Bottomline Technologies (de), Inc. (NASDAQ:EPAY) Q1 2018 Earnings Conference Call Transcript
Nov 02, 2017 • 05:00 pm ET
Ladies and gentlemen, thank you for standing by, and welcome to the Bottomline Technologies First Quarter 2018 Earnings Conference Call.
(Forward-Looking Cautionary Statements)
During this call, Bottomline's financial results are presented on a non-GAAP basis. These non-GAAP results include, among others, constant currency growth rates, gross margins, operating income, EBITDA, net income and earnings per share.
A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is available in the Investor Resource section of the Bottomline website, www.bottomline.com.
Bottomline will be providing forward-looking guidance on the call. A summary of the guidance provided during the call is available from the Company upon request.
I would now like to turn the conference over to our host, Mr. Rob Eberle. Please go ahead.
Good afternoon. Thanks for your interest in Bottomline Technologies, and welcome to the first quarter fiscal '18 earnings call. I'm delighted to report on what was a very good quarter for Bottomline. I'm here with Rick Booth, our CFO. Rick will provide a detailed review of the quarter's financial results and our guidance going forward. And then, as always, both of us will be available for questions following his remarks.
First quarter was a very good quarter, featuring both strong financial results and positive sales momentum. During the first quarter, we exceeded all of our revenue targets. We took a meaningful step forward in EBITDA; we had a record 29 new Paymode-X deals; we had strong sales execution with $22 million in new subscription and transaction bookings; and we expanded our global presence and offerings in meaningful and powerful ways. All in all, a very strong start to the fiscal year which gives us confidence in our strategic plan and our execution against that plan.
We've committed to an FY '19 target of $300 million in subs and trans revenue and $100 million in EBITDA. Results for Q1 clearly demonstrate we're on track to meet or exceed those targets. We're pleased with the quarter and we're pleased with our execution. The most important thing that occurred in the first quarter is the level at which our product set is resonating with customers, and we are closing new business.
Our financial results are strong and, of course, important and a key focus. At the same time, new subscription and transaction bookings tell us how we're doing with customers, how we're faring against competition, and what our results are likely to be in the future.
I'll focus my remarks on the drivers behind our strong bookings and the steps we took in Q1 to expand our capabilities. But first, I'm going to touch on some of the financial highlights in the quarter. Subscription and transaction revenue grew 20% in the first quarter for the products fully converted and traditionally sold in subscription, which is the bulk of our products.
Subscription and transaction revenue growth overall was 16%, consistent with our target range. Subscription and transaction revenue was $60.7 million, a run rate of $243 million.
Revenue overall was