Financial Data and Key Metrics Changes - Core revenue grew 14% year over year, reaching $320 million in Q3 [38] - Non-GAAP operating income margin was 15%, exceeding initial expectations [5][31] - Free cash flow increased by 44% year over year, representing a 25% margin [6][38] - Total revenue for Q3 was $358 million, up 11% year over year [38] - Non-GAAP net income was $59 million, with a net income margin of 16% [45] Business Line Data and Key Metrics Changes - Revenue from the integrated platform, excluding the financial institution channel, was $302 million, up 15% year over year [39] - Revenue from the Bill APAR solution was $164 million, an increase of 10% year over year [39] - Revenue from the Bill Spend and Expense solution was $138 million, up 21% year over year, driven by a 22% growth in card payment volume [42] Market Data and Key Metrics Changes - Total payment volume (TPV) grew 10% year over year, slightly below expectations [39] - TPV per customer decreased by 2% year over year due to SMBs managing expenses more conservatively [40] - Net adds from the accounting channel grew over 60% year over year, indicating strong market penetration [20] Company Strategy and Development Direction - The company is focusing on expanding capabilities for larger businesses and enhancing its payment portfolio [6][9] - An accelerated AI growth strategy is being implemented to transform financial operations for SMBs [23][24] - The company aims to simplify financial operations for SMBs, positioning itself as an essential platform for financial management [8][29] Management's Comments on Operating Environment and Future Outlook - Management noted that SMBs are adapting to a dynamic macro environment, with signs of reduced spending and transaction volumes [28][46] - The company remains confident in its ability to capture market opportunities despite current uncertainties [46][47] - Future guidance for Q4 expects core revenue to be between $335 million and $345 million, reflecting 11% to 15% year-over-year growth [48] Other Important Information - The company has a strong balance sheet with $2.2 billion in cash and short-term investments, providing flexibility for growth investments [45] - The introduction of new advanced ACH solutions aims to simplify payment processes for large suppliers [18][35] Q&A Session Summary Question: Success with accountants adopting Divvy post integration - Management highlighted the significant opportunity within the accountant base, with over 9,000 firms using their product and potential for cross-selling [54][55] Question: Confidence level regarding investments and expected returns - Management expressed increased confidence in internal execution driving results, with a focus on simplifying customer experiences [60][62] Question: Observations from April trends and comparisons to past cycles - Management noted that SMBs are facing significant uncertainty, leading to fewer transactions and decreased spending, but emphasized the resilience of SMBs [64][66] Question: Impact of tariffs on cross-border transaction revenue - Management indicated that the majority of international transactions are for services, with no significant shift between USD and local currency payments observed [73][75] Question: Pricing and packaging of the software platform - Management acknowledged the opportunity for pricing adjustments as the platform becomes more valuable, with plans to discuss this in future calls [80][82] Question: Payments monetization within Bill APAR - Management detailed the drivers of take rate expansion, including volume growth from emerging payment products and reduced FX losses [89][90]

Financial Data and Key Metrics Changes - Core revenue grew 14% year over year, reaching $320 million in Q3 [38] - Non-GAAP operating income margin was 15%, exceeding expectations [4][38] - Free cash flow increased by 44% year over year, representing a 25% margin [5][38] - Total revenue for Q3 was $358 million, up 11% year over year [38] - Non-GAAP net income was $59 million, with a net income margin of 16% [44] Business Line Data and Key Metrics Changes - Revenue from the integrated platform, excluding the financial institution channel, was $302 million, up 15% year over year [39] - Revenue from the Bill APAR solution was $164 million, up 10% year over year [39] - Revenue from the Bill Spend and Expense solution was $138 million, up 21% year over year [42] - Total payment volume grew 10% year over year, although TPV per customer decreased by 2% [39][40] Market Data and Key Metrics Changes - The accounting channel saw net adds grow over 60% year over year, with 9,000 accounting firms using the platform [20] - Local transfer capabilities were enabled in dozens of countries, enhancing international payment solutions [32] - The company processed $79 billion in total payment volume, representing over 1% of GDP [6] Company Strategy and Development Direction - The company is focusing on expanding capabilities for larger businesses and enhancing its payment portfolio [5][12] - An accelerated AI growth strategy is being implemented to transform financial operations for SMBs [23][24] - The introduction of advanced solutions for procurement and multi-entity management aims to simplify complex financial processes [9][14] Management's Comments on Operating Environment and Future Outlook - Management noted that SMBs are adapting to a dynamic macro environment, with signs of reduced spending and transaction volume [28][46] - The company remains confident in its ability to capture market opportunities despite current uncertainties [29][46] - Future guidance for Q4 expects core revenue to be between $335 million and $345 million, reflecting 11% to 15% year-over-year growth [48] Other Important Information - The company ended the quarter with $2.2 billion in cash and short-term investments, providing liquidity for growth investments [44] - Stock-based compensation expenses are expected to be approximately 17% of total revenue, reflecting a reduction from earlier estimates [50] Q&A Session Summary Question: Success with accountants adopting Divvy post integration - Management highlighted the significant opportunity within the accountant base, with over 9,000 firms using the product and potential for cross-selling [55] Question: Confidence level regarding investments and expected returns - Management expressed increased confidence in internal execution driving results, with ongoing investments in key priorities [62] Question: Observations from April trends and comparisons to past cycles - Management noted that SMBs are facing significant uncertainty, leading to fewer transactions and decreased spending, similar to conditions seen during COVID [66][68] Question: Impact of tariffs on cross-border transaction revenue - Management indicated that the majority of international transactions are for services, with no significant shift between USD and local currency observed [75][76] Question: Pricing and packaging of the software platform - Management acknowledged the opportunity for pricing adjustments as the platform's value increases, with plans to discuss this in future quarters [82] Question: Payments monetization within Bill APAR - Management detailed that take rate expansion in Q3 was driven by volume growth in emerging payment products and reduced FX losses [90][91]

BILL NYSE BILL Investor Deck May 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 our con ...

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]

The upcoming report from BILL Holdings (BILL) is expected to reveal quarterly earnings of $0.37 per share, indicating a decline of 38.3% compared to the year-ago period. Analysts forecast revenues of $354.78 million, representing an increase of 9.8% year over year.Over the last 30 days, there has been an upward revision of 8.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the cour ...

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].