Billtrust, a B2B accounts receivable automation and built-in funds firm, reported Q2 outcomes testifying to the momentum of the accelerating development towards automation and digitization within the B2B funds house.
“With a mix of 35.4% year-over-year software program and funds phase income development and our strongest bookings quarter ever, we’re firing on all cylinders at this level,” mentioned Flint Lane, founder and CEO of Billtrust, in a launch. “Companies proceed to acknowledge the worth of adopting our accounts receivable and built-in funds options to create efficiencies, scale back complexity and speed up money movement.”
Addressing CFO ache factors
On the earnings name, Lane added, “Regardless of the reported macroeconomic and market challenges, the favorable secular tendencies round digitization and B2B funds are robust. We imagine CFOs are naturally extra aggressive in searching for out methods to extend efficiencies, scale back complexity and speed up money movement, all challenges which can be solved by our software program and cost options.”
In response to Lane, latest buyer conferences yielded insights about what’s prime of thoughts with Billtrust’s clients. “We mentioned actionable concepts throughout the entire AR spectrum, together with finest practices of AR automation, tendencies shaping the way forward for the CFO workplace and the affect of digital playing cards on our clients day-to-day operations.”
Lane cited buyer use instances that illustrated how Billtrust options assist CFOs overcome “AP portal fatigue” by eliminating guide bill entry by way of digital supply, avoiding the labor and related expense.
On the identical earnings name, CFO Mark Shifke added, “Definitely there may be elevated give attention to automating the workplace of the CFO. The CFO is underneath quite a lot of stress associated to prices and now we have a wide range of options that assist there. We’re in an atmosphere the place CFOs like myself are in search of alternatives for larger effectivity, and decrease prices.”
Lane outlined the associated fee financial savings Billtrust options search to ship for its set price: “These aren’t delicate financial savings — these are actual financial savings in postage and supplies and head depend. In a rising rate of interest atmosphere, getting your cash sooner is actual cash that you simply don’t should tackle the credit score line or one thing like that.”
Whole income elevated 22.5% yr over yr to $49.3 million, versus $40.2 million for a similar interval in 2021.
Whole Cost Quantity (“TPV”) elevated by 40% yr over yr to $26.2 billion in Q2 2022. This determine is up from $18.8 billion for a similar interval in 2021.
Income got here in at slightly below 2%, and the corporate adjusted income steering barely, proportionate to a reported $1 million price of forex headwinds.
Portal, Platform, and Community Replace
The agency reported launching a brand new model of its On-line Billing portal that features surcharging, which makes it simpler for purchasers to just accept bank cards by considerably lowering their price of card acceptance. In response to Lane, the brand new portal “makes it extremely simple for U.S. suppliers to just accept bank cards with out straight incurring playing cards charges by way of surcharging. Roughly half of our on-line billing clients don’t settle for bank cards right now, and we imagine it is a large alternative. Now we have some clients dwell already.”
Direct income from card funds on Billtrust’s digital cost processing platforms grew 57% yr over yr.
The corporate’s Enterprise Funds Community (BPN) TPV grew 71% yr over yr, ensuing from the agency’s personal gross sales and advertising and marketing in addition to incremental income from just lately introduced distribution offers with Coupa (referral companion and BPN supplier) and Procede Software program (companion for invoicing, digital funds, and BPN).
On the earnings name, Lane emphasised that BPN is an open community. Companions embrace Visa, J.P. Morgan Chase, Cooper, American Categorical and over 30 others.
He additionally highlighted the utility of the digital lock field: “We imagine that digital lock field shall be vital for any AR division very like on-line billing websites. The VPN digital lock field automates the receipts of bank card and wire switch funds. It additionally supplies for supply of invoices to 150 totally different AP portals.”
What the long run holds
As to future development, Lane made it clear that whereas natural development is robust, strategic acquisitions are an integral a part of Billtrust’s plans. “We’re taking a look at acquisitions. They’re large a part of our technique long-term; as you realize we’ve completed two acquisitions within the final eight or 9 months, and people are going nicely,” he mentioned. As a result of personal valuations and their public comps have began to return down, the corporate is contemplating extra acquisitions.
“Averaging one to 2 offers a yr is one thing that we need to give attention to — however we need to do the proper offers, not simply doing offers for the sake of doing offers,” defined Lane. “We proceed to search for issues in and across the workplace of the CFO that we expect could be good to cross-sell into our current base, and there’s loads of targets on the market.” The agency may select to develop geographies the place it’s not at present represented. It might additionally develop options for gross sales order automation or service provider buying, each of which Lane believes would profit the Enterprise Funds Community.
Lane mentioned the corporate is assured about outcomes if the long run holds a recession in retailer. “We have skilled these sorts of robust monetary occasions, robust macro occasions, and customarily we do very well. Powerful monetary occasions truly assist us, and we’re bit countercyclical that means.”