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]

Core Insights - BILL Holdings reported earnings of 56 cents per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate by 19.15% and showing a year-over-year increase of 9.8% [1] - Revenues reached $362.6 million, a 13.8% increase year over year, surpassing the consensus estimate by 0.83% [1] - The company processed a total payment volume (TPV) of $84.5 billion, reflecting a 12.8% year-over-year growth [2] Revenue Breakdown - Core revenues, which include subscription and transaction fees, amounted to $319.6 million, with subscription fees at $67.7 million (up 7% year over year) and transaction fees at $251.9 million (up 19% year over year) [5] - Revenues from the Integrated Platform were $300.7 million, increasing 16.2% year over year, contributing 94.1% to core revenues [6] - Revenues from Embedded and Other Solutions were $18.9 million, up 16% year over year, contributing 5.9% to core revenues [6] Customer and Transaction Metrics - BILL's solutions served 481.3 thousand businesses, up from 473.5 thousand in the prior year, with 198.4 thousand customers in the Integrated Platform (up 13.5%) and 282.9 thousand in Embedded and Other Solutions (down 5.3%) [3] - The company processed 30 million transactions in Q2, marking a 17.2% year-over-year increase [3] Financial Performance - Non-GAAP gross profit was $308.9 million, a 12.9% increase year over year, with a gross margin of 85.2%, down 70 basis points [8] - Non-GAAP operating income reached $62.8 million, representing a 41.8% year-over-year growth, with an operating margin expansion of 340 basis points to 17.3% [9] Cash Flow and Share Repurchase - As of December 31, 2024, cash, cash equivalents, and short-term investments totaled $2.21 billion, up from $1.47 billion as of September 30, 2024 [10] - The cash flow from operations was $78.7 million in Q2, compared to $88.6 million in Q1 [10] - The company repurchased 2.3 million shares for $200 million during the fiscal second quarter [11] Future Guidance - For Q3 fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, indicating a year-over-year growth of 9-11% [12] - For the full fiscal 2025, revenues are projected between $1.45 billion and $1.47 billion, implying a 13-14% year-over-year growth [12]

Group 1 - The Q4 earnings season has led to sharp emotional reactions from investors due to disappointing earnings reports, indicating nervousness in the market as it approaches all-time high valuations [1] - Investors are increasingly concerned that stocks need to demonstrate strong performance to justify their high valuations [1] - Gary Alexander, with extensive experience in technology and startups, provides insights into current industry themes and has been a contributor to Seeking Alpha since 2017 [1]

BILL NYSE BILL Investor Deck February 2025 Safe harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond ou ...

BILL Holdings, Inc. (NYSE:BILL) Q2 2025 Earnings Conference Call February 6, 2025 4:30 PM ET Company Participants Karen Sansot - Vice President, Investor Relations Rene Lacerte - Chairman, Chief Executive Officer and Founder John Rettig - President and Chief Financial Officer Conference Call Participants Chris Quintero - Morgan Stanley Tien-Tsin Huang - JPMorgan Andrew Schmidt - Citigroup Kenneth Suchoski - Autonomous Darrin Peller - Wolfe Research Samad Samana - Jefferies Bryan Keane - Deutsche Bank Alexan ...

For the quarter ended December 2024, BILL Holdings (BILL) reported revenue of $362.55 million, up 13.8% over the same period last year. EPS came in at $0.56, compared to $0.63 in the year-ago quarter.The reported revenue represents a surprise of +0.83% over the Zacks Consensus Estimate of $359.56 million. With the consensus EPS estimate being $0.47, the EPS surprise was +19.15%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

BILL Holdings (BILL) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.15%. A quarter ago, it was expected that this payment processing software company would post earnings of $0.49 per share when it actually produced earnings of $0.63, delivering a surprise of 28.57%.Over the last f ...