BILL (US:BILL)2025-05-08 21:35Revenue and Growth - Revenue for the three months ended March 31, 2025, was $358.2 million, an increase of 10.9% from $323.0 million in the same period of 2024 [130]. - Total Payment Volume (TPV) for the three months ended March 31, 2025, was $79.4 billion, representing an 11% increase from $71.4 billion in the same period of 2024 [149]. - The number of businesses using the company's solutions increased by 5% to 488,600 as of March 31, 2025, compared to 464,900 in 2024 [149]. - The company processed approximately 29.7 million transactions in the three months ended March 31, 2025, a 16% increase from 25.7 million in the same period of 2024 [149]. - For the nine months ended March 31, 2025, revenue was $1,079.2 million, up 14% from $946.5 million in the same period of 2024 [130]. - Total revenue for the three months ended March 31, 2025, increased by $35.2 million (11%) to $358.2 million compared to the prior year period, driven primarily by a $36.4 million (17%) increase in transaction fee revenue [177]. Financial Performance - The company generated a net loss of $11.6 million for the three months ended March 31, 2025, compared to a net income of $31.8 million in the same period of 2024 [130]. - Net loss for the three months ended March 31, 2025, was $11,589,000, a significant decrease from a net income of $31,809,000 in the same period of 2024 [174]. - Operating loss for the three months ended March 31, 2025, was $28,946,000, compared to an operating loss of $27,622,000 in the prior year [174]. - Other income decreased by 69% to $18,650,000 for the three months ended March 31, 2025, from $59,801,000 in the same period of 2024 [174]. Expenses and Costs - Service costs rose by 29% to $56,733,000 for the three months ended March 31, 2025, compared to $43,845,000 in the same period of 2024 [174]. - Research and development expenses increased by 6% to $86,540,000 for the three months ended March 31, 2025, from $81,594,000 in the prior year [174]. - Sales and marketing expenses grew by 16% to $136,758,000 for the three months ended March 31, 2025, compared to $118,105,000 in the same period of 2024 [174]. - General and administrative expenses increased by 16% to $73,851,000 for the three months ended March 31, 2025, from $63,858,000 in the prior year [174]. - Total cost of revenue increased by $12.2 million (22%) during the three months ended March 31, 2025, leading to a gross profit of $291.0 million, up from $268.0 million in the prior year [179]. Cash Flow and Investments - Free cash flow for the nine months ended March 31, 2025, was $244.1 million, up from $184.8 million in the prior year, indicating a 32.1% increase [200]. - Cash and cash equivalents as of March 31, 2025, totaled $1.0 billion, with available-for-sale short-term investments of $1.1 billion and an undrawn Revolving Credit Facility of $120.0 million [202]. - Net cash provided by operating activities increased to $266.8 million for the nine months ended March 31, 2025, compared to $200.2 million in the prior year, driven by revenue growth [213]. - Net cash used in investing activities rose to $773.8 million for the nine months ended March 31, 2025, from $366.4 million in the previous year, primarily due to increased purchases of investments [215]. - Net cash provided by financing activities was $326.9 million for the nine months ended March 31, 2025, a significant recovery from net cash used of $722.4 million in the prior year [217]. Debt and Financing - The company issued $1.4 billion in 0% convertible senior notes due 2030, with net proceeds of approximately $1.38 billion after costs, used for share repurchases and debt repayment [205]. - The August 2024 Share Repurchase Program allowed for the repurchase of up to $300.0 million in shares, with $201.3 million spent to repurchase 3,711,246 shares by March 31, 2025 [208]. - The company issued $1.15 billion in 0% convertible senior notes due December 1, 2025, with a conversion price of $160.88 per share [223]. - The company has a total borrowing commitment of $300 million under its Revolving Credit Facility, with $180 million borrowed as of March 31, 2025 [227]. Risks and Economic Conditions - Macroeconomic conditions, including interest rate volatility and inflation, may impact the company's future results and operations [135]. - The company is exposed to interest rate risk from its $180 million borrowings indexed to term SOFR, with potential increases in interest costs if market rates rise [243]. - Credit risk is present from card receivable balances with spending businesses, which may default due to various factors [248]. - The company is exposed to foreign currency exchange risk related to its cross-border payment service, which may affect cash flows and operating results [249][252]. - A 10% change in the value of the U.S. dollar relative to foreign currencies is believed to have an immaterial effect on cash flows and operating results [253].