Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

Research and Development (R&D) (USD, thousands)

Depreciation and Amortization (D&A) (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

386f045f8ee1b9647b9e0274fdbb320944168949f5d6fd2430df754a56d2f691

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

6e826dd37df4aa6b4bfc73f96b38271d97524814b5be24831daa1f70b3e34b8f

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

f26752a8ed320dd47123d961bb30e5f5150b8d882885a2d139b444952dc7d301

Here is the exhaustive guidance provided by BILL in the last four earnings calls, including the issued period, guided period, and the full list of metrics:

---

### **1. Q1 2025 Earnings Call**
- **Issued Period**: Q1 2025  
- **Guided Period**: Q2 2025 and FY 2025  

#### **Guidance for Q2 2025**  
- **Total Revenue**: $355.5 million to $360.5 million.  **[BILL_3406767_5]**   
- **Core Revenue**: $316 million to $321 million (**15% to 17% YoY growth**).  **[BILL_3406767_5]**   
- **Float Revenue**: $39.5 million (assumes a yield on FBO funds of approximately **420 basis points**).  **[BILL_3406767_5]**   
- **Non-GAAP Operating Income**: $47.5 million to $52.5 million.  **[BILL_3406767_6]**   
- **Non-GAAP Net Income**: $48 million to $52 million.  **[BILL_3406767_6]**   
- **Non-GAAP Net Income Per Diluted Share**: $0.44 to $0.48 (based on **109 million diluted weighted average shares outstanding**).  **[BILL_3406767_6]**   

#### **Guidance for FY 2025**  
- **Total Revenue**: $1.439 billion to $1.464 billion.  **[BILL_3406767_6]**   
- **Core Revenue**: $1.291 billion to $1.316 billion (**15% to 17% YoY growth**).  **[BILL_3406767_6]**   
- **Float Revenue**: Approximately $148 million (assumes a yield on FBO funds of **400 basis points** and an exit Fed funds rate of **350 basis points** as of June 2025).  **[BILL_3406767_6]**   
- **Non-GAAP Operating Income**: $182.5 million to $207.5 million.  **[BILL_3406767_6]**   
- **Non-GAAP Net Income**: $181.5 million to $201.5 million.  **[BILL_3406767_6]**   
- **Non-GAAP Net Income Per Diluted Share**: $1.65 to $1.83 (based on **110 million diluted weighted average shares outstanding**).  **[BILL_3406767_6]**   
- **Stock-Based Compensation Expenses**: Expected to be less than **20% of total revenue**.  **[BILL_3406767_6]**   

---

### **2. Q4 2024 Earnings Call**
- **Issued Period**: Q4 2024  
- **Guided Period**: Q1 2025 and FY 2025  

#### **Guidance for Q1 2025**  
- **Total Revenue**: $346 million to $351 million (**13% to 15% YoY growth**).  **[BILL_3399695_7]**   
- **Core Revenue**: $305 million to $310 million (**15% to 17% YoY growth**).  **[BILL_3399695_7]**   
- **Float Revenue**: $41 million (assumes a yield on FBO funds of **470 basis points**).  **[BILL_3399695_8]**   
- **Non-GAAP Operating Income**: $52 million to $57 million.  **[BILL_3399695_8]**   
- **Non-GAAP Net Income**: $53 million to $57 million.  **[BILL_3399695_8]**   
- **Non-GAAP Net Income Per Diluted Share**: $0.48 to $0.51 (based on **111 million diluted weighted average shares outstanding**).  **[BILL_3399695_8]**   
- **Non-GAAP Provision for Income Taxes**: Assumed at **20%**.  **[BILL_3399695_8]**   

