- Q3 Transaction Fees Increased 25% Year-Over-Year
- Q3 Core Revenue Increased 17% Year-Over-Year
- Q3 Total Revenue Increased 19% Year-Over-Year
BILL (NYSE: BILL), a leading financial operations platform for
small and midsize businesses (SMBs), today announced financial
results for the third fiscal quarter ended March 31, 2024.
“We delivered strong profitable growth for the quarter,
continued our rapid pace of innovation, and executed with
persistent rigor and effectiveness,” said René Lacerte, BILL CEO
and Founder. “During the quarter, more than 450,000 small
businesses used our solutions to automate their financial
operations, empowering them with more time to focus on their
mission and thrive. With our transformative platform, large
ecosystem, and strong innovation roadmap, we are uniquely
positioned to be the essential financial operations platform for
millions of SMBs.”
“Our financial performance in the third quarter demonstrates the
strength of our business and strong execution capabilities,” said
John Rettig, BILL President and CFO. “Total revenue increased 19%
year-over-year while non-GAAP operating income increased 68%
year-over-year.”
Financial Highlights for the Third Quarter of Fiscal
2024:
- Total revenue was $323.0 million, an increase of 19%
year-over-year.
- Core revenue, which consists of subscription and transaction
fees, was $281.3 million, an increase of 17% year-over-year.
Subscription fees were $65.6 million, down 2% year-over-year.
Transaction fees were $215.7 million, up 25% year-over-year.
- Float revenue, which consists of interest on funds held for
customers, was $41.7 million.
- Gross profit was $268.0 million, representing an 83.0% gross
margin, compared to $223.7 million, or an 82.1% gross margin, in
the third quarter of fiscal 2023. Non-GAAP gross profit was $281.5
million, representing an 87.1% non-GAAP gross margin, compared to
$237.2 million, or an 87.0% non-GAAP gross margin, in the third
quarter of fiscal 2023.
- Operating loss was $27.6 million, compared to an operating loss
of $54.2 million in the third quarter of fiscal 2023. Non-GAAP
operating income was $58.5 million, compared to a non-GAAP
operating income of $34.8 million in the third quarter of fiscal
2023.
- Net income was $31.8 million, or $0.30 and $0.00 per share,
basic and diluted, respectively, compared to net loss of $31.1
million, or ($0.29) per share, basic and diluted, in the third
quarter of fiscal 2023. Non-GAAP net income was $68.6 million, or
$0.60 per diluted share, compared to non-GAAP net income of $48.2
million, or $0.41 per diluted share in the third quarter of fiscal
2023. Beginning with our fiscal third quarter 2024, non-GAAP net
income includes a non-GAAP provision for income taxes of 20%, which
was not included in our previously-issued guidance. This change is
reflected in comparable prior periods as well.
Business Highlights and Recent Developments
- Served 464,900 businesses using our solutions as of the end of
the third quarter.1
- Processed $71 billion in total payment volume in the third
quarter, an increase of 10% year-over-year.
- Processed 26 million transactions during the third quarter, an
increase of 20% year-over-year.
- Repurchased $748 million aggregate principal amount of BILL’s
outstanding 0.0% Convertible Senior Notes due 2025 and unwound a
portion of its capped call, resulting in a $34 million net benefit
to net income (loss).
Financial Outlook
We are providing the following guidance for the fiscal fourth
quarter ending June 30, 2024 and the full fiscal year ending June
30, 2024.
Q4 FY24 Guidance
FY24 Guidance
Total revenue (millions)
$320 - $330
$1,267 - $1,277
Year-over-year total revenue growth
8% - 11%
20% - 21%
Non-GAAP operating income (millions)
$40 - $50
$176 - $186
Non-GAAP net income (millions)2
$46.4 - $54.4
$227 - $235
Non-GAAP net income per diluted share2
$0.41 - $0.49
$1.96 - $2.03
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%.
___________________________
1
Businesses using more than one of our
solutions are included separately in the total for each solution
utilized.
2
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%.
