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BILL Holdings, Inc. (BILL): A Bull Case Theory
Yahoo Finance· 2025-09-16 16:02
Core Thesis - BILL Holdings, Inc. is experiencing strong growth in revenue and customer adoption, positioning itself as a leader in intelligent financial operations [1][6]. Financial Performance - For fiscal 2025, BILL reported $1.5 billion in revenue, a 16% increase in core operations, with Q4 revenue of $383 million growing 11.5% year over year [2]. - Earnings per share (EPS) for Q4 was $0.53, exceeding estimates by 29% [2]. - Subscription and transaction fees contributed 90% of total revenue, rising 15% to $346 million [2]. Customer Growth and Engagement - The company added 4,700 net new accounts payable/accounts receivable (AP/AR) customers, bringing the total to nearly 170,000 [3]. - BILL's digital ecosystem is increasingly sticky, with 54% of payments completed within its network [3]. Profitability and Cost Management - Non-GAAP operating income for the year was $240 million, 23% above initial expectations, although margins were impacted by higher sales and marketing costs [4]. - Efficiency gains in fraud prevention and proactive credit line expansion supported overall growth [4]. Product Innovation - New product offerings such as Supplier Payments Plus, bulk payments, and Embed 2.0 are expanding monetization opportunities [4]. - Upcoming AgenTeq AI agents are expected to enhance the company's capabilities in autonomous financial operations [4]. Future Guidance - Guidance for FY2026 is cautious, projecting revenue between $1.59 billion and $1.63 billion, reflecting a 9-11% year-over-year increase, which is below consensus expectations [5]. - Despite this, BILL remains well-positioned with over 1% of U.S. GDP flowing through its platform, supported by mid-market adoption and ongoing share repurchases [5].
BILL Holdings (NYSE:BILL) 2025 Conference Transcript
2025-09-10 18:52
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]
BILL (BILL) - 2025 Q4 - Earnings Call Transcript
2025-08-27 21:32
Financial Data and Key Metrics Changes - Total revenue for fiscal year 2025 reached $1,500,000,000, with core revenue growth of 16% year over year [7] - Non-GAAP operating income exceeded the high end of initial guidance by over 20%, totaling $240,000,000 for the year [38][39] - Non-GAAP operating margin (ex float) expanded by 345 basis points year over year [38] Business Line Data and Key Metrics Changes - Bill APAR transaction revenue grew 15% year over year in Q4, with total payment volume increasing by 13% [40] - Revenue from spend and expense solutions totaled $151,000,000 in Q4, up 19% year over year, driven by a 22% growth in card payment volume [42] - The number of joint customers using both Bill APAR and spend and expense grew nearly 40% to 15,800 by year-end 2025 [43] Market Data and Key Metrics Changes - The Bill network surpassed 8,000,000 members, an increase of 18% from the previous year [12] - The net revenue retention rate, including financial institutions, was 94%, reflecting a lower B2B spend environment [41] - Annual customer retention remained healthy at 86%, indicating strong platform value [41] Company Strategy and Development Direction - The company aims to drive growth from its integrated platform, expand its addressable market, and innovate with AI to enhance value for SMBs [28][34] - Strategic investments were made to strengthen the core business and build a foundation for future growth, particularly in AI capabilities [22][36] - The launch of AgenTik AI is expected to transform financial operations for SMBs, moving towards a "do it for you" model [17][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in driving growth due to foundational elements built into the company and product platform [56] - The company anticipates some headwinds from external factors, including tariff impacts on SMB spending, but remains optimistic about internal growth initiatives [60][91] - The focus for fiscal year 2026 includes enhancing customer experience and expanding market penetration, particularly in the mid-market segment [32][81] Other Important Information - The company repurchased $100,000,000 of its stock in Q4 and plans to execute up to $300,000,000 in share repurchases in the fiscal year [50][51] - The new CFO, Rohini Jain, emphasizes transparency and accountability in communicating results and strategic priorities [37][64] Q&A Session Summary Question: What are the key factors that would drive any deceleration to the midpoint of revenue outlook? - Management highlighted foundational elements and product strengths as key drivers of growth, despite external pressures [56][60] Question: What are Rohini Jain's early impressions of the company? - Rohini noted the stickiness of the products and the strong execution culture within the team [64] Question: Can you elaborate on the agents opportunity across payables and payments? - Management discussed the transition from a "do it with you" to a "do it for you" model, leveraging AI to automate mundane tasks [68][69] Question: How do you think about evolving the go-to-market motion for the mid-market segment? - The company plans to continue leveraging existing channels while increasing resources focused on the mid-market segment [81] Question: What is the thought process behind the guidance for the year? - Management indicated that the guidance reflects a prudent approach considering macroeconomic headwinds, with potential for growth in the latter half of the year [91]
BILL (BILL) - 2025 Q4 - Earnings Call Transcript
2025-08-27 21:30
