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InvestorBriefingQ2 FY20

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Safe HarborThis document contains forward-looking information and financial projections subject to risks, uncertainties and other factors that could materially affect our actual results. Any forward-looking statements or financial projections represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements or financial projections. Further, our financial projections do not consider the impact of any pending or future changes to accounting pronouncements under US Generally Accepted Accounting Principles. For additional discussion of factors that could impact our operational and financial results, please refer to our Form 10-K for the fiscal year ended June 30, 2019 and subsequently filed Form 10-Q’s and Form 8-K’s or amendments thereto.

Non-GAAP Financial InformationThe financial projections in this document are presented on a non-GAAP basis. Non-GAAP projections include core operating income, adjusted EBITDA, core operating margin, core earnings per share, and constant currency information. A historical reconciliation of our non-GAAP results to the most directly comparable GAAP result is available in the Investors section of Bottomline’s website at www.bottomline.com/us/about/investors

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About BottomlineBottomline Technologies makes business paymentssimple, smart and secure

Capitalizing on business payment leadershipposition in large market opportunity

• Trusted brand in B2B payments

• Scale to execute, agile to innovate

• Large B2B payment network ($200+ billion annual volume)

• Secure business payments (domestic and cross border)

• Leading payments and cash management platform

Leveraging product investment to drivesubscription growth

• Investment in market-leading solutionsfor large and growing markets

• Targeting 15-20% subscription revenue growth

• $336 million run rate subscription revenue

• 90% recurring revenue

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Sources: Visa 2017 Investor Day research

T H E O P P O R T U N I T Y

B2B Payments Market

$20T+ $25T $23T+

MasterCard NAPCP Conference Presentation – March 6, 2018

Goldman Sachs Payment Ecosystems Research Report – August 3, 2017

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PAYER PAYMENTRECIPIENT

Business Payment Complexity

66

Business Payment Complexity

PAYER’S BANK PAYMENTRECIPIENT’S BANK

CORRESPONDENT BANKS

CARD ISSUER BANK MERCHANT ACQUIRER’S BANK

CARD NETWORK

NATIONAL BANK NATIONAL BANK

PROPRIETARYNETWORK

Paper draft, ACH or wire transfer

Commercial card

SWIFTmessage

Paper draft, ACH or wire transfer

ACH or wire transfer

Paper draft, ACH or wire transfer

PAYER PAYMENTRECIPIENT

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M A R K E T- L E A D I N G P R O D U C T S

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The way businessespay and get paid

The Largest Electronic Payment Network for Businesses

400,000+Members in network

$200+ Billionin payments processed annually

The Paper Problem

63%of organizations still make more than half of their payments by paper check

67%of businesses say “smarter” systems that drive more efficiencies are necessary for AP’s success1

75%of organizations that were victims of payment fraud experienced check fraud2

B2B Payments Made Simple, Smart & Secure

Paymode-X helps businesses easilyautomate accounts payable

PAYERS accelerate payment automation, improve payment security and monetize AP spend

VENDORS streamline receivables with convenient electronic payments and remittance

1 The State of ePayables 2018 by Ardent Partners2 2017 AFP Payment Fraud & Controls Survey

BANKS provide clients with innovative payment capabilities, grow market share and expand revenue opportunities

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Market-leading commercial banking & payments platform empowers banks to engage intelligently with customers, deliver a unified experience and acquire, deepen and grow profitable relationships.