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 non-GAAP operating
income, non-GAAP net income or non-GAAP net income per share
guidance measures 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 third quarter 2024 results and our outlook for
the fiscal fourth quarter ending June 30, 2024 and the fiscal year
ending June 30, 2024. 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
member network of millions 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, non-GAAP operating income, non-GAAP net income, and
non-GAAP net income per share for the fiscal fourth quarter ending
June 30, 2024 and full fiscal year ending June 30, 2024, 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,
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 develop new products and services,
increased competition or new entrants in the marketplace, the
impact of our recent reduction-in-force, potential impacts of
acquisitions and investments, including our ability to integrate
acquired businesses, incorporate their technology effectively and
implement appropriate internal controls at such businesses, 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 expense and amortization of intangible assets
We exclude the following items from non-GAAP operating expenses
and non-GAAP operating income:
- stock-based compensation and related payroll taxes
- depreciation expense and amortization of intangible assets
- 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 expense and amortization of intangible assets
- acquisition and integration-related expenses
- restructuring
- gain on debt extinguishment and change on mark to market
derivatives associated with notes repurchase and capped call
unwind
- 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 expense. We exclude depreciation expense from
certain of our non-GAAP financial measures because we believe that
excluding this non-cash expense provides meaningful supplemental
information regarding operational performance. Depreciation expense
does not include amortization of capitalized internal-use software
costs paid in cash.
Amortization of intangible assets. We exclude amortization of
acquired intangible assets from certain of our non-GAAP financial
measures because we believe that excluding this non-cash expense
provides meaningful supplemental information regarding our
operational performance.
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 and change on mark to market
derivatives associated with notes repurchase and capped call
unwind. We exclude gain on debt extinguishment and change on mark
to market derivatives associated with our March 2024 repurchase of
certain of our outstanding 0.0% Convertible Senior Notes due 2025
and the unwind of the capped calls from certain of our non-GAAP
financial measures 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 that we calculate as net
cash provided by (used in) operating activities, adjusted by
purchases of property and equipment and capitalization of
internal-use software costs. We believe that free cash flow is an
important liquidity measure of the cash that is available, after
capital expenditures, for 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.
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 a strong balance sheet and invest
in future growth.
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in thousands)
March 31,
2024
June 30,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
952,474
$
1,617,151
Short-term investments
837,140
1,043,110
Accounts receivable, net
29,891
28,233
Acquired card receivables, net
641,861
458,650
Prepaid expenses and other current
assets
256,199
170,111
Funds held for customers
3,510,918
3,355,909
Total current assets
6,228,483
6,673,164
Non-current assets:
Operating lease right-of-use assets,
net
61,466
68,988
Property and equipment, net
87,300
81,564
Intangible assets, net
300,764
361,427
Goodwill
2,396,509
2,396,509
Other assets
47,736
54,366
Total assets
$
9,122,258
$
9,636,018
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
6,824
$
8,519
Accrued compensation and benefits
27,619
32,901
Deferred revenue
17,547
26,328
Other accruals and current liabilities
263,603
194,733
Borrowings from credit facilities, net
—
135,046
Customer fund deposits
3,510,918
3,355,909
Total current liabilities
3,826,511
3,753,436
Non-current liabilities:
Deferred revenue
4,156
410
Operating lease liabilities
65,023
72,477
Borrowings from credit facilities, net
180,011
—
Convertible senior notes, net
966,242
1,704,782
Other long-term liabilities
21,582
18,944
Total liabilities
5,063,525
5,550,049
Commitments and contingencies
Stockholders' equity:
Common stock
2
2
Additional paid-in capital
5,165,049
4,946,623
Accumulated other comprehensive loss
(1,507
)
(4,488
)
Accumulated deficit
(1,104,811
)
(856,168
)
Total stockholders' equity
4,058,733
4,085,969
Total liabilities and stockholders'
equity
$
9,122,258
$
9,636,018
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands except
per share amounts)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Revenue
Subscription and transaction fees (2)
$
281,294
$
239,495
$
821,428
$
685,201
Interest on funds held for customers
41,734
33,060
125,080
77,284
Total revenue
323,028
272,555
946,508
762,485
Cost of revenue
Service costs (2)
43,845
37,897
135,988
109,683
Depreciation and amortization of
intangible assets (1)
11,167
10,953
33,427
31,742
Total cost of revenue
55,012
48,850
169,415
141,425
Gross profit
268,016
223,705
777,093
621,060
Operating expenses
Research and development (2)
81,594
78,761
257,145
232,791
Sales and marketing (2)
118,105
115,350
354,808
398,658
General and administrative (2)
81,573
71,719
252,482
207,837
Depreciation and amortization of
intangible assets (1)
12,262
12,093
37,403
36,149
Restructuring
2,104
—
27,195
—
Total operating expenses
295,638
277,923
929,033
875,435
Operating loss
(27,622
)
(54,218
)
(151,940
)
(254,375
)
Other income, net
59,801
23,622
118,026
46,591
Income (loss) before provision for income
taxes
32,179
(30,596
)
(33,914
)
(207,784
)
Provision for income taxes
370
542
2,559
70
Net income (loss)
$
31,809
$
(31,138
)
$
(36,473
)
$
(207,854
)
Net income (loss) per share attributable
to common stockholders:
Basic
$
0.30
$
(0.29
)
$
(0.34
)
$
(1.96
)
Diluted
$
0.00
$
(0.29
)
$
(0.34
)
$
(1.96
)
Weighted-average number of common shares
used to compute net income (loss) per share attributable to common
stockholders:
Basic
105,436
106,597
106,045
105,843
Diluted
111,176
106,597
106,045
105,843
(1) Depreciation expense does not
include amortization of capitalized internal-use software costs
paid in cash.
