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BILL Holdings (BILL) Q3 Earnings Top Estimates, Revenues Up Y/Y

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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 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’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.


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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