- Q2 Core Revenue Increased 16% Year-Over-Year
- Q2 Total Revenue Increased 14% Year-Over-Year
BILL (NYSE: BILL), a leading financial operations platform for
small and midsize businesses (SMBs), today announced financial
results for the second fiscal quarter ended December 31, 2024.
“We delivered strong financial results and innovated at a rapid
pace as we executed on our vision to be the de facto intelligent
financial operations platform for SMBs,” said René Lacerte, BILL
CEO and Founder. “We are leveraging our leadership position to
empower small and mid-sized businesses and the partners that we
serve, and we are extending our lead by expanding the depth and
breadth of our platform and diverse distribution ecosystem. Today,
more than 480,000 businesses rely on BILL to manage their
day-to-day financial workflow. We are moving fast to address a vast
market opportunity to transform the financial operations for
millions of SMBs.”
“In Q2, we delivered strong financial results, expanded our
non-GAAP operating margin, and continued our track record of
execution across the company,” said John Rettig, BILL President and
CFO. “We are executing on our strategic priorities and are
confident that our strong business model will allow us to drive
years of durable growth, an attractive long-term profitability
profile, and sustained value generation for shareholders.”
Financial Highlights for the Second Quarter of Fiscal
2025:
- Total revenue was $362.6 million, an increase of 14%
year-over-year.
- Core revenue, which consists of subscription and transaction
fees, was $319.6 million, an increase of 16% year-over-year.
Subscription fees were $67.7 million, up 7% year-over-year.
Transaction fees were $251.9 million, up 19% year-over-year.
- Float revenue, which consists of interest on funds held for
customers, was $42.9 million.
- Gross profit was $295.9 million, representing an 81.6% gross
margin, compared to $260.1 million, or an 81.7% gross margin, in
the second quarter of fiscal 2024. Non-GAAP gross profit was $308.9
million, representing an 85.2% non-GAAP gross margin, compared to
$273.7 million, or an 85.9% non-GAAP gross margin, in the second
quarter of fiscal 2024.
- Operating loss was $21.7 million, compared to an operating loss
of $67.7 million in the second quarter of fiscal 2024. Non-GAAP
operating income was $62.8 million, compared to $44.3 million in
the second quarter of fiscal 2024, an increase of 41.8%
year-over-year.
- Net income was $33.5 million, or $0.33 and $(0.06) per share,
basic and diluted, respectively, compared to net loss of $40.4
million, or $(0.38) per basic and diluted share, in the second
quarter of fiscal 2024. Non-GAAP net income was $62.9 million, or
$0.56 per diluted share, compared to non-GAAP net income of $60.0
million, or $0.51 per diluted share, in the second quarter of
fiscal 2024.
Business Highlights and Recent Developments:
- Served 481,300 businesses using our solutions as of the end of
the second quarter.1
- Processed $84 billion in total payment volume in the second
quarter, an increase of 13% year-over-year.
- Processed 30 million transactions during the second quarter, an
increase of 17% year-over-year.
- Completed an offering of $1.4 billion of 0% convertible senior
notes due 2030, including full exercise of initial purchasers’ $150
million option to purchase additional notes.
- Repurchased approximately $134 million aggregate principal
amount of our outstanding 0% Convertible Senior Notes due 2025 and
approximately $451 million aggregate principal amount of our
outstanding 0% Convertible Senior Notes due 2027.
- Repurchased approximately 2.3 million shares of BILL common
stock in the second quarter for a total cost of approximately $200
million.
- Added seasoned executives, Keri Gohman and Dan Wernikoff, to
our board of directors.
____________________
1 Businesses using more than one of our solutions are included
separately in the total for each solution utilized.
Financial Outlook
We are providing the following guidance for the fiscal third
quarter ending March 31, 2025 and the full fiscal year ending June
30, 2025.
