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Safe HarborThis 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 and general economic conditions. 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 InformationThe 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.

3(1) Normalized for constant currency. 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.

Established Products

Subscription Revenue Growth 19%(1)

Subscription Revenue $65.8M

Total Revenue $88.4M

Core Operating Income $18.6M

Core Operating Margin 21%

Subscription Revenue Growth 15%



Core Operating Income /(Loss) ($0.4M)

Core Operating Margin (2%)

Subscription Revenue Growth 18%(1)



Core Operating Income $18.2M

Core Operating Margin 16%

Adjusted EBITDA $24.8M

Adjusted EBITDA Margin 22%

Core EPS $0.33

Strategic Plan

• Drive 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

Digital Banking

Consolidated Bottomline

Target range of 15-20%

Consistently profitable model

Also have $18 million of annual subscriptions currently in implementation and not yet live

$24.8 million EBITDA, reflecting consistently profitable model

Acceleration to 18% subscription revenue growth

Q2 FY’20 Core Results

3

4

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

55

Bottomline TechnologiesQ3 ‘20 Core Guidance

Established Banking Solutions Total Bottomline

Subscription revenue 67-69 20-21 87-90

Subscription Y/Y Growth CC (1) 16-19% 12-18% 15-19%

Total Revenue 88-90 24-25 112-114

Core operating income(1) 16-18 2-3 18-21

Core operating margin %(1) 18-20% 8-13% 16-19%

Adjusted EBITDA(1) 24-26

Adjusted EBITDA as a % of Revenue(1) 21-23%

Core EPS $0.31-$0.36

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 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.

66

Bottomline TechnologiesFY ‘20 Core Guidance

FY20 Guidance from Aug 8, 2019 Update FY20 Guidance

Revised

Subscription revenue 334-339 6-8 342-345

Total Revenue 442-452 Up to 8 450-452

Core operating income(1) 80-84 (4) 76-80

Core operating margin %(1) 18-19% (1%) 17-18%

Adjusted EBITDA(1) 104 (2-4) 100-102

Adjusted EBITDA as a % of Revenue(1) 23% (1%) to 0% 22-23%

Core EPS $1.35-1.42 ($0.05) $1.30-1.37

1) Core operating income, adjusted EBITDA, core operating margin and core EPS are non-GAAP measures. Definitions are included at the end of this document.2) 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.

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Reconciliations to the Most Directly Comparable GAAP Results and Definitions of Non-GAAP

Financial Measures

8

Bottomline TechnologiesNon-GAAP Financial Measures

We have presented supplemental non-GAAP financial measures as part of this earnings release. The presentation of this non-GAAP financial information should not be considered in isolation from, or as a substitute for, our financial results presented in accordance with GAAP. Core net income, core earnings per share, constant currency information, adjusted EBITDA and adjusted EBITDA as a percent of revenue are all non-GAAP financial measures.

Core net income and core earnings per share exclude certain items, specifically amortization of acquisition related intangible assets, stock-based compensation, acquisition and integration-related expenses, restructuring related costs, minimum pension liability adjustments, non-core charges associated with certain debt instruments, global enterprise resource planning (ERP) system implementation and other costs and other non-core or non-recurring benefits or expenses that may arise from time to time.

Non-core charges associated with our debt instruments consist of amortization of debt issuance and debt discount costs. Acquisition and integration-related expenses include legal and professional fees and other direct transaction costs associated with business and asset acquisitions, costs associated with integrating acquired businesses, including costs for transitional employees or services and integration related professional services costs and other incremental charges we incur as a direct result of acquisition and integration efforts. Global ERP system implementation and other costs relate to direct and incremental costs incurred in connection with our multi-phase implementation of a new, global ERP solution and the related technology infrastructure and costs related to our implementation of the new revenue recognition standard under US GAAP.

Periodically, such as in periods that include significant foreign currency volatility, we present certain metrics on a “constant currency” basis, to show the impact of period to period results normalized for the impact of foreign currency rate changes. We calculate constant currency information by translating prior period financial results using current period foreign exchange rates.

Adjusted EBITDA and adjusted EBITDA as a percent of revenue represent our GAAP net income or loss, adjusted for charges related to interest expense, income taxes, depreciation and amortization and other charges, as noted in the reconciliation that follows.

We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the company with a focus on the performance of its core operations, including more meaningful comparisons of financial results to historical periods and to the financial results of less acquisitive peer and competitor companies. Our executive management team uses these same non-GAAP financial measures internally to assess the ongoing performance of the company. Additionally, the same non-GAAP information is used for planning purposes, including the preparation of operating budgets and in communications with our board of directors with respect to our core financial performance. Since this information is not a GAAP measurement of financial performance, there are material limitations to its usefulness on a stand-alone basis, including the lack of comparability of this presentation to the GAAP financial results of other companies.

