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Bill.com Holdings (BILL)
NYSE:BILL

Bill.com Holdings (BILL) AI Stock Analysis

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Bill.com Holdings

(NYSE:BILL)

66Neutral
Bill.com Holdings' strong financial performance and strategic advancements in product offerings and partnerships are significant strengths. However, the high P/E ratio indicates potential overvaluation, and technical indicators suggest bearish momentum. Challenges in profitability and market uncertainties further temper the overall outlook.
Positive Factors
Cross-sell Opportunities
Management is optimistic about the improved cross-sell opportunity from the newly integrated Spend & Expense (Divvy) solution.
Market Leadership
Bill.com is a leader in a massive U.S. SMB accounting market which is quickly digitizing back office functions.
Profitability and Performance
The company continues to make progress on the core business profitability with EBIT margin ex float of approximately 6.2% expanding almost 600bps year over year.
Negative Factors
After-Hours Stock Reaction
An unexpected decline in AR/AP take rate driven by international payment FX headwinds and unfavorable higher seasonal payment mix shift have shares down ~30% after hours.
Revenue Forecast Revision
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)

Bill.com Holdings Business Overview & Revenue Model

Company DescriptionBill.com Holdings, Inc. is a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs). The company's platform connects businesses with their suppliers and clients to help manage cash inflows and outflows, offering services such as accounts payable, accounts receivable, and workflow automation. Bill.com serves a broad range of sectors and has become a crucial tool for SMBs seeking to streamline their financial operations.
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 Key Performance Indicators (KPIs)

Any
Any
Total Transactions
Total Transactions
Measures the total number of transactions processed, indicating the platform's usage scale and its role in facilitating business operations.
Chart InsightsBill.com Holdings has seen a consistent upward trend in transaction volume, reaching 30 million by the end of 2024, driven by strategic product launches and expanded payment solutions. The latest earnings call highlights a 16% core revenue growth and strong cash flow, despite challenges like currency volatility and monetization issues. The company is leveraging AI and expanding card offerings to enhance financial operations for SMBs, positioning itself for continued growth despite market uncertainties.
Data provided by:Main Street Data

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
82
Very Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
88
Very Positive
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.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.29B1.06B641.96M238.26M157.60M
Gross Profit
997.12M864.49M496.95M176.46M118.46M
EBIT
-146.58M-295.77M-316.82M-113.97M-34.20M
EBITDA
96.03M-102.54M-225.16M-96.36M-26.55M
Net Income Common Stockholders
-28.88M-223.72M-326.36M-98.72M-31.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.59B2.66B2.71B1.16B697.62M
Total Assets
9.18B9.64B9.26B5.97B2.40B
Total Debt
976.85M1.91B1.86B1.08B2.30M
Net Debt
-9.09M295.15M259.27M566.40M-571.34M
Total Liabilities
5.04B5.55B5.21B3.44B1.69B
Stockholders Equity
4.13B4.09B4.04B2.53B710.72M
Cash FlowFree Cash Flow
257.88M156.56M-33.73M-16.58M-16.51M
Operating Cash Flow
278.77M187.77M-18.09M4.62M-4.43M
Investing Cash Flow
-409.37M259.29M-1.13B-1.43B-249.49M
Financing Cash Flow
-742.60M235.11M2.88B1.64B863.13M

Bill.com Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price45.23
Price Trends
50DMA
47.48
Negative
100DMA
67.56
Negative
200DMA
62.73
Negative
Market Momentum
MACD
-1.80
Negative
RSI
51.34
Neutral
STOCH
87.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BILL, the sentiment is Neutral. The current price of 45.23 is above the 20-day moving average (MA) of 42.49, below the 50-day MA of 47.48, and below the 200-day MA of 62.73, indicating a neutral trend. The MACD of -1.80 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 87.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$3.89B-9.53%22.47%-5.48%
66
Neutral
$4.61B482.712.11%16.42%
64
Neutral
$4.26B-8.63%20.79%32.50%
63
Neutral
$3.73B-92.26%10.94%4.54%
59
Neutral
$10.73B10.11-6.65%3.02%7.41%-11.17%
55
Neutral
$4.80B-7.98%11.50%42.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BILL
Bill.com Holdings
45.23
-17.79
-28.23%
QTWO
Q2 Holdings
79.12
26.63
50.73%
FROG
JFrog
33.95
-6.98
-17.05%
ASAN
Asana
16.00
0.65
4.23%
FRSH
Freshworks
14.07
-4.35
-23.62%

Bill.com Holdings Earnings Call Summary

Earnings Call Date:Feb 06, 2025
(Q2-2025)
|
% Change Since: -53.06%|
Next Earnings Date:May 08, 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.
Q2-2025 Updates
Positive Updates
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.
Negative Updates
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.