Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year. With a focus on tech and "the Great Energy Transition (including uranium)", Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outst ...

Sometimes, a discounted stock can present a valuable opportunity. The market has discounted a fair number of stocks over the last few years, and some for good reason. At the same time, share price alone tells you relatively little other than what the broader market seems to think the stock is worth at that given moment in time. A stock can easily be overvalued or undervalued, and it's important to understand the drivers behind the stock's performance before you decide whether it's a good fit for your portfo ...

Core Insights - BILL Holdings (BILL) shares have outperformed the Zacks Computer & Technology sector and its peer Intuit (INTU) over the past month, with a 5.7% increase compared to Intuit's 0.3% rise and a broader sector decline of 0.8% [1] Financial Performance - BILL registered a 16% year-over-year growth in revenues, with core revenues also rising 16% to $301 million, driven by customer acquisition and expanded payment offerings [2] - In the fourth quarter of fiscal 2024, BILL added 11,300 net new customers, with a retention rate of 83% for standalone customers, indicating strong customer loyalty [3] Product Development and Partnerships - BILL is enhancing its position in the financial technology landscape with a growing portfolio, including upgrades to its payment engine, mobile app, and new local transfer options for international payments [4] - The Spend and Expense solution saw a revenue growth of 26%, supported by a 28% increase in card payment volume, and added 1,300 net new businesses in the same quarter [5] - Partnerships with Regions Bank and Adyen are aimed at streamlining payments and enhancing cash-management processes for commercial clients [6] Future Outlook - For the first quarter of fiscal 2025, BILL expects revenues between $346 million and $351 million, indicating a year-over-year growth of 13-15% [8] - Non-GAAP earnings per share are projected to be between 48 cents and 51 cents, with the consensus mark for earnings declining 5.7% in the past 30 days to 49 cents [8] Valuation Concerns - BILL stock is considered to have a stretched valuation, with a forward 12-month Price/Sales ratio of 4.32X, higher than the sector's 3.12X, leading to a Zacks Rank of 3 (Hold) [9]

Summary of BILL Holdings (BILL) FY Conference Call - September 12, 2024 Company Overview - **Company**: BILL Holdings (BILL) - **Industry**: Payments Fintech Key Points and Arguments Economic Environment and Business Adaptation - The company has navigated significant changes in the economy over the past year, leading to lower B2B spending among small businesses [4][10] - BILL has launched product integrations and revised branding to adapt to cost sensitivity among suppliers, resulting in improved net additions in the second half of fiscal 2024 [4][5] - Confidence in future execution is supported by strong demand, a proven value proposition, and visibility into product volumes [6] Payment Volume Trends - Total Payment Volume (TPV) per customer has remained relatively flat, with expectations for mid-single-digit growth in a stable economy [8][9] - The company anticipates slightly higher growth than mid-single digits due to its strong market position and wallet share [9][12] - Small and medium-sized businesses (SMBs) are currently cautious due to high interest rates and labor costs, impacting their B2B spending [10][11] Product and Service Enhancements - BILL is focusing on acquiring larger businesses and expanding wallet share through products like international payments [12] - The company is working on automating payment processes to reduce costs for suppliers, which is seen as a key value proposition [23][30] - There is an ongoing effort to enhance the payment experience for suppliers, including the introduction of various payment methods [24][32] Financial Institution (FI) Channel - The transaction yield in the FI channel is currently low, primarily due to a skew towards lower-margin ACH and check payments [54][55] - The company is optimistic about expanding monetization in the FI channel as it introduces higher-yield products [55] Subscription and ARPU Trends - Subscription Average Revenue Per User (ARPU) growth has slowed due to an influx of smaller customers at lower price tiers [62][64] - The company plans to evolve its platform to include more modular pricing, which could enhance subscription ARPU over time [66] Cross-Sell Opportunities - There is strong interest from accounting firms in BILL's spend and expense management products, with efforts underway to enhance integration and user experience [70] Gross Margins and Payment Mix - Non-GAAP gross margins have declined, primarily due to a shift in payment mix towards lower-margin products like pay by card [71][74] - The company is migrating some AR volume to a new service provider, which will impact gross revenue recognition and margins [74] Future Outlook - The management expresses confidence in the long-term growth potential of the company, citing a significant market opportunity and a leadership position in the evolving payments landscape [79][80] - The company is focused on building a generational business with substantial room for growth in both payment and subscription monetization [80] Additional Important Insights - The company is exploring incentive plans to drive virtual card adoption among customers [75] - There is a recognition that suppliers may benefit from different bin rates, although this has not been widely implemented yet [77] - The management emphasizes the importance of understanding supplier needs and reducing process friction to enhance value [31][32] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's adaptability, growth potential, and focus on enhancing supplier and customer experiences.