Digital Banking IQ

Aité Survey of Cash Management Vendors

Best in Class

“The vendor to beat”

User Interface and Experience

Analytics

Helping Banks Grow Organically &Defend vs. Digital Disruption

BANKS GET• Intelligent engagement platform, with integrated insights & analytics

• Market-leading payments and cash management capabilities

• Embedded intelligence, simplicity & usability

BANK’S COMMERCIAL CUSTOMERS GET• Proactive insights and engagement from their banking relationship managers

• Integrated, market-leading payments and cash management solutions

• Tools to help manage their finances

• Easy-to-use and customizable digital interface

• Works with SMB business and accounting software

Leadership Position

9Best Partner

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Legal Spend Management

The leading way insurancecompanies manage their legalspend and relationships

Streamlining and Automating Relationships with Law Firms

LEGAL INVOICE AND SPEND MANAGEMENT

Paid as a percentage of legal bill

Saves up to 8% of billings

Reduces administrative expense by 30 – 50%

PARTNERSELECT

Choose the right lawyer for a right matter at the right rate

Advanced analytics – improve case outcomes

Leadership Position

Top-Tier Client Base

300+ Clients

200+ Insurance Companies

13,500+Law Firms

98%Retention Rate

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F I N A N C I A L H I G H L I G H T S

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Investment Highlights

Large marketopportunity

Leading businesspayments product set

Driving subscription revenue

Target 15-20% growth

Attractive EBITDA Margin

Attractive lifetimecustomer value

10-15 years or more

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342-345$M

Subscription Revenue

75+% of revenue

Growth of 15-20% per year

450-452$M

Total Revenue

90+% recurring revenue

~40% of revenue is international

100-102$M

EBITDA

Consistently profitable model

Increased profitability with scale

FY20 Financial Overview

90%

10%

55

85

118141

171195

223

262

296

342-345

0

50

100

150

200

250

300

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20G

4246

50

61

7175 75

94100

100-102

0

20

40

60

80

100

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20G

Projections for the fiscal year ended June 30, 2020. EBITDA refers to adjusted EBITDA which is a non-GAAP measure. A definition and reconciliation to the most directly comparable GAAP measure can be found in the Investors section of the Bottomline website.

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Q2 ’20 Key Metrics

18% Subscription growth

75% Subscription revenue

90% Recurring revenue

20% Sales and Marketing

15% Development expense

(1) Subscription growth calculated on a YoY constant currency basis; Q2’20 growth was equivalent on both a reported and constant currency basis(2) Percentages are as % of total revenue

Subscription Gross Margin YTD FY20

Incremental Subscription Revenue $23.1

Incremental Cost ($4.6)

Incremental Gross Margin $18.5

Incremental GM % 80%

Q2 ‘20 Key Metrics

(1)

(2)

(2)

(2)

Q2 ‘20YoY

+0.3pp

+2.5pp

+4%

+7%

+5.2pp

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• Sales & Marketing and Product investments driving 15 – 20% subscription growth

• 18% growth in Q2’20

• Current run rate of $336 million

• Targeting $342-345 million for FY20

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85

118

141

171

195

223

262

296

342-345

0

50

100

150

200

250

300

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20G

Subscription Revenue Growth

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Investment Highlights

Large marketopportunity

Leading businesspayments product set

Driving subscription revenue

Target 15-20% growth

Attractive EBITDA Margin

Attractive lifetimecustomer value

10-15 years or more

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A P P E N D I X

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Financial Performance

118 131 138158

189224

255

301331 343 349

394422

90

140

190

240

290

340

390

440

07 08 09 10 11 12 13 14 15 16 17 18 19 20G

27 30 31 41 5585

118141

171195

223

262296

20

57

94

131

168

205

242

279

316

07 08 09 10 11 12 13 14 15 16 17 18 19 20G

9 16 19

34 42 46 50

61 71 75 75

94 100

5

20

35

50

65

80

95

07 08 09 10 11 12 13 14 15 16 17 18 19 20G

613 15

2937

40 43

5361 62

58

7477

5

15

25

35

45

55

65

75

07 08 09 10 11 12 13 14 15 16 17 18 19 20G

RevenueSubscription and Transaction Revenue

Adjusted EBITDA Operating Income

11% CAGR22% CAGR

20% CAGR 22% CAGR

CAGR measured from FY07 to FY20 guidance

450-452342-345

100-102 76-80