- Q1 Core Revenue Increased 24% Year-Over-Year
- Q1 Total Revenue Increased 33% Year-Over-Year
BILL (NYSE: BILL), a leader in financial automation software for
small and midsize businesses (SMBs), today announced financial
results for the first fiscal quarter ended September 30, 2023.
“We delivered strong first quarter results as we executed on our
strategy to be the essential financial operations platform for
SMBs,” said René Lacerte, BILL CEO and Founder. “During the
quarter, we also launched our integrated financial operations
platform that empowers SMBs to manage their accounts payable,
accounts receivable, and spend & expense all in one place with
intelligent workflow and consolidated insights. This is a big step
towards our objective to become the essential software for SMBs to
operate and thrive.”
“In a challenging macro environment, we delivered strong
financial results in Q1. Total revenue increased 33%
year-over-year, and non-GAAP profitability expanded
year-over-year,” said John Rettig, BILL President and CFO. “We are
carefully navigating the current environment while continuing to
invest behind the long term opportunity to serve millions of
SMBs.”
Financial Highlights for the First Quarter of Fiscal
2024:
- Total revenue was $305.0 million, an increase of 33%
year-over-year.
- Core revenue, which consists of subscription and transaction
fees, was $265.1 million, an increase of 24% year-over-year.
Subscription fees were $62.4 million, up 7% year-over-year.
Transaction fees were $202.7 million, up 30% year-over-year.
- Float revenue, which consists of interest on funds held for
customers, was $39.8 million.
- Gross profit was $249.0 million, representing an 81.6% gross
margin, compared to $184.8 million, or an 80.4% gross margin, in
the first quarter of fiscal 2023. Non-GAAP gross profit was $262.7
million, representing an 86.1% non-GAAP gross margin, compared to
$197.2 million, or an 85.8% non-GAAP gross margin, in the first
quarter of fiscal 2023.
- Loss from operations was $56.6 million, compared to a loss from
operations of $87.7 million in the first quarter of fiscal 2023.
Non-GAAP income from operations was $33.4 million, compared to a
non-GAAP income from operations of $9.1 million in the first
quarter of fiscal 2023.
- Net loss was $27.9 million, or ($0.26) per share, basic and
diluted, compared to net loss of $81.6 million, or ($0.78) per
share, basic and diluted, in the first quarter of fiscal 2023.
Non-GAAP net income was $63.9 million, or $0.54 per diluted share,
compared to non-GAAP net income of $16.9 million, or $0.14 per
share, basic and diluted, in the first quarter of fiscal 2023.
Business Highlights and Recent Developments
- Served 471,200 businesses using our solutions as of the end of
the first quarter.1
- Processed $70 billion in total payment volume in the first
quarter, an increase of 8% year-over-year.
- Processed 25 million transactions during the first quarter, an
increase of 26% year-over-year.
- Launched our integrated financial operations platform, which
offers SMBs integrated, category-leading Accounts Payable, Accounts
Receivable, and Spend and Expense management capabilities.
- John Rettig was promoted to President and CFO.
Financial Outlook
We are providing the following guidance for the fiscal second
quarter ending December 31, 2023 and the full fiscal year ending
June 30, 2024.
Q2 FY24
Guidance
FY24
Guidance
Total revenue (millions)
$293 - $303
$1,205 - $1,245
Year-over-year total revenue growth
13% - 17%
14% - 18%
Non-GAAP net income (millions)
$42 - $52
$195 - $235
Non-GAAP net income per diluted share
$0.35 - $0.44
$1.64 - $1.97
These statements are forward-looking and actual results may
differ materially. Refer to the Forward-Looking Statements safe
harbor below for information on the factors that could cause our
actual results to differ materially from these forward-looking
statements.
BILL has not provided a reconciliation of non-GAAP net loss or
non-GAAP net loss per share guidance measures to the most directly
comparable GAAP measures because certain items excluded from GAAP
cannot be reasonably calculated or predicted at this time.
