BILL Holdings (BILL - Free Report) recorded earnings of 60 cents per share in third-quarter fiscal 2024, beating the Zacks Consensus Estimate by 13.21% and rallying 46.3% year over year.
Revenues of $323 million increased 18.5% on a year-over-year basis and surpassed the consensus mark by 5.83%. The top line was driven by 17% year-over-year growth in BILL’s core revenues.
BILL processed $71.4 billion in total payment volume (TPV) in the reported quarter, up 10.4% year over year. This included $66.8 billion of TPV on its BILL standalone platform, rising 9.5% year over year.
Spend & Expense TPV rose 29.4% year over year to $4.4 billion, while Invoice 2go TPV remained at $0.2 billion.
BILL’s solutions served 464,900 businesses as of the end of the fiscal third quarter.
BILL Standalone customers increased 6.5% year over year to 210,700. Excluding financial institutions, BILL Standalone customers increased 9.4% year over year to 146,700. Financial institution customers inched up 0.5% year over year to 64,000.
Spend & Expense customer base increased 23.6% year over year to 33,500. Invoice 2go declined 4.2% to 220,700.
Quarter in Detail
In the fiscal third quarter, core revenues, which consist of subscription and transaction fees, were $281.3 million.
Subscription fees of $65.6 million decreased 1.6% year over year. BILL Standalone Platform revenues declined 1.6% year over year to $56.7 million. Invoice 2go accounts receivable solution revenues dropped 1.1% year over year to $8.8 million. Other revenues were flat year over year to $0.2 million.
Transaction fees were $215.7 million, up 24.8% from the year-ago period’s levels. BILL Standalone Platform revenues increased 20.1% year over year to $99.9 million. BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $114.3 million, reflecting growth of 29% year over year. Invoice 2go accounts receivable solution revenues surged 50% year over year to $1.5 million.
Small-to-midsize businesses, accounting firms, spending businesses and other revenues of $273.9 million increased 20.3% year over year, contributing 97.4% to core revenues and 84.8% to total revenues.
Revenues generated from financial institutions plunged 37.8% year over year to $7.4 million. The metric contributed 2.6% to core revenues and 2.3% to total revenues.
Float revenues, which consist of interest on funds held for customers, were $41.7 million in the reported quarter, up 26.2% year over year.
Operating Details
In the quarter under review, non-GAAP gross profit was $281.5 million, up 18.7% year over year. The gross margin of 87.1% expanded 10 basis points (bps) year over year.
In the third quarter of fiscal 2024, adjusted research and development expenses of $55.5 million increased 10 bps year over year. Adjusted sales and marketing expenses of $106.7 million increased 10.3% year over year. Adjusted general administrative expenses rose 21.2% to $60.7 million.
BILL reported a non-GAAP operating income of $59.1 million, up 69.6% year over year. Operating margin expanded 550 bps on a year-over-year basis to 18.3%.
Balance Sheet & Cash Flow statement
As of Mar 31, 2024, cash and cash equivalent and short-term investments were $1.78 billion compared with $2.55 billion as of Dec 31, 2023.
Cash flow from operations was $66.8 million in the third quarter of fiscal 2024 compared with $79.7 million in the fiscal second quarter.
In the third quarter, BILL repurchased $748 million aggregate principal amount of 0.0% Convertible Senior Notes due 2025.
Guidance
For the fourth quarter of fiscal 2024, BILL expects revenues between $320 million and $330 million, suggesting year-over-year growth of 8-11%. Non-GAAP earnings are projected between 41 cents and 49 cents.
For the fiscal 2024, the company expects revenues between $1.267 billion and $1.277 billion, suggesting year-over-year growth in the 20-21% range. Non-GAAP earnings are expected between $1.96 and $2.03 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #3 (Hold).
BILL’s shares have declined 22.4% year to date compared with the Zacks Computer & Technology sector’s return of 8.5%.
Arista Networks (ANET - Free Report) , Applied Material (AMAT - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have gained 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
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BILL Holdings (BILL - Free Report) recorded earnings of 60 cents per share in third-quarter fiscal 2024, beating the Zacks Consensus Estimate by 13.21% and rallying 46.3% year over year.
