Summary of BILL Holdings Conference Call Company Overview - **Company**: BILL Holdings (NYSE: BILL) - **Industry**: Financial Technology, focusing on accounts payable automation and spend/expense management Key Points and Arguments Business Growth and Market Dynamics - BILL has experienced significant growth, with a 15x increase over the last six years and a doubling of revenue in the last three years, despite recent macroeconomic challenges affecting customer spending and payment monetization trends [3][4][5] - The company views recent cyclical impacts as external factors, such as supply chain constraints and recession fears, rather than internal issues [4][5] Shareholder Value and Capital Allocation - BILL announced a $300 million share repurchase authorization, emphasizing the board's commitment to enhancing shareholder value while balancing internal growth and profitability [7][8][9] - The company is focused on driving growth and efficiency, with a consistent increase in non-GAAP profitability over the past few years [9] Investment Priorities for the Upcoming Year - The company has three main investment priorities: 1. Drive growth from the integrated platform 2. Expand the addressable market 3. Enhance the platform with AI capabilities [10][11][12] Customer Engagement and Retention - BILL aims to improve customer engagement during the critical first 90 days of onboarding, as retention rates are high once customers are integrated into the platform [11][20] - The company is focused on leveraging AI to optimize customer service and streamline financial operations [11][19] Addressable Market Expansion - BILL currently has a market penetration of only 3% to 4%, indicating substantial growth potential [12][27] - The company is targeting larger businesses and enhancing its embedded capabilities to reach more small and medium-sized businesses (SMBs) [12][16][27] Embedded Strategy and Partnerships - The launch of the Embed 2.0 platform allows for off-the-shelf APIs, facilitating partnerships with trusted companies like Paychex, which enhances the customer experience [22][24] - The embedded strategy is designed to meet SMBs where they are, leveraging existing trust in partner companies [23][24] Payment Strategy and Supplier Initiatives - BILL has over 10 different payment products and is focused on creating clear choices for suppliers and customers [39][40] - The introduction of Supplier Payments Plus aims to streamline payment processes for large suppliers, enhancing their ability to manage multiple payment types [43][44][46] Competitive Landscape - BILL differentiates itself through its comprehensive platform, unique data insights, and strong relationships with accountants, which provide a competitive edge in the market [52][54] Focus on Profitability - The company is enhancing its focus on GAAP profitability, with significant adjustments to stock-based compensation to address investor concerns [55][56][57] Future Outlook - BILL anticipates continued growth in net ads, particularly among mid-market customers, while maintaining a focus on high-value customer acquisition [35][36][37] Additional Important Insights - The company is committed to leveraging AI to enhance operational efficiency and customer experience, which is expected to drive future growth [11][19][50] - BILL's unique position in the market, with a focus on both SMBs and larger enterprises, allows for a diverse revenue stream and growth opportunities [32][33][52]

Core Viewpoint - BILL Holdings reported earnings of 50 cents per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate by 35.14%, but down 16.7% year over year. Revenues reached $358.2 million, a 10.9% increase year over year, surpassing the consensus mark by 0.97% [1] Financial Performance - Core revenues, which include subscription and transaction fees, amounted to $320.3 million, reflecting a 14% year-over-year increase. Subscription fees were $68.2 million, up 4% year over year, while transaction fees reached $252.1 million, a 17% increase from the previous year [2] - Total revenues from the Integrated Platform, which includes BILL AP/AR and BILL Spend and Expense, were $301.7 million, growing 14.5% year over year, contributing 94.2% to core revenues and 84.2% to total revenues. Revenues from Embedded and Other Solutions were $18.6 million, a 3.9% year-over-year increase, contributing 5.8% to core revenues and 5.2% to total revenues [3] - Float revenues, consisting of interest on funds held for customers, were $37.9 million, down 9.1% year over year. The company processed a total payment volume (TPV) of $79.4 billion, an 11.2% year-over-year increase, with $72.3 billion from the Integrated Platform (up 10.9%) and $7.1 billion from Embedded and Other Solutions (up 14.5%) [4] Customer Metrics - BILL's solutions served 488.6 thousand businesses at the end of Q3 fiscal 2025, up from 464.9 thousand in the prior year. This included 204.3 thousand customers in the Integrated Platform (up 13.4%) and 284.2 thousand in Embedded and Other Solutions (down 0.2%). The company processed 29.7 million transactions in Q3, a 15.6% year-over-year increase [5] Operating Details - Non-GAAP gross profit was $304 million, an 8% year-over-year increase, with a gross margin of 84.9%, contracting 230 basis points year over year. Non-GAAP research and development expenses totaled $58 million (up 4.4%), sales and marketing expenses rose 18.9% to $126.9 million, and general and administrative expenses increased 18.4% to $50.9 million [6] - Non-GAAP operating income was $53.3 million, down 8.9% year over year, with an operating margin contracting 320 basis points to 14.9% [7] Balance Sheet & Cash Flow - As of March 31, 2025, cash, cash equivalents, and short-term investments were $2.17 billion, slightly down from $2.21 billion as of December 31, 2024. Cash flow from operations was $99.5 million in Q3, compared to $78.7 million in Q2 [8] - Free cash flow generated in the reported quarter was $90.5 million, up from $71.6 million in the prior quarter [9] Guidance - For Q4 fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, indicating year-over-year growth of 8-11%. Non-GAAP earnings are projected between 39 cents and 43 cents per share [10] - For fiscal 2025, the company anticipates revenues between $1.45 billion and $1.46 billion, implying 12-13% year-over-year growth, with non-GAAP earnings expected between $2.06 and $2.09 per share [11]

BILL NYSE BILL Investor Deck May 2025 Safe harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our con ...