Accordingly, a reconciliation is not available without unreasonable
effort.
1 Businesses using more than one of our solutions are included
separately in the total for each solution utilized.
Conference Call and Webcast Information
In conjunction with this announcement, BILL will host a
conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today
to discuss fiscal first quarter 2024 results and our outlook for
the fiscal second quarter ending December 31, 2023 and the fiscal
year ending June 30, 2024. The live webcast and a replay of the
webcast will be available at the Investor Relations section of
BILL’s website:
https://investor.bill.com/events-and-presentations/default.aspx.
About BILL
BILL (NYSE: BILL) is a leading financial operations platform for
small and midsize businesses (SMBs). As a champion of SMBs, we are
automating the future of finance so businesses can thrive. Our
integrated platform helps businesses to more efficiently control
their payables, receivables and spend and expense management.
Hundreds of thousands of businesses rely on BILL’s proprietary
member network of millions to pay or get paid faster. Headquartered
in San Jose, California, BILL is a trusted partner of leading U.S.
financial institutions, accounting firms, and accounting software
providers. For more information, visit bill.com.
Note on Forward-Looking Statements
This press release and the accompanying conference call contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which are statements
other than statements of historical facts, and statements in the
future tense. Forward-looking statements are based on our
expectations as of the date of this press release and are subject
to a number of risks, uncertainties and assumptions, many of which
involve factors or circumstances that are beyond our control. These
statements include, but are not limited to, statements regarding
our expectations of future performance, including guidance for our
total revenue, non-GAAP net income, and non-GAAP net income per
share for the fiscal second quarter ending December 31, 2023 and
full fiscal year ending June 30, 2024, our expectations for the
growth of demand on our platform and the expansion of our
customers’ utilization of our services. These risks and
uncertainties include, but are not limited to macroeconomic
factors, including changes in interest rates, inflation and
volatile market environments, as well as fluctuations in foreign
exchange rates, our history of operating losses, our recent rapid
growth, the large sums of customer funds that we transfer daily,
the risk of loss, errors and fraudulent activity, credit risk
related to our BILL Divvy Corporate Cards, our ability to attract
new customers and convert trial customers into paying customers,
our ability to develop new products and services, increased
competition or new entrants in the marketplace, potential impacts
of acquisitions and investments, including our ability to integrate
acquired businesses, incorporate their technology effectively and
implement appropriate internal controls at such businesses our
relationships with accounting firms and financial institutions, and
the global impacts of the conflicts in Ukraine and in Israel, and
other risks detailed in the registration statements and periodic
reports we file with the SEC, including our quarterly and annual
reports, which may be obtained on the Investor Relations section of
BILL’s website
(https://investor.bill.com/financials/sec-filings/default.aspx) and
on the SEC website at www.sec.gov. You should not rely on these
forward-looking statements, as actual results may differ materially
from those contemplated by these forward-looking statements as a
result of such risks and uncertainties. All forward-looking
statements in this press release are based on information available
to us as of the date hereof. We assume no obligation to update or
revise the forward-looking statements contained in this press
release or the accompanying conference call because of new
information, future events, or otherwise.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press
release and the accompanying tables contain, and the conference
call will contain, non-GAAP financial measures, including non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating expenses,
non-GAAP income from operations, non-GAAP net income and non-GAAP
net income per share, basic and diluted. The non-GAAP financial
information is presented for supplemental informational purposes
only and is not intended to be considered in isolation or as a
substitute for, or superior to, financial information prepared and
presented in accordance with GAAP.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. Items excluded from non-GAAP gross profit and
non-GAAP gross margin include amortization of certain intangible
assets, stock-based compensation and related payroll taxes, and
depreciation expense. Items excluded from non-GAAP operating
expenses include amortization of certain intangible assets,
stock-based compensation and related payroll taxes, depreciation
expense, and acquisition and integration-related expenses. Items
excluded from non-GAAP net income and non-GAAP net income per share
include stock-based compensation expense and related payroll taxes,
depreciation expense, amortization of certain intangible assets,
acquisition and integration-related expenses, amortization of debt
issuance costs, accretion of debt premium and income tax effect
associated with acquisitions and non-GAAP adjustments. It is
important to note that the particular items we exclude from, or
include in, our non-GAAP financial measures may differ from the
items excluded from, or included in, similar non-GAAP financial
measures used by other companies in the same industry.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects and
allow for greater transparency with respect to important metrics
used by our management for financial and operational
decision-making. We believe that these measures provide an
additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in
our industry.
