Bill.com beats Q4 expectations, guides Q1 revenue above consensus; shares pop

SAN JOSE, Calif. - Bill.com Holdings Inc. (NYSE: NYSE:BILL ) reported better-than-expected fourth-quarter results and provided first-quarter revenue guidance above analyst estimates, while its full-year outlook came in mixed.

The company's shares popped over 5% in premarket trading Friday. 

The financial operations platform for small and midsize businesses posted adjusted earnings per share of $0.57 for Q4, surpassing the analyst consensus of $0.46. Revenue rose 16% YoY to $343.7 million, exceeding expectations of $328.06 million.

"Fiscal 2024 was an important year for BILL as we fortified our position as the essential financial operations platform for SMBs," said CEO René Lacerte. "We launched our integrated platform, provided SMBs with access to capital, and empowered businesses with additional insights and control of their cash flow."

For the first quarter, Bill.com expects revenue between $346-351 million, above the $337 million consensus. However, its Q1 EPS guidance of $0.48-$0.51 fell short of the $0.51 estimate.

The company's full-year fiscal 2025 outlook was mixed. It sees revenue of $1.42-1.45 billion, in line with the $1.44 billion consensus. But its EPS forecast of $1.36-$1.61 came in well below expectations of $2.23.

Bill.com also announced a new $300 million share repurchase program, citing confidence in its strategy and future growth potential.

The company served 474,600 businesses using its solutions at the end of Q4. It processed $76 billion in total payment volume, up 10% YoY.

Following the report's release, BTIG analysts said: 

"Overall, this was a strong quarter and mgmt. seems more confident in the broader stabilization of trends in the customer base, but with the added spending and lack of upside indicators in the business, we remain Neutral for now until we see greater momentum in the business to truly underwrite a return to 20%-plus growth."

Meanwhile, Morgan Stanley analysts said this is the second consecutive quarter showing stabilization in BILL's key metrics, suggesting that the company "has regained its footing."

"A stable macro and improving momentum from new initiatives drive management's expectation for 20%+ growth in FY26, but may take some time for investors to buy into that acceleration," they added, reiterating an Equal Weight rating on the stock. 

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com