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Bill.com Holdings (BILL)
NYSE:BILL
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Bill.com Holdings
(NYSE:BILL)
Rating:69Neutral
Price Target:
$51.00
▲( 14.86% Upside)
Positive Factors
Market Share Growth
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 Innovation
Encouraging structural factors and self-driven improvement drive value over the longer-term, such as product expansion and AI initiatives.
Negative Factors
Revenue Guidance
Management lowered full year core revenue guidance to $1,290-$1,300M from $1,297-$1,312M due to macroeconomic headwinds.
TPV Decline
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. SPDR S&P 500 ETF (SPY)
Market Cap
$4.57B
Dividend YieldN/A
Average Volume (3M)1.93M
Price to Earnings (P/E)482.3
Beta (1Y)1.27
Revenue Growth14.52%
EPS GrowthN/A
CountryUS
Employees2,187
SectorTechnology
Sector Strength76
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.50
Shares Outstanding103,027,140
10 Day Avg. Volume2,369,360
30 Day Avg. Volume1,928,229
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
$59.06Price Target Upside33.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
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
Total Transactions
Tracks the number of transactions processed, providing a clear view of platform activity and user engagement levels.
Tracks the number of transactions processed, providing a clear view of platform activity and user engagement levels.
Data provided by:
Main Street Data
Main Street DataBill.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
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 | 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
Negative
44.40
Price Trends
45.02
Negative
58.82
Negative
62.19
Negative
Market Momentum
-0.03
Positive
45.16
Neutral
10.18
Positive
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 44.4 is below the 20-day moving average (MA) of 45.97, below the 50-day MA of 45.02, and below the 200-day MA of 62.19, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 10.18 is Positive, 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 1 New Risks
1.
We incurred certain costs in connection with a reduction in force announced in the second quarter of fiscal 2024, and the reduction in force may result in unanticipated costs or consequences. Q2, 2024
Bill.com Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
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% | |
71 Outperform | $4.25B | ― | -6.85% | ― | 20.46% | 39.37% | |
69 Neutral | $4.57B | 482.28 | 0.97% | ― | 14.52% | ― | |
68 Neutral | $4.87B | ― | -10.47% | ― | 21.66% | -50.24% | |
66 Neutral | $4.11B | ― | -92.26% | ― | 10.94% | 4.54% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
59 Neutral | $5.39B | ― | -3.95% | ― | 13.12% | 75.24% |
* Technology Sector Average
Performance Comparison
BILL
Bill.com Holdings
44.40
-7.50
-14.45%
QTWO
Q2 Holdings
86.57
24.23
38.87%
FROG
JFrog
42.49
9.91
30.42%
ASAN
Asana
17.47
3.47
24.79%
PYCR
Paycor HCM
22.49
9.32
70.77%
FRSH
Freshworks
14.42
1.05
7.85%
Bill.com Holdings Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2025)
| % Change Since: -6.66%|
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.