(2) Includes stock-based
compensation charged to revenue and expenses as follows (in
thousands):
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Revenue - subscription and transaction fees
$
446
$
—
$
1,303
$
—
Cost of revenue - service costs
2,190
2,421
7,124
6,720
Research and development
25,183
22,319
78,708
70,151
Sales and marketing
10,968
18,162
37,643
116,941
General and administrative
20,382
20,888
61,684
62,040
Restructuring
220
—
3,574
—
Total stock-based compensation (3)
$
59,389
$
63,790
$
190,036
$
255,852
(3)
Consists of acquisition related equity
awards (Acquisition Related Awards), which include equity awards
assumed and retention equity awards granted to certain employees of
acquired companies in connection with acquisitions, and modified
equity awards in connection with the Restructuring Plan
(Restructuring Awards), and non-acquisition related equity awards
(Non-Acquisition Related Awards), which include all other equity
awards granted to existing employees and non-employees in the
ordinary course of business. The following table presents
stock-based compensation recorded for the periods presented and as
a percentage of total revenue (in thousands):
Three Months Ended
March 31,
As a % of total
revenue
Nine Months Ended
March 31,
As a % of total
revenue
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
2024
2023
2024
2023
Acquisition Related Awards
$
3,567
$
10,813
1
%
4
%
$
12,962
$
103,727
1
%
14
%
Restructuring Awards
220
—
0
%
—
%
3,574
—
0
%
—
%
Non-Acquisition Related Awards
55,602
52,977
17
%
19
%
173,500
152,125
18
%
20
%
Total stock-based compensation
$
59,389
$
63,790
18
%
23
%
$
190,036
$
255,852
19
%
34
%
BILL HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Cash flows from operating
activities:
Net loss
$
31,809
$
(31,138
)
$
(36,473
)
$
(207,854
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Stock-based compensation
59,389
63,792
190,036
255,717
Amortization of intangible assets
20,220
20,221
60,663
59,984
Depreciation of property and equipment
3,209
2,826
10,167
7,907
Amortization of capitalized internal-use
software costs
2,593
1,108
6,332
3,009
Amortization of debt issuance costs
1,651
1,734
5,174
5,217
Accretion of discount on investments in
marketable debt securities
(15,114
)
(13,309
)
(39,285
)
(23,710
)
Accretion of discount on loans held for
investment
(5,531
)
(9
)
(5,531
)
(9
)
Provision for credit losses on acquired
card receivables and other financial assets
18,590
8,643
47,279
23,685
Gain on debt extinguishment
(35,715
)
—
(35,715
)
—
Non-cash operating lease expense
2,038
2,396
6,590
7,114
Deferred income taxes
(10
)
(343
)
(126
)
(1,169
)
Other
4,402
841
1,787
1,357
Changes in assets and liabilities:
Accounts receivable
(4,185
)
(2,917
)
(3,795
)
(9,969
)
Prepaid expenses and other current
assets
5,564
(2,854
)
5,413
(7,477
)
Other assets
(828
)
(160
)
(2,068
)
(2,040
)
Accounts payable
(2,131
)
(4,776
)
(1,898
)
(1,265
)
Other accruals and current liabilities
(14,132
)
(5,769
)
6,812
9,639
Operating lease liabilities
(2,642
)
(2,917
)
(7,559
)
(7,711
)
Other long-term liabilities
(2,570
)
(307
)
(2,617
)
(272
)
Deferred revenue
202
(3,031
)
(5,035
)
(4,740
)
Net cash provided by operating
activities
66,809
34,031
200,151
107,413
Cash flows from investing
activities:
Cash paid for acquisition, net of acquired
cash and cash equivalents
—
—
—
(28,902
)
Purchases of corporate and customer fund
short-term investments
(1,052,609
)
(753,325
)
(2,042,849
)
(2,394,518
)
Proceeds from maturities of corporate and
customer fund short-term investments
575,715
827,416
1,857,220
2,510,829
Proceeds from sale of corporate and
customer fund short-term investments
1,539
6,519
1,539
11,607
Purchases of loans held for investment
(108,830
)
(537
)
(218,943
)
(537
)
Principal repayments of loans held for
investment
97,561
325
191,861
325
Acquired card receivables, net
(127,508
)
(95,891
)
(139,850
)
(198,244
)
Purchases of property and equipment
(16
)
(3,338
)
(771
)
(6,499
)
Capitalization of internal-use software
costs
(3,833
)
(6,721
)
(14,595
)
(17,231
)
Proceeds from beneficial interest
—
—
—
2,080
Other
—
167
—
1,167
