Earnings Season For B2B FinTechs

It’s earnings report season once again, and this week, we’re examining all of the data released by B2B FinTechs on their quarterly and annual reports. Businesses like Basware, Bottomline Technologies and Chrome River all highlighted their successes in recent months, but was it enough to impress investors? We break down the performance of some of these firms below.

130 employees were cut from Basware’s staff in recent months, a move the procure-to-pay company announced in November. So, how did that cost-saving effort help the firm? The company released its 2016 results last week and reported a 3.6 percent growth in net sales, as well as a slight increase in organic revenue growth. Basware noted that its unadjusted figures included an estimated $5.4 million in costs related to those staff cuts and highlighted goals for its continued growth strategy for 2017–2020. It’s “number one strategic priority,” it said, is cloud revenue growth. Cloud revenue grew by 29.9 percent in 2016, Basware added, while the year also saw its highest transaction volume, recording 10.4 million transactions in November.

A $10.3 million net loss for Bottomline Technologies for Q2 of the fiscal year is nearly double the net loss of $5.2 million for the second quarter a year prior, the B2B payments company said, though six-month revenues increased slightly to $169.8 million (compared to $168.9 million during the same period a year before). Core net income for those six months ended Dec. 31, 2016, were $1.5 million below the $19.5 million net income reported for the same period a year before. Still, subscription and transaction revenues increased by 14 percent, Bottomline said, compared to a year ago. President and CEO Rob Eberle said he was “pleased” with the Q2 results, with analysts pointing out that shares of Bottomline surpassed their 12-month target price, reaching $26.57 per share.

The 80% increase in year-over-year sales for digital banking firm D3 was certainly welcome when it released its 2016 highlights last week, noting that partnering with established banks gave the company a major boost. The year saw 1.3 million users migrate to the company’s digital banking platform, which services small businesses and other clients, while the company recorded a 60 percent increase in staff levels. The firm also pointed to a $10 million investment in West Partners in 2016 as a key driver of its 2016 performance.

The 50% boost in recurring revenue was good news for Insite Software, which offers companies a B2B eCommerce platform, as the firm reported “record growth” for 2016. In addition to recurring revenue increases, Insite noted a 30 percent boost in bookings. The company stayed mum on exact dollar figures but did say that 34 new corporate clients signed on to the Insite platform in 2016, including 13 in the fourth quarter alone. The company attributed this growth to several 2016 product launches, a greater focus on product sales, as well as deepened relationships with corporate partners.

A 35% increase in revenue is expected by cross-border payments firm Earthport for the first half of 2017, the company said as it released some data points of the six months ended Dec. 31, 2016. A partnership with Bank of America, as well as an increased demand for cross-border payment services, is helping to drive Earthport’s growth, the company said. At the end of 2016, the firm reported having an estimated $14.25 million in cash. Payment volumes increased by 86 percent to $7.8 billion during the period, while the number of transactions also increased by 80 percent to 5 million. December, the firm added, was a record month for transactions Earthport processed. Shares in Earthport increased by 2.17 percent following the news.

A 30% increase in customer count was good news for Chrome River, an expense management and supplier invoice processing solution. The company released its 2016 highlights last week with a focus on both increased revenues and user base, noting its global growth in particular as new clients from North America, the Middle East, Europe and Asia-Pacific began using Chrome River services. In 2016, the company first opened its Asia-Pacific operations, while the year also saw key corporate partnerships with Uber, Sabre and Amadeus to strengthen its corporate travel and expense management capabilities.