BILL Holdings (BILL - Free Report) reported second-quarter fiscal 2024 earnings of 63 cents per share, beating the Zacks Consensus Estimate by 53.66% and jumping 50% year over year.
Revenues of $318.5 million increased 22.5% on a year-over-year basis and comfortably surpassed the consensus mark of $297 million. The top line was driven by 19% year-over-year growth in BILL’s core revenues.
BILL processed $75 billion in total payment volume (TPV) in the reported quarter, reflecting an increase of 11.3% year over year. This included $70.4 billion of TPV on its BILL standalone platform, reflecting an increase of 10.5% year over year.
Spend & Expense TPV jumped 27.3% year over year to $4.2 billion, while Invoice 2go TPV remained at $0.3 billion.
BILL’s solutions served 473,500 businesses as of the end of the fiscal second quarter.
BILL Standalone customers increased 18% year over year to 215,600. Excluding financial institutions, BILL Standalone customers increased 9.8% year over year to 143,200. Financial institution customers jumped 38.4% year over year to 72,400.
Spend & Expense customer base increased 28% year over year to 31,600. Invoice 2go declined 1% to 226,300.
BILL shares were down 2.94% in after-hours trading following the fiscal second quarter results.
Quarter in Detail
In the fiscal second quarter, core revenues, which consist of subscription and transaction fees, were $275 million.
Subscription fees of $63.3 million increased 3% year over year. BILL Standalone Platform revenues inched up 1.1% year over year to $53.3 million. Invoice 2go accounts receivable solution revenues increased 14% year over year to $9.8 million. Other revenues declined 33.3% year over year to $0.2 million.
Transaction fees were $211.6 million, up 24.8% from the year-ago period. BILL Standalone Platform revenues increased 24.3% year over year to $99.9 million. BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $110.6 million, reflecting growth of 27.7% year over year. Invoice 2go accounts receivable solution revenues declined 53.8% year over year to $1.2 million.
Small-to-midsize businesses, accounting firms, spending businesses and other revenues of $269.8 million increased 22.4% year over year. The figure accounted for 98.1% of core revenues and 84.7% of total revenues.
Revenues generated from financial institutions plunged 52.3% year over year to $5.1 million. The figure accounted for 1.9% of core revenues and 1.6% of total revenues.
Float revenues, which consist of interest on funds held for customers, were $43.5 million in the reported quarter, up 50.5% year over year.
Operating Details
In the quarter under review, non-GAAP gross profit was $273.7 million, which grew 21.4% year over year. Gross margin of 85.9% contracted 80 basis points (bps) year over year.
In the second quarter of fiscal 2024, adjusted research and development expenses of $59.9 million increased 16.2% year over year. Adjusted sales and marketing expenses of $105.3 million surged 11% year over year. Adjusted general administrative expenses jumped 33.2% to $64.2 million.
BILL reported a non-GAAP operating income of $44.3 million, up 44.1% year over year. Operating margin expanded 210 bps on a year-over-year basis to 13.9%.
Balance Sheet & Cash Flow statement
As of Dec 31, 2023, cash and cash equivalent and short-term investments were $2.55 billion compared with $2.65 billion as of Sep 30, 2023.
Cash flow from operations was $79.7 million in the second quarter of fiscal 2024 compared with $53.7 million in the fiscal first quarter.
BILL repurchased 2.7 million shares for a total cost of roughly $197 million.
Guidance
For the third quarter of fiscal 2024, BILL expects revenues between $299 million and $309 million, suggesting year-over-year growth of 10-13%. Non-GAAP earnings are expected between 48 cents and 57 cents per share.
For fiscal 2024, the company expects revenues between $1.226 billion and $1.251 billion, implying year-over-year growth in the 16-18% range. Non-GAAP earnings are expected between $2.09 and $2.31 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #3 (Hold).
BILL shares have declined 7.2% year to date, underperforming the Zacks Computer & Technology sector’s return of 8.5%.
Shopify (SHOP - Free Report) , BlackLine (BL - Free Report) and AvidXchange (AVDX - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 12.8% year to date. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
BlackLine shares have declined 1.1% year to date. BL is set to report its fourth-quarter 2023 results on Feb 13.
