Bill.com Holdings (BILL) AI Stock Analysis

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Bill.com Holdings

(NYSE:BILL)

71Outperform

Bill.com Holdings demonstrates robust revenue and cash flow growth, supported by strategic advancements in AI and product offerings. However, the high P/E ratio suggests potential overvaluation, and profitability challenges remain with negative EBIT. Macroeconomic uncertainties pose risks to customer spending and transaction volumes. The overall score reflects strong growth potential tempered by valuation and economic concerns.

Positive Factors

Customer Growth

Management delivered solid execution on key areas they have more control over, such as the accounting channel, with net customer additions growing over 60% year-over-year.

Financial Performance

Bill.com Holdings reported better-than-feared financial results with multiple metrics beating consensus estimates, including total revenue growth of 11% year-over-year and an operating margin of 15%.

Product Integration

Efforts to integrate premium ad valorem offerings more tightly onto the platform are paying off.

Negative Factors

Market Sentiment

A potentially worsening SMB payments environment is likely to remain an overhang on sentiment.

Revenue Guidance

Fiscal fourth-quarter core revenue guidance is 2% below the Street, reflecting less high-yield cross-border commerce and an overall softer SMB spend environment.

SMB Spending

The volatile macro environment has started to impact small and medium-sized businesses' spending volumes, resulting in a decline in TPV per customer by 2% year-over-year.

Bill.com Holdings (BILL) vs. S&P 500 (SPY)

Market Cap

$4.62B

Dividend YieldN/A

Average Volume (3M)1.97M

Price to Earnings (P/E)482.3

Beta (1Y)1.24

Revenue Growth14.52%

EPS GrowthN/A

CountryUS

Employees2,187

SectorTechnology

Sector Strength65

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.50

Shares Outstanding101,946,890

10 Day Avg. Volume1,534,718

30 Day Avg. Volume1,972,157

Financial Highlights & Ratios

PEG Ratio0.14

Price to Book (P/B)1.23

Price to Sales (P/S)0.00

P/FCF Ratio15.22

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$57.93

Price Target Upside29.54% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering18

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

Total Transactions

Total Transactions
Tracks the number of transactions processed, providing a clear view of platform activity and user engagement levels.

Chart InsightsBill.com Holdings has shown a steady increase in transactions, with a notable acceleration in recent quarters. This growth aligns with their strategic focus on expanding platform capabilities and AI-driven efficiency improvements. However, the earnings call highlighted macroeconomic challenges impacting customer spending, which could temper future transaction growth. Despite these challenges, the company's robust revenue growth and strategic advancements in product offerings suggest resilience and potential for continued expansion, especially as they enhance their ecosystem and introduce new solutions like the advanced ACH offering.

Data provided by:

Main Street Data

Bill.com Holdings Financial Statement Overview

Summary

Bill.com Holdings demonstrates strong revenue growth and effective cash flow management, supported by a healthy equity base. However, profitability remains a challenge due to negative EBIT and modest net profit margins.

Income Statement

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

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

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.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
1.39B	1.29B	1.06B	641.96M	238.26M	157.60M
	Gross Profit
1.11B	1.06B	864.49M	496.95M	176.46M	118.46M
	EBIT
-17.87M	-174.16M	-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
1.78B	976.85M	1.91B	1.86B	1.08B	2.30M
	Net Debt
209.00M	-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

Technical Analysis Sentiment

Negative

Last Price44.72

Price Trends

50DMA

45.36

Negative

100DMA

62.97

Negative

200DMA

62.35

Negative

Market Momentum

MACD

0.02

Negative

RSI

48.24

Neutral

STOCH

54.74

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 44.72 is above the 20-day moving average (MA) of 43.84, below the 50-day MA of 45.36, and below the 200-day MA of 62.35, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.74 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FROG	74 Outperform	$3.99B	―	-10.47%	―	21.66%	-50.24%
BILL	71 Outperform	$4.62B	482.28	0.97%	―	14.52%	―
FRSH	70 Neutral	$4.21B	―	-6.85%	―	20.46%	39.37%
QTWO	63 Neutral	$5.58B	―	-3.95%	―	13.12%	75.24%
ASAN	63 Neutral	$3.86B	―	-92.26%	―	10.94%	4.54%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%

* Technology Sector Average

Performance Comparison

BILL

Bill.com Holdings

44.72

-13.79

-23.57%

QTWO

Q2 Holdings

89.62

28.13

45.75%

FROG

JFrog

39.00

4.90

14.37%

ASAN

Asana

17.31

1.81

11.68%

FRSH

Freshworks

14.56

0.82

5.97%

Bill.com Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q3-2025)

% Change Since: -5.99%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong financial performance and strategic advancements in product offerings and AI initiatives. However, there are concerns regarding the macroeconomic environment and its impact on customer spending and international transaction revenues.

Q3-2025 Updates

Positive Updates

Strong Financial Results

Core revenue grew 14% year-over-year. Non-GAAP operating income margin was 15%, exceeding expectations, and free cash flow grew 44% year-over-year in Q3, representing a 25% margin.

Expansion of Product Offerings

Launched an advanced product suite for large businesses including multi-entity management, procurement, and mass payments. Procurement solutions were expanded to streamline processes for SMBs.

AI Growth Strategy

Accelerating AI growth strategy to transform SMB financial operations by automating mundane tasks and improving efficiency with AI-powered finance agents.

Ecosystem Expansion

Made progress broadening the ecosystem, with over 9,000 accounting firms using BILL. Net adds from the accounting channel grew over 60% year-over-year.

Introduction of Advanced ACH Solution

Introduced a beta offering of an advanced ACH solution to simplify the payment process for large suppliers, with plans for broader rollout over the next several quarters.

Negative Updates

Challenges in Macroeconomic Environment

SMBs are managing spend more closely due to macroeconomic uncertainty, leading to fewer transactions per customer and slightly decreased overall spend.

Impact of Trade Policies on Revenue

Uncertainty related to shifts in fiscal and trade policies, particularly affecting international payments and cross-border transaction revenues.

Lower than Expected Total Payment Volume

Total payment volume grew 10% year-over-year, slightly below expectations, with TPV per customer 2% lower than the previous year.

Cautious Outlook for Spend and Expense

Observed good growth in card spend, but cautious about near-term uncertainty potentially affecting spend categories like travel, entertainment, and retail.

Company Guidance

During BILL's third quarter fiscal 2025 earnings call, the company reported a 14% year-over-year increase in core revenue, reaching $320 million, and a 15% non-GAAP operating income margin, which exceeded initial expectations. The free cash flow grew 44% year-over-year, representing a 25% margin. BILL processed $79 billion in total payment volume across its platform, with over 488,000 businesses utilizing its solutions. The platform's reach extends to over 1% of the GDP, and it includes more than 7 million members in its network. BILL added 4,200 net new AP/AR customers, bringing the total to 164,800, and another 1,800 to its spend and expense solution, totaling 39,500. The company expects fiscal 2025 core revenue to range between $1.290 billion and $1.300 billion, with a non-GAAP operating income between $226.2 million and $231.2 million. Looking ahead, BILL aims to continue investing in AI and expanding its platform capabilities to enhance customer value and drive long-term growth.

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.