Bill.com Jumps 13.8% on Better-Than-Expected Q1 Results


Shares of cloud-based software solutions provider Bill.com Holdings (BILL) closed 13.8% higher on Friday after the company’s financial results for the fiscal first quarter ended September 30 surpassed the Street’s expectations.

California-based Bill.com’s offerings simplify, digitize and automate complex, back-office financial operations for small and midsize businesses (SMB).

Q1 Earnings Update

The company reported an adjusted loss of $0.15 per share, wider than the year-ago loss of $0.02 per share but narrower than analysts’ expectations of $0.21 per share.

Total revenue jumped 152% year-over-year to $116.4 million, beating the Street’s estimate of $103.41 million. (See Insiders’ Hot Stocks on TipRanks)

Subscription fees increased 43% to $35 million and Transaction fees soared 319% to $80.6 million. Furthermore, the adjusted gross margin rose to 83.3% from 76.2% in the first quarter of the last fiscal year.

Management Comments

The CEO of Bill.com, René Lacerte, said, “We kicked off our fiscal year with momentum and strong first-quarter results that exceeded our expectations. We also completed our acquisition of Invoice2go, which significantly expands our reach to serve millions of more businesses around the globe.”

The CFO of Bill.com, John Rettig, said, “Our performance was driven by strong adoption and usage of our solutions and solid execution across our team. We are in a strong position to extend our leadership in serving the SMB market.”

Guidance

Along with the first-quarter results, the company has provided guidance for the second quarter and the Fiscal Year ending June 30, 2022.

It expects total revenue in the range of $130 million to $131 million and loss per share of $0.17 to $0.18 during the second quarter.

For the full year, Bill.com anticipates total revenue to lie between $538 million and $541 million and loss to range from $0.77 per share to $0.80 per share.

Wall Street’s Take

Following the release of the first-quarter results, Canaccord Genuity analyst Joseph Vafi reiterated a Buy rating on the stock and raised the price target to $366 from $284 (9.4% upside potential).

Vafi said, “Core organic revenue growth is benefiting from the ongoing network effects of the Bill platform, along with cross-selling opportunities already being realized from Divvy.”

Additionally, Piper Sandler analyst Brent Bracelin maintained a Buy rating on the stock with a price target of $380 (13.6% upside potential).

Bracelin is of the view that Bill.com’s differentiated business is benefitting from an SMB finance transformation wave.

Analyst Recommendation

Overall, the stock has a Strong Buy consensus rating based on 12 Buys and 3 Holds. The average Bill.com Holdings price target of $344.36 implies 3% upside potential. Shares have gained 243.6% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Bill.com’s performance.

According to the tool, the company’s website traffic registered a 95.04% increase in global visits in September. Moreover, the website traffic has increased 127.82% year-to-date.

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