BILL Holdings (BILL) Q1 Earnings Top Estimates, Revenues Up Y/Y
BILL Holdings BILL reported first-quarter fiscal 2024 earnings of 54 cents, beating the Zacks Consensus Estimate of 50 cents. In the year-ago quarter, the company reported earnings of 14 cents per share.
Revenues of $305 million increased 32.6% on a year-over-year basis and surpassed the consensus mark by 2.41%. The top line was driven by 24% year-over-year growth in BILL’s core revenues.
BILL processed $70 billion in total payment volume in the reported quarter, reflecting an increase of 8% year over year. This included $66 billion of total payment volume on its BILL standalone platform, reflecting an increase of 7% year over year.
BILL’s solutions served 471,200 businesses as of the end of the fiscal first quarter.
The company launched its integrated financial operations platform, which offers SMBs integrated, category-leading Accounts Payable, Accounts Receivable, and Spend and Expense management capabilities.
BILL Holdings, Inc. Price, Consensus and EPS Surprise
BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote
Quarter in Detail
In the fiscal first quarter, core revenues, which consist of subscription and transaction fees, were $265.1 million.
Subscription fees of $62.4 million increased 7% year over year. Transaction fees were $202.7 million, up 30% from the year-ago period.
BILL Spend and Expense transaction revenues (formerly called Divvy) totaled $106 million, reflecting growth of 36% year over year. Card payment volume totaled $4 billion and increased 35% year over year.
Float revenues, which consist of interest on funds held for customers, were $39.8 million in the reported quarter.
In the quarter under review, non-GAAP gross profit was $262.7 million, which grew 33.2% year over year and represented a gross margin of 86.1%, expanding 40 basis points year over year.
In the first quarter of fiscal 2024, adjusted research and development expenses of $61.2 million increased 13.8% year over year. Adjusted sales and marketing expenses of $104.3 million surged 17.9% year over year. Adjusted general administrative expenses jumped 39.3% to $63.8 million.
BILL reported a non-GAAP operating income of $33.4 million compared with earnings of $9.1 million in the year-ago quarter.
Balance Sheet & Cash Flow statement
As of Sep 30, 2023, cash and cash equivalent and short-term investments were $2.65 billion compared with $2.66 billion as of Jun 30.
Cash flow from operations was $53.7 million in the first quarter of fiscal 2024 compared with $80.4 million in the fiscal fourth quarter.
Guidance
For the second quarter of fiscal 2024, BILL expects revenues between $293 million and $303 million, suggesting year-over-year growth of 13-17%. Non-GAAP earnings are expected between 35 cents and 44 cents per share.
For fiscal 2024, the company expects revenues between $1.205 billion and $1.245 billion, implying year-over-year growth in the 14-18% range. Non-GAAP earnings are expected between $1.64 and $1.97 per share.
Zacks Rank & Stocks to Consider
Currently, BILL has a Zacks Rank #4 (Sell)
NetEase NTES, NVIDIA NVDA and Model N MODN are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NetEase shares have gained 51.1% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
NVIDIA shares have returned 197.5% year to date. NVDA is set to report its third-quarter fiscal 2024 results on Nov 21.
Model N shares have declined 39.2% year to date. MODN is set to report its fourth-quarter fiscal 2023 results on Nov 9.
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