GlobeNewswire Inc | Aug 11, 2021 04:05PM EDT

August 11, 2021

Generated Strong Total Payment Volume and Revenue Growth

Software and Payments segment revenue increased by 27% year-over-year in the second quarter

Gross profit, excluding depreciation and amortization, increased 23% and Adjusted gross profit* increased 25% year-over-year in the second quarter

Raises Guidance for the Full Year 2021

LAWRENCEVILLE, N.J., Aug. 11, 2021 (GLOBE NEWSWIRE) -- BTRS Holdings Inc. ("Billtrust" or "the Company") (NASDAQ: BTRS), a B2B accounts receivable automation and integrated payments leader, today announced financial results for its second quarter ended June30, 2021.

"I am thrilled to share that the second quarter was another great quarter, including net revenue growth of 23% year-over-year and software and payments segment growth of 27% year-over-year," said Flint Lane, Founder and CEO of Billtrust. "The strong results were in part driven by great performance from our software and payments business fueled by our investments in sales and marketing, as well as many of the strategic investments we have made around payments and the channel."

Lane continued, "Furthermore, we were excited to unveil the latest iteration of the Business Payments Network ("BPN") BPN 4.0. BPN is driving significant payment growth by connecting diverse buyers and suppliers, and now supports the delivery of invoices to over 100 Accounts Payable portals. BPN had incredible momentum before this latest improvement, and we believe this additional functionality will be a game-changer for the industry."

Financial Highlights for the Second Quarter Ended June30, 2021, as Compared to the Same Period in 2020

GAAP Metrics

-- Total revenue increased 16.3% year-over-year to $40.2 million from $34.6 million for the same period in 2020. -- Software and payments segment revenue increased 27.0% year-over-year to $24.6 million from $19.4 million for the same period in 2020. -- Gross profit, excluding depreciation and amortization, increased 23.4% year-over-year to $22.2 million from $18.0 million for the same period in 2020. -- Gross margin, excluding depreciation and amortization, expanded by 318 basis points to 55.3% from 52.1% for the same period in 2020 driven by improved operating leverage and an increasing mix of software and payments segment revenue. -- Net loss and comprehensive loss was $(10.7) million compared to $(2.9) million for the same period in 2020.

Non-GAAP and Key Operating Metrics

-- Total Payment Volume (TPV), the dollar value of customer payment transactions that Billtrust processes on its platform during a particular period, increased during the quarter by 47% year-over-year to $18.8 billion from $12.7 billion for the same period in 2020. -- Net revenue* increased 23.2% year-over-year to $31.6 million from $25.6 million for the same period in 2020. -- Adjusted gross profit* increased 25.3% year-over-year to $22.6 million from $18.1 million for the same period in 2020. -- Adjusted gross margin* expanded by 119 basis points to 71.7% from 70.5% for the same period in 2020. -- Adjusted EBITDA* was a loss of $(3.0) million, compared to positive $0.1 million for the same period in 2020.

Recent Business Highlights

-- BPN shows accelerated growth BPN TPV increased 160% year-over-year versus an increase of 146% in the first quarter of 2021BPN Card volume increased 123% year-over-yearBPN now available to suppliers via a single subscription price for both payments and invoice delivery -- Announced the new Billtrust Global Partner Program, offering more tools to promote faster growth and enable the success of the Company's partners and their customers -- Executed a strategic alliance agreement with Wipro, a leading global information technology, consulting and business process services company -- Added support for ACH Payment acceptance in the Company's Collections solution as part of the Company's #PaymentsEverywhere strategy -- Hosted the annual Billtrust Summit with over 1,000 attendees smashing the previous attendance record

Full Year 2021 Outlook

Billtrust is providing the following updated financial guidance for the full year 2021:

-- Total revenue between $163 million to $167 million, including reimbursable costs revenue of $37 million, up from a previous range of $160 million to $166 million -- Net revenue* between $126 million to $130 million, which at the midpoint of $128 million would represent annual growth of approximately 18%, up from a previous range of $123 million to $129 million -- Adjusted gross profit* between $88 million to $92 million, up from a previous range of $85 million to $89 million -- Adjusted gross margin* between 70% to 71%, up from a previous range of 69% to 71% -- Adjusted EBITDA* between a loss of $(14) million to a loss of $(16) million, including additional public company costs, consistent with the previous guidance range

* 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 in the Company's Quarterly Report on Form 10-Q. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included in the tables at the end of this press release. With respect to the Company's expectations under "Full Year 2021 Outlook" above, reconciliation of 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 is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to 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.

