The S&P 500 has reached records this year, but it's somewhat misleading. It's a market-value-weighted index, and much of its gains come from a few stocks with high market caps like Nvidia, which is up about 150% this year, and Meta Platforms, which is up about 40%. Bill is a financial platform for small businesses. It connects all of a company's financial transactions, like accounts payable and receivable, into one unified platform where everything is recorded to flow together seamlessly. It does the heavy ...

Bill.com serves 464,900 customers across all of its products, but that's a mere fraction of its addressable market, which includes 70 million businesses globally. The company generated $323 million in total revenue during the fiscal 2024 third quarter (ended March 31), which was above management's forecast of $304 million and equaled a 19% increase from the year-ago period. Its revenue growth has decelerated over the last couple of years as it pivoted away from its growth-at-all-costs strategy and started f ...

When investing in the stock market, choosing the correct stocks to buy at the right moment is vital. This can be a very effective method of accumulating money. Examine the idea of discovering stocks that are sharp investment opportunities. This is because they have demonstrated strong financial performance and great growth potential. Any investor who wants to ensure their financial future and optimize earnings must comprehend these components. Another vital aspect is to select stocks with solid financial in ...

Bill Holdings (BILL) is expanding its footprint in the financial landscape with the recent launch of Regions CashflowIQ in partnership with Regions Financial (RF) . Regions CashflowIQ is aimed at simplifying payments and streamlining cash-management processes for commercial clients. With features like enhanced efficiency and visibility, automatic syncing and reconciliation with accounting software, and flexible payment options including credit, debit, virtual cards, automated clearing house, checks and inte ...

Strong quarterly results couldn't keep investors happy Bill's valuation might be too cheap to ignore Bill Holdings (BILL 1.99%) shares dropped 16.5% last month, according to data from S&P Global Market Intelligence. The financial software provider delivered a stellar quarterly earnings report, but investors were distracted by some underlying data. The company's outlook suggests that it will continue to experience slowing growth and net losses, which has the market feeling hesitant. Despite that positive tra ...

Michael Vi With the markets nervously hovering around all-time highs, it's a great time to be a stock picker and invest in companies whose stock price and individual fundamentals are completely dislocated. BILL Holdings (NYSE:BILL) is a great example of this: the small business billing management software company has seen a sharp decrease in its valuation this year. And while it hasn't exactly been smooth sailing for the business itself, the stock price suggests a company that is floundering: and the realit ...

Group 1: High-Growth Stocks Overview - High-growth stocks are likened to aggressive plays in baseball, aiming for significant gains rather than conservative strategies [1][2] - The article highlights several companies as potential high-growth investments, emphasizing their recent performance and future projections [6][11][15][21][25][35] Group 2: Company Summaries - **Globant (GLOB)**: Based in Luxembourg, operates in IT services, with a recent net income of $167.18 million and revenue of $2.19 billion. Quarterly revenue growth is 20.9%, with projected EPS of $6.40 for fiscal 2024 [4][5][6] - **Nextracker (NXT)**: Located in California, focuses on solar technology, achieving a net income of $306.24 million on $2.5 billion revenue. Quarterly sales growth is 42.1%, with projected EPS of $3.06 for the current fiscal year [8][10][11] - **Workiva (WK)**: Based in Iowa, provides cloud-based reporting solutions. Despite a recent loss of $93.06 million on $655.52 million revenue, projected EPS for fiscal 2024 is $1, up from a loss of 42 cents last year [13][14][15] - **Freshworks (FRSH)**: Operates in the software application sector, with a TTM net loss of $118.1 million on $623.88 million revenue. Quarterly revenue growth is 19.9%, with projected EPS of 33 cents for the current fiscal year [19][20][21] - **Gitlab (GTLB)**: Specializes in software infrastructure, with a TTM net loss of $424.17 million on $579.91 million revenue. Quarterly revenue growth is 33.3%, with projected EPS of 22 cents for the current fiscal year [22][24][25] - **Bill.com (BILL)**: Provides financial automation software, with a TTM net loss of $52.34 million on $1.24 billion revenue. Quarterly revenue growth is 18.5%, with projected EPS of $2.05 for fiscal 2024 [29][30][31] - **Duolingo (DUOL)**: A mobile learning platform with a net income of $45.6 million and revenue of $583 million. Quarterly revenue growth is 44.9%, with projected EPS of $1.59 for fiscal 2024 [33][34][35]

Bill.com has an enormous addressable opportunity, and its stock looks like a bargain at the current price.Bill.com (BILL 1.48%) stock went public in Dec. 2019 at an initial offering price of $22 per share, and by the latter half of 2021, it had soared almost 1,500% to an all-time high of $348.50. Two factors drove its incredible gains: The company was consistently growing its revenue at a triple-digit rate, and investors were caught up in a broader frenzy for technology stocks.Neither of those factors remai ...