#### **Guidance for FY 2025**  
- **Total Revenue**: $1.415 billion to $1.450 billion (**10% to 12% YoY growth**).  **[BILL_3399695_8]**   
- **Core Revenue**: $1.270 billion to $1.305 billion (**13% to 16% YoY growth**).  **[BILL_3399695_8]**   
- **Float Revenue**: Approximately $145 million (assumes a yield on FBO funds of **400 basis points** and an exit Fed funds rate of **350 basis points** as of June 2025).  **[BILL_3399695_8]**   
- **Non-GAAP Operating Income**: $160 million to $195 million.  **[BILL_3399695_8]**   
- **Non-GAAP Net Income**: $154 million to $182 million.  **[BILL_3399695_8]**   
- **Non-GAAP Net Income Per Diluted Share**: $1.36 to $1.61 (based on **113 million diluted weighted average shares outstanding**).  **[BILL_3399695_8]**   
- **Stock-Based Compensation Expenses**: Expected to be approximately **20% of total revenue**.  **[BILL_3399695_8]**   

---

### **3. Q3 2024 Earnings Call**
- **Issued Period**: Q3 2024  
- **Guided Period**: Q4 2024 and FY 2024  

#### **Guidance for Q4 2024**  
- **Total Revenue**: $320 million to $330 million (**8% to 11% YoY growth**).  **[BILL_3382267_6]**   
- **Float Revenue**: $40 million (assumes a yield on FBO funds of **480 basis points**).  **[BILL_3382267_6]**   
- **Non-GAAP Gross Margin**: Approximately **84%**.  **[BILL_3382267_6]**   
- **Non-GAAP Operating Income**: $40 million to $50 million.  **[BILL_3382267_7]**   
- **Non-GAAP Net Income**: $46.4 million to $54.4 million (assumes a **20% tax rate**).  **[BILL_3382267_7]**   
- **Non-GAAP Net Income Per Diluted Share**: $0.41 to $0.49 (based on **112 million diluted weighted average shares outstanding**).  **[BILL_3382267_7]**   

#### **Guidance for FY 2024**  
- **Total Revenue**: $1.267 billion to $1.277 billion (**20% to 21% YoY growth**).  **[BILL_3382267_7]**   
- **Float Revenue**: $165 million (assumes a yield on FBO funds of **490 basis points**).  **[BILL_3382267_7]**   
- **Non-GAAP Operating Income**: $176 million to $186 million (**51% to 59% YoY growth**).  **[BILL_3382267_7]**   
- **Non-GAAP Net Income**: $227 million to $235 million (assumes a **20% tax rate**).  **[BILL_3382267_7]**   
- **Non-GAAP Net Income Per Diluted Share**: $1.96 to $2.03 (based on **115.5 million diluted weighted average shares outstanding**).  **[BILL_3382267_7]**   
- **Stock-Based Compensation Expenses**: Approximately **$255 million**.  **[BILL_3382267_7]**   
- **Capital Expenditures**: Approximately **$23 million**.  **[BILL_3382267_7]**   

---

### **4. Q2 2024 Earnings Call**
- **Issued Period**: Q2 2024  
- **Guided Period**: Q3 2024 and FY 2024  

#### **Guidance for Q3 2024**  
- **Total Revenue**: $299 million to $309 million (**10% to 13% YoY growth**).  **[BILL_3372499_7]**   
- **Float Revenue**: $36 million (assumes a yield on FBO funds of **450 basis points**).  **[BILL_3372499_7]**   
- **Non-GAAP Net Income**: $56 million to $66 million.  **[BILL_3372499_7]**   
- **Non-GAAP Net Income Per Diluted Share**: $0.48 to $0.57 (based on **116.1 million diluted weighted average shares outstanding**).  **[BILL_3372499_7]**   
- **Other Income, Net of Other Expenses (OIE)**: $24 million.  **[BILL_3372499_7]**   
- **Stock-Based Compensation Expenses**: Approximately $65 million.  **[BILL_3372499_7]**   
- **Capital Expenditures**: Approximately $7 million to $9 million.  **[BILL_3372499_7]**   
- **BILL Stand-Alone Total Payment Volume (TPV)**: Expected to grow **roughly 10% YoY**.  **[BILL_3372499_6]**   

