Key Takeaways INTU earnings for 2025 are set to grow 18.42%, while BILL's earnings are projected to decline 1.89%. BILL added 4,200 new customers in Q3 2025, expanding its AP and AR footprint among SMBs. INTU launched QuickBooks Bill Pay and Tap to Pay, boosting platform stickiness and midmarket reach.BILL Holdings (BILL) and Intuit (INTU) are major players in the SMB-focused fintech market, offering digital tools that streamline financial operations like accounting, billing, and payments for small and mi ...

Core Insights - BILL Holdings (BILL) is experiencing growth due to the increasing adoption of its platform, with a strategic focus on embedding AI across its integrated financial operations suite [1][4] Company Performance - Over 488,600 businesses utilize BILL's integrated financial operations platform for accounts payable (AP), accounts receivable (AR), and spend management, enhancing efficiency through AI-driven tools [2] - In Q3 FY25, BILL's Integrated Platform generated $301.7 million in revenues, reflecting a 14.5% year-over-year increase and contributing over 94% of core revenues [3][10] - The company added 4,200 net new AP/AR customers and experienced a 22% rise in card payment volume, indicating strong platform adoption [3][10] - BILL processed $79.4 billion in total payment volume (TPV) in the latest quarter, signaling a strategic shift towards serving larger enterprises [4][10] Industry Trends - According to BILL's 2025 State of Financial Automation Report, 73% of financial SMB leaders are using AI in their operations, with 83% expecting its influence to grow in the next two years [5] Competitive Landscape - BILL faces competition from Global Payments (GPN), which benefits from global scale and digital payment demand, and PayPal (PYPL), which leads in the digital payments space with strong brand recognition and innovative solutions [6][7] Valuation Metrics - BILL's shares have declined 46.4% year to date, underperforming the broader Zacks Computer and Technology sector, which returned 7.5% [8] - The forward 12-month Price/Sales ratio for BILL is 2.88X, significantly lower than the industry's 5.75X, indicating potential undervaluation [11] - The Zacks Consensus Estimate for fiscal 2026 earnings is $2.20 per share, reflecting a 6.34% year-over-year growth [14]

Core Insights - BILL Holdings (BILL) shares have declined 43.7% year-to-date, underperforming the broader Zacks Computer & Technology sector and the Zacks Internet - Software industry, which have returned 7% and 16.1% respectively [2][9] - The decline is attributed to a challenging macroeconomic environment, persistent inflation, and high interest rates affecting small and medium businesses (SMBs) spending on digital initiatives [2][9] Company Performance - BILL is experiencing growth in its SMB clientele, with partnerships with companies like Regions Financial and Adyen enhancing its digital payment solutions [5][6][7] - In Q3, BILL processed nearly $79 billion in payments across 30 million transactions, adding 4,200 new customers, driven by AI and automation features [10][12] - The company launched new solutions like Supplier Payments Plus and financial automation innovations to streamline SMB payments and improve cash flow management [11] Financial Guidance - For Q4 fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, indicating year-over-year growth of 8-11% [13] - For the full fiscal 2025, revenues are projected between $1.45 billion and $1.46 billion, suggesting a year-over-year growth of 12-13% [14] Earnings Estimates - The Zacks Consensus Estimate for Q4 fiscal 2025 earnings is 40 cents per share, reflecting a year-over-year decline of 29.82% [15] - The consensus for fiscal 2025 revenues is pegged at $1.46 billion, indicating a year-over-year growth of 13.02% [16] Competitive Landscape - Despite its expanding portfolio, BILL faces stiff competition from accounting software providers like SAP and Intuit, which have launched services that directly challenge BILL's market position [17][18]