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Amortization of Stock-Based Acquisition and Minimum Amortization of Global ERP System Other Tax Effects on

Acquisition-Related Compensation Integration- Restructuring Pension Liability Debt Issuance Costs Implementation Non-Core Non-GAAP

GAAP % of Rev. Intangible Assets Plan Expense Related Expenses Expenses (Benefit) Adjustments and Other Costs Benefit Income

Revenues: % of Revenue

Subscriptions 84,085$ 75% -$ -$ -$ -$ -$ -$ -$ -$ -$ 84,085$ 75%

Software licenses 2,800 3% - - - - - - - - - 2,800 2%

Service and maintenance 24,061 22% - - - - - - - - - 24,061 22%Other 745 1% - - - - - - - - - 745 1%

Total revenues 111,691 100% - - - - - - - - - 111,691 100%

Cost of revenues: Margins Margins

Subscriptions 33,449 60% - (816) - 2 (29) - - - - 32,606 61%

Software licenses 157 94% - - - - - - - - - 157 94%

Service and maintenance 12,929 46% - (782) - 1 (94) - - - - 12,054 50%Other 504 32% - - - - - - - - - 504 32%

Total cost of revenues 47,039 - (1,598) - 3 (123) - - - - 45,321

Gross profit 64,652 58% - 1,598 - (3) 123 - - - - 66,370 59%

Operating expenses: % of Rev. % of Revenue

Sales and marketing 26,988 24% - (4,326) (96) 2 (66) - - - - 22,502 20%

Product development and engineering 18,279 16% - (1,583) - - (60) - - - - 16,636 15%

General and administrative 14,761 13% - (3,458) (1,861) (239) (10) - (200) (4) - 8,989 8%Amortization of acquisition-related intangible assets 5,213 5% (5,213) - - - - - - - - - 0%

Total operating expenses 65,241 58% (5,213) (9,367) (1,957) (237) (136) - (200) (4) - 48,127 43%

Income (loss) from operations (589) -1% 5,213 10,965 1,957 234 259 - 200 4 - 18,243 16%

Other expense, net (582) -1% - - - - (211) 104 - - - (689) -1%

Income (loss) before income taxes (1,171) -1% 5,213 10,965 1,957 234 48 104 200 4 - 17,554 16%Income tax benefit (provision) 3,780 3% - - - - - - - - (7,597) (3,817) -3%

Net Income (1) 2,609 2% 5,213 10,965 1,957 234 48 104 200 4 (7,597) 13,737 12%

4.7% 9.8% 1.8% 0.2% 0.0% 0.1% 0.2% 0.0% -6.8%Basic net income per share 0.06$

Diluted net income per share (1) 0.06$ 0.33$

Shares used in computing net income per share:Basic 41,693 Diluted 42,092 42,092

Bottomline TechnologiesReconciliation of Non-GAAP Measures

Three Months Ended December 31, 2019

Non-GAAP

(1) Core net income and core earnings per share are non-GAAP measures and exclude certain items as indicated in the reconciliation above.

Amortization of Stock-Based Acquisition and Minimum Amortization of Global ERP System Tax Effects on

Acquisition-Related Compensation Integration- Restructuring Pension Liability Debt Issuance Costs Implementation Non-GAAP

GAAP % of Rev. Intangible Assets Plan Expense Related Expenses Expenses (Benefit) Adjustments and Other Costs Income


Subscriptions 71,288$ 68% -$ -$ -$ -$ -$ -$ -$ -$ 71,288$ 68%

Software licenses 5,665 5% - - - - - - - - 5,665 5%

Service and maintenance 26,786 26% - - - - - - - - 26,786 26%Other 1,107 1% - - - - - - - - 1,107 1%

Total revenues 104,846 100% - - - - - - - - 104,846 100%

Cost of revenues: Margins Margins

Subscriptions 31,352 56% - (776) (245) (1) (15) - - - 30,315 57%

Software licenses 210 96% - - - - - - - - 210 96%

Service and maintenance 12,528 53% - (603) - - (62) - - - 11,863 56%Other 891 20% - - - - - - - - 891 20%

Total cost of revenues 44,981 - (1,379) (245) (1) (77) - - - 43,279

Gross profit 59,865 57% - 1,379 245 1 77 - - - 61,567 59%

Operating expenses: % of Rev. % of Revenue

Sales and marketing 22,585 22% - (4,006) (11) 4 (47) - - - 18,525 18%

Product development and engineering 16,815 16% - (1,418) (19) 1 (43) - - - 15,336 15%

General and administrative 11,904 11% - (2,746) (435) (58) (7) - (972) - 7,686 7%Amortization of acquisition-related intangible assets 5,253 5% (5,253) - - - - - - - - 0%

