BILL Holdings (BILL) Up 8.1% Since Last Earnings Report: Can It Continue?

Company Performance - BILL Holdings reported Q4 earnings of 53 cents per share, exceeding the Zacks Consensus Estimate of 41 cents, but down from 57 cents in the same quarter last year [2] - Revenues reached $383.3 million, surpassing the consensus mark by 2% and increasing by 11.5% year over year [3] - Core revenues, including subscription and transaction fees, were $345.9 million, reflecting a 15% year-over-year growth [4] Revenue Breakdown - Subscription fees amounted to $68.8 million, growing by 5%, while transaction fees surged to $277.1 million, an 18% increase from the prior year [4] - Float revenues decreased to $37.4 million from $42.4 million in the previous year [4] - The company processed $86 billion in Total Payment Volume (TPV), marking a 13% year-over-year increase, and handled 33 million transactions, up 18% [5] Financial Metrics - Non-GAAP gross profit was $322.7 million, an 11% increase year over year, with a slight contraction in gross margin to 84.2% [6] - Non-GAAP operating income was $56.4 million, down 6% from $60 million in the previous year [6] - As of June 30, 2025, cash and short-term investments totaled $2.22 billion, up from $1.59 billion a year ago [7] Shareholder Returns - BILL announced a $300 million share repurchase program, reflecting confidence in its cash flow and long-term strategy [3] - The company repurchased $100 million of stock in the fourth quarter and July 2025, ahead of the newly authorized buyback program [7] Future Guidance - For Q1 fiscal 2026, BILL expects revenues between $385 million and $395 million, indicating a growth of 7-10% year over year [8] - For fiscal 2026, revenue estimates range from $1.59 billion to $1.63 billion, implying a growth of 9-11% year over year [8] Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting -58.48% recently [9] - BILL Holdings currently has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [11] Industry Comparison - BILL Holdings is part of the Zacks Internet - Software industry, where competitor Nice reported revenues of $726.71 million, a year-over-year change of +9.4% [12] - Nice is expected to post earnings of $3.17 per share for the current quarter, reflecting a year-over-year change of +10.1% [13]