BILL Holdings Inc (FRA:0M5)
€ 68.01 7.83 (13.01%) Market Cap: 7.41 Bil Enterprise Value: 6.95 Bil PE Ratio: 0 PB Ratio: 1.70 GF Score: 71/100

Q3 2024 BILL Holdings Inc Earnings Call Transcript

May 02, 2024 / 08:30PM GMT
Release Date Price: €56.69 (-4.93%)

Key Points

Positve
  • BILL Holdings Inc reported strong revenue growth of 19% year-over-year, with total revenue reaching $323 million in Q3.
  • Non-GAAP operating income saw a significant increase of 68% year-over-year, demonstrating effective cost management and operational efficiency.
  • The company's platform processed nearly 100 million transactions in the past 12 months, representing approximately 1% of U.S. GDP, highlighting its substantial scale and impact.
  • BILL's customer base expanded with the addition of 450,000 small businesses using the platform to automate their financial operations, emphasizing strong market adoption.
  • The company successfully integrated new capabilities into its platform, such as cash flow insight and forecasting, enhancing the value proposition for SMBs.
Negative
  • Despite overall growth, BILL Holdings Inc noted a decline in stand-alone subscription revenue from financial institution partners, indicating potential challenges in this segment.
  • The company experienced increased credit and fraud loss rates, particularly among smaller customer cohorts, suggesting vulnerabilities in risk management.
  • BILL's net new customer adds in the financial institution channel declined due to the removal of inactive customers, raising concerns about customer engagement and retention.
  • There was a one-time benefit that artificially boosted non-GAAP gross profit, which may not be indicative of ongoing financial health.
  • The company faces ongoing macroeconomic uncertainties, including high inflation and interest rates, which could negatively impact SMB spending and overall market conditions.
Operator

Good afternoon and welcome to BILL's Third Quarter Fiscal 2024 Earnings Conference Call. Joining us for today's call are BILL's CEO, Rene Lacerte; President and CFO, John Rettig; and VP of Investor Relations, Karen Sansot.

With that, I'd like to turn the call over to Karen Sansot for introductory remarks. Karen?

Karen Sansot
BILL Holdings, Inc. - Executive of IR

Thank you, operator. Welcome to BILL's Fiscal Third Quarter 2024 Earnings Conference Call. We issued our earnings press release a short time ago and furnished the related Form 8-K to the SEC. The press release can be found on the Investor Relations section of our website at investor.bill.com. With me on the call today are Rene Lacerte, Chairman, CEO and Founder of BILL; and John Rettig, President and CFO.

Before we begin, please remember that during the course of this call, we may make forward-looking statements about the future operations and results of BILL that involve many assumptions, risks and uncertainties. If any of these risks or uncertainties develop or if any of the

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