Conference Call

The Company will host a conference call to discuss second quarter 2021 financial results today at 5:30 pm ET. Hosting the call will be Flint Lane, Founder and Chief Executive Officer, and Mark Shifke, Chief Financial Officer. The conference call will be webcast live from the investor relations portion of the Companys website at https://www.billtrust.com/about/investors. The conference call can also be accessed live over the phone by dialing 877-407-3982 (toll free) or 201-493-6780 (international). A replay will be available approximately one hour after the call has concluded and can be accessed by dialing 844-512-2921 (toll free) or 412-317-6671 (international); the conference ID is 13721381. The replay will be available through Wednesday August 25, 2021.

About Billtrust

Billtrust (NASDAQ: BTRS) is a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate B2B commerce. Accounts receivable is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based. Billtrust is at the forefront of the digital transformation of accounts receivable, providing mission-critical solutions that span credit decisioning and monitoring, online ordering, invoice delivery, payments and remittance capture, cash application and collections. For more information, visit Billtrust.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as 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 Billtrusts financial guidance and estimates and forecasts of Billtrusts financial and performance metrics, the potential benefits, value and the commercial attractiveness to its customers of Billtrusts products and services, Billtrusts opportunity and ability to grow and scale its business, and Billtrusts technology platform. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Billtrusts 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 Billtrusts ability to attract and retain customers and expand customers use of Billtrusts services; market, financial, political and legal conditions; the impact of the COVID-19 pandemic on Billtrusts 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 Billtrusts future business; and the risks discussed in Billtrusts Registration Statement on Form S-1 filed on June 28, 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 Billtrusts 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 Billtrusts 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 Billtrusts 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 Billtrusts 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 Billtrusts actual and projected financial condition and operating results and trends in and in comparing Billtrusts 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 Billtrusts 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 Billtrusts 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 total revenues less reimbursable costs revenue or net revenue (non-GAAP).

Adjusted EBITDA is defined as net loss and comprehensive loss, plus (i) provision/benefit for income taxes, (ii) change in fair value of financial instruments and other income, (iii) interest expense and loss on extinguishment of debt, (iv) depreciation and amortization, (v) stock-based compensation expense, (vi) restructuring and severance costs, (vii) acquisition and integration costs, (viii) other capital structure transaction costs, (ix) minus interest income.

Investor Contact:BilltrustIR@icrinc.com

Media Contact:Meredith Simpsonmsimpson@billtrust.com

Condensed Consolidated Statements of Operations(Unaudited) Three Months Ended June 30, 2021 2020Revenues: (in thousands)Subscription, transaction, and services $ 31,589 $ 25,646 Reimbursable costs 8,643 8,945 Total revenues 40,232 34,591 Cost of revenues: Cost of subscription, transaction, and services 9,360 7,633 Cost of reimbursable costs 8,643 8,945 Total cost of revenues, excluding depreciation and 18,003 16,578 amortization Operating expenses: Research and development 11,270 8,778 Sales and marketing 9,980 5,129 General and administrative 10,478 4,871 Depreciation and amortization 1,359 1,410 Total operating expenses 33,087 20,188 Loss from operations (10,858 ) (2,175 ) Other income (expense): Interest income 131 1 Interest expense and loss on extinguishment of debt (3 ) (1,102 )Change in fair value of financial instruments and 5 411 other incomeTotal other income (expense) 133 (690 )Loss before income taxes (10,725 ) (2,865 )Provision for income taxes (11 ) (37 )Net loss and comprehensive loss $ (10,736 ) $ (2,902 ) Net loss per common share, basic and diluted $ (0.07 ) $ (0.03 ) Weighted average common shares outstanding, basic 157,197 99,854 and diluted

Selected Segment Information(Unaudited) Three Months Ended June 30, Software Print and All other Consolidated Payments (in thousands)2021 Revenues: Subscription and transaction $ 4,490 $ 24,582 $ ? $ 29,072 Services and other ? ? 2,517 2,517 Subscription, transaction, and 4,490 24,582 2,517 31,589 servicesReimbursable costs 8,643 ? ? 8,643 Total revenues $ 13,133 $ 24,582 $ 2,517 $ 40,232 2020 Revenues: Subscription and transaction $ 4,448 $ 19,361 $ ? $ 23,809 Services and other ? ? 1,837 1,837 Subscription, transaction, and 4,448 19,361 1,837 25,646 servicesReimbursable costs 8,945 ? ? 8,945 Total revenues $ 13,393 $ 19,361 $ 1,837 $ 34,591