Q3 FY25
Guidance
FY25
Guidance
Total revenue (millions)
$352.5 - $357.5
$1,454.0 - $1,469.0
Year-over-year total revenue growth
9% - 11%
13% - 14%
Core revenue (millions)
$317.5 - $322.5
$1,297.0 - $1,312.0
Year-over-year core revenue growth
13% - 15%
16% - 17%
Non-GAAP operating income (millions)
$38.0 - $43.0
$207.5 - $222.5
Non-GAAP net income (millions)
$42.0 - $46.0
$216.0 - $228.0
Non-GAAP net income per diluted share
$0.35 - $0.38
$1.87 - $1.97
The outlook for non-GAAP net income and non-GAAP net income per
diluted share includes a non-GAAP provision for income taxes of
20%. The outlook for non-GAAP net income takes into account the use
of corporate cash for investment and other strategic capital
allocation, including but not limited to the share repurchase
program announced in August 2024. The outlook for non-GAAP net
income per diluted share does not take any future repurchases of
BILL shares into account, as its impact on a per diluted share
basis is not reasonably estimable.
These statements are forward-looking and actual results may
differ materially. Refer to the Forward-Looking Statements safe
harbor below for information on the factors that could cause our
actual results to differ materially from these forward-looking
statements.
BILL has not provided a reconciliation of its non-GAAP operating
income, non-GAAP net income or non-GAAP net income per share
guidance to the most directly comparable GAAP measures because
certain items excluded from GAAP cannot be reasonably calculated or
predicted at this time. Accordingly, a reconciliation is not
available without unreasonable effort.
Conference Call and Webcast Information
In conjunction with this announcement, BILL will host a
conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today
to discuss fiscal second quarter 2025 results and our outlook for
the fiscal third quarter ending March 31, 2025 and fiscal year
ending June 30, 2025. The live webcast and a replay of the webcast
will be available at the Investor Relations section of BILL’s
website:
https://investor.bill.com/events-and-presentations/default.aspx.
About BILL
BILL (NYSE: BILL) is a leading financial operations platform for
small and midsize businesses (SMBs). As a champion of SMBs, we are
automating the future of finance so businesses can thrive. Our
integrated platform helps businesses to more efficiently control
their payables, receivables and spend and expense management.
Hundreds of thousands of businesses rely on BILL’s proprietary
network of millions of members to pay or get paid faster.
Headquartered in San Jose, California, BILL is a trusted partner of
leading U.S. financial institutions, accounting firms, and
accounting software providers. For more information, visit
bill.com.
Note on Forward-Looking Statements
This press release and the accompanying conference call contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which are statements
other than statements of historical facts, and statements in the
future tense. Forward-looking statements are based on our
expectations as of the date of this press release and are subject
to a number of risks, uncertainties and assumptions, many of which
involve factors or circumstances that are beyond our control. These
statements include, but are not limited to, statements regarding
our expectations of future performance, including guidance for our
total revenue, core revenue, non-GAAP operating income, non-GAAP
net income, and non-GAAP net income per share for the fiscal third
quarter ending March 31, 2025 and full fiscal year ending June 30,
2025, our planned investments in fiscal year 2025, our revenue
growth profitability profile, activity under our
previously-announced share repurchase program, our expectations for
the growth of demand on our platform and the expansion of our
customers’ utilization of our services. These risks and
uncertainties include, but are not limited to macroeconomic
factors, including changes in interest rates, tariffs and other
trade barriers, inflation and volatile market environments, as well
as fluctuations in foreign exchange rates, our history of operating
losses, our recent rapid growth, the large sums of customer funds
that we transfer daily, the risk of loss, errors and fraudulent
activity, credit risk related to our BILL Divvy Corporate Cards,
our ability to attract new customers and convert trial customers
into paying customers, our ability to invest in our business and
develop new products and services, increased competition or new
entrants in the marketplace, potential impacts of acquisitions and
investments, our relationships with accounting firms and financial
institutions, the global impacts of ongoing geopolitical conflicts,
and other risks detailed in the registration statements and
periodic reports we file with the SEC, including our quarterly and
annual reports, which may be obtained on the Investor Relations
section of BILL’s website
(https://investor.bill.com/financials/sec-filings/default.aspx) and
on the SEC website at www.sec.gov. You should not rely on these
forward-looking statements, as actual results may differ materially
from those contemplated by these forward-looking statements as a
result of such risks and uncertainties. All forward-looking
statements in this press release are based on information available
to us as of the date hereof. We assume no obligation to update or
revise the forward-looking statements contained in this press
release or the accompanying conference call because of new
information, future events, or otherwise.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this press
release and the accompanying tables contain, and the conference
call will contain, non-GAAP financial measures, including non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating expenses,
non-GAAP operating income, non-GAAP net income and non-GAAP net
income per share, basic and diluted. The non-GAAP financial
information is presented for supplemental informational purposes
only and is not intended to be considered in isolation or as a
substitute for, or superior to, financial information prepared and
presented in accordance with GAAP.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool.