Net cash used in investing activities
(617,981
)
(25,385
)
(366,388
)
(119,923
)
Cash flows from financing
activities:
Payments for repurchase of convertible
senior notes
(710,931
)
—
(710,931
)
—
Proceeds from unwind of capped calls
10,252
—
10,252
—
Customer fund deposits liability and
other
(144,394
)
(371,938
)
155,376
(46,092
)
Prepaid card deposits
(4,292
)
14,249
(20,776
)
21,064
Repurchase of common stock
—
(24,001
)
(211,902
)
(24,001
)
Proceeds from line of credit
borrowings
45,000
22,500
45,000
60,000
Proceeds from exercise of stock
options
1,473
2,643
6,525
10,860
Tax withholdings related to net share
settlements of equity awards
(1,681
)
—
(1,681
)
—
Proceeds from issuance of common stock
under the employee stock purchase plan
8,649
9,385
16,495
17,879
Contingent consideration payout
(5,291
)
—
(10,762
)
—
Net cash provided by (used in) financing
activities
(801,215
)
(347,162
)
(722,404
)
39,710
Effect of exchange rate changes on cash,
cash equivalents, restricted cash and restricted cash
equivalents
(390
)
(170
)
(397
)
12
Net increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
(1,352,777
)
(338,686
)
(889,038
)
27,212
Cash, cash equivalents, restricted
cash, and restricted cash equivalents, beginning of period
4,688,580
3,908,613
4,224,841
3,542,715
Cash, cash equivalents, restricted
cash, and restricted cash equivalents, end of period
$
3,335,803
$
3,569,927
$
3,335,803
$
3,569,927
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
$
952,474
$
1,590,560
$
952,474
$
1,590,560
Restricted cash included in other current
assets
153,031
96,823
153,031
96,823
Restricted cash included in other
assets
5,297
6,724
5,297
6,724
Restricted cash and restricted cash
equivalents included in funds held for customers
2,225,001
1,875,820
2,225,001
1,875,820
Total cash, cash equivalents,
restricted cash, and restricted cash equivalents, end of
period
$
3,335,803
$
3,569,927
$
3,335,803
$
3,569,927
BILL HOLDINGS, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands except
percentages and per share amounts)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Reconciliation of gross profit:
GAAP gross profit
$
268,016
$
223,705
$
777,093
$
621,060
Add:
Depreciation and amortization of intangible assets (1)
11,167
10,953
33,427
31,742
Stock-based compensation and related payroll taxes charged to cost
of revenue
2,277
2,514
7,351
6,933
Non-GAAP gross profit
$
281,460
$
237,172
$
817,871
$
659,735
GAAP gross margin
83.0
%
82.1
%
82.1
%
81.5
%
Non-GAAP gross margin
87.1
%
87.0
%
86.4
%
86.5
%
(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
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Reconciliation of operating
expenses:
GAAP research and development expenses
$
81,594
$
78,761
$
257,145
$
232,791
Less - stock-based compensation and
related payroll taxes
(26,062
)
(23,274
)
(80,499
)
(71,940
)
Non-GAAP research and development
expenses
$
55,532
$
55,487
$
176,646
$
160,851
GAAP sales and marketing expenses
$
118,105
$
115,350
$
354,808
$
398,658
Less - stock-based compensation and
related payroll taxes
(11,417
)
(18,602
)
(38,508
)
(118,612
)
Non-GAAP sales and marketing expenses
$
106,688
$
96,748
$
316,300
$
280,046
GAAP general and administrative
expenses
$
81,573
$
71,719
$
252,482
$
207,837
Less:
Stock-based compensation and related
payroll taxes
(20,863
)
(21,334
)
(62,797
)
(63,241
)
Acquisition and integration-related
expenses
(3
)
(289
)
(972
)
(502
)
Non-GAAP general and administrative
expenses
$
60,707
$
50,096
$
188,713
$
144,094
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Reconciliation of operating loss:
GAAP operating loss
$
(27,622
)
$
(54,218
)
$
(151,940
)
$
(254,375
)
Add:
Depreciation and amortization of intangible assets (1)
23,429
23,046
70,830
67,891
Stock-based compensation and related payroll taxes charged to cost
of revenue and operating expenses (2)
60,619
65,724
189,155
260,726
Acquisition and integration-related expenses
3
289
972
502
Restructuring
2,104
—
27,195
—
Non-GAAP operating income
$
58,533
$
34,841
$
136,212
$
74,744
(1) Excludes amortization of
capitalized internal-use software costs paid in cash.