#### **Guidance for FY 2024**  
- **Total Revenue**: $1.226 billion to $1.251 billion (**16% to 18% YoY growth**).  **[BILL_3372499_7]**   
- **Float Revenue**: $151 million (assumes a yield on FBO funds of **450 basis points**).  **[BILL_3372499_7]**   
- **Non-GAAP Net Income**: $245 million to $270 million.  **[BILL_3372499_7]**   
- **Non-GAAP Net Income Per Diluted Share**: $2.09 to $2.31 (based on **117 million diluted weighted average shares outstanding**).  **[BILL_3372499_7]**   
- **Other Income, Net of Other Expenses (OIE)**: Approximately $107 million.  **[BILL_3372499_7]**   
- **Stock-Based Compensation Expenses**: Approximately $260 million.  **[BILL_3372499_7]**   
- **Capital Expenditures**: Approximately $26 million to $30 million.  **[BILL_3372499_7]**   
- **BILL Stand-Alone Total Payment Volume (TPV)**: Expected to grow **7% to 8% YoY**.  **[BILL_3372499_6]**   

--- 

This summary includes all guidance metrics provided in the last four earnings calls.

69a3afc8390d73680b45df4c608e9fcab14b7b856041f1a231b13312f89616f3

1. You've mentioned that the incremental $45 million investment in fiscal 2025 will be more back-end loaded due to hiring plans being delayed in Q1; can you provide specifics on how these investments will drive revenue growth and what ROI you expect from them?
2. Despite delivering strong core revenue growth of 19% in Q1, your guidance for Q2 indicates a deceleration to 15%-17%; what are the main factors contributing to this slowdown, and how confident are you in meeting your full-year targets amid ongoing economic uncertainties?
3. You've highlighted a focus on attracting larger businesses with higher propensity to spend; how does this strategy impact your customer acquisition costs and operating margins, and are there risks associated with shifting focus from traditional SMB clients?
4. Float revenue has been a significant part of your earnings; how are you managing the risk of potential changes in interest rates affecting float income, and what steps are you taking to diversify your revenue streams to reduce dependency on float revenue?
5. Can you elaborate on the progress and expected impact of your embedded solution partnership with Xero, and how significant do you anticipate this partnership will be in terms of revenue contribution and market expansion?

