Financial Data and Key Metrics Changes - Core revenue grew 14% year over year, reaching $320 million in Q3 [38] - Non-GAAP operating income margin was 15%, exceeding expectations [4][38] - Free cash flow increased by 44% year over year, representing a 25% margin [5][38] - Total revenue for Q3 was $358 million, up 11% year over year [38] - Non-GAAP net income was $59 million, with a net income margin of 16% [44] Business Line Data and Key Metrics Changes - Revenue from the integrated platform, excluding the financial institution channel, was $302 million, up 15% year over year [39] - Revenue from the Bill APAR solution was $164 million, up 10% year over year [39] - Revenue from the Bill Spend and Expense solution was $138 million, up 21% year over year [42] - Total payment volume grew 10% year over year, although TPV per customer decreased by 2% [39][40] Market Data and Key Metrics Changes - The accounting channel saw net adds grow over 60% year over year, with 9,000 accounting firms using the platform [20] - Local transfer capabilities were enabled in dozens of countries, enhancing international payment solutions [32] - The company processed $79 billion in total payment volume, representing over 1% of GDP [6] Company Strategy and Development Direction - The company is focusing on expanding capabilities for larger businesses and enhancing its payment portfolio [5][12] - An accelerated AI growth strategy is being implemented to transform financial operations for SMBs [23][24] - The introduction of advanced solutions for procurement and multi-entity management aims to simplify complex financial processes [9][14] Management's Comments on Operating Environment and Future Outlook - Management noted that SMBs are adapting to a dynamic macro environment, with signs of reduced spending and transaction volume [28][46] - The company remains confident in its ability to capture market opportunities despite current uncertainties [29][46] - Future guidance for Q4 expects core revenue to be between $335 million and $345 million, reflecting 11% to 15% year-over-year growth [48] Other Important Information - The company ended the quarter with $2.2 billion in cash and short-term investments, providing liquidity for growth investments [44] - Stock-based compensation expenses are expected to be approximately 17% of total revenue, reflecting a reduction from earlier estimates [50] Q&A Session Summary Question: Success with accountants adopting Divvy post integration - Management highlighted the significant opportunity within the accountant base, with over 9,000 firms using the product and potential for cross-selling [55] Question: Confidence level regarding investments and expected returns - Management expressed increased confidence in internal execution driving results, with ongoing investments in key priorities [62] Question: Observations from April trends and comparisons to past cycles - Management noted that SMBs are facing significant uncertainty, leading to fewer transactions and decreased spending, similar to conditions seen during COVID [66][68] Question: Impact of tariffs on cross-border transaction revenue - Management indicated that the majority of international transactions are for services, with no significant shift between USD and local currency observed [75][76] Question: Pricing and packaging of the software platform - Management acknowledged the opportunity for pricing adjustments as the platform's value increases, with plans to discuss this in future quarters [82] Question: Payments monetization within Bill APAR - Management detailed that take rate expansion in Q3 was driven by volume growth in emerging payment products and reduced FX losses [90][91]