BILL NYSE BILL Investor Deck Aug 2025 Champions of small and midsize businesses. In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles GAAP, this presentation contains non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP net income. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be consid ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) BILL reported strong Q4 and FY25 financial results, emphasizing growth, profitability, and market penetration [Company Overview and Strategic Focus](index=1&type=section&id=Company%20Overview%20and%20Strategic%20Focus) BILL, a financial operations platform for SMBs, achieved strong Q4 and FY25 results, focusing on growth and profitability - Fiscal year 2025 was pivotal for BILL, driving growth and profitability, launching essential new software and payment products, and expanding market opportunity[2](index=2&type=chunk) - BILL's platform serves approximately **half a million SMBs** and **9,000 accounting firms**, with a network of **8 million members**, reinforcing its scale advantage[2](index=2&type=chunk) - The company is driving growth through strategic initiatives while sharpening its focus on expanding profitability, reflecting confidence in its strategy and investment opportunity[2](index=2&type=chunk) [Key Financial Achievements](index=1&type=section&id=Key%20Financial%20Achievements) BILL achieved significant financial growth in FY25 and Q4 FY25, with full-year total revenue at **$1.5 billion** FY25 and Q4 FY25 Key Financial Metrics | Metric | FY25 Value (Billions) | YoY Change | Q4 FY25 Value (Millions) | YoY Change | | :----------------- | :-------------------- | :--------- | :----------------------- | :--------- | | Total Revenue | $1.5 | +13% | $383.3 | +12% | | Core Revenue | $1.3 | +16% | $345.9 | +15% | [Financial Highlights for the Fourth Quarter of Fiscal 2025](index=1&type=section&id=Financial%20Highlights%20for%20the%20Fourth%20Quarter%20of%20Fiscal%202025) This section presents BILL's Q4 FY25 revenue, profitability, and earnings per share performance [Q4 Revenue Performance](index=1&type=section&id=Q4%20Revenue%20Performance) BILL's Q4 FY25 total revenue grew **12%** to **$383.3 million**, with core revenue increasing **15%** Q4 FY25 Revenue Performance | Metric | Q4 FY25 (Millions) | YoY Change | | :---------------------- | :----------------- | :--------- | | Total Revenue | $383.3 | +12% | | Core Revenue | $345.9 | +15% | | Subscription Fees | $68.8 | +5% | | Transaction Fees | $277.1 | +18% | | Float Revenue | $37.4 | N/A | [Q4 Profitability and Margins](index=1&type=section&id=Q4%20Profitability%20and%20Margins) Q4 FY25 GAAP gross profit reached **$309.8 million** with **80.8%** margin, non-GAAP operating income decreased **6%** Q4 FY25 Profitability and Margins | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | YoY Change | | :---------------------- | :----------------- | :----------------- | :--------- | | Gross Profit (GAAP) | $309.8 | $278.5 | +11.2% | | Gross Margin (GAAP) | 80.8% | 81.0% | -0.2 ppts | | Gross Profit (Non-GAAP) | $322.7 | $292.0 | +10.5% | | Gross Margin (Non-GAAP) | 84.2% | 85.0% | -0.8 ppts | | Operating Loss (GAAP) | ($22.3) | ($22.2) | -0.45% | | Operating Income (Non-GAAP) | $56.4 | $60.0 | -6% | [Q4 Net Income and EPS](index=1&type=section&id=Q4%20Net%20Income%20and%20EPS) BILL reported a GAAP net loss of **$7.1 million** in Q4 FY25, with non-GAAP net income at **$61.6 million** Q4 FY25 Net Income and EPS | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | YoY Change | | :---------------------- | :----------------- | :----------------- | :--------- | | Net Income (Loss) (GAAP) | ($7.1) | $7.6 | -193.4% | | EPS (GAAP, Basic) | ($0.07) | $0.07 | -200% | | EPS (GAAP, Diluted) | ($0.07) | ($0.03) | -133.3% | | Net Income (Non-GAAP) | $61.6 | $63.9 | -3.76% | | EPS (Non-GAAP, Diluted) | $0.53 | $0.57 | -7.02% | [Financial Highlights for Fiscal Year 2025](index=1&type=section&id=Financial%20Highlights%20for%20Fiscal%20Year%202025) This section details BILL's full fiscal year 2025 financial performance, covering revenue, profitability, and EPS [FY25 Revenue Performance](index=3&type=section&id=FY25%20Revenue%20Performance) BILL's FY25 total revenue grew **13%** to **$1.46 billion**, with core revenue increasing **16%** FY25 Revenue Performance | Metric | FY25 (Millions) | YoY Change | | :---------------------- | :-------------- | :--------- | | Total Revenue | $1,462.6 | +13% | | Core Revenue | $1,300.8 | +16% | | Subscription Fees | $272.1 | +6% | | Transaction Fees | $1,028.7 | +19% | | Float Revenue | $161.8 | N/A | [FY25 Profitability and Margins](index=3&type=section&id=FY25%20Profitability%20and%20Margins) FY25 GAAP gross profit reached **$1.19 billion** with **81.4%** margin, non-GAAP operating income increased **22%** FY25 Profitability and Margins | Metric | FY25 (Millions) | FY24 (Millions) | YoY Change | | :---------------------- | :-------------- | :-------------- | :--------- | | Gross Profit (GAAP) | $1,190.5 | $1,055.6 | +12.8% | | Gross Margin (GAAP) | 81.4% | 81.8% | -0.4 ppts | | Gross Profit (Non-GAAP) | $1,242.7 | $1,109.9 | +12% | | Gross Margin (Non-GAAP) | 85.0% | 86.0% | -1.0 ppts | | Operating Loss (GAAP) | ($80.6) | ($174.2) | +53.7% | | Operating Income (Non-GAAP) | $239.5 | $196.2 | +22% | [FY25 Net Income and EPS](index=3&type=section&id=FY25%20Net%20Income%20and%20EPS) BILL achieved a GAAP net income of **$23.8 million** in FY25, with non-GAAP net income increasing to **$251.8 million** FY25 Net Income and EPS | Metric | FY25 (Millions) | FY24 (Millions) | YoY Change | | :---------------------- | :-------------- | :-------------- | :--------- | | Net Income (Loss) (GAAP) | $23.8 | ($28.9) | +182.4% | | EPS (GAAP, Basic) | $0.23 | ($0.27) | +185.2% | | EPS (GAAP, Diluted) | ($0.07) | ($0.27) | +74.1% | | Net Income (Non-GAAP) | $251.8 | $244.0 | +3.2% | | EPS (Non-GAAP, Diluted) | $2.21 | $2.12 | +4.2% | [Business Highlights and Recent Developments](index=3&type=section&id=Business%20Highlights%20and%20Recent%20Developments) This section outlines BILL's recent strategic initiatives, operational achievements, and key leadership changes [New Share Repurchase Program](index=3&type=section&id=New%20Share%20Repurchase%20Program) BILL's Board of Directors authorized a new share repurchase program of up to **$300 million** - BILL's Board of Directors authorized a new share repurchase program of up to **$300 million** of its outstanding common stock[9](index=9&type=chunk) - The company expects to fund the share repurchase program using existing cash, reflecting confidence in its strategy and strong cash flow generation[2](index=2&type=chunk)[10](index=10&type=chunk) - Repurchases may occur through open market purchases, privately negotiated transactions, or Rule 10b5-1 trading plans, subject to market conditions[10](index=10&type=chunk) [Operational Metrics](index=3&type=section&id=Operational%20Metrics) BILL's platform served **493,800 businesses**, processed **$86 billion** in payment volume, and expanded its network - Served **493,800 businesses** using solutions as of Q4 FY25 end[15](index=15&type=chunk) - Processed **$86 billion** in total payment volume in Q4, an increase of **13%** year-over-year[15](index=15&type=chunk) - Processed **33 million transactions** during Q4, an increase of **18%** year-over-year[15](index=15&type=chunk) - **8.3 million BILL standalone network members** as of June 30, 2025, an increase of **18%** year-over-year[15](index=15&type=chunk) [Leadership Changes](index=3&type=section&id=Leadership%20Changes) BILL welcomed Rohini Jain, a technology industry finance leader, as its new Chief Financial Officer - Rohini Jain, a technology industry finance leader, was welcomed as BILL's Chief Financial Officer[15](index=15&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) This section provides BILL's financial guidance for Q1 and full fiscal year 2026, including disclaimers [Q1 Fiscal Year 2026 Guidance](index=3&type=section&id=Q1%20Fiscal%20Year%202026%20Guidance) For Q1 FY26, BILL projects total revenue between **$385.0 million** and **$395.0 million** Q1 FY26 Financial Guidance | Metric | Q1 FY26 Guidance (Millions) | YoY Growth | | :-------------------------- | :-------------------------- | :--------- | | Total Revenue | $385.0 - $395.0 | 7% - 10% | | Core Revenue | $348.0 - $358.0 | 11% - 14% | | Non-GAAP Operating Income | $53.5 - $58.5 | N/A | | Non-GAAP Net Income | $56.5 - $60.5 | N/A | | Non-GAAP Net Income per Diluted Share | $0.49 - $0.52 | N/A | [Full Fiscal Year 2026 Guidance](index=3&type=section&id=Full%20Fiscal%20Year%202026%20Guidance) For FY26, BILL anticipates total revenue between **$1.59 billion** and **$1.63 billion**, indicating **9-11%** growth FY26 Financial Guidance | Metric | FY26 Guidance (Millions) | YoY Growth | | :-------------------------- | :----------------------- | :--------- | | Total