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BTRS

BTRS Holdings NasdaqGS:BTRS Stock Report

Last Price

US$5.77

Market Cap

US$946.0m

7D

-11.1%

1Y

-45.6%

Updated

23 Sep, 2022

Data

Company Financials +
BTRS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

BTRS Stock Overview

BTRS Holdings Inc. provides cloud-based software and integrated payment processing solutions that automates business-to-business (B2B) commerce worldwide.

BTRS Holdings Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BTRS Holdings
Historical stock prices
Current Share PriceUS$5.77
52 Week HighUS$11.01
52 Week LowUS$3.95
Beta0.62
1 Month Change-15.89%
3 Month Change3.04%
1 Year Change-45.57%
3 Year Change-41.00%
5 Year Changen/a
Change since IPO-40.21%

Recent News & Updates

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.

Sep 07
Is BTRS Holdings Inc. (NASDAQ:BTRS) Trading At A 34% Discount?

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...

Shareholder Returns

BTRSUS SoftwareUS Market
7D-11.1%-4.4%-5.2%
1Y-45.6%-35.3%-23.1%

Return vs Industry: BTRS underperformed the US Software industry which returned -34.5% over the past year.

Return vs Market: BTRS underperformed the US Market which returned -21.6% over the past year.

Price Volatility

Is BTRS's price volatile compared to industry and market?
BTRS volatility
BTRS Average Weekly Movement7.6%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: BTRS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BTRS's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001687Flint Lanehttps://www.billtrust.com

BTRS Holdings Inc. provides cloud-based software and integrated payment processing solutions that automates business-to-business (B2B) commerce worldwide. The company operates in two segments, Print, and Software and Payments. The company offers solutions that span credit decisioning and monitoring, online ordering, invoicing, cash application, and collections.

BTRS Holdings Inc. Fundamentals Summary

How do BTRS Holdings's earnings and revenue compare to its market cap?
BTRS fundamental statistics
Market CapUS$946.02m
Earnings (TTM)-US$71.91m
Revenue (TTM)US$144.52m

6.5x

P/S Ratio

-13.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BTRS income statement (TTM)
RevenueUS$144.52m
Cost of RevenueUS$39.90m
Gross ProfitUS$104.61m
Other ExpensesUS$176.52m
Earnings-US$71.91m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.44
Gross Margin72.39%
Net Profit Margin-49.76%
Debt/Equity Ratio0%

How did BTRS perform over the long term?

See historical performance and comparison