In a market starved for growth stocks, Bottomline Technologies (EPAY) is an exciting tech-growth story which has just recently been discovered by the market. EPAY markets and provides electronic payment, invoice and document-automation solutions to corporations worldwide. The company’s products help to streamline, automate and manage transactions involving global payments, invoice receipt and approval, collections, cash management and document management. In our view, EPAY reached an important inflection point with its most recent earnings report. More importantly, with a strong and clear plan for growth and a very positive outlook, we feel that the best is yet to come for both the company and its stock.

We must admit to being impressed by the confident tone of EPAY’s management team on its latest conference call. While revenues were only up 8% in its most recent quarter, analysts are looking for revenues to grow 9.5% in Q210 and 14.5% in the third quarter. Undoubtedly the biggest reason for management’s optimism stemmed from the impressive earnings and margin expansion EPAY has been able to achieve over the past few quarters. Some of the highlights from this past quarter, Q1, included:

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