Revenue | $1,589.5 - $1,629.5 | 9% - 11% | | Core Revenue | $1,450.5 - $1,490.5 | 12% - 15% | | Non-GAAP Operating Income | $240.0 - $270.0 | N/A | | Non-GAAP Net Income | $236.0 - $260.0 | N/A | | Non-GAAP Net Income per Diluted Share | $2.00 - $2.20 | N/A | [Forward-Looking Statements and Non-GAAP Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20and%20Non-GAAP%20Disclaimer) This section highlights uncertainties in financial projections and clarifies the basis for non-GAAP guidance - The outlook for non-GAAP net income and non-GAAP net income per diluted share includes a non-GAAP provision for income taxes of **20%**[12](index=12&type=chunk) - The non-GAAP net income per diluted share outlook does not account for future share repurchases, as their impact is not reasonably estimable[12](index=12&type=chunk) - Reconciliation of non-GAAP guidance to GAAP measures is not provided due to the inability to reasonably calculate or predict certain excluded items without unreasonable effort[14](index=14&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides details on BILL's recent conference call and an overview of the company's mission [Conference Call and Webcast](index=5&type=section&id=Conference%20Call%20and%20Webcast) BILL hosted a conference call and webcast on **August 27, 2025**, to discuss Q4 and FY25 results and FY26 outlook - A conference call and webcast were held on **August 27, 2025**, to discuss financial results and outlook, with a replay available on the Investor Relations website[16](index=16&type=chunk) [About BILL](index=5&type=section&id=About%20BILL) BILL (NYSE: BILL) is a leading financial operations platform for SMBs, automating payables, receivables, and spend - BILL (NYSE: BILL) is a leading financial operations platform for small and midsize businesses (SMBs), automating payables, receivables, and spend/expense management[17](index=17&type=chunk) - The platform leverages a proprietary network of **millions of members** to facilitate faster payments and is headquartered in San Jose, California[17](index=17&type=chunk) - BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the rationale behind BILL's use of non-GAAP financial measures and free cash flow [Non-GAAP Adjustments and Rationale](index=5&type=section&id=Non-GAAP%20Adjustments%20and%20Rationale) BILL uses non-GAAP measures, excluding items like stock-based compensation, for clearer operational insight - Non-GAAP financial measures are presented for supplemental informational purposes and are not a substitute for GAAP measures[19](index=19&type=chunk) - Excluded items from non-GAAP measures include stock-based compensation and related payroll taxes, depreciation and amortization, acquisition and integration-related expenses, restructuring, gain on debt extinguishment, and amortization of debt issuance costs[21](index=21&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Non-GAAP provision for income taxes is based on a statutory tax rate considering the nature of the taxed item and relevant jurisdiction[22](index=22&type=chunk) - These non-GAAP measures provide useful information for understanding financial performance, future prospects, and for management's financial and operational decision-making[23](index=23&type=chunk) [Free Cash Flow Definition](index=9&type=section&id=Free%20Cash%20Flow%20Definition) Free cash flow is a non-GAAP liquidity measure, indicating cash generated from operations after capital expenditures - Free cash flow is a non-GAAP measure defined as net cash provided by operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs[33](index=33&type=chunk) - It serves as an important liquidity measure, indicating cash generated for future operational expenses and investment in the business[33](index=33&type=chunk) - Limitations include not reflecting future contractual commitments or the total increase/decrease in cash balance for a given period[33](index=33&type=chunk) [Condensed Consolidated Financial Statements](index=10&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents BILL's condensed consolidated balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, BILL's total assets increased to **$10.06 billion**, driven by cash, investments, and customer funds Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (Thousands) | | :-------------------------- | :------------------------ | :------------------------ | :----------------- | | **ASSETS** | | | | | Cash and cash equivalents | $1,038,346 | $985,941 | +$52,405 | | Short-term investments | $1,180,110 | $601,535 | +$578,575 | | Funds held for customers | $4,044,470 | $3,704,907 | +$339,563 | | Total assets | $10,063,982 | $9,178,813 | +$885,169 | | **LIABILITIES** | | | | | Convertible senior notes, net | $1,534,465 | $733,991 | +$800,474 | | Customer fund deposits | $4,044,470 | $3,704,907 | +$339,563 | | Total liabilities | $6,149,942 | $5,044,612 | +$1,105,330 | | **STOCKHOLDERS' EQUITY** | | | | | Total stockholders' equity | $3,914,040 | $4,134,201 | -$220,161 | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For FY25, total revenue grew **13%** to **$1.46 billion**, with reduced operating loss and a return to net income Condensed Consolidated Statements of Operations | Metric | Year Ended June 30, 2025 (Thousands) | Year Ended June 30, 2024 (Thousands) | YoY Change | | :-------------------------- | :----------------------- | :----------------------- | :--------- | | Total revenue | $1,462,570 | $1,290,172 | +13.4% | | Subscription and transaction fees | $1,300,804 | $1,122,733 | +15.9% | | Gross profit | $1,190,467 | $1,055,556 | +12.8% | | Operating loss | ($80,602) | ($174,164) | +53.7% | | Net income (loss) | $23,799 | ($28,878) | +182.4% | | Basic EPS | $0.23 | ($0.27) | +185.2% | | Diluted EPS | ($0.07) | ($0.27) | +74.1% | Stock-based Compensation | Stock-based Compensation | Year Ended June 30, 2025 (Thousands) | Year Ended June 30, 2024 (Thousands) | | :-------------------------------------- | :----------------------- | :----------------------- | | Total stock-based compensation | $242,532 | $248,375 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) FY25 saw increased net cash from operating activities and improved financing, despite higher investing cash usage Condensed Consolidated Statements of Cash Flows | Metric | Year Ended June 30, 2025 (Thousands) | Year Ended June 30, 2024 (Thousands) | Change (Thousands) | | :-------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Net cash provided by operating activities | $350,644 | $278,771 | +$71,873 | | Net cash used in investing activities | ($817,390) | ($409,374) | -$408,016 | | Net cash provided by (used in) financing activities | $666,522 | ($742,599) | +$1,409,121 | | Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | $199,486 | ($873,442) | +$1,072,928 | | Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $3,550,884 | $3,351,398 | +$199,486 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=14&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations between GAAP and non-GAAP financial measures for performance indicators [Gross Profit Reconciliation](index=14&type=section&id=Gross%20Profit%20Reconciliation) The reconciliation details adjustments from GAAP to non-GAAP gross profit, primarily for depreciation and stock-based compensation Gross Profit Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Gross profit | $1,190,467 | $1,242,685 | $1,055,556 | $1,109,872 | | Gross margin | 81.4% | 85.0% | 81.8% | 86.0% | | Add: Depreciation and amortization | $42,298 | | $44,722 | | | Add: Stock-based compensation and related payroll taxes charged to cost of revenue | $9,920 | | $9,594 | | [Operating Expenses Reconciliation](index=14&type=section&id=Operating%20Expenses%20Reconciliation) This reconciliation adjusts GAAP operating expenses for R&D, Sales & Marketing, and G&A by removing non-cash items Operating Expenses Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Research and development | $340,059 | $229,804 | $336,754 | $230,994 | | Sales and marketing | $543,711 | $502,910 | $478,540 | $428,467 | | General and administrative | $281,913 | $197,676 | $277,662 | $194,125 | | Less: Stock-based compensation and related payroll taxes (R&D) | ($110,255) | | ($105,760) | | | Less: Stock-based compensation and related payroll taxes (S&M) | ($40,801) | | ($50,073) | | | Less: Stock-based compensation and related payroll taxes (G&A) | ($84,329) | | ($82,565) | | [Operating Loss Reconciliation](index=14&type=section&id=Operating%20Loss%20Reconciliation) The reconciliation converts GAAP operating loss to non-GAAP operating income by adding back non-cash expenses Operating Loss Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Operating loss | ($80,602) | $239,546 | ($174,164) | $196,181 | | Add: Depreciation and amortization | $74,935 | | $93,794 | | | Add: Stock-based