Financial Data and Key Metrics Changes - Total revenue for fiscal year 2025 reached $1.5 billion, with core revenue growth of 16% year over year [6][37] - Non-GAAP operating income exceeded the high end of initial guidance by over 20%, totaling $240 million for the year [6][37] - In Q4, core revenue grew 15% year over year, amounting to $346 million, surpassing guidance [38] Business Line Data and Key Metrics Changes - Bill APAR transaction revenue grew 15% year over year in Q4, contributing to a total payment volume increase of 13% [39] - Revenue from spend and expense solutions totaled $151 million in Q4, up 19% year over year, driven by a 22% increase in card payment volume [41] - The number of joint customers using both Bill APAR and spend and expense solutions grew nearly 40% to 15,800 by year-end 2025 [42] Market Data and Key Metrics Changes - The Bill network surpassed 8 million members, an increase of 18% from the previous year [12] - 54% of payments on Bill occur seamlessly within the network, enhancing transaction efficiency and visibility [13] - Mid-market customer growth outpaced overall customer growth by five points in fiscal year 2025 [30] Company Strategy and Development Direction - The company aims to drive growth from its integrated platform, expand its addressable market, and innovate with AI to enhance value for SMBs [26][32] - Strategic investments in AI and financial operations agents are expected to redefine financial management for SMBs [7][16] - The company is focused on enhancing its payment portfolio and expanding its market presence among mid-market businesses [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundational elements built into the company, which support growth and market penetration [57] - The company anticipates a stable core revenue growth outlook, with potential deceleration due to macroeconomic factors affecting SMB spending [58][59] - Management highlighted the importance of AI initiatives in driving customer retention and acquisition [17][33] Other Important Information - The company plans to repurchase up to $300 million in shares during the fiscal year, reflecting confidence in its growth strategy [49] - The new CFO, Rohini Jain, emphasizes transparency and accountability in communicating financial results and strategic priorities [36][64] Q&A Session Summary Question: Revenue outlook and factors affecting growth - Management noted strong Q4 performance but indicated potential deceleration in core revenue growth due to external factors impacting SMB spending [53][58] Question: Early impressions of the company and investor relations - The new CFO expressed excitement about the product stickiness and the team's expertise, aiming to strengthen communication with the investor community [62][64] Question: Agents opportunity across payables and payments - Management discussed the transition from a "do it with you" to a "do it for you" model, leveraging AI to automate mundane tasks in financial operations [67][70] Question: Mid-market growth and go-to-market strategy - The company plans to continue leveraging existing channels while increasing resources focused on the mid-market segment, which has shown faster growth [80][82] Question: Guidance and take rate outlook - Management provided insights on expected take rate expansion and the impact of macroeconomic conditions on customer spending [86][89]
Should You Buy, Sell or Hold BILL Stock Before Q4 Earnings?
ZACKS· 2025-08-25 15:36
Core Insights - BILL Holdings, Inc. is expected to report its fourth-quarter 2025 results on August 27, with projected revenues between $370.5 million and $380.5 million, indicating growth of 8-11% [1] - The Zacks Consensus Estimate for fourth-quarter revenues is $375.70 million, reflecting a 9.3% increase year-over-year, while the consensus for earnings is 41 cents per share, representing a decline of 28.07% from the previous year [2] - For fiscal 2025, management anticipates revenues between $1.45 billion and $1.46 billion, suggesting growth of 12-13%, with non-GAAP EPS projected between $2.06 and $2.09 [2][3] Revenue and Earnings Projections - The Zacks Consensus Estimate for BILL's fiscal 2025 revenues is $1.45 billion, indicating a year-over-year rise of 12.77%, while the consensus for full-year EPS is $2.09, suggesting a 1.42% decline [3] - For the fourth quarter, management expects core revenues of $335 million to $345 million, which translates to 11-15% year-over-year growth [12] - The consensus estimate for core revenues, which includes subscription and transaction fees, is currently $339.06 million, up from $320.3 million in the prior quarter and $301.31 million in the year-ago period [12] Transaction and Payment Volume - BILL is projected to process 32.4 million transactions in Q4, an increase from 30 million in the prior quarter and 28 million in the year-ago period, reflecting strong engagement from small and mid-sized businesses (SMBs) [15] - The Zacks Consensus Estimate for total payment volume (TPV) in Q4 is around $83.4 billion, up from $79 billion in the prior quarter and $76 billion in the year-ago period [15] Strategic Developments - BILL is strategically advancing by broadening its offerings for larger enterprises and enhancing its payments portfolio, with a focus on AI-driven initiatives for SMBs [9][10] - Recent product launches include Supplier Payments Plus, aimed at automating accounts receivable workflows for high-volume SMB payments, and innovations in procurement and financial automation [10] Market Performance and Valuation - BILL shares have declined 4.8% over the past three months, contrasting with a 14% increase in the Zacks Internet - Software industry and an 11.9% rise in the S&P 500 [17] - The stock is currently trading at a forward Price/Sales (P/S) ratio of 2.60X, which is below the industry average of 5.70X and at a discount compared to peers like SAP and Intuit [18] Overall Assessment - BILL's expanding customer base and comprehensive product suite are driving growth and profitability, although macroeconomic headwinds pose risks for SMB spending [19] - The company holds a Zacks Rank 3 (Hold), indicating a cautious outlook while monitoring future earnings and developments [20]
Should You Hold BILL Holdings Stock Despite Its 44% YTD Decline?
