Revenue Performance - Q3 total revenue was $358.2 million, an increase of 11% year-over-year[6] - Q3 core revenue, consisting of subscription and transaction fees, was $320.3 million, up 14% year-over-year[6] - Subscription fees were $68.2 million, a 4% increase year-over-year, while transaction fees reached $252.1 million, up 17% year-over-year[6] - Guidance for Q4 FY25 total revenue is projected between $370.5 million and $380.5 million, with year-over-year growth of 8% to 11%[7] - Total revenue for the three months ended March 31, 2025, was $358,217,000, representing a 10.9% increase from $323,028,000 in the same period of 2024[32] - Subscription and transaction fees increased to $320,298,000 for the three months ended March 31, 2025, up from $281,294,000 in 2024, marking a growth of 13.9%[32] Profitability Metrics - Gross profit was $291.0 million, representing an 81.2% gross margin, compared to 83.0% in Q3 of fiscal 2024[6] - Operating loss was $28.9 million, compared to a loss of $27.6 million in Q3 of fiscal 2024[6] - Net loss was $11.6 million, or $(0.11) per share, compared to net income of $31.8 million in Q3 of fiscal 2024[6] - Gross profit for the three months ended March 31, 2025, was $291,005,000, compared to $268,016,000 in 2024, reflecting an increase of 8.6%[32] - Operating loss for the three months ended March 31, 2025, was $(28,946,000), slightly higher than the loss of $(27,622,000) in 2024[32] - Net loss for the three months ended March 31, 2025, was $(11,589,000), compared to a net income of $31,809,000 in the same period of 2024[32] Cash Flow and Liquidity - Cash flows from operating activities for the three months ended March 31, 2025, were $99,530,000, an increase from $66,809,000 in 2024[35] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of Q1 2025 totaled $3,171,150, down from $3,335,803 at the end of Q1 2024[36] - Net cash used in financing activities for Q1 2025 was $(105,573), compared to $(801,215) in Q1 2024, showing a significant reduction in cash outflow[36] - The company reported a net decrease in cash and equivalents of $(649,557) for Q1 2025, compared to $(1,352,777) in Q1 2024, indicating improved cash management[36] - Net cash provided by operating activities for Q1 2025 was $99,530 thousand, up 48.9% from $66,809 thousand in Q1 2024[43] Balance Sheet Highlights - Total current assets increased to $6,803,834,000 as of March 31, 2025, compared to $6,314,817,000 as of June 30, 2024, representing an increase of 7.8%[30] - Total liabilities rose to $5,762,175,000 as of March 31, 2025, compared to $5,044,612,000 as of June 30, 2024, indicating an increase of 14.2%[30] - Stockholders' equity decreased to $3,870,461,000 as of March 31, 2025, down from $4,134,201,000 as of June 30, 2024, a decline of 6.4%[30] Research and Development Expenses - Research and development expenses for the three months ended March 31, 2025, were $86,540,000, up from $81,594,000 in 2024, reflecting a growth of 6.0%[32] - GAAP research and development expenses for Q1 2025 were $86,540, an increase from $81,594 in Q1 2024[38] - Non-GAAP research and development expenses for Q1 2025 were $57,987, compared to $55,532 in Q1 2024, reflecting a 4.4% increase[38] Performance Obligations and Share Metrics - Remaining performance obligations to be recognized as revenue total $74,430 thousand as of March 31, 2025, down from $86,845 thousand in the previous year[45] - Shares used to compute GAAP net income per share, diluted, for Q1 2025 were 102,219 thousand, compared to 111,176 thousand in Q1 2024, a decrease of 8.1%[41] - Non-GAAP net income per share attributable to common stockholders, diluted, for Q1 2025 was $0.50, down from $0.60 in Q1 2024, a decline of 16.7%[39] Other Financial Metrics - Non-GAAP net income for FY25 is expected to be between $236.7 million and $240.7 million, with non-GAAP net income per diluted share projected at $2.06 to $2.09[7] - Free cash flow for Q1 2025 was $90,541 thousand, an increase of 43.9% from $62,960 thousand in Q1 2024[43] - Total depreciation and amortization for Q1 2025 was $18,336 thousand, compared to $23,429 thousand in Q1 2024, a decrease of 21.8%[39] - Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses for Q1 2025 were $63,909 thousand, up from $60,619 thousand in Q1 2024, an increase of 3.8%[39] - Capitalization of internal-use software costs for Q1 2025 was $(7,460) thousand, compared to $(3,833) thousand in Q1 2024, an increase of 94.3%[43]