compensation and related payroll taxes | $245,305 | | $247,992 | | | Add: Restructuring | ($92) | | $27,587 | | [Net Income (Loss) Reconciliation](index=15&type=section&id=Net%20Income%20%28Loss%29%20Reconciliation) This reconciliation details adjustments from GAAP net income (loss) to non-GAAP net income, including tax provisions Net Income (Loss) Reconciliation | Metric | FY25 GAAP (Thousands) | FY25 Non-GAAP (Thousands) | FY24 GAAP (Thousands) | FY24 Non-GAAP (Thousands) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Net income (loss) | $23,799 | $251,798 | ($28,878) | $243,994 | | Add: GAAP provision for income taxes | $6,611 | | $2,559 | | | Add: Depreciation and amortization | $74,935 | | $93,794 | | | Add: Stock-based compensation and related payroll taxes | $245,305 | | $247,992 | | | Less: Gain on debt extinguishment | ($40,550) | | ($45,271) | | | Less: Non-GAAP provision for income taxes | ($62,949) | | ($60,999) | | [Net Income (Loss) Per Share Reconciliation](index=15&type=section&id=Net%20Income%20%28Loss%29%20Per%20Share%20Reconciliation) This reconciliation adjusts GAAP EPS to non-GAAP diluted EPS by accounting for stock-based compensation and tax provisions Net Income (Loss) Per Share Reconciliation | Metric | FY25 GAAP (Per Share) | FY25 Non-GAAP (Per Share) | FY24 GAAP (Per Share) | FY24 Non-GAAP (Per Share) | | :-------------------------- | :-------------------- | :------------------------ | :-------------------- | :------------------------ | | Basic EPS | $0.23 | $2.43 | ($0.27) | $2.30 | | Diluted EPS | ($0.07) | $2.21 | ($0.27) | $2.12 | | Add: Stock-based compensation and related payroll taxes | $2.37 | | $2.34 | | | Less: Non-GAAP provision for income taxes | ($0.61) | | ($0.57) | | [Free Cash Flow](index=17&type=section&id=Free%20Cash%20Flow) BILL's free cash flow for FY25 increased to **$312.5 million**, calculated by adjusting operating cash flow Free Cash Flow Reconciliation | Metric | FY25 (Thousands) | FY24 (Thousands) | | :-------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $350,644 | $278,771 | | Purchases of property and equipment | ($4,335) | ($976) | | Capitalization of internal-use software costs | ($33,767) | ($19,917) | | Free cash flow | $312,542 | $257,878 | [Remaining Performance Obligations](index=18&type=section&id=Remaining%20Performance%20Obligations) As of June 30, 2025, BILL's total remaining performance obligations amounted to **$73.1 million**, with a portion due within one year Remaining Performance Obligations | Period | June 30, 2025 (Thousands) | | :-------------------------------------- | :------------------------ | | Over the next 1 year | $33,221 | | Between 1 to 2 years | $17,166 | | Thereafter | $22,668 | | Total | $73,055 |

Core Insights - BILL Holdings, Inc. is expected to report its fourth-quarter 2025 results on August 27, with projected revenues between $370.5 million and $380.5 million, indicating growth of 8-11% [1] - The Zacks Consensus Estimate for fourth-quarter revenues is $375.70 million, reflecting a 9.3% increase year-over-year, while the consensus for earnings is 41 cents per share, representing a decline of 28.07% from the previous year [2] - For fiscal 2025, management anticipates revenues between $1.45 billion and $1.46 billion, suggesting growth of 12-13%, with non-GAAP EPS projected between $2.06 and $2.09 [2][3] Revenue and Earnings Projections - The Zacks Consensus Estimate for BILL's fiscal 2025 revenues is $1.45 billion, indicating a year-over-year rise of 12.77%, while the consensus for full-year EPS is $2.09, suggesting a 1.42% decline [3] - For the fourth quarter, management expects core revenues of $335 million to $345 million, which translates to 11-15% year-over-year growth [12] - The consensus estimate for core revenues, which includes subscription and transaction fees, is currently $339.06 million, up from $320.3 million in the prior quarter and $301.31 million in the year-ago period [12] Transaction and Payment Volume - BILL is projected to process 32.4 million transactions in Q4, an increase from 30 million in the prior quarter and 28 million in the year-ago period, reflecting strong engagement from small and mid-sized businesses (SMBs) [15] - The Zacks Consensus Estimate for total payment volume (TPV) in Q4 is around $83.4 billion, up from $79 billion in the prior quarter and $76 billion in the year-ago period [15] Strategic Developments - BILL is strategically advancing