Bottomline Technologies, a leading provider of cloud-based payment, invoice and banking solutions, today reported financial results for the fourth quarter and fiscal year ended June 30, 2013.
Revenues for the fourth quarter were $65.0 million, an increase of $3.6 million, or 6%, from the fourth quarter of last year. Subscription and transaction revenues, which are primarily related to the company's commercial banking, legal spend management and Paymode-X® cloud-based applications, increased 8% from the fourth quarter of last year to $30.4 million.
Gross margin for the fourth quarter was $34.6 million, an increase of $0.9 million from the fourth quarter of last year. Net loss for the fourth quarter was $3.8 million, or net loss per share of $0.11.
Core net income for the fourth quarter was $11.7 million, an increase of $2.6 million from the fourth quarter of last year. Core net income excludes acquisition and integration-related expenses (including amortization of intangible assets) of $8.3 million, equity-based compensation of $4.5 million and non-cash interest expense of $2.7 million associated with the convertible notes we issued in December 2012. Core earnings per share was $0.32, an increase from $0.26 a year ago.
"We are pleased to report a strong fourth quarter with record revenues and solid financial performance across the board, concluding an outstanding fiscal year," said Rob Eberle, President and CEO of Bottomline Technologies. "Our business is executing on all fronts. The investments we have made in our key product sets have been well received and extended our competitive advantage in our targeted growth markets. Looking ahead to next fiscal year, we are confident in our ability to execute on our growth plans."
Revenues for the year ended June 30, 2013 increased 14% to $254.8 million as compared with $224.3 million last year. Subscription and transaction revenues increased 39% to $118.0 million in the year ended June 30, 2013. Net loss for the year ended June 30, 2013 was $14.4 million, or $0.41 per share.
Core net income for the year ended June 30, 2013 was $45.6 million, an increase of $10.8 million from last year. Core net income excludes acquisition and integration-related expenses (including amortization of intangible assets) of $30.4 million, restructuring expenses of $1.2 million, equity-based compensation of $18.0 million and non-core charges of $10.4 million associated with the convertible notes we issued in December 2012. Core earnings per share was $1.26 as compared to $0.99 in the prior year period.
Fourth Quarter Customer Highlights
- Leading organizations, such as Ally Financial, Ameriprise Financial Services, Atos IT Services UK Ltd, Bank of New York Mellon, Deere & Company, Deloitte LLP, Eddie Bauer, Fiduciary Trust Company, Equity Insurance Management Ltd, IBM UK Ltd, Kaman Industrial Technologies Corp, Liberty Property Trust, McGraw Hill Financial, Nassau County (New York), OneBeacon Insurance Group, Pershing, Renown Health, Talbots, Telefonica UK Ltd, Teradyne, Virginia Housing Development Authority and Wells Fargo & Company, chose Bottomline's payment automation solutions.
- Chosen by or expanded relationships with 10 leading insurers, including AMICA Mutual Insurance, Riverport Insurance, Indiana Farmers Mutual Insurance, Maxum Specialty Insurance Group and Sentry Insurance to provide Bottomline's cloud-based legal spend management solutions to automate, manage and control their legal spend.
- Selected for Bottomline's SWIFT Access Service by customers such as Augentius Group Ltd, BAE Systems Plc, Diamond Bank (UK) Plc, International Financial Data Services Ltd, Johnson Matthey Plc, London Metal Exchange, Truphone Ltd and Waha Oil.
- Deepened relationships in the healthcare vertical with customers such as Cambridge Hospital, Catholic Health Initiatives, Landmark Medical Center, Mercy Memorial Hospital, Sunrise Medical Center and West Georgia Health Systems.
- Selected by Adams County Government, AVON Europe, Christie Manson & Woods Ltd, Cisco Systems, Fort Wayne Metals, Intercontinental Terminals Co, Jones Lang LaSalle, Life Technologies, Spirax-Sarco Ltd, Spyder Active Sports and Starz Entertainment to provide transaction document automation solutions.
Fourth Quarter Strategic Corporate Highlights
- Awarded a further accreditation from SWIFT, becoming the SWIFT business partner for the U.K., Ireland and the Channel Islands. The award enhances our business relationship with SWIFT and makes Bottomline one of the most highly accredited SWIFT Partners worldwide.
- Achieved the ServiceMark Accreditation from the Institute of Customer Service (ICS), the UK's leading independent professional membership body for customer services, demonstrating our ongoing commitment to outstanding customer care.
- Appointed Steve Clarke as Chief Information Security Officer. Mr. Clarke, who most recently served as Executive Director of Information Security, Strategy and Architecture for Morgan Stanley, will oversee Bottomline's security initiatives.
- Welcomed Steve Ryan to the management team as Senior Vice President of Product Management for our Banking Solutions group. Mr. Ryan brings more than 25 years of experience in developing and launching new financial technology products to the role.
Full details can be read here.