BTRS Holdings Inc.

NasdaqGS:BTRS Stock Report

Market Cap: US$1.6b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

BTRS Holdings Management

Management criteria checks 0/4

Key information

Flint Lane

Chief executive officer

US$8.4m

Total compensation

CEO salary percentage4.75%
CEO tenure21.9yrs
CEO ownership15.6%
Management average tenure1.9yrs
Board average tenure1.9yrs

Recent management updates

Recent updates

Seeking Alpha • Sep 28

EQT Private Equity to acquire Billtrust for $1.7B

BTRS or Billtrust (NASDAQ:BTRS) to be acquired by EQT X fund, part of EQT, a leading global investment organization, in an all-cash transaction valuing company’s equity at ~$1.7B. Company shareholders will receive $9.50 per share in cash upon the closing of the transaction. The price per share represents more than a 64% premium above the closing share price of $5.77 on September 27, 2022, and more than a 76% premium above the trailing 90-day volume weighted average stock price for the period ended September 27, 2022. Transaction expected to close in Q1 2023.
Seeking Alpha • Sep 15

BTRS Holdings Produces Growth But Operating Losses Are Sticky

Summary BTRS Holdings published its Q2 2022 financial results on August 13, 2022. The firm provides a variety of B2B payment software and services worldwide. BTRS Holdings has produced growing revenue and gross profit, but operating losses remain high as macroeconomic conditions darken. I'm on Hold for BTRS Holdings until management can make a meaningful turn toward operating breakeven. A Quick Take On BTRS Holdings BTRS Holdings Inc. (BTRS) reported its Q2 2022 financial results on August 13, 2022, missing expected revenue and EPS estimates. The company provides a range of B2B payment processing and services to companies worldwide. With a slowing global economy, a strong U.S. dollar producing FX headwinds, no apparent cost-cutting efforts by management and continued high operating losses, my outlook on BTRS is a Hold for the near term. BTRS Holdings Overview Lawrenceville, New Jersey-based BTRS (Billtrust) was founded in 2001 to provide a variety of B2B payment software and related service options to organizations. The firm is headed by founder, Chairman and CEO, Flint Lane, who was previously Chairman and President of Paytrust, and EVP R&D at Logic Works. The company's primary offerings include: Business payments network Credit eCommerce Invoicing Payments Cash application Collections Services The firm acquires customers via direct sales and marketing efforts and through partner referrals. BTRS has employees in 7 countries and serves over 40 industry verticals. BTRS Holdings' Market & Competition According to a 2022 market research report by IMARC Group, the market for B2B payments was an estimated $943 billion in 2021 and is forecast to reach $1.56 trillion by 2027. This represents a forecast CAGR of 8.3% from 2022 to 2027. The main drivers for this expected growth are increasing demand for automated and more efficient payment processing between businesses amid a rise of e-commerce activities worldwide. Also, small and medium-sized enterprises are seeking to take advantage of improved payment options to lower costs and increase flexibility. Major competitive vendors include: PayPal (PYPL) Global Payments (GPN) Square (SQ) Visa (V) ACI Worldwide (ACIW) Jack Henry & Associates (JKHY) Paysafe Group Naspers Limited (NPSNY) Others BTRS Holdings' Recent Financial Performance Total revenue by quarter has risen according to the following chart: 9 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has also grown accordingly: 9 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have grown as revenue has increased: 9 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have increased markedly in recent quarters: 9 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also become increasingly negative of late: 9 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, BTRS's stock price has fallen 39.8% vs. the U.S. S&P 500 Index's loss of around 12.3%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For BTRS Holdings Below is a table of relevant capitalization and valuation figures for the company: Measure ((TTM)) Amount Enterprise Value/Sales 6.95 Revenue Growth Rate 17.4% Net Income Margin -49.8% GAAP EBITDA % -36.1% Market Capitalization $1,120,000,000 Enterprise Value $1,000,000,000 Operating Cash Flow -$24,500,000 Earnings Per Share (Fully Diluted) -$0.44 (Source - Seeking Alpha) The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. BTRS's most recent GAAP Rule of 40 calculation was negative (18.7%) as of Q2 2022, so the firm has performed poorly in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 17.4% GAAP EBITDA % -36.1% Total -18.7% (Source - Seeking Alpha) Commentary On BTRS Holdings In its last earnings call (Source - Seeking Alpha), covering Q2 2022's results, management highlighted a recent partnership deal with Procede Software in the commercial truck dealer management industry, as an example of its integration efforts. A significant growth area for the firm is its Business Payments Network, of which its digital lockbox feature, which automates receipts of various payment types, is what it calls a "must have for any AR department." However, management has noticed a more difficult macroeconomic environment but believes that in such environments, CFOs have even greater incentives to increase efficiency efforts across their enterprise. As to its financial results, net revenue rose 28.5% year-over-year, while adjusted gross margin hit 74.1%, which was 2.41% higher than in Q2 2021.
Analysis Article • Sep 07

Is BTRS Holdings Inc. (NASDAQ:BTRS) Trading At A 34% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of BTRS Holdings Inc...
Seeking Alpha • Jul 27