Core Insights - BILL Holdings is expected to report quarterly earnings of $0.37 per share, reflecting a decline of 38.3% year-over-year, while revenues are forecasted to increase by 9.8% to $354.78 million [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 8.2%, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Breakdown - Analysts estimate 'Revenue- Interest on funds held for customers' to be $35.26 million, a decrease of 15.5% from the prior-year quarter [5] - 'Revenue- Subscription and transaction fees' is projected to reach $320.12 million, representing an increase of 13.8% year-over-year [5] Key Metrics - The consensus estimate for 'Total Payment Volume' is $80.34 billion, up from $71 billion a year ago [6] - Analysts predict 'Transactions Processed' will reach 30.79 million, compared to 26 million in the same quarter last year [6] Stock Performance - Over the past month, shares of BILL Holdings have returned +12.8%, outperforming the Zacks S&P 500 composite's +11.5% change [6] - BILL Holdings currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

On Thursday, Seaport Global analyst Jeff Cantwell downgraded two companies — PayPal Holdings PYPL and Bill Holdings BILL — as he has lost confidence that either will eventually meet their previously stated guidance in this new paradigm.PayPal went from Neutral to Sell and Bill went from Buy to Neutral.What Happened: Cantwell adjusted his numbers and price targets lower across the board in Fintech ahead of earnings. This reflects how this new, emerging ‘tariff-heavy’ paradigm will eventually impact names und ...

Core Viewpoint - BILL Holdings (BILL) has experienced a significant decline in share price, dropping 49.7% year-to-date, compared to declines of 10.4% in the Zacks Computer & Technology sector and 5.6% in the Zacks Internet - Software sector, primarily due to broader market weaknesses and regulatory concerns [1] Group 1: Company Performance and Market Position - The company is benefiting from increased platform adoption, AI-driven automation, expanded payment solutions, and partnerships that enhance its small and medium-sized business (SMB) ecosystem [2] - BILL is strengthening its position in the financial technology sector with an expanding portfolio, which has been crucial for its success [3] - In Q2 of fiscal 2025, BILL's platform was utilized by over 480,000 businesses, with nearly $85 billion in payment volume processed across 30 million transactions, indicating strong engagement and effectiveness in streamlining financial processes for SMBs [5] Group 2: Product Enhancements and Client Engagement - In December 2024, BILL introduced new features, including embedded 1099 functionality, which simplified tax form filing and increased the platform's appeal to SMBs, with 5% of customers completing nearly 200,000 1099 filings [4] - The company's partnerships with Regions Financial and Adyen have been key catalysts for expanding its SMB clientele, enhancing digital payment solutions and integrating advanced capabilities into its financial operations platform [6][7] Group 3: Financial Guidance and Earnings Estimates - For Q3 of fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, reflecting a year-over-year growth of 9-11%, with non-GAAP earnings projected between 35 cents and 38 cents per share [8] - The Zacks Consensus Estimate for Q3 revenues is $355.27 million, indicating a year-over-year growth of 9.98%, while the consensus for earnings is 38 cents per share, showing a year-over-year decline of 40% [9][10] - For fiscal 2025, revenues are expected to be between $1.45 billion and $1.47 billion, implying a 13-14% year-over-year growth, with non-GAAP earnings projected between $1.87 and $1.97 per share [8] Group 4: Competitive Landscape - Despite expanding its SMB clientele, BILL faces stiff competition from accounting software providers like SAP and Intuit, which are enhancing their offerings in the SMB sector [11] - Intuit's recent launch of Tap to Pay on iPhone for QuickBooks Online customers highlights the competitive pressure on BILL, as it enables seamless, secure payments for SMBs [12]

