Bill Holdings Beats Quarterly Guidance

Core Insights - Bill Holdings reported revenue and earnings that exceeded management's expectations for the first quarter of fiscal 2025 [1][2] Financial Performance - Total revenue for Q1 2025 was $358.5 million, surpassing the guidance range of $346 million to $351 million, and representing an 18% increase from $304.9 million in Q1 2024 [2][6] - Core revenue increased by 19% to $314.9 million, exceeding the expected range of $305 million to $310 million [2][3] - Non-GAAP operating income surged by 101% to $67.1 million, significantly above the guidance of $52 million to $57 million [3][7] - Non-GAAP net income rose to $68.6 million, up from $51.6 million a year ago, and above the guidance of $53 million to $57 million [3][7] - Earnings per share (diluted) reached $0.63, beating the predicted range of $0.48 to $0.51, and up 43% from $0.44 in Q1 2024 [3][7] Business Overview - Bill Holdings provides an AI-enabled financial operations platform that automates key back-office functions for small and midsize businesses (SMBs), including accounts payable and receivables automation [4] - The company serves over 476,200 businesses with a total payment volume of $80 billion [5] Growth Drivers - The growth in revenue was attributed to the scaling of its AI-driven platform, enhancing automation and financial anomaly detection capabilities [6] - Operating losses decreased significantly from $56.6 million in the previous year to $7.7 million this quarter, reflecting improved operational efficiency [8] Future Outlook - For the upcoming fiscal quarter, total revenue is projected to be between $355.5 million and $360.5 million, with core revenue expected to grow by 15% to 17% year over year [9] - Management maintains a positive outlook for fiscal 2025, forecasting revenue in the range of $1.439 billion to $1.464 billion, indicating a strong path toward sustained profitability despite slight moderation in growth rates [9]