- Total Revenue: $1.3 billion for fiscal 2024, up 22% year-over-year.
- Core Revenue: Exceeded $1 billion for the first time.
- Non-GAAP Operating Income: Nearly $200 million, growing 68% year-over-year.
- Businesses Served: Nearly half a million businesses.
- Payment Volume: Nearly $300 billion in volume.
- Payment Transactions: More than 100 million payment transactions.
- Network Members: Increased to 7.1 million, up 21% year-over-year.
- Q4 Total Revenue: $344 million, up 16% year-over-year.
- Q4 Core Revenue: $301 million, up 16% year-over-year.
- Q4 Non-GAAP Operating Income: $60 million, up 42% year-over-year.
- Q4 Non-GAAP Gross Profit: $292 million, up 14% year-over-year.
- Q4 Non-GAAP Gross Margin: 85%.
- Fiscal 2024 Free Cash Flow: $258 million.
- Fiscal 2024 Non-GAAP Operating Income Excluding Float Revenue: $31 million, compared to $4 million a year ago.
- Fiscal 2024 Stock Repurchase: $212 million in common stock repurchased.
- Fiscal 2024 Convertible Notes Retired: $983 million in aggregate principal amount.
- Q4 BILL Standalone Revenue: $161 million, up 8% year-over-year.
- Q4 BILL Standalone Subscription Revenue: Increased 7% year-over-year.
- Q4 BILL Standalone Transaction Revenue: Grew 14% year-over-year.
- Q4 Spend and Expense Revenue: $126 million, up 26% year-over-year.
- Q4 Card Payment Volume Growth: 28%.
- Q4 Interchange Fees: 261 basis points.
- Q4 Ad Valorem Penetration: 14%, up from 13% a year ago.
- Fiscal 2025 Revenue Guidance: $1,415 million to $1,450 million, reflecting 10% to 12% year-over-year growth.
- Fiscal 2025 Core Revenue Guidance: $1,270 million to $1,305 million, reflecting 13% to 16% year-over-year growth.
- Fiscal 2025 Float Revenue Guidance: Approximately $145 million.
- Fiscal 2025 Non-GAAP Operating Income Guidance: $160 million to $195 million.
- Fiscal 2025 Non-GAAP Net Income Guidance: $154 million to $182 million.
- Fiscal 2025 Non-GAAP Net Income Per Diluted Share Guidance: $1.36 to $1.61.
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BILL Holdings Inc (BILL, Financial) reported a total revenue of $1.3 billion for fiscal 2024, marking a 22% year-over-year increase.
- The company achieved substantial profitability expansion with non-GAAP operating income totaling nearly $200 million, growing 68% year-over-year.
- BILL Holdings Inc (BILL) served nearly half a million businesses and facilitated more than $100 million payment transactions in fiscal 2024.
- The number of joint customers using both BILL AP and spend and expense solutions increased by nearly 60% year-over-year to 11,500.
- The company announced a new $300 million share repurchase program, reflecting confidence in its strategy and investment potential.
Negative Points
- Economic headwinds and shifting SMB behaviors posed challenges during the fiscal year.
- Vendor cost sensitivity impacted the penetration rates of some higher monetization products.
- The annual customer retention rate for BILL standalone customers was 83%, which is relatively low.
- Dollar-based net revenue retention rate for BILL standalone was 92%, impacted by lower spend environment and changes in financial institution partnerships.
- The company expects to make incremental investments of approximately $45 million in fiscal 2025, which may moderate profitability growth in the near term.
Q & A Highlights
Q: Could you unpack the impact of the FI channel renewal on quarterly subscription revenue from the embedded solutions part of the business?
A: Our RPO as of the end of the year is about $87 million. The contract with our large FI partner has been extended for three years, spreading the revenue recognition over four years. We are also integrating our newest APIs to support the bank's new program.
Q: How should we think about the monetization of ad valorem payments and the mix of payment methods impacting the take rate?
A: We are making investments to improve existing product experiences and drive payment speed, which will help expand volumes and monetization. We see card payments becoming a larger part of the payment mix, contributing to our long-term goal of 20% ad valorem penetration.
Q: How quickly do you expect to spend the $45 million in investments, and what kind of return or payback do you expect?
A: The investments will be spread throughout the year, with a slight front-loading. We expect these investments to help us achieve 20% core revenue growth in fiscal 2026 and drive multi-year growth and profitability expansion.
Q: Are these new investments driven by new opportunities or competitive changes?
A: These are offensive investments driven by opportunities to expand value for our customers. We are enhancing existing solutions, augmenting supplier experiences, deepening accounting relationships, and driving ecosystem expansion.
Q: Can you provide more details on the environment for supplier acceptance and the impact of supplier enablement teams?
A: Suppliers prefer electronic payments over checks and need better reconciliation and automation. We are investing in R&D and go-to-market strategies to create more value for suppliers, improving their experience and engagement.
Q: What are your thoughts on the macro environment heading into FY '25 and its impact on TPV per customer?
A: We have seen consistent behaviors from small businesses, with stable TPV per customer. We expect a similar environment throughout FY '25, with no rapid rebound or deterioration in B2B spending.
Q: Can you quantify the early impact of supplier financing and its role in your reacceleration story for fiscal '26?
A: Invoice financing is in early stages, but customers are showing strong adoption and repeat usage. It will be a significant driver of ad valorem revenue expansion in fiscal '26 and beyond.
Q: How does the cross-sell between AP and spend and expense solutions impact customer retention and overall value?
A: Cross-selling these solutions leads to better retention and increased usage across the platform. Customers benefit from a unified financial operations experience, driving more value and engagement.
Q: What is the strategy for the financial institution channel, and how does it compare to the accounting channel?
A: Our long-term strategy is to surround the market with distribution channels and be at the center of each. We are expanding our reach with financial institutions and new partners like Xero, while continuing to strengthen our accounting channel.
Q: What is assumed in your guidance for take rate and RPO dynamics with the large FI partner?
A: We expect a flat take rate with an uptick in the second half of the year. The RPO associated with the large FI partner remains roughly the same, spread over four years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