We exclude the following items from non-GAAP gross profit and
non-GAAP gross margin:
- stock-based compensation and related payroll taxes
- depreciation and amortization
We exclude the following items from non-GAAP operating expenses
and non-GAAP operating income:
- stock-based compensation and related payroll taxes
- depreciation and amortization
- acquisition and integration-related expenses
- restructuring
We exclude the following items from non-GAAP net income and
non-GAAP net income per share:
- stock-based compensation expense and related payroll taxes
- depreciation and amortization
- acquisition and integration-related expenses
- restructuring
- gain on debt extinguishment
- amortization of debt issuance costs
- non-GAAP provision for income taxes
It is important to note that the particular items we exclude
from, or include in, our non-GAAP financial measures may differ
from the items excluded from, or included in, similar non-GAAP
financial measures used by other companies in the same industry. We
also periodically review our non-GAAP financial measures and may
revise these measures to reflect changes in our business or
otherwise, including our blended U.S. statutory tax rate.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects, and
allow for greater transparency with respect to important metrics
used by our management for financial and operational
decision-making. We believe that these measures provide an
additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in
our industry.
We adjust the following items from one or more of our non-GAAP
financial measures:
Stock-based compensation and related payroll taxes charged to
cost of revenue and operating expenses. We exclude stock-based
compensation, which is a non-cash expense, and related payroll
taxes from certain of our non-GAAP financial measures because we
believe that excluding these items provide meaningful supplemental
information regarding operational performance. In particular,
companies calculate stock-based compensation expenses using a
variety of valuation methodologies and subjective assumptions while
the related payroll taxes are dependent on the price of our common
stock and other factors that are beyond our control and do not
correlate to the operation of our business.
Depreciation and amortization. We exclude depreciation and
amortization from certain of our non-GAAP financial measures
because we believe that excluding this non-cash charge provides
meaningful supplemental information regarding operational
performance. Depreciation and amortization do not include
amortization of capitalized internal-use software costs paid in
cash.
Acquisition and integration-related expenses. We exclude
acquisition and integration-related expenses from certain of our
non-GAAP financial measures because these costs would have not
otherwise been incurred in the normal course of our business
operations. In addition, we believe that acquisition and
integration-related expenses are non-recurring charges unique to a
specific acquisition. Although we may engage in future
acquisitions, such acquisitions and the associated acquisition and
integration-related expenses are considered unique and not
comparable to other acquisitions.
Restructuring. We exclude costs incurred in connection with
formal restructuring plans from certain of our non-GAAP financial
measures because these costs are exceptional and would have not
otherwise been incurred in the normal course of our business
operations.
Gain on debt extinguishment. We exclude gain on debt
extinguishment associated with our repurchases of certain of our
outstanding convertible senior notes because we believe that
excluding this non-cash gain provides better insight regarding our
operational performance.
Amortization of debt issuance costs. We exclude amortization of
debt issuance costs associated with our issuance of our convertible
senior notes and credit arrangement from certain of our non-GAAP
financial measures because we believe that excluding this non-cash
interest expense provides meaningful supplemental information
regarding our operational performance.
Non-GAAP provision for income taxes. Consists of assumed
provision for income taxes based on the statutory tax rate taking
into consideration the nature of the taxed item and the relevant
taxing jurisdiction.
There are material limitations associated with the use of
non-GAAP financial measures since they exclude significant expenses
and income that are required by GAAP to be recorded in our
financial statements. Please see the reconciliation tables at the
end of this release for the reconciliation of GAAP and non-GAAP
results.