7a023d7ba2132c7e0e7c1c5ae1a3ec9d50914e2b7cc47393fe278fe63ee1d81a

| Name              | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                     |
|-------------------|--------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Renée Lacerte     | Founder, Chief Executive Officer, and Chair of the Board                | April 2006       | Renée Lacerte founded BILL in **April 2006** and has served as CEO since. Previously, he founded PayCycle, Inc. and held roles at Intuit. He holds a **B.A. in Economics** and an **M.S. in Industrial Engineering** from Stanford University.  **[0001140361-24-043412_ny20031358x1_pre14a.htm:7]** **[0001140361-24-044217_ny20031358x4_def14a.htm:7]**  |
| John Rettig       | President and Chief Financial Officer                                   | June 2014        | John Rettig joined BILL in **June 2014**. He previously held senior finance roles at Exponential Interactive, Reflect.com, Achieva.com/Kaplan, Inc., and Excite@Home.  **[0001140361-24-044217_ny20031358x4_def14a.htm:25]** **[0001140361-24-043412_ny20031358x1_pre14a.htm:25]**                                                 |
| Raj Aji           | Chief Legal Officer, Chief Compliance Officer, and Secretary           | August 2016      | Raj Aji joined BILL in **August 2016**. He previously worked at Intuit, Obopay, and Xoom in legal and compliance roles. He holds degrees from IIT Mumbai, the University of Iowa, and UC Berkeley School of Law.  **[0001140361-24-044217_ny20031358x4_def14a.htm:25]** **[0001140361-24-043412_ny20031358x1_pre14a.htm:25]** **[0001140361-23-049688_ny20010024x1_def14a.htm:25]**      |
| Mary Kay Bowman   | Executive Vice President, General Manager of Payments and Financial Services | August 2024 (expected) | Mary Kay Bowman joined BILL in **August 2024**. She previously held leadership roles at Visa, Square, and Amazon, focusing on payments and financial services.  **[0001140361-24-043412_ny20031358x1_pre14a.htm:25]** **[0001140361-24-044217_ny20031358x4_def14a.htm:25]**                                                         |
| Ken Moss          | Chief Technology Officer                                               | April 2023       | Ken Moss joined BILL in **April 2023**. He previously served as CTO at Electronic Arts, eBay, and CrowdEye, and held leadership roles at Microsoft. He holds a **B.A. in Molecular Biology** from Princeton University.  **[0001140361-24-044217_ny20031358x4_def14a.htm:25]** **[0001140361-24-043412_ny20031358x1_pre14a.htm:25]**  |
```

df5ee0d79dab07a48d6e2c8f8fc73bfd40514ab88dd4610b8161ef480523da41

BILL is a leading financial operations platform designed for small and midsize businesses (SMBs). The company focuses on automating financial processes to improve efficiency in managing payables, receivables, and spend and expense management. BILL offers a comprehensive suite of services that include subscription-based software, transaction processing, and interest income from customer funds.  **[0001786352-24-000045_bill-20240930.htm:22]** **[0001786352-24-000027_bill-20240331.htm:29]** **[0001786352-24-000035_bill-20240630.htm:5]** **[0001786352-23-000054_bill-20230630.htm:5]** **[0001786352-23-000054_bill-20230630.htm:89]** 

1. **Transaction Fees** - Processes payment transactions through its platform, generating revenue from fees charged on these transactions.  **[0001786352-24-000035_bill-20240630.htm:108]** 
2. **Subscription Fees** - Provides software and services to customers on a subscription basis, enhancing financial operations for businesses.  **[0001786352-24-000035_bill-20240630.htm:108]** 
3. **Interest on Funds Held for Customers** - Earns revenue by investing customer funds, contributing to the company's financial performance.  **[0001786352-24-000035_bill-20240630.htm:108]**

b1e29d966f837c68d901a062f41712b1568319a17b39826c2036cd8f6e9d2703

9e13fea73c8088fc1badbf587a0c11966f29dafa376c9f193fdac36a9942a5ed

| Program Details          | Program 1              |
|--------------------------|------------------------|
| **Approval Date**        | August 2024  **[0001786352-24-000045_bill-20240930.htm:38]** **[0001786352-24-000045_bill-20240930.htm:18]** **[0001786352-24-000045_bill-20240930.htm:114]**  |
| **End Date/Duration**    | No mandated end date  **[0001786352-24-000045_bill-20240930.htm:38]** **[0001786352-24-000045_bill-20240930.htm:18]** **[0001786352-24-000045_bill-20240930.htm:114]**  |
| **Total Additional Amount** | **$300 million**  **[0001786352-24-000045_bill-20240930.htm:38]** **[0001786352-24-000045_bill-20240930.htm:18]** **[0001786352-24-000045_bill-20240930.htm:114]**  |
| **Remaining Authorization** | **$100 million** as of September 30, 2024  **[0001786352-24-000045_bill-20240930.htm:38]** **[0001786352-24-000045_bill-20240930.htm:18]** **[0001786352-24-000045_bill-20240930.htm:114]**  |