Bill.com has an enormous addressable market, and its stock looks like a great value right now. Enterprise software was one of the hottest segments of the technology sector in 2021. Capital was cheap thanks to record-low interest rates, and software companies were spending it on marketing and product development to generate surging revenue growth, even if it meant they lost money at the bottom line. But the era of cheap money is over, and most software companies now prioritize profitability. They are slashin ...

i Michael Vi It's often quite fascinating to see how quickly former market darlings can lose their status and become deep value plays, as is the base with BILL Holdings (NYSE:BILL). At its pandemic-era heights, Bill.com commanded revenue multiples north of 20x as its share price soared above $300. Today, however, small business churn and decelerating growth have eroded confidence in this name, which is one of the worst performers in the software sector with nearly a 40% year-to-date decline. The company fel ...

Jennifer Miranda Investment action I recommended a hold rating for Bill.com (NYSE:BILL) when I wrote about it in May, as I was not convinced that the business is turning around, despite the very early positive signs. Based on my current outlook and analysis, I recommend a hold rating. My key update to my thesis is that BILL's near-term outlook (both revenue and adj EBITDA margin) remains poor and uncertain. Until BILL shows evidence that its investments are working, with tangible improvement in various key ...

Business Performance - As of June 30, 2024, approximately 474,000 businesses processed $292 billion in Total Payment Volume (TPV) using the company's solutions[15] - The platform supports around 7.1 million network members who have engaged in electronic payments through the company's services[15] - As of June 30, 2024, the company has approximately 7.1 million network members, which includes standalone customers, suppliers, and clients who have transacted electronically via the platform[33] Product Offerings - The integrated platform launched in fall 2023 combines accounts payable and receivable functionalities, enhancing visibility and control for businesses[18] - The accounts payable automation service streamlines the payment process, providing visibility into cash inflows and outflows[19] - The accounts receivable service automates invoice creation and funds collection, offering complete visibility into the accounts receivable process[21] - The spend and expense management tools allow businesses to issue corporate cards and manage budgets effectively, with real-time visibility into spending[22] - The company facilitates ACH transactions, card payments, and real-time payments, enhancing the speed and security of financial transactions[24] - The platform integrates with leading accounting systems, automating reconciliation and minimizing data entry activities[25] Risk Management and Security - The unique data asset from processing millions of documents enables the company to leverage AI for risk management and operational efficiency[31] - For fiscal 2024, the fraud and credit loss rates for the company's standalone payment services were less than 0.01% of total payment volume (TPV), while the rate for BILL Divvy Corporate Cards was approximately 0.35%[37] - The company has implemented a robust security program aligned with NIST-800-53 standards, achieving SOC1 Type II and SOC2 Type II certifications[38] - The company is exposed to credit risk related to the creditworthiness of spending businesses, which may lead to increased delinquencies and losses impacting operational results[395] - Foreign currency exchange risk affects the company's cross-border payment service, with transaction fees not adjusted for exchange rate fluctuations[396] - The company's subsidiaries in Australia and Canada are also subject to foreign currency exchange risk, which can impact financial results due to transaction gains or losses[397] - A 10% change in the relative value of the U.S. dollar to other foreign currencies is not expected to have a material effect on cash flows and operating results[397] Market Position and Strategy - The company differentiates itself by offering a comprehensive portfolio of financial back-office solutions, managing billions in total payment volume through proprietary risk models[41] - The company is well-positioned to capitalize on the growing market for SMB back-office financial software and business-to-business payment solutions as digitization increases[42] - The company utilizes a multi-channel sales strategy, including direct sales and partnerships with accounting firms and financial institutions, to efficiently reach target customers[44] Research and Development - The company invests significantly in research and development to enhance product functionality and usability, focusing on customer needs[43] Customer Engagement and Support - The company has a customer success team that leverages insights from millions of transactions per month to improve platform utilization and customer experience[46] Compliance and Governance - The company maintains compliance with various regulatory requirements, including anti-money laundering laws and consumer protection regulations, to ensure operational integrity[52] - The company is committed to ESG initiatives, with oversight from its board of directors and a focus on sustainable practices for its stakeholders[57] Workforce and Culture - As of June 30, 2024, the company had a total of 2,187 employees across three U.S. offices and remote locations[58] - Over 40% of employees were members of at least one employee resource group (ERG) as of July 2024[64] - The company offers a comprehensive benefits package, including medical, dental, and vision insurance, as well as a 401(k) retirement plan[60] - The company has established seven ERGs focused on various dimensions of identity, supporting career development and community engagement[64] - The company has partnered with organizations to support underrepresented students in technical careers, enhancing its diversity and inclusion efforts[66] - The company’s San Jose headquarters is LEED Gold and Energy Star certified, promoting environmental sustainability[68] Financial Performance - The annualized interest rate earned on the corporate investment portfolio and funds held for customers increased to 5.07% during fiscal 2024, compared to 3.51% in fiscal 2023[389] - The company borrowed $180.0 million from its Revolving Credit Facility as of June 30, 2024, with interest costs indexed to SOFR[391] Intellectual Property - The company had 25 issued patents in the U.S. as of June 30, 2024, with expiration dates ranging from 2028 to 2042, and seven pending patent applications[69]