Free Cash Flow
Free cash flow is a non-GAAP measure defined as net cash
provided by operating activities, adjusted by purchases of property
and equipment and capitalization of internal-use software costs. We
believe free cash flow is an important liquidity measure of the
cash that is generated, after incurring operating expenses,
purchases of property and equipment and capitalization of
internal-use software costs, for future operational expenses and
investment in our business. Free cash flow is useful to investors
as a liquidity measure because it measures our ability to generate
or use cash in the ordinary course of business. One limitation of
free cash flow is that it does not reflect our future contractual
commitments. Additionally, free cash flow does not represent the
total increase or decrease in our cash balance for a given period.
Once our business needs and obligations are met, cash can be used
to maintain strong balance sheets and invest in future growth.
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in thousands)
December 31,
2024
June 30,
2024
ASSETS
Current assets:
Cash and cash equivalents
$
1,566,271
$
985,941
Short-term investments
644,672
601,535
Accounts receivable, net
28,911
28,049
Acquired card receivables, net
581,661
697,216
Prepaid expenses and other current
assets
251,877
297,169
Funds held for customers
3,766,541
3,704,907
Total current assets
6,839,933
6,314,817
Non-current assets:
Operating lease right-of-use assets,
net
60,144
59,414
Property and equipment, net
94,467
88,034
Intangible assets, net
253,134
281,471
Goodwill
2,396,509
2,396,509
Other assets
30,019
38,568
Total assets
$
9,674,206
$
9,178,813
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
5,723
$
7,447
Accrued compensation and benefits
29,249
34,158
Deferred revenue
21,775
17,006
Other accruals and current liabilities
265,548
299,506
Convertible senior notes, net
33,373
—
Customer fund deposits
3,766,541
3,704,907
Total current liabilities
4,122,209
4,063,024
Non-current liabilities:
Deferred revenue
202
4,167
Operating lease liabilities
63,400
62,847
Borrowings from credit facilities, net
180,007
180,009
Convertible senior notes, net
1,498,490
733,991
Other long-term liabilities
504
574
Total liabilities
5,864,812
5,044,612
Stockholders' equity:
Common stock
2
2
Additional paid-in capital
5,267,182
5,233,037
Accumulated other comprehensive loss
(239
)
(1,890
)
Accumulated deficit
(1,457,551
)
(1,096,948
)
Total stockholders' equity
3,809,394
4,134,201
Total liabilities and stockholders'
equity
$
9,674,206
$
9,178,813
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands except
per share amounts)
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Revenue
Subscription and transaction fees (1)
$
319,616
$
274,992
$
634,559
$
540,134
Interest on funds held for customers
42,938
43,503
86,445
83,346
Total revenue
362,554
318,495
721,004
623,480
Cost of revenue
Service costs (1)
56,298
47,239
109,900
92,143
Depreciation and amortization (2)
10,310
11,138
21,403
22,260
Total cost of revenue
66,608
58,377
131,303
114,403
Gross profit
295,946
260,118
589,701
509,077
Operating expenses
Research and development (1)
84,784
86,489
163,469
175,552
Sales and marketing (1)
132,534
118,305
258,856
236,704
General and administrative (1)(3)
71,122
70,053
137,893
143,304
Provision for expected credit losses
(3)
21,358
15,530
42,019
27,605
Depreciation and amortization (2)
7,858
12,324
16,871
25,141
Restructuring
—
25,091
—
25,091
Total operating expenses
317,656
327,792
619,108
633,397
Operating loss
(21,710
)
(67,674
)
(29,407
)
(124,320
)
Other income, net
55,303
28,919
73,181
58,227
Income (loss) before provision for income
taxes
33,593
(38,755
)
43,774
(66,093
)
Provision for income taxes
45
1,666
1,314
2,189
Net income (loss)
$
33,548
$
(40,421
)
$
42,460
$
(68,282
)
Net income (loss) per share attributable
to common stockholders:
Basic
$
0.33
$
(0.38
)
$
0.41
$
(0.64
)
Diluted
$
(0.06
)
$
(0.38
)
$
0.02
$
(0.64
)
Weighted-average number of common shares
used to compute net income (loss) per share attributable to common
stockholders:
Basic
103,102
105,914
104,394
106,350
Diluted
104,480
105,914
107,718
106,350
(1) Includes stock-based compensation charged to revenue and
expenses as follows (in thousands):
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Revenue - subscription and transaction
fees
$
608
$
486
$
1,135
$
856
Cost of revenue - service costs
2,579
2,388
4,732
4,934
Research and development
29,270
26,160
52,903
53,526
Sales and marketing
10,480
12,789
21,274
26,674
General and administrative
22,943
20,322
40,497
41,302
Restructuring
—
3,355
—
3,355
Total stock-based compensation
$
65,880
$
65,500
$
120,541
$
130,647
(2) Depreciation and amortization do not
include amortization of capitalized internal-use software costs
paid in cash.