Core Insights - Bill Holdings is a SaaS company that provides a platform for small and midsize businesses to manage financial operations, leveraging AI technology for efficiency [1] - The company experienced significant revenue growth during the COVID-19 pandemic, but growth has since slowed, with the stock currently around 85% below its all-time high despite a revenue growth rate above 20% [2] - Bill's net dollar-based retention rate is 92%, indicating a decline in customer spending, which is lower than most other SaaS companies [3] Financial Performance - Bill Holdings reported a 22% year-over-year revenue growth in fiscal 2024, with an adjusted gross margin of 85% and an adjusted operating margin of 17% [4] - The company serves over 480,000 businesses, highlighting its substantial market presence [4] Market Opportunity - There are 34 million small and midsize businesses in the U.S. and over 72 million globally, indicating a large market opportunity for Bill Holdings [5] - The demand for automation in complex processes continues to grow, and the company is investing in innovation to enhance its platform [5] Stock Volatility - Bill's stock has shown significant volatility, trading between approximately $27 and $349 per share over the past five years, suggesting a turbulent future [6] - If the company can maintain rapid growth and capture market share, it has the potential for a bright future [6]

Core Insights - BILL Holdings' shares have declined 20.4% in the past month, underperforming the broader Zacks Computer and Technology sector and the Zacks Internet - Software industry [1] - The company is facing a sluggish revenue forecast for Q3 fiscal 2025, impacted by trade policy changes and rising operating expenses [2] - A shift in payment volumes towards lower gross interchange categories has pressured BILL's profitability [3][4] Revenue and Earnings Estimates - For Q3 fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, indicating a year-over-year growth of 9-11%, a slowdown from the previous quarter's projection of 12-13% [5] - Non-GAAP earnings are projected between 35 cents and 38 cents per share, with a consensus mark of 38 cents, reflecting a year-over-year decline of 36.67% [6] - For fiscal 2025, revenues are expected between $1.45 billion and $1.47 billion, implying 13-14% year-over-year growth [6] Market Position and Growth Strategies - BILL Holdings has a strong long-term outlook, driven by an expanding customer base and strategic fintech collaborations [8] - The company processed approximately $85 billion in payment volume across 30 million transactions in Q2 fiscal 2025, indicating strong customer engagement [11] - BILL is enhancing its platform with international payment options and an embedded 1099 filing service to simplify tax compliance for SMBs [10][13] Strategic Initiatives - The company is actively investing in its go-to-market strategy to expand its presence in the accounting firm market, targeting over 40,000 CPA firms in the U.S. [12] - BILL's focus on automation, AI-driven financial solutions, and digital payment capabilities is enhancing its platform's value [14]

Core Viewpoint - Bill.com has shifted its strategy from prioritizing growth to focusing on profitability, leading to a significant decline in stock value despite a large addressable market opportunity [3][11]. Company Overview - Bill.com provides software products aimed at helping small and mid-sized businesses manage accounts payable, accounts receivable, and expense management workflows more efficiently [1]. - The company went public in December 2019 and initially experienced rapid revenue growth, with stock prices soaring from $22 to $334, a gain of over 1,400% [2]. Business Strategy - The company has transitioned to a profitability-focused strategy, resulting in an 84% decline in stock price from its peak [3]. - Bill.com has a substantial addressable market, with over 72 million small and medium-sized businesses globally, processing transactions worth over $136 trillion annually [13]. Product Offerings - Bill.com's flagship product is a cloud-based digital inbox that streamlines invoice management, reducing bookkeeping time by 70% for some users [4]. - The acquisition of Invoice2go in 2021 allows businesses to generate invoices and track payments, while the acquisition of Divvy (now Spend and Expense) helps track expenses in real-time [5][6]. Financial Performance - In the fiscal 2025 second quarter, Bill.com reported total revenue of $362.6 million, exceeding forecasts and prompting an increase in full-year revenue guidance, but representing only 14% year-over-year growth, the slowest since going public [8]. - The company has reduced operating expenses by 3.1% year-over-year, contributing to a net income of $33.5 million in Q4, a significant improvement from a net loss of $40.4 million in the previous year [9][10]. Valuation Metrics - Bill.com stock currently trades at a price-to-sales (P/S) ratio of 4.1, close to its lowest level since going public and an 85% discount to its long-term average of 28.8 [12][13]. - The current valuation suggests that Bill.com could be an attractive investment for those willing to hold for the next three to five years, as the company is expected to continue growing within its addressable market [14].

