Q4 2024 Earnings Summary
Reported on Jan 8, 2025 (After Market Close)
Pre-Earnings Price$50.74Last close (Aug 22, 2024)
Post-Earnings Price$51.78Open (Aug 23, 2024)
Price Change
$1.04(+2.05%)
- Projected return to 20%+ core revenue growth in fiscal 2026, driven by investments in product improvements, expansion of monetization, and increased adoption of the Spend & Expense product and card payments within the BILL ecosystem.
- Strategic offensive investments to widen market leadership, including enhancing existing solutions, expanding value propositions, and delivering innovation needed by SMB customers, showing confidence in future growth and widening the gap with competitors.
- Significant growth in cross-selling opportunities, as businesses using both BILL's AP and Spend & Expense solutions increased from 7,200 to 11,500 at the end of fiscal 2024, representing nearly a 60% increase, highlighting room for further penetration and revenue growth.
- Near-term profitability will be impacted due to significant planned investments. The company plans to make incremental investments of approximately $45 million throughout the year, which will moderate profitability growth in the near term.
- Dollar-based net revenue retention rate is below 100%, indicating challenges in retaining and expanding revenue from existing customers. The company's dollar-based net revenue retention rate for BILL's stand-alone was 92%, impacted by a lower spend environment affecting payment volume, payment choice, and subscription fees.
- Limited expected expansion in take rates in the near term. The company expects take rates to remain essentially flat with only an uptick in the second half of the year, suggesting minimal improvement in monetization rates in the near term.