Summary of BILL Holdings (BILL) 2025 Conference Call Company Overview - **Company**: BILL Holdings (BILL) - **Event**: 2025 Conference on June 04, 2025 Key Points Leadership Transition - Rohini appointed as new CFO, bringing experience from PayPal, enhancing leadership capabilities for scaling payments business [4][5] Q3 Performance Highlights - Challenging environment for small business customers, but continued execution on innovation agenda [6] - New products launched for larger customers, enhancing existing payment capabilities [7] - 25% free cash flow margin reported, consistent net new adds for BILL business, and strong payment volume growth for Divvy card business exceeding 20% [8] Market Environment - Small businesses are stable in spending but not in growth mode; some categories like wholesale trade and real estate are seeing declines [10][11] - Nonprofits facing funding challenges, leading to transaction pullbacks [11] Total Payment Volume (TPV) Insights - TPV per customer declined 2% year-over-year; expectations for mid-single-digit growth in the future [13][14] - Current quarter expected to see a 2% decline year-over-year but a 3% sequential increase in TPV per customer [15] Take Rate and Monetization - Core APAR business take rate increased to 16.2%, with expectations for stability in Q4 [16][17] - FX volatility impacts noted, but overall revenue remains stable [17] Virtual Card Product - Virtual card TPV penetration stable at 3%, with efforts to drive automation and efficiency to unlock growth [19][20][21] New Transaction Services - Introduction of products like pay by card, instant transfer, and invoice financing aimed at increasing monetization [23][24][25] Net Adds and Customer Acquisition - 4,200 net adds in Q3, consistent with targets; focus on accountant channel for growth [27][28][29] - Embedded strategy to enhance market penetration through partnerships with software companies [30][31] Competitive Environment - Strong retention rates and consistent customer acquisition trends; focus on workflow automation and digital collaboration [33][34] Accounts Receivable (AR) Strategy - Invoice2Go solution has approximately 200,000 customers; efforts to integrate AR capabilities into the platform [36][38] Accounting Firm Channel - Collaboration with 9,000 accounting firms, which accounts for about 50% of customer acquisition [40][43] Spend and Expense Business - 22% card payment volume growth in Q3, targeting larger mid-market companies for better underwriting and growth potential [44][46] Growth and Margin Philosophy - Balanced approach to revenue growth and profitability; significant improvement in operating margins over the years [48][49] AI Opportunities - Investment in AI to enhance automation for small businesses; focus on creating autonomous agents for financial operations [52][54][55] Additional Insights - The company is positioned for future growth with a focus on expanding product offerings and enhancing customer experience [50][51]

Group 1 - The article presents a perspective that views current macroeconomic risks as potential investment opportunities, particularly in the context of the S&P 500 and broader stock market [1] - It highlights concerns such as weaker consumer spending, potential issues in the bond market, and the threat of tariffs, which are largely being overlooked by the market [1] - The author, Gary Alexander, has extensive experience in technology sectors and has been involved with startups, providing insights into industry trends [1] Group 2 - The article does not provide any specific company or stock recommendations, focusing instead on general market observations and personal insights from the author [2][3]