AvidXchange shares have declined 3.9% year to date. AVDX is set to report its fourth-quarter 2023 results on Feb 28.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
BILL Holdings (BILL - Free Report) reported second-quarter fiscal 2024 earnings of 63 cents per share, beating the Zacks Consensus Estimate by 53.66% and jumping 50% year over year.
Revenues of $318.5 million increased 22.5% on a year-over-year basis and comfortably surpassed the consensus mark of $297 million. The top line was driven by 19% year-over-year growth in BILL’s core revenues.
BILL processed $75 billion in total payment volume (TPV) in the reported quarter, reflecting an increase of 11.3% year over year. This included $70.4 billion of TPV on its BILL standalone platform, reflecting an increase of 10.5% year over year.
Spend & Expense TPV jumped 27.3% year over year to $4.2 billion, while Invoice 2go TPV remained at $0.3 billion.
BILL’s solutions served 473,500 businesses as of the end of the fiscal second quarter.
BILL Standalone customers increased 18% year over year to 215,600. Excluding financial institutions, BILL Standalone customers increased 9.8% year over year to 143,200. Financial institution customers jumped 38.4% year over year to 72,400.
Spend & Expense customer base increased 28% year over year to 31,600. Invoice 2go declined 1% to 226,300.
BILL shares were down 2.94% in after-hours trading following the fiscal second quarter results.
Quarter in Detail
In the fiscal second quarter, core revenues, which consist of subscription and transaction fees, were $275 million.
Subscription fees of $63.3 million increased 3% year over year. BILL Standalone Platform revenues inched up 1.1% year over year to $53.3 million. Invoice 2go accounts receivable solution revenues increased 14% year over year to $9.8 million. Other revenues declined 33.3% year over year to $0.2 million.
Transaction fees were $211.6 million, up 24.8% from the year-ago period. BILL Standalone Platform revenues increased 24.3% year over year to $99.9 million. BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $110.6 million, reflecting growth of 27.7% year over year. Invoice 2go accounts receivable solution revenues declined 53.8% year over year to $1.2 million.
Small-to-midsize businesses, accounting firms, spending businesses and other revenues of $269.8 million increased 22.4% year over year. The figure accounted for 98.1% of core revenues and 84.7% of total revenues.
Revenues generated from financial institutions plunged 52.3% year over year to $5.1 million. The figure accounted for 1.9% of core revenues and 1.6% of total revenues.
Float revenues, which consist of interest on funds held for customers, were $43.5 million in the reported quarter, up 50.5% year over year.
Operating Details
In the quarter under review, non-GAAP gross profit was $273.7 million, which grew 21.4% year over year. Gross margin of 85.9% contracted 80 basis points (bps) year over year.
In the second quarter of fiscal 2024, adjusted research and development expenses of $59.9 million increased 16.2% year over year. Adjusted sales and marketing expenses of $105.3 million surged 11% year over year. Adjusted general administrative expenses jumped 33.2% to $64.2 million.
BILL reported a non-GAAP operating income of $44.3 million, up 44.1% year over year. Operating margin expanded 210 bps on a year-over-year basis to 13.9%.
Balance Sheet & Cash Flow statement
As of Dec 31, 2023, cash and cash equivalent and short-term investments were $2.55 billion compared with $2.65 billion as of Sep 30, 2023.
Cash flow from operations was $79.7 million in the second quarter of fiscal 2024 compared with $53.7 million in the fiscal first quarter.
BILL repurchased 2.7 million shares for a total cost of roughly $197 million.
Guidance
For the third quarter of fiscal 2024, BILL expects revenues between $299 million and $309 million, suggesting year-over-year growth of 10-13%. Non-GAAP earnings are expected between 48 cents and 57 cents per share.
For fiscal 2024, the company expects revenues between $1.226 billion and $1.251 billion, implying year-over-year growth in the 16-18% range. Non-GAAP earnings are expected between $2.09 and $2.31 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #3 (Hold).
BILL shares have declined 7.2% year to date, underperforming the Zacks Computer & Technology sector’s return of 8.5%.
Shopify (SHOP - Free Report) , BlackLine (BL - Free Report) and AvidXchange (AVDX - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 12.8% year to date. SHOP is set to report its fourth-quarter 2023 results on Feb 13.
BlackLine shares have declined 1.1% year to date. BL is set to report its fourth-quarter 2023 results on Feb 13.
AvidXchange shares have declined 3.9% year to date. AVDX is set to report its fourth-quarter 2023 results on Feb 28.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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