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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)

Rating:68Neutral
Price Target:
$48.00
▲(9.84%Upside)
Bill.com Holdings' strong financial performance and strategic advancements in AI and product offerings are significant positives. However, technical analysis indicates weak momentum, and high valuation metrics suggest potential overvaluation. Macroeconomic challenges highlighted in the earnings call also present risks to growth.
Positive Factors
Market Position
BILL's market share remains in single digits, and the company is making progress on a number of fronts that should further solidify its position as the leading financial operations platform for SMBs.
Product Development
The company recently launched advanced products for large businesses, like multi-entity management, procurement, and mass payments.
Valuation
The valuation remains undemanding, providing a limited downside risk and an attractive risk-reward profile if growth improves.
Negative Factors
Financial Guidance
Management lowered full year core revenue guidance to $1,290-$1,300M from $1,297-$1,312M due to macroeconomic headwinds.
Macro Environment
The uncertain macro environment and lack of positive catalysts are contributing to a less favorable short-term outlook for the company.
SMB Spending Trends
SMB spending trends have deteriorated and likely remain under pressure for some time, which make FY26 TPV estimates look high.

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

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 generates revenue primarily through a subscription-based model, charging businesses a fee for accessing its cloud-based platform. This subscription fee varies based on the level of service and features utilized by the customer. In addition to subscription revenue, Bill.com earns money through transaction fees when businesses use its platform to process payments. The company also benefits from partnerships with financial institutions and accounting firms, which help expand its customer base and enhance its service offerings. By continuously innovating and expanding its ecosystem, Bill.com aims to increase customer engagement and drive further revenue growth.

Bill.com Holdings Key Performance Indicators (KPIs)

Any
Any
Total Transactions
Total Transactions
Counts the number of transactions processed, reflecting customer engagement and the platform's ability to handle high volumes efficiently.
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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: -8.14%|
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 Financial Statement Overview

Summary
Bill.com Holdings shows strong financial performance with impressive revenue growth and improving profitability. The balance sheet indicates financial stability and manageable leverage. Positive cash flow metrics highlight operational efficiency and cash generation abilities. While there are areas for improvement in operating margins, the overall financial health is robust.
Income Statement
85
Very Positive
Bill.com Holdings demonstrates impressive revenue growth, with a significant increase from $641.96M in 2022 to $1.42B TTM (Trailing-Twelve-Months). Gross profit margin remains robust at 80.41% TTM, indicating efficient cost management. The net profit margin has improved to 2.70% TTM from negative in prior years, reflecting a turnaround in profitability. However, EBIT and EBITDA margins show room for improvement, standing at only 0.11% and 9.70% TTM, respectively. Overall, the company exhibits strong growth potential with improving profitability metrics.
Balance Sheet
78
Positive
The balance sheet reflects a solid equity base with an equity ratio of 40.18% TTM, indicating financial stability. Debt-to-equity ratio is at 0.41, showing a moderate level of leverage. Return on equity has turned positive at 0.99% TTM, recovering from negative performance in previous years. The company maintains a healthy cash position, which supports its operational and financial flexibility. However, a slight decline in stockholders' equity from 2024 is noted, which may require monitoring.
Cash Flow
82
Very Positive
Cash flow from operations has shown strong growth, reaching $345.45M TTM, which translates to a robust operating cash flow to net income ratio of 8.98 TTM. Free cash flow has also grown significantly, with a free cash flow to net income ratio of 8.80 TTM. This indicates efficient cash management and the ability to generate cash beyond operational needs. The free cash flow growth rate is a healthy 31.19% compared to the previous period. Overall, the cash flow position is strong, supporting the company's growth initiatives.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.42B1.29B1.06B641.96M238.26M157.60M
Gross Profit
1.14B1.06B864.49M496.95M176.46M118.46M
EBIT
1.51M-174.16M-295.77M-316.82M-113.97M-34.20M
EBITDA
138.01M96.03M-102.54M-225.16M-96.36M-26.55M
Net Income Common Stockholders
38.47M-28.88M-223.72M-326.36M-98.72M-31.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.17B1.59B2.66B2.71B1.16B697.62M
Total Assets
9.63B9.18B9.64B9.26B5.97B2.40B
Total Debt
1.59B976.85M1.91B1.86B1.08B2.30M
Net Debt
546.13M-9.09M295.15M259.27M566.40M-571.34M
Total Liabilities
5.76B5.04B5.55B5.21B3.44B1.69B
Stockholders Equity
3.87B4.13B4.09B4.04B2.53B710.72M
Cash FlowFree Cash Flow
338.38M257.88M156.56M-33.73M-16.58M-16.51M
Operating Cash Flow
345.45M278.77M187.77M-18.09M4.62M-4.43M
Investing Cash Flow
-816.79M-409.37M259.29M-1.13B-1.43B-249.49M
Financing Cash Flow
-20.20M-742.60M235.11M2.88B1.64B863.13M

Bill.com Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.70
Price Trends
50DMA
44.34
Negative
100DMA
50.53
Negative
200DMA
61.64
Negative
Market Momentum
MACD
-0.58
Positive
RSI
50.26
Neutral
STOCH
46.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BILL, the sentiment is Positive. The current price of 43.7 is below the 20-day moving average (MA) of 44.04, below the 50-day MA of 44.34, and below the 200-day MA of 61.64, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 46.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BILL.

Bill.com Holdings Risk Analysis

Bill.com Holdings disclosed 69 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$4.09B-1.66%15.72%74.59%
72
Outperform
$4.35B-6.85%20.46%39.37%
68
Neutral
$4.66B-10.47%21.66%-50.24%
68
Neutral
$4.50B482.280.97%14.52%
62
Neutral
$5.51B-3.95%13.12%75.24%
61
Neutral
$3.09B-83.36%9.84%13.74%
55
Neutral
$3.08B4.59-5.40%6.77%8.17%-52.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BILL
Bill.com Holdings
44.29
-4.14
-8.55%
QTWO
Q2 Holdings
92.78
34.79
59.99%
FROG
JFrog
41.52
7.74
22.91%
ASAN
Asana
13.09
0.57
4.55%
PYCR
Paycor HCM
22.49
10.31
84.65%
FRSH
Freshworks
14.60
2.25
18.22%

Bill.com Holdings Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Bill.com Holdings Announces New CFO Appointment
Positive
Jun 2, 2025

On June 2, 2025, BILL Holdings announced the appointment of Rohini Jain as Chief Financial Officer, effective July 7, 2025. Jain, who previously held senior roles at PayPal, Walmart, and eBay, will lead finance strategy at BILL, reporting to CEO René Lacerte. John Rettig, the current President and CFO, will transition to President and COO to further accelerate the company’s growth. This leadership change is part of BILL’s strategy to enhance its position as a leader in financial operations for SMBs, leveraging AI and innovation to expand its services and support for businesses.

The most recent analyst rating on (BILL) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Bill.com Holdings stock, see the BILL Stock Forecast page.

Private Placements and Financing
Bill.com Holdings Secures $300M Credit Agreement
Neutral
May 27, 2025

On May 23, 2025, Odin Financing, LLC, a subsidiary of BILL Holdings, Inc., entered into a Revolving Credit and Security Agreement with JPMorgan Chase Bank, providing up to $300 million in revolving loans to purchase BILL Divvy Corporate Card receivables. This agreement, which matures on November 23, 2027, includes a limited guaranty and indemnity agreement and is secured by the receivables and related collateral. The facility bears interest based on a secured overnight financing rate plus a margin, and includes covenants and events of default typical for such agreements.

The most recent analyst rating on (BILL) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Bill.com Holdings stock, see the BILL Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.