Bottomline Technologies, Inc (EPAY, Financial) is software vendor o ering subscription-based products forbusinesses, from managing legal spend to receivables settlements to digital banking. Caught up in the year-end euphoria, the stock started the year a little ahead of itself as it reported solid, but not spectacular, results. The company often has a di cult time in managing investor expectations given inclusion within the hypergrowth “fintech” subsector. After posting record profit margins in the prior year, the company chose to reinvest a portion within the business, which has served to dampen profit growth in the interim. Though cumbersome to perform by investors, an analysis of the key new business verticals show promising adoption trends and we believe the market potential is significantly greater than what is addressed today by the company.
From Keeley Teton Small Cap Select Value Fund's first-quarter 2021 commentary.