Core Insights - The AI-driven bull run that began in 2023 and 2024 continues into 2025, with AI infrastructure developers poised for significant growth [1] - Despite the overall positive trend, several AI stocks have underperformed in 2025, presenting potential growth opportunities [2] Company Summaries Five9 Inc. (FIVN) - Five9 is a contact center software solutions provider benefiting from increased subscription revenues and enterprise AI traction [4][9] - The company offers a virtual contact center cloud platform with applications for customer service, sales, and marketing [5] - FIVN's expected revenue and earnings growth rates for the current year are 10.6% and 16.6%, respectively, with a 4.3% improvement in earnings estimates over the last 90 days [9] TaskUs Inc. (TASK) - TaskUs provides outsourced digital services across various sectors, including social media and e-commerce [11] - The company has formed strategic partnerships to enhance its agentic AI consulting services, driving double-digit growth [12][13] - TASK's expected revenue and earnings growth rates for the current year are 17.8% and 16.3%, respectively, with a 4.2% improvement in earnings estimates over the last 60 days [13] Workday Inc. (WDAY) - Workday's diversified product portfolio and cloud-based business model are key growth drivers, supported by significant investments [15][16] - The company has strong customer wins across various sectors, contributing to its revenue growth [16] - WDAY's expected revenue and earnings growth rates for the current year are 12.7% and 21.1%, respectively, with a 0.3% improvement in earnings estimates over the last 60 days [17] GitLab Inc. (GTLB) - GitLab offers a DevOps platform that enhances visibility and control over the DevOps lifecycle, with significant innovations in its product portfolio [18] - The introduction of GitLab Duo Workflow, a secure agentic AI, is expected to expand its market presence [19] - GTLB's expected revenue and earnings growth rates for the current year are 23.8% and 12.2%, respectively, with a notable 10.7% improvement in earnings estimates over the last 60 days [19] BILL Holdings Inc. (BILL) - BILL Holdings focuses on AI-enabled financial software for small and medium businesses, benefiting from a growing client base [21][22] - The company is enhancing customer experience through its AI-powered financial operations platform [22] - BILL's expected revenue and earnings growth rates for the current year are 10.5% and -3.2%, respectively, with a 0.5% improvement in earnings estimates over the last 30 days [23]

Core Insights - BILL Holdings, Inc. (NYSE:BILL) has experienced a significant decline of approximately 70% but has shown a rebound of about 30% over the past six months [1] - Jim Cramer has recommended buying BILL Holdings based on insights from an interview with Jeff Smith from Starboard, highlighting new directors in the company [1] - Parnassus Investments has re-initiated a position in BILL Holdings, citing its innovative SMB-focused payments automation platform (Bill.com) and significant growth potential in the small-to-medium-sized business market [1] Company Overview - BILL Holdings, Inc. provides a cloud-based financial platform that automates accounts payable and receivable, enhancing digital payments and cash flow management [1] - The company operates an innovative payments automation platform specifically designed for small-to-medium-sized businesses [1] Investment Perspective - While BILL Holdings is recognized for its growth potential, some analysts believe that certain AI stocks may offer greater upside potential with less downside risk [1] - The investment community is actively exploring undervalued AI stocks that could benefit from current market trends, including tariffs and onshoring [1]

Core Insights - Activist investor Jeffrey Smith of Starboard Value presented three high-conviction stock picks at the 13D Monitor Active-Passive Investor Summit in New York this week [1] Company Highlights - The selected stocks include Bill Holdings and two others, indicating a strategic focus on companies with strong potential for value creation [1]

Core Insights - BILL Holdings, Inc. is a leading financial technology company specializing in cloud-based software solutions for small and medium-sized businesses, focusing on automating back-office financial operations [1] Recent Performance - Despite a recent dip of 1.71% over the past 10 days, BILL has shown resilience with a 30-day gain of 2.67%, indicating a positive trend and potential buying opportunities for long-term investors [2][6] Growth Potential - BILL's stock is projected to increase by 5.68%, with a target price set at $55.25, suggesting potential upside from current levels and making it attractive for capital appreciation [3][6] Financial Health - The company has a Piotroski Score of 8, reflecting solid fundamentals including profitability, leverage, liquidity, and operating efficiency, indicating strong financial health and stability [4][6] Overall Investment Appeal - BILL Holdings, Inc. is positioned as a promising investment opportunity within the fintech sector, with recent performance, growth potential, and strong financial health making it appealing for investors [5]

Core Insights - Oracle NetSuite and BILL have formed a strategic partnership to enhance payment processing for US customers [1] - The new BILL-powered payment automation capability is integrated into NetSuite Intelligent Payment Automation [1] - This partnership aims to accelerate accounts payable processes, increase efficiency, and reduce risk for customers [1] Company Overview - Oracle NetSuite is recognized as the 1 AI Cloud ERP [1] - BILL is an intelligent finance platform trusted by half a million businesses [1] Industry Impact - The collaboration is expected to improve the overall payment processing landscape for businesses in the US [1] - Enhanced payment automation could lead to significant operational efficiencies in accounts payable [1]