by broadening its offerings for larger enterprises and enhancing its payments portfolio, with a focus on AI-driven initiatives for SMBs [9][10] - Recent product launches include Supplier Payments Plus, aimed at automating accounts receivable workflows for high-volume SMB payments, and innovations in procurement and financial automation [10] Market Performance and Valuation - BILL shares have declined 4.8% over the past three months, contrasting with a 14% increase in the Zacks Internet - Software industry and an 11.9% rise in the S&P 500 [17] - The stock is currently trading at a forward Price/Sales (P/S) ratio of 2.60X, which is below the industry average of 5.70X and at a discount compared to peers like SAP and Intuit [18] Overall Assessment - BILL's expanding customer base and comprehensive product suite are driving growth and profitability, although macroeconomic headwinds pose risks for SMB spending [19] - The company holds a Zacks Rank 3 (Hold), indicating a cautious outlook while monitoring future earnings and developments [20]

Core Insights - BILL Holdings (BILL) is expected to report quarterly earnings of $0.41 per share, a decline of 28.1% year-over-year, with revenues forecasted at $375.7 million, reflecting a 9.3% increase compared to the same period last year [1] Earnings Estimates - The consensus EPS estimate has been revised 3.3% lower over the last 30 days, indicating a collective reevaluation by analysts [2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Key Metrics - Analysts estimate 'Revenue- Interest on funds held for customers' to be $35.92 million, a decrease of 15.2% from the prior-year quarter [5] - 'Revenue- Subscription and transaction fees' is projected to reach $339.06 million, indicating a year-over-year increase of 12.5% [5] - Total Payment Volume is expected to be $83.40 billion, up from $76.00 billion a year ago [6] - The estimated 'Transactions Processed' is 32.42 million, compared to 28.00 million in the same quarter of the previous year [6] Stock Performance - Over the past month, BILL Holdings shares have recorded a return of -8.8%, while the Zacks S&P 500 composite has changed by +1.1% [6] - BILL Holdings holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [6]

Industry Overview - Internet stocks are benefiting from the ongoing digitalization wave, which is driving rapid adoption of AI and cloud computing [1] - The deployment of standalone 5G networks and AI-powered services is increasing the usage of social media platforms, digital advertising, online delivery models, streaming, and e-commerce growth [2] - Despite macroeconomic challenges, these factors are expected to positively impact Internet stocks during the earnings season [2] Company Earnings Insights - Four Internet stocks, Globant (GLOB), NICE (NICE), Affirm Holdings (AFRM), and Bill Holdings (BILL), are well-positioned to exceed earnings estimates this season [3] - Meta Platforms reported a 5% increase in ad conversions on Instagram and 3% on Facebook due to its new AI-powered recommendation model [5] - Microsoft’s AI assistants have reached 100 million monthly active users, and Alphabet is enhancing user experience through AI in its Search features [6] - Amazon's advertising business grew 23% year-over-year to $15.69 billion, attributed to successful AI-powered optimization [7] Company-Specific Projections - Globant expects revenues of at least $612 million for Q2 2025, reflecting a 4.2% year-over-year growth, with earnings estimated at $1.52 per share [12][13] - NICE anticipates non-GAAP revenues of $709-$719 million for Q2 2025, indicating 7% year-over-year growth, with earnings projected between $2.93 and $3.03 per share [15][16] - Affirm Holdings forecasts GMV between $9.4 billion and $9.7 billion for Q4 fiscal 2025, with revenues expected to be between $815 million and $845 million [17] - BILL Holdings expects revenues between $370.5 million and $380.5 million for Q4 fiscal 2025, suggesting year-over-year growth of 8-11% [19][20]

