BILL (US:BILL) ZACKSยท2025-07-16 13:46Core Insights - BILL Holdings (BILL) is experiencing growth due to the increasing adoption of its platform, with a strategic focus on embedding AI across its integrated financial operations suite [1][4] Company Performance - Over 488,600 businesses utilize BILL's integrated financial operations platform for accounts payable (AP), accounts receivable (AR), and spend management, enhancing efficiency through AI-driven tools [2] - In Q3 FY25, BILL's Integrated Platform generated $301.7 million in revenues, reflecting a 14.5% year-over-year increase and contributing over 94% of core revenues [3][10] - The company added 4,200 net new AP/AR customers and experienced a 22% rise in card payment volume, indicating strong platform adoption [3][10] - BILL processed $79.4 billion in total payment volume (TPV) in the latest quarter, signaling a strategic shift towards serving larger enterprises [4][10] Industry Trends - According to BILL's 2025 State of Financial Automation Report, 73% of financial SMB leaders are using AI in their operations, with 83% expecting its influence to grow in the next two years [5] Competitive Landscape - BILL faces competition from Global Payments (GPN), which benefits from global scale and digital payment demand, and PayPal (PYPL), which leads in the digital payments space with strong brand recognition and innovative solutions [6][7] Valuation Metrics - BILL's shares have declined 46.4% year to date, underperforming the broader Zacks Computer and Technology sector, which returned 7.5% [8] - The forward 12-month Price/Sales ratio for BILL is 2.88X, significantly lower than the industry's 5.75X, indicating potential undervaluation [11] - The Zacks Consensus Estimate for fiscal 2026 earnings is $2.20 per share, reflecting a 6.34% year-over-year growth [14]