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BILL Holdings (BILL) Q3 Earnings Top Estimates, Revenues Up Y/Y
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BILL Holdings (BILL - Free Report) reported third-quarter fiscal 2023 earnings of 50 cents per share, beating the Zacks Consensus Estimate by 108.33%. In the year-ago quarter, the company incurred a loss of 8 cents.
Revenues of $272.6 million increased 63.3% on a year-over-year basis and surpassed the consensus mark by 10.49%. The top line was driven by 45% year-over-year growth in BILL’s core revenues.
Quarter in Details
In the fiscal third quarter, core revenues, which consist of subscription and transaction fees, were $239.5 million.
Subscription fees of $66.7 million increased 28% year over year. The subscription fees include $57.6 million from the BILL standalone platform, which increased 33% year over year.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
Transaction fees were $172.8 million, up 52% from the year-ago period. Transaction fees included BILL standalone platform fees of $83.2 million, up 41% and Divvy spend management solution’s fees of $88.6 million, which increased 65%.
Float revenues, which consist of interest on funds held for customers, were $33.1 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $237.2 million, which grew 68% year over year and represented a gross margin of 87%, expanding 250 basis points year over year.
In the third quarter of fiscal 2023, adjusted research and development expenses of $55.5 million increased 24.3% year over year. Adjusted sales and marketing expenses of $96.7 million soared 53.7% year over year. Adjusted general administrative expenses jumped 27.8% to $50.1 million.
BILL reported a non-GAAP operating income of $34.8 million against a loss of $5.7 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Mar 31, 2023, cash and cash equivalent, and short-term investments were $2.66 billion.
Cash flow from operations was $34 million in the fiscal third quarter.
Guidance
For the fourth quarter of fiscal 2023, BILL expects revenues between $277 million and $280 million, suggesting year-over-year growth of 38-40%. Non-GAAP earnings per share are expected between 39 cents and 41 cents.
For fiscal 2023, the company expects revenues between $1.04 billion and $1.04 billion, implying year-over-year growth of 62%. Non-GAAP earnings are expected between $1.46 and $1.48 per share.
Zacks Rank & Other Stocks to Consider
Currently, BILL has a Zacks Rank #2 (Buy)
BILL shares have declined 26.7% year to date against the Zacks Computer & Technology sector’s growth of 17.9%.
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BILL Holdings (BILL) Q3 Earnings Top Estimates, Revenues Up Y/Y
BILL Holdings (BILL - Free Report) reported third-quarter fiscal 2023 earnings of 50 cents per share, beating the Zacks Consensus Estimate by 108.33%. In the year-ago quarter, the company incurred a loss of 8 cents.
Revenues of $272.6 million increased 63.3% on a year-over-year basis and surpassed the consensus mark by 10.49%. The top line was driven by 45% year-over-year growth in BILL’s core revenues.
Quarter in Details
In the fiscal third quarter, core revenues, which consist of subscription and transaction fees, were $239.5 million.
Subscription fees of $66.7 million increased 28% year over year. The subscription fees include $57.6 million from the BILL standalone platform, which increased 33% year over year.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote
Transaction fees were $172.8 million, up 52% from the year-ago period. Transaction fees included BILL standalone platform fees of $83.2 million, up 41% and Divvy spend management solution’s fees of $88.6 million, which increased 65%.
Float revenues, which consist of interest on funds held for customers, were $33.1 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $237.2 million, which grew 68% year over year and represented a gross margin of 87%, expanding 250 basis points year over year.
In the third quarter of fiscal 2023, adjusted research and development expenses of $55.5 million increased 24.3% year over year. Adjusted sales and marketing expenses of $96.7 million soared 53.7% year over year. Adjusted general administrative expenses jumped 27.8% to $50.1 million.
BILL reported a non-GAAP operating income of $34.8 million against a loss of $5.7 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Mar 31, 2023, cash and cash equivalent, and short-term investments were $2.66 billion.
Cash flow from operations was $34 million in the fiscal third quarter.
Guidance
For the fourth quarter of fiscal 2023, BILL expects revenues between $277 million and $280 million, suggesting year-over-year growth of 38-40%. Non-GAAP earnings per share are expected between 39 cents and 41 cents.
For fiscal 2023, the company expects revenues between $1.04 billion and $1.04 billion, implying year-over-year growth of 62%. Non-GAAP earnings are expected between $1.46 and $1.48 per share.
Zacks Rank & Other Stocks to Consider
Currently, BILL has a Zacks Rank #2 (Buy)
BILL shares have declined 26.7% year to date against the Zacks Computer & Technology sector’s growth of 17.9%.
Blink Charging (BLNK - Free Report) , Enfusion (ENFN - Free Report) and DigitalOcean (DOCN - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Computer & Technology sector. Enfusion sports a Zacks Rank #1 (Strong Buy), and Blink and DigitalOcean carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Blink Charging shares have declined 35% year to date. BLNK is set to report its first-quarter 2023 results on May 9.
Enfusion shares have lost 9.5% year to date. ENFN is set to report its first-quarter 2023 results on May 9.
DigitalOcean shares have gained 28% year to date. DOCN is set to report its first-quarter 2023 results on May 9.