We adjust the following items from one or more of our non-GAAP
financial measures:
Stock-based compensation and related payroll taxes charged to
cost of revenue and operating expenses. We exclude stock-based
compensation, which is a non-cash expense, and related payroll
taxes from certain of our non-GAAP financial measures because we
believe that excluding these items provide meaningful supplemental
information regarding operational performance. In particular,
companies calculate stock-based compensation expenses using a
variety of valuation methodologies and subjective assumptions while
the related payroll taxes are dependent on the price of our common
stock and other factors that are beyond our control and do not
correlate to the operation of our business.
Depreciation expense. We exclude depreciation expense from
certain of our non-GAAP financial measures because we believe that
excluding this non-cash expense provides meaningful supplemental
information regarding operational performance. Depreciation expense
does not include amortization of capitalized internal-use software
costs paid in cash.
Amortization of intangible assets. We exclude amortization of
acquired intangible assets from certain of our non-GAAP financial
measures because we believe that excluding this non-cash expense
provides meaningful supplemental information regarding our
operational performance.
Acquisition and integration-related expenses. We exclude
acquisition and integration-related expenses from certain of our
non-GAAP financial measures because these costs would have not
otherwise been incurred in the normal course of our business
operations. In addition, we believe that acquisition and
integration-related expenses are non-recurring charges unique to a
specific acquisition. Although we may engage in future
acquisitions, such acquisitions and the associated acquisition and
integration-related expenses are considered unique and not
comparable to other acquisitions.
Amortization of debt issuance costs, net of accretion premium.
We exclude amortization of debt issuance costs associated with our
issuance of our convertible senior notes and credit arrangement and
accretion of debt premium associated with our credit agreement from
certain of our non-GAAP financial measures because we believe that
excluding this non-cash interest expense provides meaningful
supplemental information regarding our operational performance.
Income tax effect associated with acquisitions. We exclude the
income tax effect associated with acquisitions from certain of our
non-GAAP financial measures because we believe that excluding this
provides meaningful supplemental information regarding our
operational performance.
There are material limitations associated with the use of
non-GAAP financial measures since they exclude significant expenses
and income that are required by GAAP to be recorded in our
financial statements. Please see the reconciliation tables at the
end of this release for the reconciliation of GAAP and non-GAAP
results.
Free Cash Flow
Free cash flow is a non-GAAP measure that we calculate as net
cash provided by (used in) operating activities, adjusted by
purchases of property and equipment and capitalization of
internal-use software costs. We believe that free cash flow is an
important liquidity measure of the cash that is available, after
capital expenditures, for operational expenses and investment in
our business. Free cash flow is useful to investors as a liquidity
measure because it measures our ability to generate or use cash.
One limitation of free cash flow is that it does not reflect our
future contractual commitments. Additionally, free cash flow does
not represent the total increase or decrease in our cash balance
for a given period. Once our business needs and obligations are
met, cash can be used to maintain a strong balance sheet and invest
in future growth.
