NYSE$BILL

BILL Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

BILL reported strong Q3 2023 results with profitable growth, executing its strategy to be the essential financial operations platform for SMBs.

BILL's Q3 2023 total revenue increased by 63% year-over-year to $272.6 million. The company served over 450,000 businesses and processed $64.7 billion in total payment volume. Non-GAAP net income was $58.7 million, or $0.50 per diluted share.

  • Total revenue increased 63% year-over-year to $272.6 million.
  • Core revenue (subscription and transaction fees) increased 45% year-over-year to $239.5 million.
  • Gross profit was $223.7 million, representing an 82.1% gross margin.
  • Non-GAAP net income was $58.7 million, or $0.50 per diluted share.

Headline financials

Total Revenue

$273M

Previous: $167M+63.3%
EPS (adj)

$0.50

Previous: -$0.08+725.0%
Capital Expenditures

-$6.5M

Previous: -$3.76M-72.9%
Free Cash Flow

-$37.6M

Previous: -$90.5M+58.4%
Net Income

-$31.1M

Previous: -$86.7M+64.1%
Operating Income

-$54.2M

Previous: -$83.2M+34.8%
Gross Profit

$224M

Previous: $130M+72.7%
Cash & Equivalents

$1.59B

Previous: $1.64B-3.0%
Total Assets

$9.38B

Previous: $9.18B+2.1%
Stock-Based Comp

$63.8M

Previous: $52.8M+20.8%

Revenue & EPS history

BILL · Revenue · Quarterly

$273M

Q3 2023+63.3%vs Q3 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

BILL · $273M total across 2 segments · Q3 2023

  • Subscription and transaction fees
    $240M+44.7%
  • Interest on funds held for customers
    $33.1M

Forward guidance

BILL provides guidance for the fiscal fourth quarter ending June 30, 2023, and the full fiscal year ending June 30, 2023. They expect Q4 total revenue of $277 - $280 million, representing 38%-40% year-over-year growth. Non-GAAP net income is expected to be $45.4 - $48.4 million, or $0.39 - $0.41 per diluted share. For the full fiscal year, revenue is projected to be $1,039.5 - $1,042.5 million, with non-GAAP net income of $170.4 - $173.4 million, or $1.46 - $1.48 per diluted share.

Tailwinds

  • Expects Q4 total revenue of $277 - $280 million.
  • Projects Q4 year-over-year total revenue growth of 38% - 40%.
  • Anticipates Q4 non-GAAP net income of $45.4 - $48.4 million.
  • Forecasts Q4 non-GAAP net income per diluted share of $0.39 - $0.41.
  • Full fiscal year revenue is projected to be $1,039.5 - $1,042.5 million.

Headwinds

  • Actual results may differ materially due to various risks and uncertainties.
  • Macroeconomic factors, including interest rates and inflation, could impact performance.
  • Instability in the U.S. and global banking systems poses a risk.
  • The ongoing war in Ukraine and the COVID-19 pandemic could have an impact.
  • BILL has not provided a reconciliation of non-GAAP net income or non-GAAP net income 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+4.1%

Avg return

Earnings day

+4.3%

Avg return

5 days after

+1.8%

Avg return

30 days after

56%

14 / 25 earnings

Positive

+37.6%

Q2 2021

Best reaction

-35.5%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+10.9%+6.3%-4.3%
Q2 2026+37.2%+31.8%+26.3%
Q1 2026+2.7%+17.0%+20.5%
Q3 2025-6.1%+1.0%-4.1%
Q2 2025-35.5%-36.6%-51.0%
Q1 2025+19.5%+37.5%+50.5%
Q4 2024-8.0%+3.9%+5.4%
Q3 2024-9.9%-8.2%-17.1%
Q2 2024-12.6%-16.2%-8.4%
Q1 2024-24.2%-28.4%-22.8%
Q4 2023+5.7%+3.5%+4.3%
Q3 2023+19.6%+22.5%+36.7%
Q2 2023-20.7%-15.2%-24.0%
Q1 2023-8.7%-10.5%+4.4%
Q4 2022+15.1%+8.3%-1.5%
Q3 2022-31.0%-38.9%-27.4%
Q2 2022+25.5%+27.9%+11.1%
Q1 2022+14.1%+16.7%-19.2%
Q4 2021+29.4%+25.1%+24.5%
Q3 2021+10.7%+5.5%+6.5%
Q2 2021+37.6%+29.5%+11.0%
Q1 2021-6.1%-12.2%+16.1%
Q4 2020-2.6%-4.5%-7.6%
Q3 2020+26.9%+19.7%+6.5%
Q2 2020+12.4%+22.2%+8.0%
Q1 2020
Q4 2019
Q3 2019
Q2 2018
Q1 2018

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