Q1 2025 BILL Holdings Inc Earnings Call Transcript
Key Points
- BILL Holdings Inc (BILL) delivered strong financial results in Q1, with core revenue growth of 19% year over year, exceeding expectations.
- The company achieved a non-GAAP operating income margin of 19%, an increase of 8 percentage points from the previous year.
- BILL expanded its free cash flow margin to 23%, reflecting a 7-percentage-point increase from last year.
- The company empowered over 475,000 businesses to automate their financial operations, managing $80 billion in total payment volume across 29 million transactions.
- BILL's integrated platform continues to resonate with SMBs, driving increased customer acquisition and higher payment volume per customer.
- Despite strong results, there remains uncertainty in the macroeconomic environment, which could impact future growth.
- The company expects transaction monetization to remain stable in Q2, with only a modest uptick anticipated in the second half of the fiscal year.
- BILL's guidance for Q2 indicates a sequential increase in operating expenses due to accelerated hiring, which may impact profitability.
- The company is still in the early stages of scaling new products like invoice financing, which may result in higher loss rates initially.
- BILL's core revenue growth is expected to decelerate in Q2, reflecting ongoing economic uncertainties and a cautious outlook.
Good afternoon and welcome to BILL'S first quarter fiscal 2025 earnings conference call. Joining us today are BILL's CEO and Founder, Rene Lacerte; President and CFO, John Rettig; and Vice President of Investor Relations, Karen Sansot.
With that, I'd like to turn the call over to Karen Sansot for introductory remarks. Karen?
Thank you, operator, and welcome to BILL's fiscal first-quarter 2025 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, targets, and results of BILL that involve many assumptions, risks, and uncertainties. If any of these risks or uncertainties
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