Core Insights - BILL Holdings (BILL) is experiencing growth with a 17% year-over-year increase in transaction fee revenues, reaching $252.1 million in Q3 of fiscal 2025, driven by an 11% rise in Total Payment Volume (TPV) to $79.4 billion [1][10]. Group 1: Financial Performance - The growth in transaction fee revenues is attributed to a significant increase in TPV, which reflects rising payment volume and transaction-based income [1][10]. - The integrated financial operations platform of BILL served over 488,600 businesses by the end of Q3, processing 30 million transactions, a 16% increase year-over-year [2]. - Despite the overall growth, customer spending was slightly below expectations, leading to a minor sequential decline in TPV and transactions per customer, although a favorable payment mix helped support monetization [3]. Group 2: Competitive Landscape - BILL operates in a competitive fintech environment, facing challenges from larger players like Global Payments (GPN) and Intuit (INTU), which have more diversified offerings and deeper market reach [5][7]. - GPN processes over 50 billion transactions annually and has a strong global presence, while Intuit leverages its established small business ecosystem and ongoing investments in AI [6][7]. Group 3: Future Outlook - The long-term outlook for BILL remains positive, supported by investments in AI, ERP integrations, and payment innovations that enhance user engagement and promote sustainable growth [4]. - BILL's shares have underperformed, dropping 44% year-to-date compared to a 7.9% return in the broader Zacks Computer and Technology sector [8][10]. - The Zacks Consensus Estimate for fiscal 2025 earnings is projected at $2.07 per share, indicating a 6.7% increase over the past 60 days, despite a year-over-year decline of 2.36% [12].

Core Insights - BILL Holdings is strategically expanding its platform to cater to larger and more complex organizations while maintaining its focus on small and midsize businesses (SMBs) [1][8] - The launch of Supplier Payments Plus aims to simplify and accelerate payment processes for large suppliers, enhancing operational efficiency and the payment experience for SMB buyers [2][8] - In Q3 fiscal 2025, BILL reported revenues of $301.7 million from its Integrated Platform, reflecting a 14.5% year-over-year increase, driven by continued adoption among its core SMB base [3][8] Company Developments - BILL is investing in innovation by enhancing its payment portfolio, expanding distribution channels, and accelerating its AI strategy, which supports sustained growth in the SMB sector [4] - The company faces competitive pressure from Intuit's QuickBooks Bill Pay and Expensify's expense management tools, which could impact its market position [5][6][8] Financial Performance - BILL's share price has decreased by 45.4% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 6.1% [7] - The forward 12-month Price/Sales ratio for BILL is 3.27X, compared to the industry average of 5.89X, indicating a lower valuation [9] - The consensus estimate for fiscal 2025 earnings is $2.05 per share, reflecting a 5.7% increase over the past 60 days but a year-over-year decline of 3.3% [10]

Group 1 - BILL Holdings (BILL) closed at $45.28, with a 0.2% gain over the past four weeks, and a mean price target of $66.75 indicating a 47.4% upside potential [1] - The mean estimate consists of 24 short-term price targets with a standard deviation of $20.19, where the lowest estimate is $40.00 (11.7% decline) and the highest is $120.00 (165% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price movements [11][12] Group 2 - The Zacks Consensus Estimate for the current year has increased by 0.5% due to one upward revision and no negative revisions in the last 30 days [12] - BILL currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does suggest a positive direction for price movement [14]