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements for the three and nine months ended March 31, 2024, providing a snapshot of its financial position and performance Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$9,122,258** | **$9,636,018** | | Cash and cash equivalents | $952,474 | $1,617,151 | | Funds held for customers | $3,510,918 | $3,355,909 | | Goodwill | $2,396,509 | $2,396,509 | | **Total Liabilities** | **$5,063,525** | **$5,550,049** | | Customer fund deposits | $3,510,918 | $3,355,909 | | Convertible senior notes, net | $966,242 | $1,704,782 | | **Total Stockholders' Equity** | **$4,058,733** | **$4,085,969** | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$323,028** | **$272,555** | **$946,508** | **$762,485** | | Gross Profit | $268,016 | $223,705 | $777,093 | $621,060 | | Operating Loss | ($27,622) | ($54,218) | ($151,940) | ($254,375) | | **Net Income (Loss)** | **$31,809** | **($31,138)** | **($36,473)** | **($207,854)** | Condensed Consolidated Statements of Cash Flows Highlights (Nine Months Ended Mar 31, in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $200,151 | $107,413 | | Net cash used in investing activities | ($366,388) | ($119,923) | | Net cash provided by (used in) financing activities | ($722,404) | $39,710 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This subsection provides detailed disclosures supporting the main financial statements, covering revenue, fair value measurements, debt, equity, and a December 2023 restructuring plan Revenue Disaggregation (in thousands) | Revenue Source | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Subscription and transaction fees | $281,294 | $821,428 | | Interest on funds held for customers | $41,734 | $125,080 | | **Total Revenue** | **$323,028** | **$946,508** | - On December 5, 2023, the company announced a restructuring plan that included reducing its global workforce and closing its Sydney, Australia office, recording restructuring expenses of **$27.2 million** for the nine months ended March 31, 2024[107](index=107&type=chunk) - On March 6, 2024, the company repurchased **$748.2 million** of its 2025 Notes for **$711.0 million** in cash, resulting in a gain of **$32.5 million**, which was recorded in other income[99](index=99&type=chunk) - The company completed its **$300.0 million** Share Repurchase Program by December 31, 2023, repurchasing **2,882,634 shares** for **$212.2 million** during the nine months ended March 31, 2024[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial performance and condition, highlighting a **19%** year-over-year revenue increase, the impact of macroeconomic factors, and details of a December 2023 restructuring plan Key Business Metrics | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | % Growth | | :--- | :--- | :--- | :--- | | Businesses using our solutions | 464,900 | 455,300 | 2% | | Total Payment Volume (in billions) | $71.4 | $64.7 | 10% | - The macroeconomic environment, including elevated interest rates and inflation, has caused SMB customers to moderate expenditures and shift to lower-cost payment methods, resulting in lower payment volume growth than historical trends[138](index=138&type=chunk) - In December 2023, the company initiated a reduction-in-force (RIF) affecting approximately **15%** of its global workforce to right-size the organization and enhance profitability[114](index=114&type=chunk) Revenue Comparison (in thousands) | Revenue Component | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Subscription and transaction fees | $281,294 | $239,495 | 17% | | Interest on funds held for customers | $41,734 | $33,060 | 26% | | **Total Revenue** | **$323,028** | **$272,555** | **19%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to various market risks, including interest rate risk from customer funds, credit risk from acquired card receivables, and foreign currency exchange risk from international operations - The company is exposed to interest rate risk, as revenue is generated from interest on corporate cash and customer funds, with the annualized interest rate earned on customer funds increasing to **5.08%** for the nine months ended March 31, 2024, from **3.14%** in the prior year period due to the higher interest rate environment[208](index=208&type=chunk) - Credit risk exposure stems from acquired card receivables, where spending businesses may default, and the company manages this risk through credit underwriting, but acknowledges that default risk can arise from unforeseen events like fraud or economic downturns[229](index=229&type=chunk) - Foreign currency exchange risk arises from cross-border payment services and operations in Australia and Canada, though the company does not believe a **10%** change in the U.S. dollar's value would materially affect its results[418](index=418&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2024, concluding they were effective, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[412](index=412&type=chunk)[413](index=413&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[231](index=231&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any legal proceedings that, in management's opinion, would have a material adverse effect on its business, operating results, financial condition, or cash flows - The company is not presently party to any legal proceedings that are expected to