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in thousands)
September 30,
2023
June 30,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,527,182
$
1,617,151
Short-term investments
1,119,456
1,043,110
Accounts receivable, net
24,100
28,233
Acquired card receivables, net
552,827
458,650
Prepaid expenses and other current
assets
195,027
170,111
Funds held for customers
3,263,528
3,355,909
Total current assets
6,682,120
6,673,164
Non-current assets:
Operating lease right-of-use assets,
net
66,600
68,988
Property and equipment, net
85,294
81,564
Intangible assets, net
341,206
361,427
Goodwill
2,396,509
2,396,509
Other assets
48,654
54,366
Total assets
$
9,620,383
$
9,636,018
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
6,491
$
8,519
Accrued compensation and benefits
23,030
32,901
Deferred revenue
19,489
26,328
Other accruals and current liabilities
252,932
194,733
Borrowings from credit facilities, net
135,033
135,046
Customer fund deposits
3,263,528
3,355,909
Total current liabilities
3,700,503
3,753,436
Non-current liabilities:
Deferred revenue
4,800
410
Operating lease liabilities
69,969
72,477
Convertible senior notes, net
1,706,494
1,704,782
Other long-term liabilities
20,504
18,944
Total liabilities
5,502,270
5,550,049
Commitments and contingencies
Stockholders' equity:
Common stock
2
2
Additional paid-in capital
5,022,021
4,946,623
Accumulated other comprehensive loss
(3,813
)
(4,488
)
Accumulated deficit
(900,097
)
(856,168
)
Total stockholders' equity
4,118,113
4,085,969
Total liabilities and stockholders'
equity
$
9,620,383
$
9,636,018
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands except
per share amounts)
Three Months Ended
September 30,
2023
2022
Revenue
Subscription and transaction fees (2)
$
265,142
$
214,611
Interest on funds held for customers
39,843
15,313
Total revenue
304,985
229,924
Cost of revenue
Service costs (2)
44,904
34,820
Depreciation and amortization of
intangible assets (1)
11,122
10,287
Total cost of revenue
56,026
45,107
Gross profit
248,959
184,817
Operating expenses
Research and development (2)
89,065
75,121
Sales and marketing (2)
118,398
118,633
General and administrative (2)
85,326
66,738
Depreciation and amortization of
intangible assets (1)
12,817
12,019
Total operating expenses
305,606
272,511
Loss from operations
(56,647
)
(87,694
)
Other income, net
29,308
5,947
Loss before provision for (benefit from)
income taxes
(27,339
)
(81,747
)
Provision for (benefit from) income
taxes
522
(107
)
Net loss
$
(27,861
)
$
(81,640
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.26
)
$
(0.78
)
Weighted-average number of common shares
used to compute net loss per share attributable to common
stockholders, basic and diluted
106,817
105,086
____________________
(1)
Depreciation expense does not include
amortization of capitalized internal-use software costs paid in
cash.
(2)
Includes stock-based compensation charged
to revenue and expenses as follows (in thousands):
Three Months Ended
September 30,
2023
2022
Revenue - subscription and transaction
fees
$
370
$
—
Cost of revenue
2,547
2,001
Research and development
27,365
20,851
Sales and marketing
13,885
29,258
General and administrative
20,980
20,510
Total stock-based compensation (3)
$
65,147
$
72,620
(3)
Consists of acquisition related equity
awards (Acquisition Related Awards), including equity awards
assumed and retention equity awards granted to certain employees of
acquired companies in connection with acquisitions, and
non-acquisition related equity awards (Non-Acquisition Related
Awards), which include all other equity awards granted to existing
employees and non-employees in the ordinary course of business. The
following table presents stock-based compensation recorded for the
periods presented and as a percentage of total revenue:
Three Months Ended
September 30,
As a % of total
revenue
Three Months Ended
September 30,
2023
2022
2023
2022
Acquisition Related Awards
$
5,066
$
28,953
1
%
13
%
Non-Acquisition Related Awards
60,081
43,667
20
%
19
%