Core Insights - The article highlights the significant growth potential in the cloud computing sector, driven by increasing global demand for cloud services and the integration of AI technologies across various applications [4][10]. Group 1: Company Profiles - **BILL Holdings Inc.**: Focuses on AI-enabled financial software for small and medium businesses, benefiting from an expanding clientele and strong adoption of its platform. Expected revenue and earnings growth rates are 13.5% and 7.8% respectively for the next year [7][9]. - **Five9 Inc.**: Provides intelligent cloud software for contact centers, leveraging AI tools to enhance customer interactions. Expected revenue and earnings growth rates are 9.6% and 11.7% respectively for the current year [11][14]. - **Fastly Inc.**: Offers infrastructure software and edge cloud solutions, recently launching Fastly AI Accelerator to optimize AI applications. Expected revenue and earnings growth rates are 8.6% and 25% respectively for 2025 [15][17]. - **Qualys Inc.**: Focuses on cloud-based cybersecurity solutions, benefiting from increasing demand amid cyber threats. Expected revenue and earnings growth rates are 7.3% and 0.7% respectively for the current year [18][21]. - **Commvault Systems Inc.**: Provides a cyber resilience platform for data protection and recovery, with expected revenue and earnings growth rates of 14% and 13.2% respectively for the current year [22][25]. Group 2: Market Trends and Drivers - The cloud computing industry is experiencing a paradigm shift from traditional infrastructure to cloud-based solutions, enhancing operational efficiency and scalability for organizations [2][3]. - Key drivers for growth in the selected companies include AI integration, cybersecurity demand, and the development of cloud-native platforms [10].

Industry Overview - Financial technology (fintech) is a transformative investment space merging finance and technology, offering services like online banking, peer-to-peer payments, insurance, cryptocurrency, and cybersecurity [1] - The fintech space is expected to benefit from expanding transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [2] - The innovative nature of fintech positions it favorably in the evolving financial landscape, with significant growth potential driven by mobile and broadband network expansion [3] Catalysts for Growth - Consumer behavior is shifting towards digital platforms, driven by convenience and cost-effectiveness, which supports fintech's adaptability to changing technological needs [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [4] Company Highlights BILL Holdings Inc. (BILL) - BILL primarily serves small and medium businesses (SMB) with its AI-enabled financial software platform, benefiting from an expanding clientele and diversified business model [7] - Expected revenue and earnings growth rates for BILL are 13.7% and 11.2%, respectively, for the next year, with a Zacks Consensus Estimate for next-year earnings improving by 5.6% in the last 60 days [10] ACI Worldwide Inc. (ACIW) - ACIW develops software products for facilitating digital payments, powering electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [12][13] - Expected revenue and earnings growth rates for ACIW are 7.1% and 7.2%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 1.1% in the last 60 days [13] Shift4 Payments Inc. (FOUR) - Shift4 Payments provides software and payment processing solutions, offering omni-channel card acceptance and processing across multiple payment types [14] - Expected revenue and earnings growth rates for FOUR are 26% and 43.4%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 17.2% in the last 60 days [16] OppFi Inc. (OPFI) - OppFi operates as a specialty finance platform for community banks, providing access to credit for consumers turned away by mainstream options [17] - Expected revenue and earnings growth rates for OPFI are 10% and 29.5%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 15% in the last 60 days [18] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, empowering businesses to accept various payment methods and manage accounts [20] - Expected revenue and earnings growth rates for STNE are 10.9% and 4.4%, respectively, for the current year, with a Zacks Consensus Estimate for current-year earnings improving by 11.9% in the last 60 days [21]

Group 1 - BILL Holdings (BILL) shares have increased by 2% over the past four weeks, closing at $45.62, with a mean price target of $66.75 indicating a potential upside of 46.3% [1] - The average of 24 short-term price targets ranges from a low of $40 to a high of $120, with a standard deviation of $20.19, suggesting variability in analyst estimates [2] - Analysts show a consensus that BILL will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for BILL's current year earnings has increased by 103.8% over the last 30 days, with seven estimates moving higher and no negative revisions [12] - BILL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While price targets may not be reliable indicators of stock gains, the direction implied by these targets appears to be a good guide for potential price movement [13]

Bill Holdings (BILL 1.09%) has a portfolio of software products designed to streamline accounts payable, accounts receivable, and expense management workflows for almost half a million small and mid-sized businesses (SMBs).Despite Bill's consistent revenue growth over the last few years, its stock is down 87% from its record high, which was set during the tech frenzy in 2021. It was unquestionably overvalued back then, but the stock is now trading near the cheapest level in its history.Bill has an enormous ...