Summary of BILL Holdings (BILL) Conference Call - May 28, 2025 Company Overview - **Company**: BILL Holdings (BILL) - **Industry**: Financial Technology, focusing on accounts payable (AP) and accounts receivable (AR) solutions for small and medium-sized businesses (SMBs) Key Points Industry Trends and SMB Behavior - **Current Environment**: Small businesses are exhibiting a "wait and see" approach due to economic uncertainties, leading to a pause in spending [2][3] - **Discretionary Spending**: There has been a slight reduction in discretionary spending among SMBs, particularly in sectors like nonprofits, wholesale trade, and real estate [3][4] - **Transaction Volume**: The number of transactions per customer decreased from 76 to 70 year-over-year, indicating a cautious spending environment [4] Financial Performance and Expectations - **Total Payment Volume (TPV)**: Expectations for Q4 indicate low single-digit declines year-over-year in TPV per customer, with a slight quarter-to-quarter increase due to seasonal effects [4] - **Take Rate Trends**: The take rate, which combines ad valorem and fixed fee products, showed a recent increase to 16.2 basis points, driven by strong performance in ad valorem products [9][12] - **International Payments**: Uncertainty in international payments is expected to impact monetization and volume negatively in Q4 [13] Product and Service Developments - **Ad Valorem Products**: The company is focusing on enhancing ad valorem offerings, including pay by card and instant transfer solutions, to drive adoption and create value for both buyers and suppliers [20][21] - **Customer Segmentation**: The customer base is stratified, with smaller businesses operating at lower volumes and larger businesses showing more significant pullbacks in discretionary spending [6][7] Growth Strategies - **Customer Acquisition**: The company has been adding approximately 9,000 net new customers recently, with a focus on the accountant channel, which saw a 60% increase in ads year-over-year [27][28] - **Multi-Product Adoption**: There is a significant opportunity for multi-product adoption, particularly with the Divvy charge card, which has seen an increase in joint customers [30][31] Financial Health and Future Outlook - **Margin Expansion**: The company has achieved a non-GAAP operating margin of 15%, up from a loss of 3% in Q3 of 2022, indicating strong operating leverage [39][40] - **Investment in Technology**: Investments in AI and technology are aimed at improving internal efficiencies and enhancing customer experiences [41][43] - **Long-Term Vision**: Over the next three to five years, the company aims to broaden its capabilities beyond transaction processing to include more comprehensive financial management solutions for SMBs [44][46] Additional Insights - **FX Volatility**: The strength or weakness of the US dollar impacts demand for foreign exchange (FX) payments, with proactive measures taken to mitigate FX exposure [18][19] - **Pricing Strategy**: A recent price adjustment for ACH and check services, after two years without changes, is expected to yield a small positive benefit in FY '26 [24][26] This summary encapsulates the key insights and developments discussed during the conference call, highlighting the current state of the industry, company performance, and strategic initiatives moving forward.

Core Viewpoint - BILL Holdings (BILL) has experienced a significant decline in stock value, dropping 46.8% year-to-date, underperforming compared to the broader tech sector and peers like SAP and Intuit, which have seen gains of 19.7% and 14.5% respectively [1][2] Group 1: Market Performance - The underperformance of BILL can be linked to broader market weaknesses in the tech sector, ongoing fears regarding U.S. tariffs, and a challenging macroeconomic environment characterized by persistent inflation and high interest rates [2] - In contrast, competitors SAP and Intuit have successfully enhanced their offerings, particularly in the SMB sector, contributing to their stock gains [1][2] Group 2: Company Developments - BILL is enhancing its platform with increased adoption, AI-driven automation, and expanded payment solutions, which are expected to help the company compete effectively in the SMB sector [3] - In fiscal Q3 2025, BILL processed nearly $79 billion in payment volume across 30 million transactions, aiding over 488,600 businesses in automating financial operations [4] - The company introduced new procurement and financial automation innovations in April 2025, unifying various financial workflows to help businesses manage cash flow [5] Group 3: Customer Growth and Partnerships - BILL added 4,200 net new customers in fiscal Q3 2025, bringing the total to 164,800 customers using its AP and AR solutions [6] - Key partnerships, such as with Xero and Regions Bank, have been instrumental in expanding BILL's SMB clientele and enhancing its digital payment solutions [7][8] Group 4: Financial Guidance - For Q4 fiscal 2025, BILL anticipates revenues between $370.5 million and $380.5 million, indicating year-over-year growth of 8-11% [9] - The company expects fiscal 2025 revenues to be between $1.45 billion and $1.46 billion, reflecting a year-over-year growth of 12-13% [11] - The Zacks Consensus Estimate for Q4 fiscal 2025 revenues is $375.13 million, with a consensus earnings estimate of 39 cents per share [10] Group 5: Profitability and Cash Flow - BILL's focus on automation and an expanding customer base is driving strong growth and profitability, with a free cash flow margin of 25% in fiscal Q3 2025 [12] - The company is positioned for sustained success, supported by its robust product portfolio and market demand [12]

