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Bill.com Holdings (BILL)
NYSE:BILL
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Bill.com Holdings
(NYSE:BILL)
65Neutral
Positive Factors
Market Leadership
Bill.com is a leader in a massive U.S. SMB accounting market which is quickly digitizing back office functions.
Product Expansion
The rollout of a new embedded offering is part of BILL's strategy to enhance its services.
Profitability
The company continues to make progress on the core business profitability with EBIT margin ex float expanding almost 600bps year over year.
Negative Factors
Market Reaction
BILL shares seem to have overreacted after market with a 25%+ downdraft post-earnings due to confusion from data service providers on whether Bill raised or lowered guidance for FY25.
Revenue Guidance
The company revised lower the upper bound of total core revenue to $1.31B from $1.32B.
Take Rate Performance
Take-rate performance disappointed, and uncertainty on the pace of improvement in monetization has been an important reason analysts have remained on the sidelines.
Bill.com Holdings (BILL) vs. S&P 500 (SPY)
Market Cap
$4.03B
Dividend YieldN/A
Average Volume (3M)2.82M
Price to Earnings (P/E)427.4
Beta (1Y)1.20
Revenue Growth16.42%
EPS GrowthN/A
CountryUS
Employees2,187
SectorTechnology
Sector Strength40
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding101,946,890
10 Day Avg. Volume2,322,395
30 Day Avg. Volume2,818,128
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.52
Price to Cash Flow (P/CF)15.50
P/FCF Ratio16.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$79.44Price Target Upside98.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Bill.com Holdings Business Overview & Revenue Model
Company DescriptionBill.com Holdings, Inc. provides cloud-based software that simplifies, digitizes, and automates back-office financial operations for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. The company serves accounting firms, financial institutions, and software companies. Bill.com Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.
How the Company Makes MoneyBill.com makes money primarily through subscription fees for its cloud-based software services. Businesses pay a regular fee to access the platform, which is tiered based on the features and the number of users or transactions. Additionally, Bill.com generates revenue from transaction fees when customers use payment services, such as ACH transfers, checks, and international payments. The company also collaborates with accounting firms and financial institutions, providing them with tools to better serve their clients, which can lead to additional revenue streams. These partnerships enhance the platform's reach and adoption, contributing significantly to Bill.com's earnings.
Bill.com Holdings Financial Statement Overview
Summary
Bill.com Holdings demonstrates strong revenue and cash flow growth, supported by a sound equity base. Despite high leverage, the company maintains a solid operating cash flow position. The main challenge is improving profitability metrics like EBIT and net profit margins to further bolster financial health.Income Statement
Bill.com Holdings shows strong revenue growth with a TTM increase to $1.39 billion, a growth rate of approximately 7.57% from the previous annual report. The gross profit margin remains robust at 79.75% for TTM, highlighting efficient cost management. However, the company has negative EBIT and a modest net profit margin of 5.90%, indicating that while revenue is growing, profitability remains a challenge.82
Very Positive
Balance Sheet
The balance sheet reflects a solid equity ratio of 39.38%, indicating a healthy capital structure. The debt-to-equity ratio is relatively high at 41.87%, suggesting significant leverage but manageable within the industry norms. Return on equity for the TTM stands at 2.15%, highlighting limited profitability on equity investment.75
Positive
Cash Flow
Operating cash flow has improved significantly, with a TTM figure of $312.73 million, showing effective cash generation. The free cash flow to net income ratio is strong at 3.71, indicating efficient cash usage relative to profits. Free cash flow growth is robust, up by 17.63% from the previous period. The company effectively manages its cash flows despite substantial financing and investing activities.88
Very Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.39B | 1.29B | 1.06B | 641.96M | 238.26M | 157.60M | Gross Profit |
| 1.11B | 997.12M | 864.49M | 496.95M | 176.46M | 118.46M | EBIT |
| -17.87M | -146.58M | -295.77M | -316.82M | -113.97M | -34.20M | EBITDA |
| 138.34M | 96.03M | -102.54M | -225.16M | -96.36M | -26.55M | Net Income Common Stockholders |
| 81.86M | -28.88M | -223.72M | -326.36M | -98.72M | -31.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.21B | 1.59B | 2.66B | 2.71B | 1.16B | 697.62M | Total Assets |
| 9.67B | 9.18B | 9.64B | 9.26B | 5.97B | 2.40B | Total Debt |
| 1.60B | 976.85M | 1.91B | 1.86B | 1.08B | 2.30M | Net Debt |
| 28.99M | -9.09M | 295.15M | 259.27M | 566.40M | -571.34M | Total Liabilities |
| 5.86B | 5.04B | 5.55B | 5.21B | 3.44B | 1.69B | Stockholders Equity |
| 3.81B | 4.13B | 4.09B | 4.04B | 2.53B | 710.72M |
| Cash Flow | Free Cash Flow | ||||
| 303.35M | 257.88M | 156.56M | -33.73M | -16.58M | -16.51M | Operating Cash Flow |
| 312.73M | 278.77M | 187.77M | -18.09M | 4.62M | -4.43M | Investing Cash Flow |
| -790.66M | -409.37M | 259.29M | -1.13B | -1.43B | -249.49M | Financing Cash Flow |
| -388.93M | -742.60M | 235.11M | 2.88B | 1.64B | 863.13M |
Bill.com Holdings Technical Analysis
Negative
40.05
Price Trends
58.89
Negative
73.65
Negative
63.31
Negative
Market Momentum
-3.55
Negative
32.90
Neutral
25.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BILL, the sentiment is Negative. The current price of 40.05 is below the 20-day moving average (MA) of 46.16, below the 50-day MA of 58.89, and below the 200-day MA of 63.31, indicating a bearish trend. The MACD of -3.55 indicates Negative momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BILL.