Core Insights - BILL Holdings (BILL) and Intuit (INTU) are significant players in the SMB-focused fintech market, providing digital tools for financial operations like accounting, billing, and payments [1] - The global fintech market is projected to grow from $340.10 billion in 2024 to $1,126.64 billion by 2032, with a CAGR of 16.2% from 2025 to 2032, presenting growth opportunities for both companies [2] Summary of BILL - BILL is enhancing its position in the fintech sector with an expanding portfolio, focusing on automating financial operations for small and mid-sized businesses [3] - In Q3 2025, BILL processed nearly $79 billion in payment volume across 30 million transactions, aiding over 488,600 businesses in automating their financial operations [4] - The company introduced new procurement and financial automation innovations in April 2025, adding 4,200 net new customers, bringing the total to 164,800 customers using BILL's services as of March 31, 2025 [5] - BILL has established partnerships with over 85 of the top 100 accounting firms and six of the top 10 largest financial institutions for SMBs in the U.S., including JPMorgan Chase and Bank of America [6] Summary of Intuit - Intuit continues to expand its offerings in AP/AR automation with products like QuickBooks and TurboTax, leveraging its brand strength and investments in AI [7] - The launch of QuickBooks Bill Pay enhances the platform's capabilities, providing built-in bill payment and cash flow tools, which increases user engagement [8] - QuickBooks Online Accounting revenues increased by 21% year over year to $1.04 billion, driven by customer growth and effective pricing strategies [9] - Intuit's earnings for 2025 are projected to grow by 18.42%, while BILL's earnings are expected to decline by 1.89% [10] Market Performance - BILL's shares have decreased by 45.4% year-to-date, while Intuit's shares have increased by 22.3%, attributed to macroeconomic challenges affecting SMB spending [12] - BILL and INTU shares are currently considered overvalued, with BILL trading at a forward Price/Sales ratio of 2.86X and Intuit at 10.24X [15] Earnings Estimates - The Zacks Consensus Estimate for BILL's 2025 earnings is $2.08 per share, indicating a 1.89% decline year over year [17] - The Zacks Consensus Estimate for Intuit's 2025 earnings is $20.06 per share, reflecting an 18.42% increase year over year [17] Conclusion - Both BILL and Intuit are positioned to benefit from the growing fintech sector, but Intuit's broader ecosystem and consistent earnings growth make it a more attractive long-term investment option [20]

Core Insights - BILL Holdings (BILL) is experiencing growth due to the increasing adoption of its platform, with a strategic focus on embedding AI across its integrated financial operations suite [1][4] Company Performance - Over 488,600 businesses utilize BILL's integrated financial operations platform for accounts payable (AP), accounts receivable (AR), and spend management, enhancing efficiency through AI-driven tools [2] - In Q3 FY25, BILL's Integrated Platform generated $301.7 million in revenues, reflecting a 14.5% year-over-year increase and contributing over 94% of core revenues [3][10] - The company added 4,200 net new AP/AR customers and experienced a 22% rise in card payment volume, indicating strong platform adoption [3][10] - BILL processed $79.4 billion in total payment volume (TPV) in the latest quarter, signaling a strategic shift towards serving larger enterprises [4][10] Industry Trends - According to BILL's 2025 State of Financial Automation Report, 73% of financial SMB leaders are using AI in their operations, with 83% expecting its influence to grow in the next two years [5] Competitive Landscape - BILL faces competition from Global Payments (GPN), which benefits from global scale and digital payment demand, and PayPal (PYPL), which leads in the digital payments space with strong brand recognition and innovative solutions [6][7] Valuation Metrics - BILL's shares have declined 46.4% year to date, underperforming the broader Zacks Computer and Technology sector, which returned 7.5% [8] - The forward 12-month Price/Sales ratio for BILL is 2.88X, significantly lower than the industry's 5.75X, indicating potential undervaluation [11] - The Zacks Consensus Estimate for fiscal 2026 earnings is $2.20 per share, reflecting a 6.34% year-over-year growth [14]

