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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 fourth-quarter fiscal 2023 earnings of 59 cents, beating the Zacks Consensus Estimate by 43.9%. In the year-ago quarter, the company incurred a loss of 3 cents.
Revenues of $296 million increased 47.8% on a year-over-year basis and surpassed the consensus mark by 5.87%. The top line was driven by 33% year-over-year growth in BILL’s core revenues.
BILL processed $69.1 billion in total payment volume in the reported quarter, an increase of 9% year over year. This included $65.1 billion of total payment volume on its BILL standalone platform, an increase of 7% year over year, and $3.8 billion in total card payment volume for Divvy, an increase of 42% year over year.
BILL’s solutions served 461,000 businesses as of the end of the fiscal fourth quarter. The company extended its agreement with JPMorgan Chase Commercial Banking for Cashflow360 for another five years.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
In the fiscal fourth quarter, core revenues, which consist of subscription and transaction fees, were $259.5 million.
Subscription fees of $66.9 million increased 21% year over year. The subscription fees include $57.8 million from the BILL standalone platform, which increased 25% year over year.
Transaction fees were $192.6 million, up 38% from the year-ago period. The transaction fees included BILL standalone platform fees of $91.5 million, up 33% and Divvy spend management solution’s fees of $99.9 million, which increased 44%.
Float revenues, which consist of interest on funds held for customers, were $36.5 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $257.2 million, which grew 52.6% year over year and represented a gross margin of 86.9%, expanding 270 basis points year over year.
In the fourth quarter of fiscal 2023, adjusted research and development expenses of $57.9 million increased 15.3% year over year. Adjusted sales and marketing expenses of $103.4 million surged 31% year over year. Adjusted general administrative expenses jumped 25.9% to $53.5 million.
BILL reported a non-GAAP operating income of $42.3 million against a loss of $3.2 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Jun 30, 2023, cash and cash equivalent and short-term investments were $2.66 billion, unchanged sequentially.
Cash flow from operations was $80.4 million in the fiscal fourth quarter.
Guidance
For the first quarter of fiscal 2024, BILL expects revenues between $295.5 million and $298.5 million, suggesting year-over-year growth of 28-30%. Non-GAAP EPS is expected to be between 48 cents and 50 cents.
For fiscal 2024, the company expects revenues between $1.289 billion and $1.31 billion, implying year-over-year growth in the 22%-23% range. Non-GAAP EPS is expected to be between $1.82 and $1.97.
Zacks Rank & Other Stocks to Consider
Currently, BILL has a Zacks Rank #2 (Buy)
BILL shares have declined 6.8% year to date, underperforming the Zacks Computer & Technology sector’s increase of 32.8%.
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BILL Holdings (BILL) Q4 Earnings Top Estimates, Revenues Up Y/Y
BILL Holdings (BILL - Free Report) reported fourth-quarter fiscal 2023 earnings of 59 cents, beating the Zacks Consensus Estimate by 43.9%. In the year-ago quarter, the company incurred a loss of 3 cents.
Revenues of $296 million increased 47.8% on a year-over-year basis and surpassed the consensus mark by 5.87%. The top line was driven by 33% year-over-year growth in BILL’s core revenues.
BILL processed $69.1 billion in total payment volume in the reported quarter, an increase of 9% year over year. This included $65.1 billion of total payment volume on its BILL standalone platform, an increase of 7% year over year, and $3.8 billion in total card payment volume for Divvy, an increase of 42% year over year.
BILL’s solutions served 461,000 businesses as of the end of the fiscal fourth quarter. The company extended its agreement with JPMorgan Chase Commercial Banking for Cashflow360 for another five years.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote
Quarter in Details
In the fiscal fourth quarter, core revenues, which consist of subscription and transaction fees, were $259.5 million.
Subscription fees of $66.9 million increased 21% year over year. The subscription fees include $57.8 million from the BILL standalone platform, which increased 25% year over year.
Transaction fees were $192.6 million, up 38% from the year-ago period. The transaction fees included BILL standalone platform fees of $91.5 million, up 33% and Divvy spend management solution’s fees of $99.9 million, which increased 44%.
Float revenues, which consist of interest on funds held for customers, were $36.5 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $257.2 million, which grew 52.6% year over year and represented a gross margin of 86.9%, expanding 270 basis points year over year.
In the fourth quarter of fiscal 2023, adjusted research and development expenses of $57.9 million increased 15.3% year over year. Adjusted sales and marketing expenses of $103.4 million surged 31% year over year. Adjusted general administrative expenses jumped 25.9% to $53.5 million.
BILL reported a non-GAAP operating income of $42.3 million against a loss of $3.2 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Jun 30, 2023, cash and cash equivalent and short-term investments were $2.66 billion, unchanged sequentially.
Cash flow from operations was $80.4 million in the fiscal fourth quarter.
Guidance
For the first quarter of fiscal 2024, BILL expects revenues between $295.5 million and $298.5 million, suggesting year-over-year growth of 28-30%. Non-GAAP EPS is expected to be between 48 cents and 50 cents.
For fiscal 2024, the company expects revenues between $1.289 billion and $1.31 billion, implying year-over-year growth in the 22%-23% range. Non-GAAP EPS is expected to be between $1.82 and $1.97.
Zacks Rank & Other Stocks to Consider
Currently, BILL has a Zacks Rank #2 (Buy)
BILL shares have declined 6.8% year to date, underperforming the Zacks Computer & Technology sector’s increase of 32.8%.
NVIDIA (NVDA - Free Report) , NetEase (NTES - Free Report) and Workday (WDAY - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Computer & Technology sector. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While NVIDIA is set to report its quarterly result on Aug 23, both NetEase and Workday are scheduled to report on Aug 24.