Morgan Stanley lowers customer net adds assumptions for Bill after earnings

Morgan Stanley says Bill (BILL) “still looks to be getting its footing in the current macro and combined platform.” The Bank of America (BAC) partnership and the company’s opportunity to address BofA’s install base “appear to be at risk” as BofA’s payment strategy is changing, adds the analyst, who lowered the firm’s customer net adds assumptions and increase margins on the back of results and guidance. However, although management “pumped the breaks on enthusiasm around the opportunity to address BofA’s large install base of SMB customers,” the firm notes that “encouragingly” Bill was able to beat in Q2, guide revenue ahead in Q3, and raise FY24 guidance.