhanced the Billtrust Email
solution to include a convenient and secure payment option
- Upgraded the Billtrust Cash
Application solution with enhanced machine learning
capabilities
- Released v10.0 of the Billtrust
eCommerce solution incorporating an enhanced user experience
- Expanded sales team by ~30% since
September 1, 2020
- Strengthened executive team
- Greg Hanson, Chief Product
Officer
- Gwenn Lazar, SVP of Channel
Development
- Named among New Jersey's 2020 Best
Places to Work by NJBIZ; Named one of The Denver Post's Top
Workplaces 2020
Outlook
Billtrust provides the following financial guidance for the full
year 2021:
- Total revenue between $159 million to $165 million, including
reimbursable costs revenue of $37 million
- Net revenue* between $122 million to $128 million, which at the
midpoint of $125 million would be an increase of approximately
15%
- Adjusted gross profit* between $85 million to $89 million
- Adjusted gross margin* between 69%
to 71%
- Adjusted EBITDA* between a loss of $14 million to a loss of $16
million, including additional public company costs
* Net revenue, adjusted gross profit, adjusted gross margin and
adjusted EBITDA are non-GAAP measures. An explanation of these
measures and how they are calculated can be found under the heading
“Non-GAAP Financial Measures.” Reconciliations of these non-GAAP
measures to the most directly comparable GAAP financial measures
are included in the tables at the end of this press release.
Billtrust has not reconciled its 2021 guidance for non-GAAP
adjusted gross profit and adjusted gross margin to the comparable
GAAP measure, or non-GAAP adjusted EBITDA to net loss and
comprehensive loss because certain items excluded from non-GAAP
adjusted gross profit and non-GAAP adjusted EBITDA, such as charges
related to stock-based compensation expenses, the change in fair
value of contingent consideration related to an acquisition and
related tax effects, including non-recurring income tax
adjustments, cannot be reasonably calculated or predicted at this
time.
About Billtrust
Billtrust (NASDAQ: BTRS) is a leading provider of cloud-based
software and integrated payment processing solutions that simplify
and automate B2B commerce. Accounts receivable is broken and relies
on conventional processes that are outdated, inefficient, manual
and largely paper based. Billtrust is at the forefront of the
digital transformation of AR, providing mission-critical solutions
that span credit decisioning and monitoring, online ordering,
invoice delivery, payments and remittance capture, cash application
and collections. For more information, visit Billtrust.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“estimate,” “plan,” “project,” “forecast,” “intend,” “will,”
“expect,” “anticipate,” “believe,” “seek,” “target,” “guidance,”
"outlook" or other similar expressions that predict or indicate
future events or trends or that are not statements of historical
matters. These forward-looking statements include, but are not
limited to, statements regarding Billtrust’s financial guidance and
estimates and forecasts of Billtrust’s financial and performance
metrics, the potential benefits, value and the commercial
attractiveness to its customers of Billtrust’s products and
services, Billtrust’s opportunity and ability to grow and scale its
business, and Billtrust’s technology platform. These statements are
based on various assumptions, whether or not identified in this
press release, and on the current expectations of Billtrust’s
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and may differ
from assumptions. Many actual events and circumstances are beyond
the control of Billtrust. These forward-looking statements are
subject to a number of risks and uncertainties, including
Billtrust’s ability to attract and retain customers and expand
customers’ use of Billtrust’s services; market, financial,
political and legal conditions; the impact of the COVID-19 pandemic
on Billtrust’s business and the global economy; risks relating to
the uncertainty of the projected financial and operating
information with respect to Billtrust; risks related to future
market adoption of Billtrust's offerings; risks related to
Billtrust's marketing and growth strategies; the effects of
competition on Billtrust’s future business; and those factors
discussed in Billtrust’s final prospectus (the “Final Prospectus”)
filed on February 10, 2021 under the heading “Risk Factors” and
other documents of Billtrust filed, or to be filed, with the
Securities and Exchange Commission (“SEC”). If any of these risks
materialize or any of Billtrust’s assumptions prove incorrect,
actual results could differ materially from the results implied by
these forward-looking statements. There may be additional risks
that Billtrust presently does not know of or that Billtrust
currently believes are immaterial that could also cause actual
results to differ from those contained in the forward-looking
statements. In addition, forward-looking statements reflect
Billtrust’s expectations, plans or forecasts of future events and
views as of the date of this press release. Billtrust anticipates
that subsequent events and developments will cause Billtrust’s
assessments to change. However, while Billtrust may elect to update
these forward-looking statements at some point in the future,
Billtrust specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Billtrust’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Non-GAAP Financial Measures
Some of the financial information contained in this press
release has not been prepared in accordance with generally accepted
accounting principles in the United States (“GAAP”). Such financial
information is identified as such within the press release.
