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BILL Holdings (BILL) Q4 Earnings Top Estimates, Revenues Up Y/Y
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BILL Holdings (BILL - Free Report) reported earnings of 57 cents per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate by 23.91% and increasing 18.8% year over year.
Revenues of $343.7 million increased 16.1% on a year-over-year basis and surpassed the consensus mark by 4.92%. The top line was driven by 16.1% year-over-year growth in BILL’s core revenues.
BILL processed $75.9 billion in total payment volume (TPV) in the reported quarter, up 9.7% year over year. This included $70.8 billion of TPV on its BILL standalone platform, rising 8.8% year over year.
Spend & Expense TPV rose 26.3% year over year to $4.8 billion, while Invoice 2go TPV remained at $0.3 billion.
BILL’s solutions served 475K businesses as of the end of the fiscal fourth quarter.
BILL Standalone customers increased 10.4% year over year to 222K. Excluding financial institutions, BILL Standalone customers increased 8.5% year over year to 151K. Financial institution customers increased 15% year over year to 70,800.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
Spend & Expense customer base increased 19.2% year over year to 34,800. Invoice 2go declined 5.6% to 217,800.
BILL’s Quarter in Detail
In the fiscal fourth quarter, core revenues, which consist of subscription and transaction fees, were $301.3 million.
Subscription fees of $65.8 million decreased 1.6% year over year. BILL Standalone Platform revenues declined 1.6% year over year to $56.9 million. Invoice 2go accounts receivable solution revenues dropped 2.2% year over year to $8.7 million. Other revenues were flat year over year to $0.2 million.
Transaction fees were $235.5 million, up 22.3% from the year-ago period’s levels. BILL Standalone Platform revenues increased 14.2% year over year to $104.5 million. BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $126.4 million, reflecting growth of 26.5% year over year. Invoice 2go accounts receivable solution revenues surged 318.2% year over year to $4.6 million.
Small-to-midsize businesses, accounting firms, spending businesses and other revenues of $294.7 million increased 18.4% year over year, contributing 97.8% to core revenues and 85.8% to total revenues.
Revenues generated from financial institutions plunged 38.3% year over year to $6.6 million. The metric contributed 2.2% to core revenues and 1.9% to total revenues.
Float revenues, which consist of interest on funds held for customers, were $42.4 million in the reported quarter, up 16.1% year over year.
Operating Details for Bill Holdings
In the quarter under review, non-GAAP gross profit was $292 million, up 13.6% year over year. The gross margin of 85% contracted 190 basis points (bps) year over year.
In the fourth quarter of fiscal 2024, adjusted research and development expenses of $54.3 million, down 6.1% year over year. Adjusted sales and marketing expenses of $112.2 million increased 8.5% year over year. Adjusted general administrative expenses rose 12.7% to $50.7 million.
BILL reported a non-GAAP operating income of $60 million, up 41.6% year over year. Operating margin expanded 310 bps on a year-over-year basis to 17.5%.
BILL’s Balance Sheet & Cash Flow statement
As of Jun 30, 2024, cash and cash equivalent and short-term investments were $1.59 billion compared with $1.78 billion as of Mar 31, 2024.
Cash flow from operations was $78.6 million in the fourth quarter of fiscal 2024 compared with $66.8 million in the fiscal third quarter.
In the fourth quarter, BILL repurchased $748 million aggregate principal amount of 0.0% Convertible Senior Notes due 2025.
Guidance
For the first quarter of fiscal 2025, BILL expects revenues between $346 million and $351 million, suggesting year-over-year growth of 13-15%. Non-GAAP earnings are projected between 48 cents and 51 cents per share.
For the fiscal 2025, the company expects revenues between $1.415 billion and $1.45 billion, suggesting year-over-year growth in the 10-12% range. Non-GAAP earnings are expected between $1.36 and $1.61 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #3 (Hold).
BILL’s shares have declined 37.8% year to date compared with the Zacks Computer & Technology sector’s return of 20.5%.
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BILL Holdings (BILL) Q4 Earnings Top Estimates, Revenues Up Y/Y
BILL Holdings (BILL - Free Report) reported earnings of 57 cents per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate by 23.91% and increasing 18.8% year over year.
