The 10-second takeaway
For the quarter ended March 31 (Q3), Bottomline Technologies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Bottomline Technologies tallied revenue of $55.3 million. The seven analysts polled by S&P Capital IQ predicted revenue of $56.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $48.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The nine earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS were -$0.04 for Q3 against $0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.7%, 30 basis points worse than the prior-year quarter. Operating margin was -0.2%, 410 basis points worse than the prior-year quarter. Net margin was -2.4%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $62.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $225.6 million. The average EPS estimate is $0.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 39 members out of 55 rating the stock outperform, and 16 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Bottomline Technologies a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bottomline Technologies is outperform, with an average price target of $28.78.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.