Core Insights - Bill Holdings is a cloud-based financial services company that has recently turned profitable and is considered a growth stock trading at a bargain price [1][9] - The company connects businesses to over 8 million financial institutions, facilitating seamless transactions and payments [3][4] - Bill Holdings primarily serves micro-sized to mid-market businesses, generating 72% of its revenue from transaction fees [4][5] Business Model and Growth Potential - The company offers an off-the-shelf cloud solution tailored for small businesses, filling a gap left by custom-built solutions for larger enterprises [5] - Management sees opportunities for expansion through new client acquisition, feature enhancements, increased engagement, and international growth [6] - Bill Holdings has a strong network effect, where increased membership attracts more institutions and allows for further investment in features [6] Financial Performance - In fiscal 2025, Bill Holdings reported a 13% increase in revenue and a 16% increase in core revenue, achieving a net income of $23.8 million compared to a net loss of $28.9 million the previous year [9] - The stock is currently trading at 21 times next year's earnings and less than four times last year's sales, indicating a reasonable valuation despite market pessimism [11] Market Sentiment and Analyst Recommendations - Out of 45 analysts, 35 recommend an outperform or buy rating for Bill Holdings, with an average target price about 5% higher than the current price of approximately $54 [13] - The company announced a $300 million share repurchase program, signaling management's confidence in the stock's value [14] - Activist hedge fund Starboard Value has taken an 8.5% stake in the company, aiming to influence board changes and enhance shareholder value [14][15]

Company Performance - BILL Holdings reported Q4 earnings of 53 cents per share, exceeding the Zacks Consensus Estimate of 41 cents, but down from 57 cents in the same quarter last year [2] - Revenues reached $383.3 million, surpassing the consensus mark by 2% and increasing by 11.5% year over year [3] - Core revenues, including subscription and transaction fees, were $345.9 million, reflecting a 15% year-over-year growth [4] Revenue Breakdown - Subscription fees amounted to $68.8 million, growing by 5%, while transaction fees surged to $277.1 million, an 18% increase from the prior year [4] - Float revenues decreased to $37.4 million from $42.4 million in the previous year [4] - The company processed $86 billion in Total Payment Volume (TPV), marking a 13% year-over-year increase, and handled 33 million transactions, up 18% [5] Financial Metrics - Non-GAAP gross profit was $322.7 million, an 11% increase year over year, with a slight contraction in gross margin to 84.2% [6] - Non-GAAP operating income was $56.4 million, down 6% from $60 million in the previous year [6] - As of June 30, 2025, cash and short-term investments totaled $2.22 billion, up from $1.59 billion a year ago [7] Shareholder Returns - BILL announced a $300 million share repurchase program, reflecting confidence in its cash flow and long-term strategy [3] - The company repurchased $100 million of stock in the fourth quarter and July 2025, ahead of the newly authorized buyback program [7] Future Guidance - For Q1 fiscal 2026, BILL expects revenues between $385 million and $395 million, indicating a growth of 7-10% year over year [8] - For fiscal 2026, revenue estimates range from $1.59 billion to $1.63 billion, implying a growth of 9-11% year over year [8] Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting -58.48% recently [9] - BILL Holdings currently has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [11] Industry Comparison - BILL Holdings is part of the Zacks Internet - Software industry, where competitor Nice reported revenues of $726.71 million, a year-over-year change of +9.4% [12] - Nice is expected to post earnings of $3.17 per share for the current quarter, reflecting a year-over-year change of +10.1% [13]

Core Insights - BILL Holdings Inc. is experiencing a revival in prospects due to a successful turnaround strategy focused on profitability and new AI-powered products [1] - The company provides a financial operations platform for small and midsize businesses, offering software-as-a-service (SaaS), cloud-based payments, and spend management products [2] Financial Performance - In fiscal 2025, BILL reported total revenue of $1.5 billion, marking a 13% year-over-year increase, while core revenue grew by 16% [5] - The company achieved its first profitable fiscal year since its 2019 IPO, with operating expenses growing by only 3%, indicating improved cost management [4] Market Position and Competition - BILL faced challenges due to a post-pandemic shift away from high-valuation tech stocks and competition from larger fintech players like Intuit Inc., which launched QuickBooks Bill Pay [3][4] - The company is expanding its market opportunity through new AI-powered solutions, such as the Agentic AI platform, which has automated financial operations and significantly reduced fraudulent attempts [5]

Group 1 - Truist Securities upgraded Bill.com Holdings Inc. from Hold to Buy and raised its price target to $63 from $50, resulting in a share price increase of over 1% [1] - The bullish stance is based on three factors: potential upside to Street revenue forecasts, optionality from activist involvement by Elliott Management and Starboard Value, and expectations for a rebound in sentiment as estimates have bottomed [1] - Bill.com has been the worst-performing stock in its coverage group this year, indicating potential for a "catch-up trade" [2]

Core Viewpoint - BILL Holdings Inc has received an upgrade from Truist Securities to "buy" with a price target increase to $63 from $50, indicating potential growth driven by new activist shareholders [1] Group 1: Analyst Ratings and Upgrades - Truist Securities upgraded BILL from "hold" to "buy," raising the price target to $63 from $50 [1] - Wolfe Research also upgraded BILL to "outperform" just over a week prior [1] - Despite recent upgrades, 12 out of 26 analysts still maintain a "hold" rating on the stock, suggesting further potential for upgrades [1] Group 2: Stock Performance and Market Sentiment - BILL's stock broke out of a range below $49 earlier this month and is on track for its third consecutive daily gain [2] - The stock is down 37.4% year to date, indicating it has not yet recovered from a significant bear gap in February [2] - Short interest in BILL has increased, now representing 11% of the stock's available float, which could provide upward momentum [2] Group 3: Options Market Insights - The Schaeffer's Volatility Index (SVI) for BILL is at 42%, ranking in the 5th percentile of its annual range, suggesting that options traders are anticipating low volatility [3]