Revenues of $343.7 million increased 16.1% on a year-over-year basis and surpassed the consensus mark by 4.92%. The top line was driven by 16.1% year-over-year growth in BILL’s core revenues.
BILL processed $75.9 billion in total payment volume (TPV) in the reported quarter, up 9.7% year over year. This included $70.8 billion of TPV on its BILL standalone platform, rising 8.8% year over year.
Spend & Expense TPV rose 26.3% year over year to $4.8 billion, while Invoice 2go TPV remained at $0.3 billion.
BILL’s solutions served 475K businesses as of the end of the fiscal fourth quarter.
BILL Standalone customers increased 10.4% year over year to 222K. Excluding financial institutions, BILL Standalone customers increased 8.5% year over year to 151K. Financial institution customers increased 15% year over year to 70,800.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote
Spend & Expense customer base increased 19.2% year over year to 34,800. Invoice 2go declined 5.6% to 217,800.
BILL’s Quarter in Detail
In the fiscal fourth quarter, core revenues, which consist of subscription and transaction fees, were $301.3 million.
Subscription fees of $65.8 million decreased 1.6% year over year. BILL Standalone Platform revenues declined 1.6% year over year to $56.9 million. Invoice 2go accounts receivable solution revenues dropped 2.2% year over year to $8.7 million. Other revenues were flat year over year to $0.2 million.
Transaction fees were $235.5 million, up 22.3% from the year-ago period’s levels. BILL Standalone Platform revenues increased 14.2% year over year to $104.5 million. BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $126.4 million, reflecting growth of 26.5% year over year. Invoice 2go accounts receivable solution revenues surged 318.2% year over year to $4.6 million.
Small-to-midsize businesses, accounting firms, spending businesses and other revenues of $294.7 million increased 18.4% year over year, contributing 97.8% to core revenues and 85.8% to total revenues.
Revenues generated from financial institutions plunged 38.3% year over year to $6.6 million. The metric contributed 2.2% to core revenues and 1.9% to total revenues.
Float revenues, which consist of interest on funds held for customers, were $42.4 million in the reported quarter, up 16.1% year over year.
Operating Details for Bill Holdings
In the quarter under review, non-GAAP gross profit was $292 million, up 13.6% year over year. The gross margin of 85% contracted 190 basis points (bps) year over year.
In the fourth quarter of fiscal 2024, adjusted research and development expenses of $54.3 million, down 6.1% year over year. Adjusted sales and marketing expenses of $112.2 million increased 8.5% year over year. Adjusted general administrative expenses rose 12.7% to $50.7 million.
BILL reported a non-GAAP operating income of $60 million, up 41.6% year over year. Operating margin expanded 310 bps on a year-over-year basis to 17.5%.
BILL’s Balance Sheet & Cash Flow statement
As of Jun 30, 2024, cash and cash equivalent and short-term investments were $1.59 billion compared with $1.78 billion as of Mar 31, 2024.
Cash flow from operations was $78.6 million in the fourth quarter of fiscal 2024 compared with $66.8 million in the fiscal third quarter.
In the fourth quarter, BILL repurchased $748 million aggregate principal amount of 0.0% Convertible Senior Notes due 2025.
Guidance
For the first quarter of fiscal 2025, BILL expects revenues between $346 million and $351 million, suggesting year-over-year growth of 13-15%. Non-GAAP earnings are projected between 48 cents and 51 cents per share.
For the fiscal 2025, the company expects revenues between $1.415 billion and $1.45 billion, suggesting year-over-year growth in the 10-12% range. Non-GAAP earnings are expected between $1.36 and $1.61 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #3 (Hold).
BILL’s shares have declined 37.8% year to date compared with the Zacks Computer & Technology sector’s return of 20.5%.
Adobe (ADBE - Free Report) , Smartsheet (SMAR - Free Report) and Daktronics (DAKT - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. While Daktronics sports a Zacks Rank #1 (Strong Buy), Adobe and Smartsheet carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adobe shares have lost 6.6% year to date. ADBE is set to report its third-quarter fiscal 2024 results on Sep 12.
Smartsheet shares have gained 2.9% year to date. SMAR is set to report its second-quarter fiscal 2025 results on Sep 5.
Daktronics shares have gained 78.4% year to date. DAKT is set to report its first-quarter fiscal 2025 results on Sep 4.