ZACKS· 2025-07-10 16:56
Core Insights - BILL Holdings (BILL) shares have declined 43.7% year-to-date, underperforming the broader Zacks Computer & Technology sector and the Zacks Internet - Software industry, which have returned 7% and 16.1% respectively [2][9] - The decline is attributed to a challenging macroeconomic environment, persistent inflation, and high interest rates affecting small and medium businesses (SMBs) spending on digital initiatives [2][9] Company Performance - BILL is experiencing growth in its SMB clientele, with partnerships with companies like Regions Financial and Adyen enhancing its digital payment solutions [5][6][7] - In Q3, BILL processed nearly $79 billion in payments across 30 million transactions, adding 4,200 new customers, driven by AI and automation features [10][12] - The company launched new solutions like Supplier Payments Plus and financial automation innovations to streamline SMB payments and improve cash flow management [11] Financial Guidance - For Q4 fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, indicating year-over-year growth of 8-11% [13] - For the full fiscal 2025, revenues are projected between $1.45 billion and $1.46 billion, suggesting a year-over-year growth of 12-13% [14] Earnings Estimates - The Zacks Consensus Estimate for Q4 fiscal 2025 earnings is 40 cents per share, reflecting a year-over-year decline of 29.82% [15] - The consensus for fiscal 2025 revenues is pegged at $1.46 billion, indicating a year-over-year growth of 13.02% [16] Competitive Landscape - Despite its expanding portfolio, BILL faces stiff competition from accounting software providers like SAP and Intuit, which have launched services that directly challenge BILL's market position [17][18]
BILL's Fee-Based Revenues Surge: Can Higher TPV Drive More Upside?
ZACKS· 2025-07-08 17:31
Core Insights - BILL Holdings (BILL) is experiencing growth with a 17% year-over-year increase in transaction fee revenues, reaching $252.1 million in Q3 of fiscal 2025, driven by an 11% rise in Total Payment Volume (TPV) to $79.4 billion [1][10]. Group 1: Financial Performance - The growth in transaction fee revenues is attributed to a significant increase in TPV, which reflects rising payment volume and transaction-based income [1][10]. - The integrated financial operations platform of BILL served over 488,600 businesses by the end of Q3, processing 30 million transactions, a 16% increase year-over-year [2]. - Despite the overall growth, customer spending was slightly below expectations, leading to a minor sequential decline in TPV and transactions per customer, although a favorable payment mix helped support monetization [3]. Group 2: Competitive Landscape - BILL operates in a competitive fintech environment, facing challenges from larger players like Global Payments (GPN) and Intuit (INTU), which have more diversified offerings and deeper market reach [5][7]. - GPN processes over 50 billion transactions annually and has a strong global presence, while Intuit leverages its established small business ecosystem and ongoing investments in AI [6][7]. Group 3: Future Outlook - The long-term outlook for BILL remains positive, supported by investments in AI, ERP integrations, and payment innovations that enhance user engagement and promote sustainable growth [4]. - BILL's shares have underperformed, dropping 44% year-to-date compared to a 7.9% return in the broader Zacks Computer and Technology sector [8][10]. - The Zacks Consensus Estimate for fiscal 2025 earnings is projected at $2.07 per share, indicating a 6.7% increase over the past 60 days, despite a year-over-year decline of 2.36% [12].
BILL Expands New Payment Services: Is There More Room for Growth?
ZACKS· 2025-07-01 16:36
Core Insights - BILL Holdings is strategically expanding its platform to cater to larger and more complex organizations while maintaining its focus on small and midsize businesses (SMBs) [1][8] - The launch of Supplier Payments Plus aims to simplify and accelerate payment processes for large suppliers, enhancing operational efficiency and the payment experience for SMB buyers [2][8] - In Q3 fiscal 2025, BILL reported revenues of $301.7 million from its Integrated Platform, reflecting a 14.5% year-over-year increase, driven by continued adoption among its core SMB base [3][8] Company Developments - BILL is investing in innovation by enhancing its payment portfolio, expanding distribution channels, and accelerating its AI strategy, which supports sustained growth in the SMB sector [4] - The company faces competitive pressure from Intuit's QuickBooks Bill Pay and Expensify's expense management tools, which could impact its market position [5][6][8] Financial Performance - BILL's share price has decreased by 45.4% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 6.1% [7] - The forward 12-month Price/Sales ratio for BILL is 3.27X, compared to the industry average of 5.89X, indicating a lower valuation [9] - The consensus estimate for fiscal 2025 earnings is $2.05 per share, reflecting a 5.7% increase over the past 60 days but a year-over-year decline of 3.3% [10]