The author is presently an entrepreneur and an investor focused on investing in public companies. The author has over ten years of financial services experience, which includes long and short bottoms up fundamental buy-side research, private equity, M and A Advisory, and accounting. See SA policy on anonymous authors: http://seekingalpha.com/page/policy_anonymous_contributors Disclaimer: In no event will the author writing under the pen name Research and Value (hereafter referred to as R&V) or any affiliate ...

Core Viewpoint - BILL Holdings (BILL) has seen a 16.3% increase in share price over the past four weeks, closing at $46.37, with a potential upside of 47.8% based on Wall Street analysts' mean price target of $68.52 [1] Price Targets and Analyst Estimates - The mean estimate consists of 23 short-term price targets with a standard deviation of $20.64, indicating variability among analysts; the lowest estimate is $40 (13.7% decline), while the highest is $120 (158.8% increase) [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement direction, which can be a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about BILL's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 103.8% over the past month, with six estimates increasing 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 estimate factors, indicating strong potential for near-term upside [13]

Group 1: BILL Holdings, Inc - JP Morgan analyst Tien-tsin Huang hosted 17 payments and processing firms at the Global TMC Conference in Boston, maintaining an Overweight rating on BILL Holdings with a price target of $55 [1] - BILL is recognized as a category killer in SMB AP Automation, effectively displacing manual and legacy solutions, including paper check processing [1] - Huang sees potential for BILL to reclaim its status as a top growth name through cross-selling recent acquisitions, leveraging partnerships with banks and accountants, and helping SMBs reduce costs via automation [2] - Projected fourth-quarter revenue for BILL is $376 million with an adjusted EPS of $0.41 [2] - As of the last check, BILL's stock is down 0.41% at $46.07 [5] Group 2: Fiserv, Inc - Huang maintains an Overweight rating on Fiserv with a price target of $210, slightly down from $211 [2] - Fiserv is viewed as a dependable growth story, with mid-teens EPS growth driven by double-digit top-line growth, operating leverage, and capital deployment [3] - The company has a solid portfolio, including its Clover product, which is gaining market share and growing faster than peers [3] - Projected second-quarter revenue for Fiserv is $5.19 billion with an adjusted EPS of $2.39 [3] Group 3: Marqeta, Inc - Huang upgraded Marqeta's rating to Overweight from Neutral, with a price target of $6, up from $5 [4] - Marqeta's platform supports card programs in high-growth areas of fintech, including BNPL and digital banking, with notable clients like Block and Affirm [4] - Projected second-quarter revenue for Marqeta is $140 million with an adjusted EPS of $(0.05) [4] Group 4: Remitly Global, Inc - Huang has an Overweight rating on Remitly with a price target of $25, viewing it as a mission-driven disruptor in the remittance market [5] - Remitly is experiencing durable growth with a 34% year-to-date revenue increase and 4% market penetration [5] - Projected revenue CAGR for Remitly through 2027 is 21%, one of the highest in Huang's coverage [5] - Projected second-quarter revenue for Remitly is $385 million with an adjusted EPS of $0.19 [5]

