BILL (BILL) - 2023 Q4 - Annual Report

Financial Performance - Revenue for fiscal 2023 was $1.1 billion, an increase of 65$642.0 million in fiscal 2022[168] - Net losses decreased to $223.7 million in fiscal 2023 from$326.4 million in fiscal 2022[168] - Total payment volume reached $266.0 billion, representing a 17$228.1 billion in fiscal 2022[180] - Transactions processed increased to 85.1 million, a 35% rise from 62.9 million in the prior year[180] - The net dollar-based retention rate was 111% for fiscal 2023, down from 131% in fiscal 2022, attributed to changing spending patterns[139] Customer Growth - The number of businesses using the company's solutions grew to 461,000, a 15% increase from 400,100 in the previous year[180] - The macroeconomic environment has led to lower payment volume growth and net customer additions compared to historical trends[170] Revenue Model - Subscription revenue is primarily based on a fixed monthly or annual rate per user charged to customers, while transaction revenue consists of transaction fees on a fixed or variable rate per type of transaction[140] - The company’s contracts with customers require multiple services, and revenue recognition is impacted by the evaluation of performance obligations[148] Investment and Financing Activities - The annualized interest rate earned on the corporate investment portfolio and funds held for customers increased to 3.51% during fiscal 2023 compared to 0.29% during fiscal 2022[157] - Cash usage for investing activities primarily includes purchases of corporate and customer fund available-for-sale investments and business acquisitions[141] - Cash proceeds from financing activities consist mainly of proceeds from line of credit borrowings and public offerings of common stock[142] - The company issued $1.15 billion in aggregate principal amount of 0$212,382,647 under the Share Repurchase Program[159] - The company’s share repurchase program has a term of 12 months and allows for repurchases through various methods, depending on market conditions[158] Risk Management - The company plans to diversify banking relationships to mitigate risks associated with banking sector instability[172] - The company has established an allowance for credit losses based on estimates of uncollectible balances, which may fluctuate depending on various factors[150] Partnerships - The company has partnerships with over 85 of the top 100 accounting firms and seven of the top ten largest financial institutions in the U.S.[167] Customer Acquisition - The average payback period for BILL standalone customers acquired during fiscal 2022 was approximately five quarters[178]