Total operating expenses 56,557 54% (5,253) (8,170) (465) (53) (97) - (972) - 41,547 40%

Income (loss) from operations 3,308 3% 5,253 9,549 710 54 174 - 972 - 20,020 19%

Other expense (income), net (858) -1% - - - - (254) 104 - - (1,008) -1%

Income (loss) before income taxes 2,450 2% 5,253 9,549 710 54 (80) 104 972 - 19,012 18%Benefit from (provision for) income taxes 3,519 3% - - - - - - - (7,969) (4,450) -4%

Net Income (loss) (1) 5,969 6% 5,253 9,549 710 54 (80) 104 972 (7,969) 14,562 14%

5.0% 9.1% 0.7% 0.1% -0.1% 0.1% 0.9% -7.6%Basic net loss per share 0.15$

Diluted net income (loss) per share (1) 0.14$ 0.35$

Shares used in computing net income (loss) per share:

Basic 40,635 Diluted 41,739 41,739


Bottomline TechnologiesReconciliation of Non-GAAP Measures

Three Months Ended December 31, 2018

Non-GAAP


Acquisition-Related Compensation Integration- Restructuring Pension Liability Debt Issuance and Implementation Non-Core Non-GAAP

GAAP Intangible Assets Plan Expense Related Expenses Expenses (Benefit) Adjustments Debt Discount Costs and Other Costs Benefit Income


Subscriptions 164,151$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 164,151$ 75%

Software licenses 5,376 - - - - - - - - - 5,376 2%

Service and maintenance 48,886 - - - - - - - - - 48,886 22%Other 1,454 - - - - - - - - - 1,454 1%

Total revenues 219,867 - - - - - - - - - 219,867 100%

Cost of revenues: Margins

Subscriptions and transactions 66,214 - (1,511) - 4 (55) - - - - 64,652 61%

Software licenses 318 - - - - - - - - - 318 94%

Service and maintenance 25,982 - (1,499) - 8 (187) - - - - 24,304 50%Other 1,020 - - - - - - - - - 1,020 30%

Total cost of revenues 93,534 - (3,010) - 12 (242) - - - - 90,294

Gross profit 126,333 - 3,010 - (12) 242 - - - - 129,573 59%

Operating expenses: % of Revenue

Sales and marketing 52,676 - (9,149) (189) 9 (129) - - - - 43,218 20%

Product development and engineering 36,628 - (3,207) (2) 16 (119) - - - - 33,316 15%

General and administrative 28,106 - (6,643) (3,463) (246) (21) - (424) 10 - 17,319 8%Amortization of acquisition-related intangible assets 10,163 (10,163) - - - - - - - - - 0%

Total operating expenses 127,573 (10,163) (18,999) (3,654) (221) (269) - (424) 10 - 93,853 43%

Income (loss) from operations (1,240) 10,163 22,009 3,654 209 511 - 424 (10) - 35,720 16%

Other expense, net (1,295) - - - - (421) 207 - - - (1,509) -1%

Income (loss) before income taxes (2,535) 10,163 22,009 3,654 209 90 207 424 (10) - 34,211 16%Income tax benefit (provision) 3,777 - - - - - - - - (11,552) (7,775) -4%

Net Income (1) 1,242 10,163 22,009 3,654 209 90 207 424 (10) (11,552) 26,436 12%

4.6% 10.0% 1.7% 0.1% 0.0% 0.1% 0.2% 0.0% -5.3%Basic net income per share 0.03$

Diluted net income per share (1) 0.03$ 0.63$

Shares used in computing net income per share:

Basic 41,590 Diluted 41,917 41,917


Bottomline TechnologiesReconciliation of Non-GAAP MeasuresSix Months Ended December 31, 2019

Non-GAAP


Acquisition-Related Compensation Integration- Restructuring Pension Liability Debt Issuance and Implementation Non-Core Non-GAAP

GAAP Intangible Assets Plan Expense Related Expenses Expenses (Benefit) Adjustments Debt Discount Costs and Other Costs Benefit Income


Subscriptions 141,056$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 141,056$ 68%

Software licenses 10,177 - - - - - - - - - 10,177 5%

Service and maintenance 54,191 - - - - - - - - - 54,191 26%Other 1,859 - - - - - - - - - 1,859 1%

Total revenues 207,283 - - - - - - - - - 207,283 100%

Cost of revenues: Margins

Subscriptions and transactions 63,021 - (2,050) (869) (47) (30) - - - - 60,025 57%

Software licenses 441 - - - - - - - - - 441 96%

Service and maintenance 25,234 - (1,539) - 9 (127) - - - - 23,577 56%Other 1,415 - - - - - - - - - 1,415 24%