Summary of BILL Holdings (BILL) FY Conference Call - May 13, 2025 Company Overview - **Company**: BILL Holdings (BILL) - **Industry**: Payments and Financial Services for Small and Medium-sized Businesses (SMBs) Key Points Resilience of SMBs - SMBs have shown resilience through economic cycles, adapting to challenges such as COVID-19 and supply chain issues by innovating and managing cash flow effectively [6][7][10] - BILL's platform helps SMBs save approximately 50% of the time spent managing finances, which is crucial for maintaining cash flow [9][10] Customer Acquisition and Demand - Consistent customer acquisition has been observed over the past 8 to 12 quarters, with approximately 4,000 to 5,000 new customers for the core Accounts Payable and Accounts Receivable (APAR) platform and around 1,500 for spend and expense solutions [13][15] - The company is focusing on expanding its services to accounting firms, with a 60% increase in net adds among accountants in the last year [14] Trends in Transaction Volume - There has been a slight decline in Total Payment Volume (TPV) per customer, down about 2% year-over-year, indicating a more cautious spending approach among SMBs [16][17] - Certain sectors, such as wholesale trade and construction, are experiencing a pause in activity, while travel and entertainment remain strong [17] Industry Consolidation - The company is not surprised by recent industry consolidation, viewing it as an opportunity to reinforce its market position and continue building a comprehensive platform for automating financial operations [19][21] - BILL has a unique scale, managing hundreds of billions of dollars in payments, which positions it well against competitors [22][23] Growth Strategy and Investments - BILL is investing $40 million to accelerate growth, focusing on payments, supplier solutions, and enhancing its accountant partnerships [33][35] - The company aims for a 20% growth target, although macroeconomic uncertainties may impact the timeline for achieving this [38] AI and Technology Integration - AI is seen as a transformative tool for enhancing productivity and creativity within the company and for SMBs [48][50] - BILL plans to leverage its extensive data and understanding of SMB needs to develop AI-driven solutions that can automate financial tasks traditionally handled by larger companies [54][56] Financial Management and Risk - The company maintains a cautious approach to extending working capital loans, focusing on software as the primary value add rather than aggressive credit growth [66] - BILL has a strong balance sheet and free cash flow, allowing for flexibility in managing growth and profitability [60][62] Partner Engagement - There is increasing energy in the partner channel, particularly among accounting firms, as they seek to leverage BILL's capabilities to support their SMB clients [69][71] - The demand for API integrations is growing, indicating a trend towards embedding BILL's services within other platforms [73] Capital Allocation - BILL has executed $400 million in stock buybacks this fiscal year, with an additional $100 million authorized, while also exploring M&A opportunities [75][76] Future Outlook - The leadership team is optimistic about the growth potential and the strategic direction of the company, emphasizing the importance of AI and continued product development to meet SMB needs [78][82] Additional Insights - The company is focused on creating a diversified growth model that includes expanding use cases on its platform and enhancing payment solutions [42][43] - BILL's unique position in the market allows it to capitalize on the growing demand for automated financial solutions among SMBs [21][23]

BILL Holdings (BILL) reported earnings of 50 cents per share in the third quarter of fiscal 2025, beating the Zacks Consensus Estimate by 35.14%. However, the reported figure decreased 16.7% year over year.Revenues of $358.2 million increased 10.9% year over year and surpassed the consensus mark by 0.97%.Shares fell 2.49% in the pre-market trading following the results. BILL shares have plunged 43.9% year to date, underperforming the Zacks Computer & Technology sector’s 9.1% drop.BILL Holdings’ Quarter in D ...

Core Insights - BILL Holdings reported revenue of $358.22 million for the quarter ended March 2025, reflecting a year-over-year increase of 10.9% and a surprise of +0.97% over the Zacks Consensus Estimate of $354.78 million [1] - The company's EPS was $0.50, down from $0.60 in the same quarter last year, with a surprise of +35.14% compared to the consensus estimate of $0.37 [1] Financial Performance Metrics - Total Payment Volume was reported at $79 billion, slightly below the estimated $80.34 billion [4] - The number of transactions processed was 30 million, compared to the average estimate of 30.79 million [4] - Revenue from interest on funds held for customers was $37.92 million, exceeding the average estimate of $35.26 million, but showing a year-over-year decline of -9.1% [4] - Revenue from subscription and transaction fees reached $320.30 million, slightly above the average estimate of $320.12 million, with a year-over-year increase of +13.9% [4] - Subscription fees contributed $68.20 million, surpassing the estimated $67.49 million, while transaction fees were $252.10 million, slightly below the estimate of $252.79 million [4] Stock Performance - Shares of BILL Holdings have returned +5.6% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]