Total stock-based compensation
$
65,147
$
72,620
21
%
32
%
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended
September 30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(27,861
)
$
(81,640
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Stock-based compensation
65,147
72,620
Amortization of intangible assets
20,221
19,769
Depreciation of property and equipment
3,718
2,546
Amortization of capitalized internal-use
software costs
1,352
924
Amortization of debt issuance costs, net
of accretion of debt premium
1,761
1,712
Amortization of premium (accretion of
discount) on investments in marketable debt securities
(13,093
)
(2,215
)
Provision for losses on acquired card
receivables and other financial assets
12,401
6,611
Non-cash operating lease expense
2,388
2,342
Deferred income taxes
(42
)
(299
)
Other
(562
)
930
Changes in assets and liabilities:
Accounts receivable
3,707
(4,774
)
Prepaid expenses and other current
assets
(4,704
)
(1,339
)
Other assets
(1,074
)
(1,138
)
Accounts payable
(2,508
)
1,511
Other accruals and current liabilities
(2,286
)
4,247
Operating lease liabilities
(2,423
)
(2,386
)
Other long-term liabilities
(32
)
34
Deferred revenue
(2,449
)
(1,303
)
Net cash provided by operating
activities
53,661
18,152
Cash flows from investing
activities:
Purchases of corporate and customer fund
short-term investments
(399,588
)
(859,911
)
Proceeds from maturities of corporate and
customer fund short-term investments
757,169
838,099
Purchases of loans held for investment
(32,756
)
—
Principal repayments of loans held for
investment
25,330
—
Acquired card receivables, net
(42,333
)
(107,943
)
Purchases of property and equipment
(403
)
(1,376
)
Capitalization of internal-use software
costs
(5,645
)
(4,764
)
Proceeds from beneficial interest
—
2,080
Other
—
500
Net cash provided by (used in) investing
activities
301,774
(133,315
)
Cash flows from financing
activities:
Customer fund deposits liability and
other
(91,190
)
(25,472
)
Prepaid card deposits
(13,979
)
10,923
Repurchase of common stock
(12,061
)
—
Proceeds from exercise of stock
options
2,946
3,901
Proceeds from issuance of common stock
under the employee stock purchase plan
7,846
8,494
Contingent consideration payout
(5,471
)
—
Net cash used in financing activities
(111,909
)
(2,154
)
Effect of exchange rate changes on
cash, cash equivalents, restricted cash and restricted cash
equivalents
(180
)
(277
)
Net increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
243,346
(117,594
)
Cash, cash equivalents, restricted
cash, and restricted cash equivalents, beginning of period
4,224,840
3,542,715
Cash, cash equivalents, restricted
cash, and restricted cash equivalents, end of period
$
4,468,186
$
3,425,121
Reconciliation of cash, cash
equivalents, restricted cash, and restricted cash equivalents
within the condensed consolidated balance sheets to the amounts
shown in the condensed consolidated statements of cash flows
above:
Cash and cash equivalents
$
1,527,182
$
1,608,966
Restricted cash included in other current
assets
98,313
71,629
Restricted cash included in other
assets
7,088
6,724
Restricted cash and restricted cash
equivalents included in funds held for customers
2,835,603
1,737,802
Total cash, cash equivalents,
restricted cash, and restricted cash equivalents, end of
period
$
4,468,186
$
3,425,121
BILL HOLDINGS, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands except
percentages and per share amounts)
Three Months Ended
September 30,
2023
2022
Reconciliation of gross profit:
GAAP gross profit
$
248,959
$
184,817
Add:
Depreciation and amortization of
intangible assets (1)
11,122
10,287
Stock-based compensation and related
payroll taxes charged to cost of revenue
2,628
2,066
Non-GAAP gross profit
$
262,709
$
197,170
GAAP gross margin
81.6
%
80.4
%
Non-GAAP gross margin
86.1
%
85.8
%
____________________
(1)
Consists of depreciation of property and
equipment and amortization of developed technology, excluding
amortization of capitalized internal-use software costs paid in
cash.
