Thank you, Rob. It's a pleasure to be speaking with you all today. I'm going to talk about our performance in Q3, both financial and commercial and with a particular focus on the underlying drivers of our growing subscription revenue streams. Then I'll provide guidance for the 4th quarter and the full year fiscal 21 as well as longer term into fiscal 22. Q3 was a very good quarter for Bottomline. Total revenue was $121 million representing 8% growth over the prior year. Both of those metrics being right on our targets. Most importantly, subscription revenue in Q3 was $100 million which is percent growth year-over-year.
We are tracking very well to our goal of producing consistent 15%-20% subscription revenue growth across the business. Profitability was equally strong with $24.1 million of EBITDA, $15.8 million of operating income and $0.27 of earnings per share, all in all we hit every key performance metric we set for ourselves.
Let's focus on subscription revenue for a few minutes. In Q3, subscription revenues were 83% of our total revenue and are now on an annual run rate of $400 million and we achieved that performance despite currency headwinds in Q3 that were greater than we anticipated and transaction volumes from a few of our products that while recovering remained slightly lower than their pre-COVID levels. Subscription revenue growth excluding Paymode-X and legal spend management was 21% including particular strength from our solutions in Europe. In Paymode-X we saw substantial year-on-year growth from new payers who were not live on our platform last year, as well as solid growth from our existing customer base that demonstrates the strong customer lifetime value and high net retention rate of this solution. Legal spend management revenue grew from add-on business with some of our leading customers tempered by some continued lower transaction volumes from the base as a whole. And our leading digital banking offerings continue to perform extremely well.
In addition to the strong revenue performance we achieved some solid bookings wins with our sales and customer success teams this quarter. Paymode-X added 25 new payers across a variety of industry verticals including healthcare, higher education and property management, both through direct sales and also by our bank channel partners and we now have more than 450,000 vendors on our network. 8 new customers, including frontline insurance and Embark general chose Bottomline's legal spend management solutions and 7 existing customers expanded their relationships and our digital banking solutions secured key wins with $500 Billion National Bank selecting Bottomline's digital banking platform, a $10 billion consumer credit reporting agency selecting our cloud enabler and encryption solutions and $500 billion National Bank extending our cyber fraud, risk management solution to protect against insider and employee fraud, although overall our bookings of $20.3 million were down a bit from last quarter.
As you know we commonly see variability from quarter to quarter. Several large deals pushed into Q4, some of which have now closed and overall Q4 bookings are looking very strong. By the way that bookings number includes new subscription revenue streams from customers that we convert from other revenue models typically legacy license and maintenance models. Previously, our reported bookings levels excluded those but when I saw that I propose that we include them because they are a real driver of increased subscription revenue growth for the future, which, as you all know is our primary objective.
Over the past few quarters, the difference between those approaches was a just a few hundred thousand dollars.
So, not material. But anyway, I thought I'd call out this tweak to this metric.
Turning to the rest of the P&L, as I mentioned earlier, we hit our Q3 EBITDA, core operating income and core earnings per share targets. Gross margin for the quarter was 60%, up 2% from Q3 of 2020 powered by 62% gross margins from our subscription products. We reinvested that added gross margin into our go-to-market and product development engines in order to continue to accelerate our growth.
Our cash flows and balance sheet remain strong. We produced $37 million of operating cash flow and $28 million of free cash flow in the quarter.
As of March 31, we had $138 million of cash and investments on hand. Notably, during the quarter we closed our acquisition of treasury express for $31 million and we did not repurchase any shares in the quarter.
We expect a strong finish to the year in Q4, we expect subscription revenue of $102 million to $104 million which equates to 16% - 19% growth over Q4 of 20.
You'll note that this range is a little lower than the 18% to 20% expectation that was previously communicated for Q4, primarily because we now expect currency exchange rates to be a little less favorable in Q4 than we anticipated when we provided that guidance initially.
We expect total revenue in Q4 of $122 million - $124 million, so 10% to 12% total revenue growth. EBITDA is expected to be $24 to $25 million, core operating income of $16 million to $17 million and core earnings per share of $0.25 to $0.27. When we achieve those results, we will hit our previously communicated targets for the full 2021 fiscal year across the board. Subscription revenue growth, overall revenue growth, EBITDA, operating income and EPS.
Looking ahead to fiscal 22. We remain committed to our primary objective of delivering consistent 15% to 20% subscription revenue growth. We've looked at so many variables that will impact where we end up in that range, including go live and ramp timing of our book solutions. The pace of volume increases in our transactional revenue streams.
Forward foreign currency exchange rates and many others.
We have taken what we believe to be conservative assumptions about all of those elements and we have high confidence in committing to 15%.
As the new fiscal year arrives and progresses, we will revisit and refine our projected performance in the 15% to 20% range. Driven largely by this commitment, we expect a minimum of 10% overall revenue growth in fiscal 22. It has been a strong ambition of ours to drive through the impacts of revenue model transitions and bring the company to double-digit growth.
We expect to achieve that in Q4 of this year and to maintain 10% to 11% overall revenue growth through fiscal 22.
In terms of profitability we are committed to a minimum of $106 million of EBITDA in fiscal '22. We can drive the company to a higher level of profitability next year if we chose to. But there are critical investments that are the better choice to ensure our accelerated longer-term growth.
For example, we suspended regular salary increases with the onset of COVID and as a result, our people have now foregone races for the past two years, which is not sustainable in today's highly competitive market for technical and leadership talent.
In addition, we see an opportunity now to capitalize on the market opportunity in front of us by continuing to invest in new product creation and enhanced go to market capabilities, making these investments is the prudent and impactful course of action, but still allows us to deliver $1 million to $2 million per quarter of EBITDA growth over fiscal ‘21 levels.
So in summary for fiscal ’22, we anticipate subscription revenue of $445 million or more and total revenue of $520 million or more.
We are proud to predict that in fiscal ‘22 Bottomline will become a $0.5 billion revenue company with double-digit growth. We'll provide further updates of our guidance in our next earnings report, including details about operating income and core EPS. I'm also happy to share with you that Angela White has just joined us as Vice President of Investor Relations, Angela is an experienced IR professional having led the function at Endurance International Group and Vistaprint's Cimpress. Angela and I look forward to continuing to build on Bottomline's relationships with our investor community over the coming months and years. When I joined Bottomline two months ago I saw a company that is uniquely positioned to capitalize on a huge market opportunity. I saw a company with a very strategic position in the middle of a FinTech market with enormous potential for long-term growth. My highest priority and ambition for bottom line is that we continue to realize that potential accelerating top line growth while balancing the need for investment profitability and cash generation. Along the way we'll continue to provide you with a clear strategic and financial plan and ensure that we execute against that plan and deliver against our commitments.
Our performance in Q3 represent strong achievement across all of those ambitions and as we look ahead to Q4 fiscal ‘22 and beyond. I'm increasingly confident that Bottomline will deliver every bit of the bright future that we envision.
Now we'll open the call for questions.