| **Details**              | The program may be suspended, discontinued, or modified at any time. It reflects confidence in the company's strategy and aims to deliver value to shareholders.  **[0001786352-24-000045_bill-20240930.htm:38]** **[0001786352-24-000045_bill-20240930.htm:18]** **[0001786352-24-000045_bill-20240930.htm:114]** **[0001786352-24-000045_bill-20240930.htm:38]** **[BILL_3399695_4]**  |

f63f9b470f1791612a16b1a620092c87c29db74a49c3b137d4933153e5ebc7a4

1. **Raised Revenue Guidance**  
   **Q:** Why is core revenue guidance being raised?  
   **A:** We beat core revenue by **$7.3 million** in the first quarter  **[BILL_3406767_16]** , and our full-year '25 guidance was raised by **$16 million at the midpoint**, achieving **17% year-over-year growth at the high end**.  **[BILL_3406767_16]**  This reflects stability in our customer base, success with slightly larger businesses, and continued growth in card spend and ad valorem payments.  **[BILL_3406767_16]**  We feel confident about our ability to scale this year.  **[BILL_3406767_16]** 

2. **Revenue Deceleration Explanation**  
   **Q:** Is Q2 revenue deceleration due to conservatism?  
   **A:** The deceleration reflects ongoing uncertainty in the economy.  **[BILL_3406767_15]**  We're waiting for clarity so SMBs can make decisions about investing and growing.  **[BILL_3406767_15]**  We're being prudent until we see that clarity.  **[BILL_3406767_15]** 

3. **Long-Term Growth Outlook**  
   **Q:** Do you still expect 20%+ long-term growth?  
   **A:** Absolutely, we believe in driving growth for multiple years ahead.  **[BILL_3406767_15]**  We've demonstrated our capabilities and expect to accelerate revenue growth from where we are today.  **[BILL_3406767_15]**  Our key initiatives increase our confidence in our ability to accelerate growth.  **[BILL_3406767_15]** 

4. **Take Rate and Monetization**  
   **Q:** What is the outlook for take rate?  
   **A:** We expect transaction monetization to be similar in Q2, possibly slightly up or down.  **[BILL_3406767_9]**  In the second half of the year, we anticipate a modest uptick as volume increases.  **[BILL_3406767_9]**  Transaction revenue per transaction was up **5% year-over-year and 3% quarter-to-quarter** in Q1, despite a flat take rate.  **[BILL_3406767_9]** 

5. **Margins and Hiring Plans**  
   **Q:** Why was margin outperformance strong in Q1?  
   **A:** Our incremental investments are backloaded, so we didn't see the full effect of hiring in Q1.  **[BILL_3406767_17]**  We had a revenue beat that flowed through to operating income; we beat by **$12.6 million**, and increased the full year by **$13.8 million at the midpoint**.  **[BILL_3406767_17]**  We're always looking for efficiencies and creating operating leverage.  **[BILL_3406767_17]** 

6. **Spend Volume Trends**  
   **Q:** What are you seeing in spend volume and TPV?  
   **A:** TPV per customer was **$433,000**, up **2% year-over-year and quarter-to-quarter** in Q1.  **[BILL_3406767_7]**  We expect it to be flattish for the rest of the year due to external uncertainty.  **[BILL_3406767_7]**  We're seeing positive signs with expansion in categories like real estate and facilities after four quarters of contraction  **[BILL_3406767_14]** , indicating a more positive outlook among SMBs.  **[BILL_3406767_14]** 

7. **Invoice Financing Risk Management**  
   **Q:** How are you managing risk with invoice financing?  
   **A:** With our massive scale of **$220 billion a year on the platform** and **12 different payment products**, we leverage data to manage risk.  **[BILL_3406767_12]**  We take a targeted approach on credit products, and higher loss rates are normal early on.  **[BILL_3406767_12]**  We're investing in automation and data assets, and feel good about our progress.  **[BILL_3406767_12]** 

8. **$45 Million Investment Progress**  
   **Q:** Are you on track with the $45 million investment?  
   **A:** Yes, we're making progress and seeing early results.  **[BILL_3406767_11]**  The spend is back-end loaded due to hiring timelines.  **[BILL_3406767_11]**  We expect to fully spend the incremental amount, increasing hiring pace from Q2 to Q4.  **[BILL_3406767_11]** 

9. **New Client Growth**  
   **Q:** What are your expectations for client growth?  
   **A:** We continue to see healthy growth in total client count.  **[BILL_3406767_10]**  We have **4% of SMBs with employees across the country**, and see tremendous opportunity to increase that.  **[BILL_3406767_10]**  Our teams are focused on reaching them through digital marketing and improving sales processes.  **[BILL_3406767_10]** 

10. **Strategic Initiatives Success**  
    **Q:** What went well this quarter strategically?  
