Bottomline revenue jumps, but losses continue
21 percent increase in sales is a record for firm
Despite a 21 percent increase in sales, Bottomline Technologies lost $4.3 million, or 12 cents a share, in the third quarter – about $750,000 more than it lost during the same quarter last year.
The Portsmouth-based provider of cloud-based payroll, invoice and banking services increased its revenue by nearly $14 million, to $78 million, in the quarter that ended March 31. That brings its revenue for the fiscal year to nearly $219 million, a 15 percent increase. But the company still has a net loss of $17.6 million, $7 million more than it lost in the first nine months of fiscal 2013.
The company said it would have made a profit if it just looked at “core” net income, which ignores expenses required by Generally Accepted Accounting Principles. In the third quarter, for instance, it would have made $12.7 million, but it has to account for $6.2 million for equity-based compensation for its executives, some $5.8 million for acquisition and integration-related expenses, $1 million in restructuring expenses and interest expenses of $2.9 million.
“We had an outstanding quarter with record financial results in all our key performance metrics,” said CEO Rob Eberle. “Strategically, we broadened our technology set and the innovative capabilities we offer our customers, particularly our cloud-based solutions which offer the most compelling proposition for customers and an attractive recurring revenue stream.”
As evidence, the company pointed to two recent acquisitions – Andrea which extended Bottomline’s digital banking platform, and Rationalwave Analytics, which will enable the company to offer customers more data-rich applications.