Bill.com Holdings Risk Analysis
Bill.com Holdings disclosed 68 risk factors in its most recent earnings report. Bill.com Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bill.com Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $4.07B | ― | -1.66% | ― | 15.72% | 74.59% | |
65 Neutral | $4.03B | 427.43 | 2.11% | ― | 16.42% | ― | |
63 Neutral | $3.71B | ― | -8.63% | ― | 20.79% | 32.50% | |
61 Neutral | $3.28B | ― | -9.53% | ― | 22.47% | -5.48% | |
58 Neutral | $3.30B | ― | -92.26% | ― | 10.94% | 4.54% | |
57 Neutral | $18.52B | 9.81 | -13.96% | 2.71% | 5.07% | -23.65% | |
49 Neutral | $4.27B | ― | -7.98% | ― | 11.50% | 42.50% |
* Technology Sector Average
Performance Comparison
BILL
Bill.com Holdings
40.05
-26.41
-39.74%
QTWO
Q2 Holdings
69.17
15.38
28.59%
FROG
JFrog
28.49
-13.63
-32.36%
ASAN
Asana
13.78
-1.48
-9.70%
PYCR
Paycor HCM
22.45
3.72
19.86%
FRSH
Freshworks
12.16
-6.60
-35.18%
Bill.com Holdings Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -58.43% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong financial performance and successful product launches, demonstrating Bill.com Holdings, Inc.'s strategic advancements. However, there are challenges related to currency volatility, monetization, and market uncertainties. Despite these challenges, the company shows confidence in its strategic initiatives and future growth potential.Highlights
Strong Financial Results
Bill.com Holdings, Inc. reported a 16% year-over-year core revenue growth and a 17% non-GAAP operating margin, which expanded by three percentage points year over year. Free cash flow margin was 20% in Q2.
Innovative Product Launches
The company launched several innovative products, including enhanced 1099 functionality, advanced ACH, and expanded card offerings, which have led to increased adoption and improved customer experiences.
Expansion in Payment Solutions
There was a tripling of card adoption among AP and AR customers over the past two years, and the company expanded its international payment offering to over 30 countries.
Partnerships and Ecosystem Growth
Bill.com Holdings, Inc. expanded its partnerships with banks and accounting firms, contributing to a 38% year-over-year increase in net new ads in the accounting channel.
Revenue from Spend and Expense Solutions
Revenue from spend and expense solutions grew by 21% year over year, driven by a 23% card payment volume growth.
Strong Balance Sheet and Cash Flow
The company completed an offering of $1.4 billion zero coupon convertible senior notes and repurchased a significant portion of its convertible notes, maintaining a strong balance sheet and liquidity.
Lowlights
Currency Volatility Impact
FX losses and currency volatility negatively impacted international payments monetization by about 0.3 basis points.
Challenges in Monetization
Overall monetization was slightly lower due to increased check and ACH volume growth compared to ad valorem volume and FX losses.
Revenue Guidance Adjustment
The full-year guidance for core revenue was slightly reduced at the high end by about $4 million.
Mix Shift in Merchant Categories
A mix shift towards lower gross interchange merchant categories negatively impacted spend and expense revenue.
Seasonality and Market Uncertainty
There is ongoing uncertainty related to potential fiscal and trade policy changes, with the impact on SMB sentiment and spend yet to be fully understood.
Company Guidance
During the second quarter of fiscal 2025, Bill.com Holdings, Inc. demonstrated robust financial performance, reporting a 16% year-over-year increase in core revenue and a 17% non-GAAP operating margin, which expanded by three percentage points compared to the previous year. The company achieved a free cash flow margin of 20%, driven by efficient operations and a strong go-to-market strategy. A total of 480,000 businesses utilized the platform, processing nearly $85 billion in payment volume across 30 million transactions. Looking ahead, Bill.com Holdings, Inc. expects core revenue growth of 13% to 15% in the third quarter and 16% to 17% for the full fiscal year. The company is also projecting a full-year non-GAAP operating income between $207.5 million and $222.5 million. Key growth initiatives include expanding card offerings, enhancing supplier solutions, and leveraging AI to improve financial operations for small and midsize businesses.Bill.com Holdings Corporate Events
Executive/Board Changes
Bill.com Holdings Appoints New Directors Amid Board Changes
Neutral
Jan 15, 2025
On January 12, 2025, BILL Holdings, Inc. announced the appointment of Keri Gohman and Dan Wernikoff as directors, effective January 15, 2025. Gohman will join the Audit Committee and Compliance and Payments Operations Risks subcommittee, while Wernikoff will serve on the Compensation Committee. Both bring extensive experience from leadership roles in technology and financial services companies. Additionally, the company announced the retirements of Peter Kight and Scott Wagner from the board, effective the same date, with Kight continuing as Director Emeritus. Their retirements were not due to disagreements with the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.