Billtrust believes that the use of these non-GAAP financial
measures provides an additional tool for management and investors
to use in evaluating Billtrust’s actual and projected financial
condition and operating results and trends in and in comparing
Billtrust’s financial measures with other similar companies, many
of which present similar non-GAAP financial measures to investors.
Billtrust does not consider these non-GAAP measures in isolation or
as an alternative to financial measures determined in accordance
with GAAP. The principal limitation of these non-GAAP financial
measures is that they exclude significant expenses and other
amounts that are required by GAAP to be recorded in Billtrust’s
financial statements. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management
about which expense and other amounts are excluded or included in
determining these non-GAAP financial measures. In order to
compensate for these limitations, Billtrust presents non-GAAP
financial measures in connection with GAAP results. Billtrust is
not providing a reconciliation of its projected non-GAAP adjusted
gross profit, non-GAAP adjusted gross margin and non-GAAP adjusted
EBITDA for 2021 to the most directly comparable measure prepared in
accordance with GAAP because certain items excluded from non-GAAP
adjusted gross profit and non-GAAP adjusted EBITDA, such as charges
related to stock-based compensation expenses, the change in fair
value of contingent consideration related to an acquisition and
related tax effects, including non-recurring income tax
adjustments, cannot be reasonably calculated or predicted at this
time. You should review Billtrust’s audited financial statements
and the other financial information included in the Final
Prospectus and other documents of Billtrust filed, or to be filed,
with the SEC.
Net revenue (non-GAAP) is defined as total revenues, less
reimbursable costs revenue.
Adjusted gross profit is defined as total revenues, less total
cost of revenues excluding depreciation and amortization, plus
stock based compensation expense included in total cost of
revenues.
Adjusted gross margin is defined as adjusted gross profit
divided by net revenue (non-GAAP).
Adjusted EBITDA is defined as net loss and comprehensive loss,
plus (i) provision/benefit for income taxes, (ii) other
income/expense, net, (iii) interest expense, (iv) depreciation and
amortization, (v) stock-based compensation expense, (vi)
restructuring and severance costs, and (vii) acquisition and
integration costs.
Investor Contact:BilltrustIR@icrinc.com
Media Contact:Meredith Simpsonmsimpson@billtrust.com
|
Condensed Statements of
Operations(Unaudited) |
|
|
|
|
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenues: |
(in thousands) |
Subscription, transaction and services |
$ |
29,591 |
|
|
$ |
26,409 |
|
|
$ |
108,569 |
|
|
$ |
96,460 |
|
Reimbursable costs |
9,064 |
|
|
9,731 |
|
|
37,116 |
|
|
40,008 |
|
Total
revenues |
38,655 |
|
|
36,140 |
|
|
145,685 |
|
|
136,468 |
|
Cost of
revenues: |
|
|
|
|
|
|
|
Cost of subscription,
transaction and services |
8,431 |
|
|
8,379 |
|
|
32,531 |
|
|
32,015 |
|
Cost of reimbursable
costs |
9,064 |
|
|
9,731 |
|
|
37,116 |
|
|
40,008 |
|
Total cost of
revenues, excluding depreciation and amortization |
17,495 |
|
|
18,110 |
|
|
69,647 |
|
|
72,023 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
