Is Bill Holdings a Stock to Buy and Hold Forever? Here's Why It Could Be.

Core Insights - Bill Holdings is a SaaS company that provides a platform for small and midsize businesses to manage financial operations, leveraging AI technology for efficiency [1] - The company experienced significant revenue growth during the COVID-19 pandemic, but growth has since slowed, with the stock currently around 85% below its all-time high despite a revenue growth rate above 20% [2] - Bill's net dollar-based retention rate is 92%, indicating a decline in customer spending, which is lower than most other SaaS companies [3] Financial Performance - Bill Holdings reported a 22% year-over-year revenue growth in fiscal 2024, with an adjusted gross margin of 85% and an adjusted operating margin of 17% [4] - The company serves over 480,000 businesses, highlighting its substantial market presence [4] Market Opportunity - There are 34 million small and midsize businesses in the U.S. and over 72 million globally, indicating a large market opportunity for Bill Holdings [5] - The demand for automation in complex processes continues to grow, and the company is investing in innovation to enhance its platform [5] Stock Volatility - Bill's stock has shown significant volatility, trading between approximately $27 and$349 per share over the past five years, suggesting a turbulent future [6] - If the company can maintain rapid growth and capture market share, it has the potential for a bright future [6]