(3) Provision for expected credit losses
was included in general and administrative expenses during the
three and six months ended December 31, 2023.
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Cash flows from operating
activities:
Net income (loss)
$
33,548
$
(40,421
)
$
42,460
$
(68,282
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Stock-based compensation
65,884
65,500
120,541
130,647
Amortization of intangible assets
14,657
20,222
31,595
40,443
Depreciation of property and equipment
3,510
3,240
6,679
6,958
Amortization of capitalized internal-use
software costs paid in cash
3,889
2,387
7,833
3,739
Amortization of debt issuance costs
1,001
1,762
1,896
3,523
Accretion of discount on investments in
marketable debt securities
(9,431
)
(11,078
)
(21,672
)
(24,171
)
Accretion of discount on loans held for
investment
(5,329
)
(1,926
)
(9,960
)
(2,631
)
Gain on debt extinguishment
(40,472
)
—
(40,550
)
—
Provision for expected credit losses on
acquired card receivables and other financial assets
21,358
16,288
42,019
28,689
Non-cash operating lease expense
2,062
2,164
4,107
4,552
Other
340
(200
)
590
(100
)
Changes in assets and liabilities:
Accounts receivable
2,868
(3,317
)
(1,160
)
390
Prepaid expenses and other current
assets
(26,164
)
4,553
(27,307
)
(151
)
Other assets
2,004
(166
)
8,914
(1,240
)
Accounts payable
(5,878
)
2,741
(2,074
)
233
Other accruals and current liabilities
16,926
23,230
7,135
20,944
Operating lease liabilities
(2,080
)
(2,494
)
(4,428
)
(4,917
)
Other long-term liabilities
(124
)
(15
)
(124
)
(47
)
Deferred revenue
147
(2,788
)
804
(5,237
)
Net cash provided by operating
activities
78,716
79,682
167,298
133,342
Cash flows from investing
activities:
Purchases of corporate and customer fund
short-term investments
(572,575
)
(590,652
)
(1,210,567
)
(990,240
)
Proceeds from maturities and sales of
corporate and customer fund short-term investments
539,073
524,336
1,102,750
1,281,505
Purchase of intangible assets
(2,868
)
—
(2,868
)
—
Purchases of loans held for investment
(198,987
)
(77,357
)
(380,673
)
(110,113
)
Principal repayments of loans held for
investment
197,462
68,970
369,449
94,300
Acquired card receivables, net
54,918
29,991
6,950
(12,342
)
Capitalization of internal-use software
costs
(6,720
)
(5,117
)
(13,759
)
(10,762
)
Other
(461
)
(352
)
(978
)
(755
)
Net cash provided by (used in) investing
activities
9,842
(50,181
)
(129,696
)
251,593
Cash flows from financing
activities:
Proceeds from issuance of convertible
senior notes
1,400,000
—
1,400,000
—
Cash paid for convertible senior notes
issuance costs
(23,100
)
—
(23,100
)
—
Payments for repurchase of convertible
senior notes
(539,403
)
—
(539,403
)
—
Purchase of capped calls
(92,960
)
—
(92,960
)
—
Customer fund deposits liability and
other
(25,781
)
390,960
52,731
299,770
Prepaid card deposits
21,049
(2,505
)
32,371
(16,484
)
Repurchase of common stock
(199,999
)
(199,841
)
(400,001
)
(211,902
)
Proceeds from exercise of stock
options
1,235
2,106
2,252
5,052
Tax withholdings related to net share
settlements of equity awards
(3,410
)
—
(4,714
)
—
Proceeds from issuance of common stock
under the employee stock purchase plan
—
—
5,302
7,846
Contingent consideration payout
—
—
—
(5,471
)
Net cash provided by financing
activities
537,631
190,720
432,478
78,811
Effect of exchange rate changes on cash,
cash equivalents, restricted cash and restricted cash
equivalents
(645
)
173
(772
)
(7
)
Net increase in cash, cash equivalents,
