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BILL Holdings (BILL) Q1 Earnings Top Estimates, Revenues Up Y/Y
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BILL Holdings (BILL - Free Report) reported first-quarter fiscal 2024 earnings of 54 cents, beating the Zacks Consensus Estimate of 50 cents. In the year-ago quarter, the company reported earnings of 14 cents per share.
Revenues of $305 million increased 32.6% on a year-over-year basis and surpassed the consensus mark by 2.41%. The top line was driven by 24% year-over-year growth in BILL’s core revenues.
BILL processed $70 billion in total payment volume in the reported quarter, reflecting an increase of 8% year over year. This included $66 billion of total payment volume on its BILL standalone platform, reflecting an increase of 7% year over year.
BILL’s solutions served 471,200 businesses as of the end of the fiscal first quarter.
The company launched its integrated financial operations platform, which offers SMBs integrated, category-leading Accounts Payable, Accounts Receivable, and Spend and Expense management capabilities.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
In the fiscal first quarter, core revenues, which consist of subscription and transaction fees, were $265.1 million.
Subscription fees of $62.4 million increased 7% year over year. Transaction fees were $202.7 million, up 30% from the year-ago period.
BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $106 million, reflecting growth of 36% year over year. Card payment volume totaled $4 billion and increased 35% year over year.
Float revenues, which consist of interest on funds held for customers, were $39.8 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $262.7 million, which grew 33.2% year over year and represented a gross margin of 86.1%, expanding 40 basis points year over year.
In the first quarter of fiscal 2024, adjusted research and development expenses of $61.2 million increased 13.8% year over year. Adjusted sales and marketing expenses of $104.3 million surged 17.9% year over year. Adjusted general administrative expenses jumped 39.3% to $63.8 million.
BILL reported a non-GAAP operating income of $33.4 million compared with earnings of $9.1 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Sep 30, 2023, cash and cash equivalent and short-term investments were $2.65 billion compared with $2.66 billion as of Jun 30.
Cash flow from operations was $53.7 million in the first quarter of fiscal 2024 compared with $80.4 million in the fiscal fourth quarter.
Guidance
For the second quarter of fiscal 2024, BILL expects revenues between $293 million and $303 million, suggesting year-over-year growth of 13-17%. Non-GAAP earnings are expected between 35 cents and 44 cents per share.
For fiscal 2024, the company expects revenues between $1.205 billion and $1.245 billion, implying year-over-year growth in the 14-18% range. Non-GAAP earnings are expected between $1.64 and $1.97 per share.
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BILL Holdings (BILL) Q1 Earnings Top Estimates, Revenues Up Y/Y
BILL Holdings (BILL - Free Report) reported first-quarter fiscal 2024 earnings of 54 cents, beating the Zacks Consensus Estimate of 50 cents. In the year-ago quarter, the company reported earnings of 14 cents per share.
Revenues of $305 million increased 32.6% on a year-over-year basis and surpassed the consensus mark by 2.41%. The top line was driven by 24% year-over-year growth in BILL’s core revenues.
BILL processed $70 billion in total payment volume in the reported quarter, reflecting an increase of 8% year over year. This included $66 billion of total payment volume on its BILL standalone platform, reflecting an increase of 7% year over year.
BILL’s solutions served 471,200 businesses as of the end of the fiscal first quarter.
The company launched its integrated financial operations platform, which offers SMBs integrated, category-leading Accounts Payable, Accounts Receivable, and Spend and Expense management capabilities.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote
Quarter in Detail
In the fiscal first quarter, core revenues, which consist of subscription and transaction fees, were $265.1 million.
Subscription fees of $62.4 million increased 7% year over year. Transaction fees were $202.7 million, up 30% from the year-ago period.
BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $106 million, reflecting growth of 36% year over year. Card payment volume totaled $4 billion and increased 35% year over year.
Float revenues, which consist of interest on funds held for customers, were $39.8 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $262.7 million, which grew 33.2% year over year and represented a gross margin of 86.1%, expanding 40 basis points year over year.
In the first quarter of fiscal 2024, adjusted research and development expenses of $61.2 million increased 13.8% year over year. Adjusted sales and marketing expenses of $104.3 million surged 17.9% year over year. Adjusted general administrative expenses jumped 39.3% to $63.8 million.
BILL reported a non-GAAP operating income of $33.4 million compared with earnings of $9.1 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Sep 30, 2023, cash and cash equivalent and short-term investments were $2.65 billion compared with $2.66 billion as of Jun 30.
Cash flow from operations was $53.7 million in the first quarter of fiscal 2024 compared with $80.4 million in the fiscal fourth quarter.
Guidance
For the second quarter of fiscal 2024, BILL expects revenues between $293 million and $303 million, suggesting year-over-year growth of 13-17%. Non-GAAP earnings are expected between 35 cents and 44 cents per share.
For fiscal 2024, the company expects revenues between $1.205 billion and $1.245 billion, implying year-over-year growth in the 14-18% range. Non-GAAP earnings are expected between $1.64 and $1.97 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #4 (Sell)
NetEase (NTES - Free Report) , NVIDIA (NVDA - Free Report) and Model N (MODN - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NetEase shares have gained 51.1% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
NVIDIA shares have returned 197.5% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.
Model N shares have declined 39.2% year to date. MODN is set to report its fourth-quarter fiscal 2023 results on Nov 9.