Core Insights - BILL Holdings reported earnings of 57 cents per share for Q4 fiscal 2024, exceeding the Zacks Consensus Estimate by 23.91% and showing an 18.8% year-over-year increase [1] - Revenues reached $343.7 million, a 16.1% year-over-year growth, surpassing the consensus estimate by 4.92% [1] Financial Performance - Total payment volume (TPV) processed was $75.9 billion, up 9.7% year over year, with $70.8 billion from the BILL standalone platform, reflecting an 8.8% increase [2] - Core revenues, which include subscription and transaction fees, amounted to $301.3 million [4] - Transaction fees were $235.5 million, representing a 22.3% increase from the previous year [5] - Non-GAAP gross profit was $292 million, a 13.6% year-over-year increase, with a gross margin of 85% [7] - Non-GAAP operating income was $60 million, up 41.6% year over year, with an operating margin of 17.5% [8] Customer Metrics - BILL Standalone customers increased by 10.4% year over year to 222,000, while financial institution customers rose by 15% to 70,800 [3] - The Spend & Expense customer base grew by 19.2% year over year to 34,800 [3] Revenue Breakdown - Subscription fees decreased by 1.6% year over year to $65.8 million, while BILL Standalone Platform revenues also declined by 1.6% to $56.9 million [4] - Revenues from financial institutions fell by 38.3% year over year to $6.6 million [6] - Float revenues increased by 16.1% year over year to $42.4 million [6] Guidance - For Q1 fiscal 2025, BILL expects revenues between $346 million and $351 million, indicating a year-over-year growth of 13-15% [10] - For fiscal 2025, projected revenues are between $1.415 billion and $1.45 billion, suggesting a growth range of 10-12% [10]

BILL Holdings, Inc. BILL reported a narrower-than-expected loss for its fourth quarter after the closing bell Thursday. Bill Holdings reported quarterly losses of 3 cents per share which beat the analyst consensus estimate of losses of 20 cents by 85%. Quarterly revenue came in at $343.665 million, which beat the analyst estimate by 5.47% and represents growth of 16.11% year-over-year. "Fiscal 2024 was an important year for BILL as we fortified our position as the essential financial operations platform for ...