Financial Data and Key Metrics Changes - In Q2 2026, the company reported $375 million in core revenue, reflecting a 17% year-over-year growth and exceeding guidance expectations [23] - Non-GAAP operating margin was 18%, showing both sequential and year-over-year expansion [23][26] - The company repurchased $133 million of stock during the quarter, indicating a disciplined approach to share repurchases [26] Business Line Data and Key Metrics Changes - AP/AR core revenue grew 11% year-over-year, with transaction revenue reaching $128 million, up 14% year-over-year [23][24] - Spend and expense revenue totaled $166 million, representing a 24% year-over-year growth, driven by a 25% increase in card payment volume [24][25] - The number of businesses using both AP/AR and spend and expense solutions grew 28% year-over-year in Q2 [7] Market Data and Key Metrics Changes - The company observed strong spend trends in manufacturing and a rebound in construction, reversing previous trends [24][51] - There was a resurgence in spending in advertising and retail sectors, which had been muted in prior quarters [51] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving growth from its integrated platform, expanding its addressable market, and innovating with AI to create value [16] - The Embed 2.0 growth strategy aims to extend reach with SMBs and enhance distribution through partnerships, unlocking potential to reach close to 1 million businesses [9][10] - The company is enhancing its offerings for accountants and larger businesses, indicating a shift towards targeting larger clients [18][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of SMBs and the value created through innovation, which is expected to drive stickiness and growth [49] - The company anticipates continued momentum in invoice financing, with a nearly 50% year-over-year growth in customers using this service [8][64] - Management highlighted the importance of trust and unique data assets as competitive advantages against potential AI disruptions [33][36] Other Important Information - The company expects core revenue for fiscal 2026 to be in the range of $1.490 billion to $1.510 billion, reflecting a 15%-16% growth year-over-year [29] - Stock-based compensation expenses are projected to be approximately $255 million, below previous guidance [31] Q&A Session Summary Question: How at risk is BILL from AI disruption? - Management believes the impact of AI is overplayed and emphasizes the company's unique expertise and data assets as competitive advantages [33][36] Question: What contributed to the growth acceleration? - Management attributes growth to the durability of the business model and the resilience of SMBs, alongside innovation creating more value opportunities [49][51] Question: How sustainable is the growth in spend and expense? - Management sees encouraging signs in recent spending trends but remains cautious about baking in these trends into future guidance [55] Question: What is the outlook for invoice financing? - Management notes strong demand for invoice financing, with repeat usage and significant impact on cash flow for SMBs [64][66]