have a material adverse effect on its business, financial condition, or cash flows[421](index=421&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section provides a comprehensive overview of the risks and uncertainties facing the company, including its history of operating losses, reliance on the SMB market, intense competition, credit and fraud risks, dependence on third-party relationships, and extensive regulatory oversight [Risks Related to Our Business and Industry](index=50&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) This subsection details operational risks, including a history of losses and an accumulated deficit of **$1.1 billion**, dependence on SMBs, credit risk from its BILL Divvy Corporate Card, intense competition, potential for fraud, and reliance on key partnerships - The company has a history of operating losses and had an accumulated deficit of **$1.1 billion** as of March 31, 2024, with future profitability not guaranteed as costs are expected to increase[427](index=427&type=chunk) - The BILL Divvy Corporate Card offering exposes the company to significant credit risk, as it purchases participation interests in the accounts receivables and bears the entire credit risk if a spending business defaults[268](index=268&type=chunk) - The company's risk management efforts may not be effective in preventing fraudulent activities, which could expose it to material financial losses, liability, and reputational harm[246](index=246&type=chunk) [Risks Related to Government Regulation and Privacy Matters](index=74&type=section&id=Risks%20Related%20to%20Government%20Regulation%20and%20Privacy%20Matters) This subsection discusses risks from the complex and evolving regulatory landscape, including laws governing money transmission, anti-money laundering (AML), economic sanctions, and data privacy, where non-compliance could lead to significant fines and reputational damage - The company is licensed as a money transmitter in the U.S. and is subject to extensive regulations regarding AML, sanctions, and capital requirements, where failure to comply could result in fines, penalties, or loss of licenses[351](index=351&type=chunk) - The company is subject to various data privacy laws, including the CCPA in California and GDPR in Europe, where non-compliance can lead to significant fines, litigation, and reputational damage[337](index=337&type=chunk) - The company is required to comply with U.S. economic and trade sanctions administered by OFAC and recently submitted a voluntary self-disclosure related to potential gaps in its IP address blocking controls[358](index=358&type=chunk) [Risks Related to Our Intellectual Property](index=80&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) This subsection covers risks associated with the company's intellectual property, highlighting challenges in protecting proprietary technology, potential for costly infringement lawsuits, and risks related to the use of open-source software - The company's success depends on protecting its proprietary technology, but its reliance on patents, copyrights, and trade secrets may be inadequate to prevent others from developing similar products[381](index=381&type=chunk) - The company has been and may in the future be subject to intellectual property disputes, which are expensive and time-consuming to defend and could result in significant liability[362](index=362&type=chunk) - The use of open-source software in the company's products could subject it to litigation or require it to release the source code of its proprietary software[364](index=364&type=chunk) [Risks Related to Our Indebtedness](index=82&type=section&id=Risks%20Related%20to%20Our%20Indebtedness) This subsection details risks related to the company's significant debt obligations, including its Convertible Senior Notes, emphasizing the ability to service debt, potential for default, and the possibility of insufficient funds for cash settlement or repurchases - As of March 31, 2024, the company had significant debt, including **$401.8 million** of 2025 Notes, **$575.0 million** of 2027 Notes, and **$180.0 million** drawn on its Revolving Credit Facility, which could strain its financial condition[386](index=386&type=chunk) - The company may not have the ability to raise the funds necessary to repurchase the Notes upon a fundamental change or to pay cash upon conversion, which could lead to a default[386](index=386&type=chunk)[387](index=387&type=chunk) [Risks Related to Ownership of Our Common Stock](index=84&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) This subsection discusses risks for common stock investors, including high stock price volatility, the company's lack of plans to pay dividends, and the presence of anti-takeover provisions in its charter that could deter potential acquisitions - The market price of the company's common stock has been and is expected to remain volatile due to factors such as operating results, analyst projections, and overall market conditions[371](index=371&type=chunk) - Anti-takeover provisions in the company's charter documents and Delaware law could make an acquisition more difficult or limit stockholders' ability to replace management[372](index=372&type=chunk) - The company has never paid cash dividends and does not intend to do so in the foreseeable future, meaning investors must rely on stock price