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BILL Holdings (BILL) Q2 Earnings Top Estimates, Revenues Up Y/Y

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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 Holdings, Inc. Price, Consensus and EPS Surprise

BILL Holdings, Inc. Price, Consensus and EPS Surprise

BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote

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.


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.

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