BILL (US:BILL) The Motley Foolยท2024-11-16 14:12Core Insights - Bill Holdings has experienced a significant stock price increase, reaching $90.00 per share, which is a 61% rise in the past month, although it remains 70% below its peak of $342.26 in November 2021 [1][2] Company Performance - For the first quarter of fiscal 2025, Bill reported an 18% year-over-year revenue growth and adjusted earnings per share (EPS) of $0.63, up from $0.44 in the same quarter last year, exceeding Wall Street estimates [5][6] - The number of transactions processed increased by 16% year-over-year, with a record total payment volume of $80 billion, driven by strong customer response to new AI-powered features [6][4] Financial Guidance - Bill has updated its guidance for 2025, expecting total annual revenue growth between 12% and 13%, an increase from the previous forecast of 11%, and adjusted EPS estimates have been raised to between $1.65 and $1.83 [7][8] - The company's total revenue for 2024 was $1,290 million, with new estimates for 2025 ranging from $1,439 million to $1,464 million, reflecting a positive outlook [8] Market Position and Valuation - Bill Holdings is positioned uniquely within the SMB operating landscape, with optimism for macroeconomic conditions to improve as interest rates decline, potentially benefiting the company [9][10] - The stock is currently trading at a price-to-free cash flow ratio of 33 times its $291 million in free cash flow, which is considered a discount compared to larger competitors like Intuit, SAP, and Oracle [11] Investment Outlook - The company appears to be on a path toward more consistent financial performance, suggesting a potential for significant stock price appreciation in the coming year [12]