appreciation for returns[396](index=396&type=chunk)[406](index=406&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section is marked as 'Not applicable,' indicating no unregistered sales of equity securities, use of proceeds from such sales, or issuer purchases of equity securities to report for the period - This item is marked as 'Not applicable' in the report[375](index=375&type=chunk) [Item 3. Defaults Upon Senior Securities](index=87&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is marked as 'Not applicable,' indicating no defaults upon senior securities occurred during the reporting period - This item is marked as 'Not applicable' in the report[375](index=375&type=chunk) [Item 4. Mine Safety Disclosures](index=87&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is marked as 'Not applicable' as the company's operations do not involve mine safety - This item is marked as 'Not applicable' in the report[375](index=375&type=chunk) [Item 5. Other Information](index=87&type=section&id=Item%205.%20Other%20Information) This section notes the adoption of a Rule 10b5-1 trading arrangement by an executive, Raj Aji, on March 8, 2024, for the sale of 25,429 shares - On March 8, 2024, executive Raj Aji adopted a Rule 10b5-1 trading plan for the sale of **25,429 shares**, with an expiration date of June 13, 2025[397](index=397&type=chunk) [Item 6. Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including an amendment to the Revolving Credit and Security Agreement, certifications by the CEO and CFO, and interactive data files (XBRL) - Lists exhibits filed with the report, including certifications from the Principal Executive Officer and Principal Financial Officer, and interactive data files[376](index=376&type=chunk)[409](index=409&type=chunk) - Exhibit 10.1 is Amendment No. 5 to the Revolving Credit and Security Agreement, dated March 15, 2024[398](index=398&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q3 was $323 million, an increase of 19% year-over-year [31][77] - Non-GAAP operating income increased 68% year-over-year to $59 million, with a non-GAAP operating margin of 18% [31][78] - Non-GAAP net income in Q3 was $68.6 million, up 42% year-over-year, with a non-GAAP net income margin of 21% [87] Business Line Data and Key Metrics Changes - Spend & Expense revenue grew 29% year-over-year, with card payment volume reaching $4.4 billion [47][80] - BILL stand-alone transaction revenue increased 20% year-over-year, while subscription revenue, excluding financial institution partners, increased 9% year-over-year [81][82] - BILL stand-alone payment volume was $67 billion, an increase of 9% year-over-year [49] Market Data and Key Metrics Changes - The company reported strong customer acquisition, adding 4,100 net new customers in Q3, excluding attrition from the sunset of Intuit's Simple Bill Pay solution [50][145] - The financial institution channel saw a decline in customer count due to the removal of inactive customers, despite an increase in new enrollments [83][133] Company Strategy and Development Direction - The company aims to be the essential financial operations platform for SMBs, focusing on driving adoption of its integrated financial operations platform and expanding its ecosystem [31][37] - The introduction of cash flow insights and forecasting capabilities is part of the strategy to enhance the platform and serve SMBs better [25][39] - The company is prioritizing larger businesses with a higher propensity to spend, which is expected to drive revenue growth [10][47] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of stabilization in the B2B spend environment, SMBs continue to face pressures from high inflation and interest rates [88] - The company expects total revenue for Q4 to be in the range of $320 million to $330 million, reflecting 8% to 11% year-over-year growth [56] - For fiscal 2024, the company raised its revenue outlook to $1.267 billion to $1.277 billion, representing 20% to 21% year-over-year growth [90] Other Important Information - The company has a strong balance sheet and generates significant free cash flow, allowing it to fund long-term opportunities while delivering profitable growth [84] - Float revenue increased 26% year-over-year to $42 million in Q3, serving as a counterbalance to economic trends [51] Q&A Session Summary Question: What is the current status of the negotiations with Bank of America? - Management indicated that they are actively working with Bank of America and will provide updates as more information becomes available [94][137] Question: Can you quantify the revenue benefit from migrating volumes across processing providers? - Management confirmed that the expansion in monetization was consistent with expectations, driven by increased volume on ad valorem products and a one-time uptick from migrating volumes [98][119] Question: What impact did the BILL Pay rolloff have on net adds for BILL stand-alone FI? - Management noted that the decline in customer adds was mainly due to the removal of inactive customers, but engagement within the financial institution channel remains strong [105][133] Question: What is driving the uptick in embedded distribution? - Management attributed the increase to greater awareness of the opportunity in financial operations and the success of their platform, which has driven interest from software partners [108][110]