    **A:** We progressed on our three priorities: enhancing the platform, expanding payments, and deepening the ecosystem.  **[BILL_3406767_14]**  We enhanced local FX transfers and supplier onboarding.  **[BILL_3406767_14]**  We integrated the **Spend & Expense platform into the BILL platform**  **[BILL_3406767_14]** , and progressed our partnership with **Xero**, reaching beta.  **[BILL_3406767_14]** 

11. **Accounting Partner Traction**  
    **Q:** What traction are you seeing with accounting partners?  
    **A:** We're focusing on accountants, bringing in new leadership and connecting more regularly.  **[BILL_3406767_18]**  Our **Sync Assist** tool is helping accounts supporting various platforms.  **[BILL_3406767_18]**  Accountants are interested in our Spend & Expense product, and adoption is growing.  **[BILL_3406767_18]** 

76935ef2c1348d3f34176ca4c21fc6872c94dfe8cde42350a55a359de23a5f99

Subscription Fees

Transaction Fees

- Small-to-midsize businesses

- Financial institutions

Interest on Funds

Total Revenue

57c2b312eaf5781f4d48eb706d29d5ab5e708c99437cf45a553caac0c7e19614

United States

International

a247e123323e05b862755f09296babc88cc28c6fe02104a28403899810d18662

Total Payment Volume (Billions)

Transactions Processed (Millions)

Businesses Using Solutions (Count)

3dc3351410f4efa97a57a28d2737370a136e76e444788b12ddfaa99169c05ae4

- **Challenges in the go-to-market strategy** have led to inefficiencies and **lower net new customer additions**, particularly impacting the cross-sell of the spend and expense management product. The company expects net adds to be **"a bit lower than we have been historically"** in the near term.  **[BILL_3372499_18]** **[BILL_3372499_22]**
- The company's guidance implies a **slowdown in revenue growth**, with expectations of **muted Total Payment Volume (TPV) growth** and **limited expansion in monetization rates** for the rest of the fiscal year. Management is **"expecting some choppiness ahead"** and has adopted a conservative approach.  **[BILL_3372499_9]** **[BILL_3372499_20]**
- **Customers and suppliers are increasingly focused on costs**, which is putting **pressure on higher monetizing products** like virtual cards and FX payments. This trend may limit revenue growth from these products in the near term.  **[BILL_3372499_17]** **[BILL_3372499_10]**

b6adc3fb6ace8a69c8fea7b9621c56ef949f9b36f2c930ea9aeb80f14bf9c740

- **Strong Customer Acquisition and Increased Spend per Customer:** The company reported adding **4,800 net new BILL AP/AR customers**, reaching over **156,000 customers** on this solution. They also added **1,600 net new spending businesses**, with over **36,000 spending businesses** on their Spend & Expense solution, making them one of the largest providers of software-powered corporate card solutions.  **[BILL_3406767_5]**  Their focus on larger, higher propensity to spend businesses is producing stronger engagement among new cohorts, leading to a **40% increase in card spend among spending businesses acquired in the last two quarters** compared to the preceding two quarters.  **[BILL_3406767_5]**
- **Early Positive Results from Targeted Investments:** The company's targeted investments in enhancing their platform and go-to-market capabilities are yielding positive results. They are seeing **"green shoots"** in spend volume trends among larger customers, indicating positive signals in customer psychology and outlook.  **[BILL_3406767_14]**  Additionally, **International FX payment volume and revenue increased by 10 percentage points** compared to last quarter due to the expansion of international payment local transfers.  **[BILL_3406767_4]**
- **Raised Guidance Reflects Strong Performance and Confidence:** The company beat core revenue expectations by **$7.3 million** in the first quarter and raised the full-year core revenue guidance by **$16 million** at the midpoint, reflecting **17% year-over-year growth** at the high end of the range.  **[BILL_3406767_16]**  Management stated that this speaks to the stability they see with the customer base, success with larger businesses, and continued growth in card spend across their platform.  **[BILL_3406767_16]**

40b0728d18ba096ede20232fcc01c49746716091bf3c4048fb0cfefbc7568fa2

- **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.  **[BILL_3399695_11]**
- **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.  **[BILL_3399695_5]**
- **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.  **[BILL_3399695_20]**

6cd054d84b20983072aeb036220d00574306ce86cf888816b9018460aa199bee

- **Slowing Core Revenue Growth and Deceleration in Guidance**: Management guided for fiscal Q4 total revenue growth of **8% to 11% year-over-year**  **[BILL_3382267_7]** , which is lower compared to previous quarters. Analysts noted that the **Q4 core growth guide implies a deceleration** compared to last quarter's guidance.  **[BILL_3382267_6]**  This suggests that the company's growth rate is slowing down.