restricted cash, and restricted cash equivalents
625,544
220,394
469,308
463,739
Cash, cash equivalents, restricted
cash, and restricted cash equivalents, beginning of period
3,195,163
4,468,186
3,351,399
4,224,841
Cash, cash equivalents, restricted
cash, and restricted cash equivalents, end of period
$
3,820,707
$
4,688,580
$
3,820,707
$
4,688,580
Reconciliation of cash, cash
equivalents, restricted cash, and restricted cash equivalents
within the condensed consolidated balance sheets to the amounts
shown in the condensed consolidated statements of cash flows
above:
Cash and cash equivalents
$
1,566,271
$
1,579,633
$
1,566,271
$
1,579,633
Restricted cash included in other current
assets
92,613
103,462
92,613
103,462
Restricted cash included in other
assets
5,297
7,116
5,297
7,116
Restricted cash and restricted cash
equivalents included in funds held for customers
2,156,526
2,998,369
2,156,526
2,998,369
Total cash, cash equivalents,
restricted cash, and restricted cash equivalents, end of
period
$
3,820,707
$
4,688,580
$
3,820,707
$
4,688,580
BILL HOLDINGS, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands except
percentages and per share amounts)
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Reconciliation of gross profit:
GAAP gross profit
$
295,946
$
260,118
$
589,701
$
509,077
Add:
Depreciation and amortization (1)
10,310
11,138
21,403
22,260
Stock-based compensation and related
payroll taxes charged to cost of revenue
2,654
2,446
4,837
5,074
Non-GAAP gross profit
$
308,910
$
273,702
$
615,941
$
536,411
GAAP gross margin
81.6
%
81.7
%
81.8
%
81.7
%
Non-GAAP gross margin
85.2
%
85.9
%
85.4
%
86.0
%
(1) Consists of depreciation of property
and equipment and amortization of developed technology, excluding
amortization of capitalized internal-use software costs paid in
cash.
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Reconciliation of operating
expenses:
GAAP research and development expenses
$
84,784
$
86,489
$
163,469
$
175,552
Less - stock-based compensation and
related payroll taxes
(29,774
)
(26,550
)
(53,750
)
(54,437
)
Non-GAAP research and development
expenses
$
55,010
$
59,939
$
109,719
$
121,115
GAAP sales and marketing expenses
$
132,534
$
118,305
$
258,856
$
236,704
Less - stock-based compensation and
related payroll taxes
(10,656
)
(13,009
)
(21,550
)
(27,091
)
Non-GAAP sales and marketing expenses
$
121,878
$
105,296
$
237,306
$
209,613
GAAP general and administrative expenses
(1)
$
71,122
$
70,053
$
137,893
$
143,304
Less:
Stock-based compensation and related
payroll taxes
(23,264
)
(20,547
)
(40,982
)
(41,934
)
Acquisition and integration-related
expenses
—
(872
)
—
(969
)
Restructuring
—
—
92
—
Non-GAAP general and administrative
expenses
$
47,858
$
48,634
$
97,003
$
100,401
(1) Provision for expected credit losses
was included in general and administrative expenses during the
three and six months ended December 31, 2023.
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Reconciliation of operating
loss:
GAAP operating loss
$
(21,710
)
$
(67,674
)
$
(29,407
)
$
(124,320
)
Add:
Depreciation and amortization (1)
18,168
23,462
38,274
47,401
Stock-based compensation and related
payroll taxes charged to cost of revenue and operating expenses
66,348
62,552
121,119
128,536
Acquisition and integration-related
expenses
—
872
—
969
Restructuring
—
25,091
(92
)
25,091
Non-GAAP operating income
$
62,806
$
44,303
$
129,894
$
77,677
(1) Excludes amortization of capitalized
internal-use software costs paid in cash.