BTRS Holdings jumps 13% on report of exploring potential sale

BTRS Holdings (NASDAQ:BTRS), the parent of business payments vendor Billtrust, soared 13% on a report that the company is exploring options, including a possible slae. The company is working with an adviser as it considers its options, according to a Reuters report.
Seeking Alpha • Oct 15

BTRS Holdings: Accumulating Along With Insiders

Publicly birthed in the middle of the SPAC craze in early 2021, BTRS Holdings has lost some of its value since its peak in February. The accounts receivable solutions provider has developed an ecosystem of buyers, suppliers, banks, payment card issuers, and payment acceptance networks that should have wide appeal. Billtrust has a chance to be the market leader for mid-market/enterprise level customers with its stiffest competition coming from potential customers’ own in-house efforts. With a ~55.6 million share overhang from private equity interests, a clean balance sheet, plenty of blue sky, and insider buying, Billtrust merited further investigation. A full investment analysis is presented in the paragraphs below.
Analysis Article • Aug 25

Is BTRS Holdings Inc. (NASDAQ:BTRS) Trading At A 50% Discount?

Today we will run through one way of estimating the intrinsic value of BTRS Holdings Inc. ( NASDAQ:BTRS ) by taking the...
Analysis Article • May 15

BTRS Holdings Inc. (NASDAQ:BTRS) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's been a mediocre week for BTRS Holdings Inc. ( NASDAQ:BTRS ) shareholders, with the stock dropping 16% to US$12.34...

CEO Compensation Analysis

How has Flint Lane's remuneration changed compared to BTRS Holdings's earnings?
DateTotal CompensationSalaryCompany Earnings
Sep 30 2022n/an/a

-US$82m

Jun 30 2022n/an/a

-US$72m

Mar 31 2022n/an/a

-US$67m

Dec 31 2021US$8mUS$400k

-US$61m

Sep 30 2021n/an/a

-US$49m

Jun 30 2021n/an/a

-US$41m

Mar 31 2021n/an/a

-US$33m

Dec 31 2020US$658kUS$400k

-US$17m

Sep 30 2020n/an/a

-US$21m

Jun 30 2020n/an/a

-US$29m

Mar 31 2020n/an/a

-US$32m

Dec 31 2019US$631kUS$398k

-US$23m

Compensation vs Market: Flint's total compensation ($USD8.43M) is above average for companies of similar size in the US market ($USD5.57M).

Compensation vs Earnings: Flint's compensation has increased whilst the company is unprofitable.

CEO

Flint Lane (55 yo)

21.9yrs
Tenure
US$8,428,621
Compensation

Mr. Flint A. Lane is Founder of BTRS Holdings Inc. (formerly known as Billtrust, Inc.) since 2001 and also serves as its Chairman. He has been Chief Executive Officer at BTRS Holdings Inc. since January 20...

Leadership Team

NamePositionTenureCompensationOwnership
Flint Lane
Founder21.9yrsUS$8.43m15.62%
$ 244.2m
Steven Pinado
President1.9yrsUS$8.30m0.079%
$ 1.2m
Mark Shifke
Chief Financial Officer1.9yrsUS$8.12m0.061%
$ 949.0k
Joseph Eng
Chief Information Officer1.9yrsUS$5.07m0.14%
$ 2.2m
Jeanne O'Connor
Chief Talent Officer1.9yrsUS$3.48m0.032%
$ 492.7k
Farai Alleyne
Senior Vice President of Technology Operations2.4yrsno datano data
John Williams
SVP & Head of Investor Relationsno datano datano data
Jennifer Showers
Senior VP & Chief Compliance Officer1.5yrsno datano data
Aimie Killeen
Chief Legal Officer & Secretaryless than a yearno data0.13%
$ 2.1m
John Johnson
Chief Sales Officerno datano datano data
Stephen Lindeman
Chief Customer Officerno datano datano data
Christy Green
Senior Vice President of Professional Services & Consultingno datano datano data
1.9yrs
Average Tenure
55yo
Average Age

Experienced Management: BTRS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

NamePositionTenureCompensationOwnership
Flint Lane
Founderno dataUS$8.43m15.62%
$ 244.2m
Matthew Harris
Independent Director1.9yrsno datano data
Robert Farrell
Independent Director1.9yrsUS$586.19k0.034%
$ 530.4k
Lawrence Irving
Independent Director1.9yrsUS$593.65k0.034%
$ 530.4k
Juli Spottiswood
Independent Director1.9yrsUS$153.23k0.022%
$ 351.2k
Clare Hart
Independent Director1.9yrsUS$252.09k0.026%
$ 410.0k
John Murray
Independent Directorless than a yearno data0.023%
$ 362.3k
1.9yrs
Average Tenure
58yo
Average Age

Experienced Board: BTRS's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/12/17 06:47
End of Day Share Price 2022/12/15 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

BTRS Holdings Inc. is covered by 10 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jason KupferbergBofA Global Research
Joseph VafiCanaccord Genuity
Andrew SchmidtCitigroup Inc