Three Months Ended
September 30,
2023
2022
Reconciliation of operating
expenses:
GAAP research and development expenses
$
89,065
$
75,121
Less - stock-based compensation and
related payroll taxes
(27,887
)
(21,357
)
Non-GAAP research and development
expenses
$
61,178
$
53,764
GAAP sales and marketing expenses
$
118,398
$
118,633
Less - stock-based compensation and
related payroll taxes
(14,082
)
(30,192
)
Non-GAAP sales and marketing expenses
$
104,316
$
88,441
GAAP general and administrative
expenses
$
85,326
$
66,738
Less:
Stock-based compensation and related
payroll taxes
(21,387
)
(20,918
)
Acquisition and integration-related
expenses
(97
)
—
Non-GAAP general and administrative
expenses
$
63,842
$
45,820
Three Months Ended
September 30,
2023
2022
Reconciliation of loss from
operations:
GAAP loss from operations
$
(56,647
)
$
(87,694
)
Add:
Depreciation and amortization of
intangible assets (1)
23,939
22,306
Stock-based compensation and related
payroll taxes charged to cost of revenue and operating expenses
65,984
74,533
Acquisition and integration-related
expenses
97
—
Non-GAAP income from operations
$
33,373
$
9,145
____________________
(1)
Excludes amortization of capitalized
internal-use software costs paid in cash.
Three Months Ended
September 30,
2023
2022
Reconciliation of net loss:
GAAP net loss
$
(27,861
)
$
(81,640
)
Add (less):
Depreciation and amortization of
intangible assets (1)
23,939
22,306
Stock-based compensation and related
payroll taxes charged to cost of revenue and operating expenses
65,984
74,533
Acquisition and integration-related
expenses
97
—
Amortization of debt issuance costs, net
of accretion of debt premium
1,761
1,712
Income tax effect associated with
acquisitions
(42
)
—
Non-GAAP net income
$
63,878
$
16,911
____________________
(1)
Excludes amortization of capitalized
internal-use software costs paid in cash.
Three Months Ended
September 30,
2023
2022
Reconciliation of net loss per share
attributable to common stockholders, basic and
diluted
GAAP net loss per share attributable to
common stockholders, basic and diluted
$
(0.26
)
$
(0.78
)
Add:
Depreciation and amortization of
intangible assets (1)
0.22
0.21
Stock-based compensation and related
payroll taxes charged to cost of revenue and operating expenses
0.62
0.71
Acquisition and integration-related
expenses
0.00
—
Amortization of debt issuance costs, net
of accretion of debt premium
0.02
0.02
Income tax effect associated with
acquisitions
0.00
—
Non-GAAP net income per share attributable
to common stockholders, basic
$
0.60
$
0.16
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.54
$
0.14
____________________
(1)
Excludes amortization of capitalized
internal-use software costs paid in cash.
Three Months Ended
September 30,
2023
2022
Shares used to compute GAAP and non-GAAP
net income (loss) per share attributable to common stockholders,
basic
106,817
105,086
Shares used to compute GAAP and non-GAAP
net income (loss) per share attributable to common stockholders,
diluted
117,948
117,191
BILL HOLDINGS, INC.
FREE CASH FLOW
(Unaudited, in thousands)
Three Months Ended
September 30,
2023
2022
Net cash provided by operating
activities
$
53,661
$
18,152
Purchases of property and equipment
(403
)
(1,376
)
Capitalization of internal-use software
costs
(5,645
)
(4,764
)
Free cash flow
$
47,613
$
12,012
BILL HOLDINGS, INC.
REMAINING PERFORMANCE
OBLIGATIONS
(Unaudited, in thousands)
September 30,
2023
June 30,
2023
Remaining performance obligations to be
recognized as revenue:
Within 2 years
$
101,596
$
101,177
Thereafter
23,518
29,960
Total
$
125,114
$
131,137
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102041787/en/
IR Contact: Karen Sansot ksansot@hq.bill.com
Press Contact: John Welton john.welton@hq.bill.com
BILL (NYSE:BILL)
過去 株価チャート
から 4 2024 まで 5 2024
BILL (NYSE:BILL)
過去 株価チャート
から 5 2023 まで 5 2024