Bottomline sees revenues rise, but posts loss
CEO is ‘really pleased’ with performance
Bottomline Technologies reported a net loss of $1.5 million, or 4 cents a share, in its last quarter, culminating a net loss of $19.1 million, or 52 cents a share, for the fiscal year that ended June 30.
But in its conference call to discuss its earnings, the Portsmouth-based financial software and services company instead pointed out a sharp increase in revenue, especially in its increasingly cloud-based subscription and transaction revenues. Bottomline’s top line for the fourth quarter was $82 million, up 26 percent, with subscription revenue up 30 percent to $40 million. Revenues for the year surpassed $300 million, an 18 percent increase, with transaction revenues going up 20 percent to $141 million.
Backlog at the end of March was $147 million, up 21 percent from last year.
“With record performance in virtually every category, we’re really pleased with FY ‘14’s financial performance,” said Rob Eberle, the company’s CEO.
Part of both the losses and revenue increase was due to the $45 million acquisition of Andera, a Rhode Island company that helps banks sign up customers online. Andera was expected to contribute $2 million in revenue this quarter, but Bottomline did not break out its actual contribution.
Nevertheless, the company’s quarterly net loss and its core income were an improvement over the previous year. But next quarter the company expects core income to decline to 33 cents a share, even with the same revenue, because of increased tax expenses.
Bottomline used to mainly ship software. Now it mainly provides financial services via the cloud, and its customers are beginning to come from other industries as well. For instance, in the health care industry it provides a tablet that doesn’t just track procedures and costs for billing, but “all the patient on-boarding forms, consents, everything when you go in and were traditionally handed a clipboard, we have automated all of that,” Eberle said.
“We are providing more capabilities to help businesses run their business, so more technology, and visibility for the corporate customer, commercial customer,” he later added.