Core Viewpoint - BILL Holdings experienced a significant decline in share price by 36.2% following weaker-than-expected revenue guidance and challenges from foreign exchange volatility impacting monetization [1] Financial Performance - In Q2 fiscal 2025, BILL reported revenues of $362.6 million, reflecting a year-over-year increase of 13.8%, driven by a 16.3% growth in core revenues [6][14] - The company processed $85 billion across 30 million transactions, indicating high user engagement and an expanding customer base [9] - For Q3 fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, suggesting year-over-year growth of 9-11% [14] Growth Drivers - The growth was fueled by AI-enabled automation capabilities and a refined go-to-market strategy, focusing on delivering value to small and medium-sized businesses (SMBs) [7][10] - BILL's platform saw over 480,000 businesses using its automation tools, reflecting a broad increase in users [8] - The company introduced new features like embedded 1099 functionality, enhancing the platform's appeal to SMBs [11] Market Position and Partnerships - BILL's expanding customer base includes partnerships with companies like Adyen and Regions Financial, which enhance its digital payment solutions [12][13] - The partnership with Regions Bank aims to simplify payments and improve cash management for commercial clients [13] Earnings Estimates - The Zacks Consensus Estimate for Q3 fiscal 2025 revenues is $355.32 million, indicating year-over-year growth of 10% [15] - The consensus mark for fiscal 2025 revenues is pegged at $1.46 billion, indicating year-over-year growth of 13.19% [15][16] Valuation - BILL stock is currently considered overvalued, with a forward 12-month Price/Sales ratio of 3.97X, higher than the industry average of 3.33X [17] Investment Outlook - Despite recent challenges, BILL's expanding customer base, robust product portfolio, and focus on automation position the company for sustained success [20] - The company maintains strong cash generation, with a free cash flow margin of 20% in Q2 fiscal 2025 [20]

Core Viewpoint - BILL Holdings (BILL) has experienced a significant downtrend, with a stock price decline of 25.3% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - The stock has been under heavy selling pressure, indicated by an RSI reading of 21.44, which suggests that the selling may be exhausting itself and a reversal could be imminent [5]. - A stock is generally considered oversold when its RSI falls below 30, making the current RSI reading a critical indicator for potential price recovery [2][3]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for BILL has increased by 2.9%, indicating a positive trend in earnings revisions that typically correlates with price appreciation [6]. - There is strong agreement among sell-side analysts regarding the company's ability to report better earnings than previously predicted, which supports the case for a potential stock turnaround [1][6]. Group 3: Zacks Rank and Investment Potential - BILL currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating its potential for a near-term turnaround [7].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with BILL Holdings currently holding a Momentum Style Score of B [2][3] Group 2: BILL Holdings Performance Metrics - BILL Holdings has a Zacks Rank of 2 (Buy), indicating strong potential for outperformance in the market [3] - Over the past week, BILL shares increased by 3.08%, outperforming the Zacks Internet - Software industry, which rose by 0.43% [5] - In the last month, BILL shares rose by 16.8%, compared to the industry's 6.15% [5] - Over the past quarter, BILL shares increased by 11.54%, and over the last year, they rose by 27.19%, while the S&P 500 only moved 2.97% and 24.31%, respectively [6] Group 3: Trading Volume and Earnings Outlook - BILL's average 20-day trading volume is 2,205,951 shares, indicating a bullish sign with rising stock prices [7] - In the past two months, 2 earnings estimates for BILL moved higher, increasing the consensus estimate from $1.77 to $1.78 [9] - For the next fiscal year, 3 earnings estimates have also moved upwards, with no downward revisions [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, BILL Holdings is positioned as a promising investment opportunity with a Momentum Score of B [11]