9,208 |
|
|
9,290 |
|
|
36,468 |
|
|
34,285 |
|
Sales and marketing |
6,125 |
|
|
5,151 |
|
|
23,420 |
|
|
22,098 |
|
General and
administrative |
6,962 |
|
|
6,863 |
|
|
22,188 |
|
|
23,297 |
|
Depreciation and
amortization |
1,401 |
|
|
1,776 |
|
|
5,624 |
|
|
5,881 |
|
Total operating
expenses |
23,696 |
|
|
23,080 |
|
|
87,700 |
|
|
85,561 |
|
Loss from
operations |
(2,536 |
) |
|
(5,050 |
) |
|
(11,662 |
) |
|
(21,116 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Interest income |
— |
|
|
— |
|
|
18 |
|
|
1 |
|
Interest expense |
(1,256 |
) |
|
(525 |
) |
|
(4,661 |
) |
|
(1,507 |
) |
Other expense, net |
(467 |
) |
|
9 |
|
|
(518 |
) |
|
(21 |
) |
Total other
expense |
(1,723 |
) |
|
(516 |
) |
|
(5,161 |
) |
|
(1,527 |
) |
Loss before income taxes |
(4,259 |
) |
|
(5,566 |
) |
|
(16,823 |
) |
|
(22,643 |
) |
Provision for income
taxes |
(54 |
) |
|
(19 |
) |
|
(204 |
) |
|
(160 |
) |
Net loss and
comprehensive loss |
$ |
(4,313 |
) |
|
$ |
(5,585 |
) |
|
$ |
(17,027 |
) |
|
$ |
(22,803 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information(Unaudited) |
|
|
|
|
|
Three Months EndedDecember
31, |
|
Twelve Months EndedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(in thousands) |
Total
revenues |
$ |
38,655 |
|
|
$ |
36,140 |
|
|
$ |
145,685 |
|
|
136,468 |
|
Less: Reimbursable costs
revenue |
9,064 |
|
|
9,731 |
|
|
37,116 |
|
|
40,008 |
|
Net revenue (non-GAAP) |
$ |
29,591 |
|
|
$ |
26,409 |
|
|
$ |
108,569 |
|
|
$ |
96,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
$ |
38,655 |
|
|
$ |
36,140 |
|
|
$ |
145,685 |
|
|
$ |
136,468 |
|
Less: Cost of revenue,
excluding depreciation and amortization |
17,495 |
|
|
18,110 |
|
|
69,647 |
|
|
72,023 |
|
Gross profit,
excluding depreciation and amortization |
21,160 |
|
|
18,030 |
|
|
76,038 |
|
|
64,445 |
|
Add: Stock based compensation
expense |
97 |
|
|
35 |
|
|
263 |
|
|
133 |
|
Adjusted gross profit
(non-GAAP) |
$ |
21,257 |
|
|
$ |
18,065 |
|
|
$ |
76,301 |
|
|
$ |
64,578 |
|
|
|
|
|
|
|
|
|
Gross margin,
excluding depreciation and amortization |
54.7 |
% |
|
49.9 |
% |
|
52.2 |
% |
|
47.2 |
% |
Adjusted gross margin
(non-GAAP) |
71.8 |
% |
|
68.4 |
% |
|
70.3 |
% |
|
66.9 |
% |
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember
31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(in thousands) |
Net loss and comprehensive loss |
$ |
(4,313 |
) |
|
$ |
(5,585 |
) |
|
$ |
(17,027 |
) |
|
$ |
(22,803 |
) |
Provision for income
taxes |
54 |
|
|
19 |
|
|
204 |
|
|
160 |
|
Other expense |
467 |
|
|
(9 |
) |
|
500 |
|
|
20 |
|
Interest expense |
1,256 |
|
|
525 |
|
|
4,661 |
|
|
1,507 |
|
Depreciation and
amortization |
1,401 |
|
|
1,776 |
|
|
5,624 |
|
|
5,881 |
|
Stock-based compensation
expense |
1,076 |
|
|
755 |
|
|
3,063 |
|
|
2,114 |
|
Restructuring and
severance |
269 |
|
|
689 |
|
|
628 |
|
|
1,215 |
|
Acquisition and integration
expenses |
— |
|
|
341 |
|
|
162 |
|
|
895 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
210 |
|
|
$ |
(1,489 |
) |
|
$ |
(2,185 |
) |
|
$ |
(11,011 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information(Unaudited) |
|
|
|
Outlook (Mid-point)for Full Year 2021 |
|
(in thousands) |
Total
revenues |
162,000 |
|
Less: Reimbursable costs
revenue |
37,000 |
|
Net revenue (non-GAAP) |
$ |
125,000 |
|
|
|
|
|
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