Core Insights - BILL Holdings (BILL) shares have declined 43.7% year-to-date, underperforming the broader Zacks Computer & Technology sector and the Zacks Internet - Software industry, which have returned 7% and 16.1% respectively [2][9] - The decline is attributed to a challenging macroeconomic environment, persistent inflation, and high interest rates affecting small and medium businesses (SMBs) spending on digital initiatives [2][9] Company Performance - BILL is experiencing growth in its SMB clientele, with partnerships with companies like Regions Financial and Adyen enhancing its digital payment solutions [5][6][7] - In Q3, BILL processed nearly $79 billion in payments across 30 million transactions, adding 4,200 new customers, driven by AI and automation features [10][12] - The company launched new solutions like Supplier Payments Plus and financial automation innovations to streamline SMB payments and improve cash flow management [11] Financial Guidance - For Q4 fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, indicating year-over-year growth of 8-11% [13] - For the full fiscal 2025, revenues are projected between $1.45 billion and $1.46 billion, suggesting a year-over-year growth of 12-13% [14] Earnings Estimates - The Zacks Consensus Estimate for Q4 fiscal 2025 earnings is 40 cents per share, reflecting a year-over-year decline of 29.82% [15] - The consensus for fiscal 2025 revenues is pegged at $1.46 billion, indicating a year-over-year growth of 13.02% [16] Competitive Landscape - Despite its expanding portfolio, BILL faces stiff competition from accounting software providers like SAP and Intuit, which have launched services that directly challenge BILL's market position [17][18]

Core Insights - BILL Holdings (BILL) is experiencing growth with a 17% year-over-year increase in transaction fee revenues, reaching $252.1 million in Q3 of fiscal 2025, driven by an 11% rise in Total Payment Volume (TPV) to $79.4 billion [1][10]. Group 1: Financial Performance - The growth in transaction fee revenues is attributed to a significant increase in TPV, which reflects rising payment volume and transaction-based income [1][10]. - The integrated financial operations platform of BILL served over 488,600 businesses by the end of Q3, processing 30 million transactions, a 16% increase year-over-year [2]. - Despite the overall growth, customer spending was slightly below expectations, leading to a minor sequential decline in TPV and transactions per customer, although a favorable payment mix helped support monetization [3]. Group 2: Competitive Landscape - BILL operates in a competitive fintech environment, facing challenges from larger players like Global Payments (GPN) and Intuit (INTU), which have more diversified offerings and deeper market reach [5][7]. - GPN processes over 50 billion transactions annually and has a strong global presence, while Intuit leverages its established small business ecosystem and ongoing investments in AI [6][7]. Group 3: Future Outlook - The long-term outlook for BILL remains positive, supported by investments in AI, ERP integrations, and payment innovations that enhance user engagement and promote sustainable growth [4]. - BILL's shares have underperformed, dropping 44% year-to-date compared to a 7.9% return in the broader Zacks Computer and Technology sector [8][10]. - The Zacks Consensus Estimate for fiscal 2025 earnings is projected at $2.07 per share, indicating a 6.7% increase over the past 60 days, despite a year-over-year decline of 2.36% [12].

Core Insights - BILL Holdings is strategically expanding its platform to cater to larger and more complex organizations while maintaining its focus on small and midsize businesses (SMBs) [1][8] - The launch of Supplier Payments Plus aims to simplify and accelerate payment processes for large suppliers, enhancing operational efficiency and the payment experience for SMB buyers [2][8] - In Q3 fiscal 2025, BILL reported revenues of $301.7 million from its Integrated Platform, reflecting a 14.5% year-over-year increase, driven by continued adoption among its core SMB base [3][8] Company Developments - BILL is investing in innovation by enhancing its payment portfolio, expanding distribution channels, and accelerating its AI strategy, which supports sustained growth in the SMB sector [4] - The company faces competitive pressure from Intuit's QuickBooks Bill Pay and Expensify's expense management tools, which could impact its market position [5][6][8] Financial Performance - BILL's share price has decreased by 45.4% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 6.1% [7] - The forward 12-month Price/Sales ratio for BILL is 3.27X, compared to the industry average of 5.89X, indicating a lower valuation [9] - The consensus estimate for fiscal 2025 earnings is $2.05 per share, reflecting a 5.7% increase over the past 60 days but a year-over-year decline of 3.3% [10]