1

Investor

BriefingQ3 FY20

22

Safe Harbor

This document contains “forward-looking statements” within the meaning of the Private Securities

Litigation Reform Act of 1995, including financial projections subject to risks, uncertainties and other factors that

could materially affect our actual results. Actual results may differ materially from those indicated by such forward

looking statements as a result of various important factors including, among others, competition, market demand,

technological change, strategic relationships, recent acquisitions, international operations, general economic

conditions, and including the potential effects of the coronavirus pandemic on any of the foregoing 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-Qs and Form 8-Ks or

amendments thereto.

Non-GAAP Financial Information

The financial results and projections in this document are presented on a non-GAAP basis. Non-GAAP

results and projections include core operating income, adjusted EBITDA, adjusted EBITDA margin, core

operating margin, core earnings per share, and constant currency information. Reconciliations of our GAAP

results to the most directly comparable non-GAAP results and guidance are included at the end of this document.

Any non-GAAP outlook we provide has not been reconciled to the comparable GAAP outlook because of the

difficulty of predicting the amounts to be adjusted, including but not limited to acquisition-related charges,

minimum pension liability adjustments, stock compensation expense and weighted average shares outstanding.

Since we expect these factors to have a significant impact on our future GAAP results, a reconciliation is not

available on a forward looking basis without unreasonable effort.

33

About BottomlineBottomline Technologies makes business payments

simple, smart and secure

Capitalizing on business payment leadership

position 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 drive

subscription growth

• Investment in market-leading solutions

for large and growing markets

• Targeting 15-20% subscription revenue growth

• $350 million run rate subscription revenue

• 92% recurring revenue

44

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

55

PAYER PAYMENT

RECIPIENT

Business Payment Complexity

66

Business Payment Complexity

PAYER’S BANK PAYMENT

RECIPIENT’S BANK

CORRESPONDENT BANKS

CARD ISSUER BANK MERCHANT ACQUIRER’S BANK

CARD NETWORK

NATIONAL BANK NATIONAL BANK

PROPRIETARY

NETWORK

Paper draft, ACH

or wire transfer

Commercial card

SWIFT

message

Paper draft, ACH

or wire transfer

ACH or wire transfer

Paper draft, ACH

or wire transfer

PAYER PAYMENT

RECIPIENT

77

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

8

The way businesses

pay 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 easily

automate 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

9

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

10

Legal Spend Management

The leading way insurance

companies manage their legal

spend 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

10

1111

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

1212

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

1313

Subscription Revenue Growth 16%

Subscription Revenue $87.5M

Total Revenue $111.7M

Core Operating Income $16.0M

Core Operating Margin 14%

Adjusted EBITDA $23.2M

Adjusted EBITDA Margin 21%

Core EPS $0.27

Core operating income, adjusted EBITDA, core operating margin, core EPS, and constant currency information are non-GAAP measures.

Definitions and a reconciliation to the most directly comparable GAAP measures can be found at the end of this document.

Strategic Plan

• Subscription revenue growth of

15-20% per year

• Leverage inherent attractive

lifetime customer value of our

solutions

• Continue to extend our product

platform capabilities and market

leadership

• Establish Bottomline as the clear

leader in business payments

Within target range of 15-20%

subscription revenue growth,

despite COVID

$23.2 million EBITDA, reflecting

consistently profitable model.

$350M annual run-rate

13

Q3 Results

Q3 Results Commentary

1414

252$M

Subscription Revenue

76% of revenue

Growth of 17% on a constant currency

basis

332$M

Total Revenue

90% recurring revenue

37% of revenue is international

72$M

EBITDA

Consistently profitable model

$70M operating cash flow YTD’20

$31M free cash flow YTD’20

YTD FY’20 Financial Overview

90%

10%

55

85

118

141

171

195

223

262

296

252

0

50

100

150

200

250

300

4246

50

61

7175 75

94100

72

0

20

40

60

80

100

Data for the 9-months ending March 30, 2020. Constant currency growth, and EBITDA as referred to here as adjusted EBITDA, are non-GAAP measures. A definition and reconciliation to the most directly comparable GAAP measure can be found in the Investors

section of the Bottomline website.

1515

YTD Key Metrics

17% Subscription growth

76% Subscription revenue

90% Recurring revenue

20% Sales and Marketing

15% Development expense

(1) Subscription growth calculated on a YoY constant currency basis;

(2) Percentages are as % of total revenue

Subscription Gross Margin YTD FY20

Incremental Subscription Revenue $35.1

Incremental Cost ($8.2)

Incremental Gross Margin $26.9

Incremental GM % 77%

YTD FY20 Key Metrics

(1)

(2)

(2)

(2)

YTD FY20

YoY

+1pp

+2pp

+2%

+7%

+4pp

(2)

1616

Balance Sheet Highlights

Adjusted EBITDA is a non-GAAP measures. Definition is included at the end of this document.

