BILL (US:BILL)2020-11-08 01:32Financial Data and Key Metrics Changes - Core revenue grew by 53% year-over-year to $43.8 million, while total revenue for Q1 was $46.2 million, representing a 31% increase over Q1 2020 [5][28] - Non-GAAP gross margin was strong at 77% for the quarter [5][36] - The company processed $28.8 billion in total payment volume (TPV), an increase of 31% year-over-year [7][35] - The number of customers reached 103,600, reflecting a 27% year-over-year growth [5][33] Business Line Data and Key Metrics Changes - Subscription revenue increased to $24.6 million, representing a 36% growth from Q1 2020 [28] - Transaction revenue surged to $19.2 million, marking an 83% year-over-year growth [30] - Float revenue generated was $2.4 million, with an annualized rate of return on customer funds at approximately 62 basis points [32] Market Data and Key Metrics Changes - The company reported a total payment volume of $28.8 billion, processed over 6.5 million payment transactions during Q1, which was up 16% sequentially [35] - The company experienced broad-based demand across all channels, with no single partner accounting for more than 3% of total revenue in fiscal 2020 [33] Company Strategy and Development Direction - The company is focused on increasing the adoption of its platform and monetizing its network of over 2.5 million members [6][12] - Bill.com is enhancing its payment capabilities, including the rollout of Instant Transfer for real-time payments [16][18] - The company is investing in R&D and sales to support new financial institution partnerships and product development [42][43] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is considerable macroeconomic uncertainty, they are excited about long-term opportunities and will continue to invest in innovation [44] - The company anticipates customer growth just below 25% year-over-year, influenced by various factors including a focus on larger customers [72][74] Other Important Information - The company added key talent to its management team, including a new Chief Revenue Officer [24] - The company is working closely with financial institution partners to enhance service offerings [19][20] Q&A Session All Questions and Answers Question: Inquiry about transaction business and virtual card strength - Management highlighted that TPV rebounded nicely, with a 31% year-over-year growth, and noted the success of bringing supplier enablement in-house [46][47] Question: Health of SMBs relative to expectations - Management observed good customer adds and a rebound in TPV, indicating resilience among small businesses despite ongoing uncertainty [53][54] Question: Instant Transfer product and its integration - Management explained that Instant Transfer aims to provide suppliers with immediate payment options, enhancing satisfaction and driving business results [55][56] Question: Customer growth normalization and new financial institution relationships - Management indicated that customer additions from new financial institution relationships will depend on the target customer base, with expectations for gradual ramp-up [87]