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Reconciliation of net income
(loss):
GAAP net income (loss)
$
33,548
$
(40,421
)
$
42,460
$
(68,282
)
Add - GAAP provision for income taxes
45
1,666
1,314
2,189
Income (loss) before taxes
33,593
(38,755
)
43,774
(66,093
)
Add (less):
Depreciation and amortization (1)
18,168
23,462
38,274
47,401
Stock-based compensation and related
payroll taxes charged to cost of revenue and operating expenses
66,348
62,552
121,119
128,536
Acquisition and integration-related
expenses
—
872
—
969
Restructuring
—
25,091
(92
)
25,091
Gain on debt extinguishment
(40,472
)
—
(40,550
)
—
Amortization of debt issuance costs
1,001
1,762
1,896
3,523
Non-GAAP net income before non-GAAP tax
adjustments
78,638
74,984
164,421
139,427
Non-GAAP provision for income taxes
(2)
(15,728
)
(14,997
)
(32,884
)
(27,885
)
Non-GAAP net income
$
62,910
$
59,987
$
131,537
$
111,542
(1) Excludes amortization of capitalized
internal-use software costs paid in cash.
(2) The non-GAAP provision for income
taxes is calculated using a blended tax rate of 20%, taking into
consideration the nature of the taxed item and the applicable
statutory tax rate in each relevant taxing jurisdiction.
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Reconciliation of net income (loss) per
share attributable to common stockholders, basic and
diluted:
GAAP net income (loss) per share
attributable to common stockholders, basic and diluted
$
0.33
$
(0.38
)
$
0.41
$
(0.64
)
Add - GAAP provision for income taxes
0.00
0.02
0.01
0.02
Income (loss) before taxes
0.33
(0.36
)
0.42
(0.62
)
Add:
Depreciation and amortization (1)
0.18
0.21
0.37
0.45
Stock-based compensation and related
payroll taxes charged to cost of revenue and operating expenses
0.63
0.59
1.16
1.20
Acquisition and integration-related
expenses
—
0.01
—
0.01
Restructuring
—
0.24
—
0.24
Gain on debt extinguishment
(0.39
)
—
(0.39
)
—
Amortization of debt issuance costs
0.01
0.02
0.02
0.03
Non-GAAP net income before non-GAAP tax
adjustments per share attributable to common stockholders,
basic
$
0.76
$
0.71
$
1.58
$
1.31
Non-GAAP net income before non-GAAP tax
adjustments per share attributable to common stockholders,
diluted
$
0.70
$
0.64
$
1.48
$
1.19
Less - Non-GAAP provision for income
taxes
(0.15
)
(0.14
)
(0.32
)
(0.26
)
Non-GAAP net income per share attributable
to common stockholders, basic
$
0.61
$
0.57
$
1.26
$
1.05
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.56
$
0.51
$
1.19
$
0.95
(1) Excludes amortization of capitalized
internal-use software costs paid in cash.
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Shares used to compute GAAP and non-GAAP
net income (loss) per share attributable to common stockholders,
basic
103,102
105,914
104,394
106,350
Shares used to compute GAAP net income
(loss) per share attributable to common stockholders, diluted
104,480
105,914
107,718
106,350
Shares used to compute non-GAAP net income
per share attributable to common stockholders, diluted
111,919
116,712
110,840
117,471
BILL HOLDINGS, INC.
FREE CASH FLOW
(Unaudited, in thousands)
Three Months Ended
December 31,
Six Months Ended
December 31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
78,716
$
79,682
$
167,298
$
133,342
Purchases of property and equipment
(382
)
(352
)
(399
)
(755
)
Capitalization of internal-use software
costs
(6,720
)
(5,117
)
(13,759
)
(10,762
)
Free cash flow
$
71,614
$
74,213
$
153,140
$
121,825
BILL HOLDINGS, INC.
REMAINING PERFORMANCE
OBLIGATIONS
(Unaudited, in thousands)
December 31,
2024
June 30,
2024
Remaining performance obligations to be
recognized as revenue:
Over the next 1 year
$
30,464
$
30,225
Between 1 to 2 years
16,700
16,887
Thereafter
30,882
39,733
Total
$
78,046
$
86,845
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206559297/en/
IR Contact:
Karen Sansot ksansot@hq.bill.com
Press Contact:
John Welton john.welton@hq.bill.com
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