Summary of BILL Holdings FY Conference Call Company Overview - **Company**: BILL Holdings (NYSE:BILL) - **Industry**: FinTech Key Points and Arguments Leadership and Background - Rohini Jain, the new CFO, has a strong background in finance, having worked at GE, eBay, Walmart, and PayPal, which provides her with a deep understanding of the FinTech landscape [1][2] Revenue Growth and Targets - BILL aims to return to a core revenue growth of 20% after reporting 14% growth in the last quarter [3] - The company is focused on driving both growth and profitability, emphasizing that growth is the easiest way to enhance profitability [4] Strategic Initiatives for Growth - Key initiatives include: - SPP (Supplier Payments Plus) and embedded partnerships - Integration of AI components to enhance customer value - Targeting higher revenue per user (RPU) by moving upmarket [5] - The company is also focused on sustainable revenue sources to enhance shareholder value [5] Macro Environment and SMB Trends - The macroeconomic environment has shown signs of stabilization, with SMB spending becoming more stable after a decline from pandemic highs [6] - Different industries are experiencing varying growth rates, with a focus on discretionary versus necessary spending [7] Pricing Strategy - BILL has not raised prices in the last three years but is now looking to align pricing with the value delivered to customers [7][8] - A strategic pricing review is underway to optimize pricing structures and bundle products effectively [8] Customer Acquisition and Market Strategy - The company signed over 4,000 new clients in the previous quarter, but the focus is shifting towards acquiring high-value customers rather than just increasing unit numbers [15] - The go-to-market strategy has evolved from a reactive approach to a more proactive one, targeting mid-market customers who drive higher transaction volumes [11][12] Emerging Products and Payment Take Rates - The emerging portfolio, including products like Instant Pay and Working Capital, is growing at a rate of 40% year-over-year [20] - The ad valorem take rate is expected to expand by 0.4 basis points this year, with a focus on diversifying revenue sources [19][21] Cash Treasury and AI Integration - BILL has launched a cash account treasury capability, allowing businesses to earn interest on their operating cash accounts [33][34] - AI agents are being developed to enhance customer experience and operational efficiency, with plans for monetization through pricing adjustments and pay-per-use models [35][36][37] Cost Management and Profitability - The company is focused on optimizing its operating cost structure while driving revenue growth [39] - A consulting firm has been engaged to assess cost structures and identify opportunities for streamlining operations [39] Future Outlook and Analyst Day - BILL is preparing for an analyst day in the first half of 2026 to discuss long-term strategies, financial models, and growth metrics [41][42] - The management team is committed to driving shareholder value and will consider strategic opportunities as they arise [40] Conclusion - BILL Holdings is strategically positioned to enhance its growth trajectory through a combination of pricing optimization, product innovation, and a focus on high-value customer segments while navigating the macroeconomic landscape. The upcoming analyst day is expected to provide further insights into the company's long-term vision and financial health.