Net cash on hand at 3/31/20 ($M) Actual Commentary

Cash and investments $ 182.3 $120 million additional borrowing capacity from

existing facility

$300 million credit facility matures July 2023Total borrowings $ 180.0

TTM results ($M) Actual Commentary

Adjusted EBITDA $ 96.6 Consistent predictable cashflow

Operating Cashflow $ 85.4

Free Cashflow $ 37.8

Covenant Compliance Actual Commentary

Consolidated Net Leverage Ratio 1.4x Credit agreement allows up to 3.75x leverage

Consolidated Interest Leverage Ratio 25.6x Credit agreement requires no less than 3.0x

coverage

1717

June Outlook, Updated for Pandemic

Subscription revenue $87.5 In the June quarter the normal ongoing growth from customer go-lives and expansion may be fully

offset by the impact of a full quarter’s reduced activity. While difficult to forecast with precision we

expect subscription revenues roughly equal to the $87.5 million in Q3, 12-13% constant currency

growth.Subscription Y/Y Growth CC (1) 16%

Total Revenue $111.7

In addition to the subscription revenue impact noted above, we expect a further $2-4 million of impact

to software, services and other revenues. Total revenue in the June quarter could be $2-4 million lower

than Q3.

Core operating income(1) $16.0Reduced revenues with ongoing costs could impact core operating income by up to $1-2 million versus

the levels seen in Q3. Core operating margin %(1) 14%

Adjusted EBITDA(1) $23.2Reduced transaction volumes and revenues could reduce adjusted EBITDA by up to $1-2 million

versus the levels seen in Q3.Adjusted EBITDA as a % of Revenue(1) 21%

Core EPS $0.27 Flow through effects could result in Core EPS in the range of $0.23 - $0.25.

1) Core operating income, adjusted EBITDA, core operating margin, core EPS and constant currency revenue growth are non-GAAP measures. Definitions are included at the end of this document.

2) Any non-GAAP outlook provided has not been reconciled to the comparable GAAP outlook because of the difficulty of predicting the amounts to be adjusted, including but not limited to acquisition-related charges, minimum pension

liability adjustments, stock compensation expense and weighted average shares outstanding. Since these factors have a significant impact on our future GAAP results, a reconciliation is not available on a forward looking basis

without unreasonable effort.

Bottomline is a well-positioned for the current economic challenges with a recurring revenue model and a product set that is mission critical. Like most

businesses however there will be some level of COVID impact, primarily in the following areas (i) transaction based revenue streams, (ii) go live dates for

existing backlog, (iii) software license and professional services revenues and (iv) new bookings.

While the exact impact is difficult to quantify with precision, shown below are the Q3 results with commentary regarding the likely impact of the economic

disruption on fiscal Q4. These results may be indicative of performance while the economy is largely shut down.

June quarter and quarters beyond in FY21 as long as disruption continuesQ3 Results

1818

• Sales & Marketing and Product investments

driving 15 – 20% subscription growth

• 16% growth in Q3’20

• Current run rate of $350 million

55

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171

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223

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0

50

100

150

200

250

300

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Subscription Revenue Growth

1919

Normalized Outlook, Post-Pandemic

Subscription revenue In fiscal 20 year to date, subscription revenue growth accelerated to the

upper end of our 15-20% range. We expect to return to growth at these

levels, or even higher if (as we expect) demand increases as the

economy normalizes.

Non-subscription revenue Software and services revenues have been particularly impacted by the

current situation. As the economy normalizes we expect the customer

preference for our cloud solutions over on-premise applications to remain

strong. We would expect non-subscription revenues to continue to

decline but at a more modest rate.

EBITDA margin We would expect to operate at 21-22% EBITDA margins as we emerge

from the effects of the pandemic.

Results in fiscal 20 year-to-date and the continued and increasing relevance of our solutions suggest that Bottomline will be able to fairly quickly ramp back

up to a normalized level of performance as the economy recovers.

Commentary

1) Core operating income, adjusted EBITDA, core operating margin, core EPS and constant currency revenue growth are non-GAAP measures. Definitions are included at the end of this document.

2) Any non-GAAP outlook provided has not been reconciled to the comparable GAAP outlook because of the difficulty of predicting the amounts to be adjusted, including but not limited to acquisition-related charges, minimum pension

liability adjustments, stock compensation expense and weighted average shares outstanding. Since these factors have a significant impact on our future GAAP results, a reconciliation is not available on a forward looking basis

without unreasonable effort.

2020

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

2121

APPENDIX

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27 30 3141

55

85

118141

171195

223

262

296

0

50

100

150

200

250

300

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

118 131 138158

189224

255

301331 343 349

394422

0

50

100

150

200

250

300

350

400

450

500

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

916 19

3442

46 50

61

71 75 75

94100

0

50

100

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

613 15

2937

40 43

53

61 6258

7477

0

50

100

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Financial Performance

$M

$M $M

Subscription Revenue

Adjusted EBITDA Operating Income

$M

Revenue

22% CAGR11% CAGR

22% CAGR

CAGR measured from FY07 to FY19

23% CAGR