- **Flat Transaction Volumes Without Spend Expansion**: The company is experiencing **spend-neutrality**, with **no significant expansion in transaction volumes**.  **[BILL_3382267_21]** **[BILL_3382267_12]**  While the B2B spend environment shows signs of stabilization, **SMBs continue to be pressured by high inflation and interest rates**.  **[BILL_3382267_7]**  The lack of transaction volume growth could limit revenue expansion.
- **Take Rate Improvement Driven by One-Time Benefits**: The increase in **payment monetization** in Q3 was partly due to a **nonrecurring benefit** from migrating volumes between processing providers.  **[BILL_3382267_10]**  Excluding this one-time uptick, the improvement in monetization was less significant. Additionally, the virtual card program has **not yet driven significant expansion**, indicating potential challenges in driving future take rate improvements.  **[BILL_3382267_10]**

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- **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.  **[BILL_3399695_11]** **[BILL_3399695_22]** **[BILL_3399695_21]**
- **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.  **[BILL_3399695_11]** **[BILL_3399695_12]**
- **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.  **[BILL_3399695_19]**

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- **Strong Customer Growth and Execution**: BILL reported an acceleration in net new customer adds, with **1,800 net new spending businesses** added in their Spend & Expense solution and **4,100 net new customers** in BILL stand-alone during the quarter, indicating effective execution of go-to-market strategies and alignment of teams to focus on customer needs.  **[BILL_3382267_14]**
- **Stabilization in B2B Spend Environment**: The company observed signs of stabilization in the B2B spend environment, noting **spend-neutrality** across their customer base, which suggests potential for future expansion as economic conditions improve.  **[BILL_3382267_21]**   **[BILL_3382267_8]**
- **Improved Payment Monetization**: BILL stand-alone payment monetization **expanded sequentially**, driven by increased adoption of newer **ad valorem products** and enhancements to payment experiences, which could lead to higher revenue generation per transaction.  **[BILL_3382267_14]**   **[BILL_3382267_10]**

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- **Delays in executing strategic investments due to slower-than-expected hiring may impact future growth plans.** John Rettig mentioned that the $45 million investment is "a little more back-end loaded throughout the fiscal year" due to "the timing of hiring and getting people on the ground."  **[BILL_3406767_11]**
- **Total Payment Volume (TPV) per customer is expected to remain flat for the rest of the year, indicating limited growth in per-customer transaction volume.** John Rettig stated, "For the rest of the year, we're expecting that to be flattish, so pretty consistent with current results. And that just reflects some of the uncertainty that exists in the external environment."  **[BILL_3406767_7]**
- **Economic uncertainty and a cautious SMB spending environment may limit the company's growth in the near term.** René Lacerte acknowledged, "We still see uncertainty in the economy... And so we're just going to be prudent until we see that clarity because we don't want to obviously get in front of anything that we haven't seen yet."  **[BILL_3406767_15]**

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- **Strong Total Payment Volume (TPV) Growth**: BILL's stand-alone TPV growth improved in the second quarter, representing an increase of **10% year-over-year** compared to 7% in the first quarter, which was **above expectations**. This indicates early signs of improved SMB spending trends and could signal a potential rebound in the business.  **[BILL_3372499_5]**
- **Focus on Higher-Value Customers**: The company is adapting its go-to-market approach to prioritize businesses with a **higher propensity to spend**, which is expected to translate into increasing penetration within **higher ARPU customer segments** and enhance revenue growth and profitability.  **[BILL_3372499_4]**
- **Enhancement of Ad Valorem Offerings**: BILL is enhancing and scaling its ad valorem offerings, such as **Instant Transfer** and **invoice financing**, and is investing in its **card offerings and international payments**, which are expected to drive further growth in transaction revenue and monetization.  **[BILL_3372499_7]**

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BILL Holdings Inc (BILL)

Financials