Condensed Consolidated Statements of Cash Flows(Unaudited) Three Months Ended June 30, 2021 2020 (in thousands)Operating activities: Net cash provided by (used in) operating activities $ (904 ) $ 1,423 Investing activities: Purchases of short-term investments (20,037 ) ? Purchases of property and equipment (617 ) (445 )Net cash used in investing activities (20,654 ) (445 ) Financing activities: Payments on borrowings ? (3,113 )Payments of deferred purchase consideration ? (524 )Payments on capital lease obligations (60 ) (66 )Proceeds from common stock issued 2,152 129 Taxes paid on net share issuance of stock-based (258 ) ? compensationNet cash provided by (used in) financing activities 1,834 (3,574 ) Net increase in cash, cash equivalents, and restricted $ (19,724 ) $ (2,596 )cashCash, cash equivalents, and restricted cash, beginning 263,927 13,036 of periodCash, cash equivalents, and restricted cash, end of $ 244,203 $ 10,440 period

Reconciliation of GAAP to Non-GAAP Financial Information(Unaudited) Three Months Ended June 30, Increase 2021 2020 (decrease) (in thousands) Total revenues $ 40,232 $ 34,591 16.3%Less: Reimbursable costs revenue 8,643 8,945 Net revenue (non-GAAP) $ 31,589 $ 25,646 23.2% Total revenues $ 40,232 $ 34,591 Less: Cost of revenue, excluding 18,003 16,578 depreciation and amortizationGross profit, excluding depreciation 22,229 18,013 23.4%and amortizationAdd: Stock based compensation 405 57 expenseAdjusted gross profit (non-GAAP) $ 22,634 $ 18,070 25.3% Gross margin, excluding depreciation 55.3 % 52.1 % and amortizationAdjusted gross margin (non-GAAP) 71.7 % 70.5 %

Reconciliation of GAAP to Non-GAAP Financial Information(Unaudited) Three Months Ended June 30, 2021 2020 (in thousands)Net loss and comprehensive loss $ (10,736 ) $ (2,902 )Provision for income taxes 11 37 Change in fair value and other (income) expense, (5 ) (411 )netInterest expense and loss on extinguishment of debt 3 1,102 Interest income (131 ) (1 )Depreciation and amortization 1,359 1,410 Stock-based compensation expense 5,706 680 Restructuring and severance 317 101 Acquisition and integration expenses ? 83 Other capital structure transaction costs 498 ? Adjusted EBITDA (non-GAAP) $ (2,978 ) $ 99

Outlook (Mid-point) for Full Year 2021 (in thousands) TotalTotal revenues $ 165,000 Less: Reimbursable costs revenue 37,000 Net revenue (non-GAAP) $ 128,000

Reconciliation of GAAP to Non-GAAP Financial Information(Unaudited)Three Months Ended June30, 2021 and 2020 Stock-Based Non-GAAP Excluding GAAP Compensation Expense Stock-Based Compensation Expense 2021 2020 2021 2020 2021 2020Revenues: (in thousands)Subscription,transaction $ 31,589 $ 25,646 $ 31,589 $ 25,646 and servicesReimbursable 8,643 8,945 8,643 8,945 costsTotal revenues 40,232 34,591 40,232 34,591 Cost of revenues:Cost ofsubscription, 9,360 7,633 405 57 8,955 7,576 transactionand servicesCost ofreimbursable 8,643 8,945 8,643 8,945 costsTotal cost ofrevenues,excluding 18,003 16,578 405 57 17,598 16,521 depreciationandamortization Operating expenses:Research and 11,270 8,778 1,091 139 10,179 8,639 developmentSales and 9,980 5,129 961 117 9,019 5,012 marketingGeneral and 10,478 4,871 3,249 367 7,229 4,504 administrativeDepreciationand 1,359 1,410 1,359 1,410 amortizationTotaloperating 33,087 20,188 5,301 623 27,786 19,565 expensesLoss from (10,858 ) (2,175 ) 5,706 680 (5,152 ) (1,495 )operationsOther income (expense):Interest 131 1 131 1 incomeInterestexpense andloss on (3 ) (1,102 ) (3 ) (1,102 )extinguishmentof debtChange in fairvalue and 5 411 5 411 other income(expense), netTotal other 133 (690 ) 133 (690 )expenseLoss before (10,725 ) (2,865 ) 5,706 680 (5,019 ) (2,185 )income taxesProvision for (11 ) (37 ) (11 ) (37 )income taxesNet loss andcomprehensive $ (10,736 ) $ (2,902 ) $ 5,706 $ 680 $ (5,030 ) $ (2,222 )loss