Total cost of revenues 90,111 - (3,589) (869) (38) (157) - - - - 85,458

Gross profit 117,172 - 3,589 869 38 157 - - - - 121,825 59%

Operating expenses: % of Revenue

Sales and marketing 45,607 - (8,682) (22) 31 (95) - - - - 36,839 18%

Product development and engineering 33,380 - (3,418) (59) 17 (91) - - - - 29,829 14%

General and administrative 25,769 - (6,202) (643) (641) (15) - (2,553) 237 - 15,952 8%Amortization of acquisition-related intangible assets 10,579 (10,579) - - - - - - - - - 0%

Total operating expenses 115,335 (10,579) (18,302) (724) (593) (201) - (2,553) 237 - 82,620 40%

Income (loss) from operations 1,837 10,579 21,891 1,593 631 358 - 2,553 (237) - 39,205 19%

Other expense, net (1,639) - - - - (513) 208 - - - (1,944) -1%

Income (loss) before income taxes 198 10,579 21,891 1,593 631 (155) 208 2,553 (237) - 37,261 18%Income tax benefit (provision) 4,853 - - - - - - - - (13,976) (9,123) -4%

Net Income (loss) (1) 5,051 10,579 21,891 1,593 631 (155) 208 2,553 (237) (13,976) 28,138 14%

5.1% 10.6% 0.8% 0.3% -0.1% 0.1% 1.2% -0.1% -6.7%Basic net loss per share 0.13$

Diluted net income (loss) per share (1) 0.12$ 0.68$

Shares used in computing net income (loss) per share:

Basic 40,162 Diluted 41,662 41,662

Bottomline TechnologiesReconciliation of Non-GAAP MeasuresSix Months Ended December 31, 2018

Non-GAAP


12/31/19 12/31/18 12/31/19 12/31/18

GAAP Net income / GAAP Net income margin 2,609$ 5,969$ 2% 6%

Adjustments:Other expense, net of pension adjustments 842 1,031 1% 1%Benefit from income taxes (3,780) (3,519) (3%) (3%)Depreciation and amortization 6,560 5,551 5% 5%Amortization of acquisition-related intangible assets 5,213 5,253 5% 5%Stock-based compensation plan expense 10,965 9,549 10% 9%Acquisition and integration-related expenses 1,957 710 2% 0%Restructuring expense 234 54 0% 0%Global ERP system implementation and other costs 200 972 0% 1%Other non-core expense 4 - 0% 0%

Adjusted EBITDA / Adjusted EBITDA margin 24,804$ 25,570$ 22% 24%

Three Months Ended Three Months Ended

Bottomline TechnologiesReconciliation of Adjusted EBITDA and Adjusted EBITDA margin

Reconciliation of Adjusted EBITDA Reconciliation of Adjusted EBITDA Margin

12/31/19 12/31/18 12/31/19 12/31/18

GAAP Net income / GAAP Net income margin 1,242$ 5,051$ 1% 2%

Adjustments:Other expense, net of pension adjustments 1,807 1,996 1% 1%Benefit from income taxes (3,777) (4,853) (2%) (2%)Depreciation and amortization 12,652 11,191 5% 5%Amortization of acquisition-related intangible assets 10,163 10,579 5% 5%Stock-based compensation plan expense 22,009 21,891 10% 11%Acquisition and integration-related expenses 3,654 1,593 2% 1%Restructuring expense 209 631 0% 0%Global ERP system implementation and other costs 424 2,553 0% 1%Other non-core expense (benefit) (10) - 0% 0%

Adjusted EBITDA / Adjusted EBITDA margin 48,373$ 50,632$ 22% 24%

Six Months Ended Six Months Ended

Bottomline TechnologiesReconciliation of Adjusted EBITDA and Adjusted EBITDA margin

Reconciliation of Adjusted EBITDA Reconciliation of Adjusted EBITDA Margin

12/31/19 12/31/18 12/31/19 12/31/18

GAAP diluted net income per share 0.06$ 0.14$ 0.03$ 0.12$

Plus:Amortization of acquisition-related intangible assets 0.13 0.13 0.24 0.25 Stock-based compensation plan expense 0.26 0.23 0.53 0.53 Acquisition and integration-related expenses 0.05 0.02 0.09 0.04 Global ERP system implementation and other costs - 0.02 0.01 0.06 Restructuring expense 0.01 - 0.01 0.02 Tax effects on non-GAAP income (0.18) (0.19) (0.28) (0.34)

Diluted core earnings per share 0.33$ 0.35$ 0.63$ 0.68$

Bottomline TechnologiesReconciliation of Diluted Core Earnings Per Share

Three Months Ended Six Months Ended

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