BILL Holdings Q2 Earnings & Revenues Beat Estimates, Shares Fall

Core Insights - BILL Holdings reported earnings of 56 cents per share for Q2 fiscal 2025, exceeding the Zacks Consensus Estimate by 19.15% and showing a year-over-year increase of 9.8% [1] - Revenues reached $362.6 million, a 13.8% increase year over year, surpassing the consensus estimate by 0.83% [1] - The company processed a total payment volume (TPV) of $84.5 billion, reflecting a 12.8% year-over-year growth [2] Revenue Breakdown - Core revenues, which include subscription and transaction fees, amounted to $319.6 million, with subscription fees at $67.7 million (up 7% year over year) and transaction fees at $251.9 million (up 19% year over year) [5] - Revenues from the Integrated Platform were $300.7 million, increasing 16.2% year over year, contributing 94.1% to core revenues [6] - Revenues from Embedded and Other Solutions were $18.9 million, up 16% year over year, contributing 5.9% to core revenues [6] Customer and Transaction Metrics - BILL's solutions served 481.3 thousand businesses, up from 473.5 thousand in the prior year, with 198.4 thousand customers in the Integrated Platform (up 13.5%) and 282.9 thousand in Embedded and Other Solutions (down 5.3%) [3] - The company processed 30 million transactions in Q2, marking a 17.2% year-over-year increase [3] Financial Performance - Non-GAAP gross profit was $308.9 million, a 12.9% increase year over year, with a gross margin of 85.2%, down 70 basis points [8] - Non-GAAP operating income reached $62.8 million, representing a 41.8% year-over-year growth, with an operating margin expansion of 340 basis points to 17.3% [9] Cash Flow and Share Repurchase - As of December 31, 2024, cash, cash equivalents, and short-term investments totaled $2.21 billion, up from $1.47 billion as of September 30, 2024 [10] - The cash flow from operations was $78.7 million in Q2, compared to $88.6 million in Q1 [10] - The company repurchased 2.3 million shares for $200 million during the fiscal second quarter [11] Future Guidance - For Q3 fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, indicating a year-over-year growth of 9-11% [12] - For the full fiscal 2025, revenues are projected between $1.45 billion and $1.47 billion, implying a 13-14% year-over-year growth [12]