By Sam Boughedda
Investing.com — Shares of Bill Com Holdings Inc (NYSE:BILL) surged after the company reported its second-quarter earnings after the closing bell on Thursday.
The report was described by Oppenheimer analyst Brian Schwartz as "excellent" with the company revealing an EPS of $0.00 compared to analyst expectations of -$0.17 and revenue of $156.5 million compared to expectations of $131.16 million.
The company, which makes financial software tools for small businesses, processed $56.4 billion in total payment volume for Bill.com customers in the second quarter, increasing 62% year-over-year. It also processed $1.9 billion in card payment volume for Divvy.
Wolfe Research's Darrin Peller said in a note to clients that “this was arguably the biggest question for investors heading into the print given concerns around the health of SMBs [small and medium-sized businesses], some industry data points, and considering management had guided to less of a seasonal spike than occurred in the same quarter one year prior.”
Shares of Bill.com are up more than 30% Friday.
The company sees Q3 revenue between $157 million and $158 million, above analyst forecasts of $141 million. Its adjusted loss per share is expected to be between -$0.16 and -$0.15, again above the consensus of -$0.22.
After the earnings report, Needham analyst Scott Berg reiterated a Buy rating and $370 price target. Berg told investors in a note they, "believe Bill.com's market opportunity remains open-ended with a significantly under-penetrated TAM, and customer growth that was not affected either positively or negatively by the pandemic leaving a clean slate for growth going forward."
"Additionally, we believe following the Divvy and Invoice2Go acquisitions further strengthen Bill.com's suite approach and competitive position leading to growing TPV.”