Revenues of $323 million increased 18.5% on a year-over-year basis and surpassed the consensus mark by 5.83%. The top line was driven by 17% year-over-year growth in BILL’s core revenues.
BILL processed $71.4 billion in total payment volume (TPV) in the reported quarter, up 10.4% year over year. This included $66.8 billion of TPV on its BILL standalone platform, rising 9.5% year over year.
Spend & Expense TPV rose 29.4% year over year to $4.4 billion, while Invoice 2go TPV remained at $0.2 billion.
BILL’s solutions served 464,900 businesses as of the end of the fiscal third quarter.
BILL Standalone customers increased 6.5% year over year to 210,700. Excluding financial institutions, BILL Standalone customers increased 9.4% year over year to 146,700. Financial institution customers inched up 0.5% year over year to 64,000.
Spend & Expense customer base increased 23.6% year over year to 33,500. Invoice 2go declined 4.2% to 220,700.
Quarter in Detail
In the fiscal third quarter, core revenues, which consist of subscription and transaction fees, were $281.3 million.
Subscription fees of $65.6 million decreased 1.6% year over year. BILL Standalone Platform revenues declined 1.6% year over year to $56.7 million. Invoice 2go accounts receivable solution revenues dropped 1.1% year over year to $8.8 million. Other revenues were flat year over year to $0.2 million.
Transaction fees were $215.7 million, up 24.8% from the year-ago period’s levels. BILL Standalone Platform revenues increased 20.1% year over year to $99.9 million. BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $114.3 million, reflecting growth of 29% year over year. Invoice 2go accounts receivable solution revenues surged 50% year over year to $1.5 million.
Small-to-midsize businesses, accounting firms, spending businesses and other revenues of $273.9 million increased 20.3% year over year, contributing 97.4% to core revenues and 84.8% to total revenues.
Revenues generated from financial institutions plunged 37.8% year over year to $7.4 million. The metric contributed 2.6% to core revenues and 2.3% to total revenues.
Float revenues, which consist of interest on funds held for customers, were $41.7 million in the reported quarter, up 26.2% year over year.
Operating Details
In the quarter under review, non-GAAP gross profit was $281.5 million, up 18.7% year over year. The gross margin of 87.1% expanded 10 basis points (bps) year over year.
In the third quarter of fiscal 2024, adjusted research and development expenses of $55.5 million increased 10 bps year over year. Adjusted sales and marketing expenses of $106.7 million increased 10.3% year over year. Adjusted general administrative expenses rose 21.2% to $60.7 million.
BILL reported a non-GAAP operating income of $59.1 million, up 69.6% year over year. Operating margin expanded 550 bps on a year-over-year basis to 18.3%.
Balance Sheet & Cash Flow statement
As of Mar 31, 2024, cash and cash equivalent and short-term investments were $1.78 billion compared with $2.55 billion as of Dec 31, 2023.
Cash flow from operations was $66.8 million in the third quarter of fiscal 2024 compared with $79.7 million in the fiscal second quarter.
In the third quarter, BILL repurchased $748 million aggregate principal amount of 0.0% Convertible Senior Notes due 2025.
Guidance
For the fourth quarter of fiscal 2024, BILL expects revenues between $320 million and $330 million, suggesting year-over-year growth of 8-11%. Non-GAAP earnings are projected between 41 cents and 49 cents.
For the fiscal 2024, the company expects revenues between $1.267 billion and $1.277 billion, suggesting year-over-year growth in the 20-21% range. Non-GAAP earnings are expected between $1.96 and $2.03 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #3 (Hold).
BILL’s shares have declined 22.4% year to date compared with the Zacks Computer & Technology sector’s return of 8.5%.
Arista Networks (ANET - Free Report) , Applied Material (AMAT - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks’ shares have increased 11.6% year to date. ANET is set to report its first-quarter 2024 results on May 7.
Applied Material’s shares have gained 22.4% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
Dell Technologies’ shares have surged 62.1% year to date. DELL is set to report its first-quarter fiscal 2025 results on May 30.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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