(2) Excludes stock-based
compensation charged to Restructuring.
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Reconciliation of net income (loss):
GAAP net income (loss)
$
31,809
$
(31,138
)
$
(36,473
)
$
(207,854
)
Add - GAAP provision for income taxes
370
542
2,559
70
Loss before taxes
32,179
(30,596
)
(33,914
)
(207,784
)
Add (less):
Depreciation and amortization of intangible assets (1)
23,429
23,046
70,830
67,891
Stock-based compensation and related payroll taxes charged to cost
of revenue and operating expenses
60,619
65,724
189,155
260,726
Acquisition and integration-related expenses
3
289
972
502
Restructuring
2,104
—
27,195
—
Gain on debt extinguishment and change on mark to market
derivatives associated with notes repurchase and capped call unwind
(34,297
)
—
(34,297
)
—
Amortization of debt issuance costs
1,651
1,734
5,174
5,217
Non-GAAP net income before non-GAAP tax adjustments (2)
85,688
60,197
225,115
126,552
Non-GAAP provision for income taxes (3)
(17,138
)
(12,039
)
(45,023
)
(25,310
)
Non-GAAP net income
$
68,550
$
48,158
$
180,092
$
101,242
(1)
Excludes amortization of capitalized
internal-use software costs paid in cash.
(2)
Non-GAAP net income before non-GAAP tax
adjustments reflects certain tax items differently than
historically presented. These differences consist of the addition
of the GAAP provision for income taxes listed above and the
omission of an adjustment for income tax effects associated with
acquisitions. Income tax effects associated with acquisitions were
$0.1 million for the nine months ended March 31, 2024, and $1.0
million and $1.5 million for the three and nine months ended March
31, 2023, respectively.
(3)
Beginning third fiscal quarter 2024, and
retrospectively applied to comparable periods, 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
March 31,
Nine Months Ended
March 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
$
0.30
$
(0.29
)
$
(0.34
)
$
(1.96
)
Add - GAAP provision for (benefit from) income taxes
0.00
0.01
0.02
0.00
Loss before taxes
0.30
(0.28
)
(0.32
)
(1.96
)
Add:
Depreciation and amortization of intangible assets (1)
0.22
0.22
0.67
0.64
Stock-based compensation and related payroll taxes charged to cost
of revenue and operating expenses
0.58
0.60
1.77
2.47
Acquisition and integration-related expenses
0.00
0.00
0.01
0.00
Restructuring
0.02
—
0.26
—
Gain on debt extinguishment and change on mark to market
derivatives associated with notes repurchase and capped call unwind
(0.33
)
—
(0.32
)
—
Amortization of debt issuance costs
0.02
0.02
0.05
0.05
Non-GAAP net income before non-GAAP tax adjustments per share
attributable to common stockholders,
basic
$
0.81
$
0.56
$
2.12
$
1.20
Non-GAAP net income before non-GAAP tax adjustments per share
attributable to common stockholders,
diluted
$
0.74
$
0.51
$
1.93
$
1.07
Less - Non-GAAP provision for income taxes
(0.16
)
(0.11
)
(0.42
)
(0.24
)
Non-GAAP net income per share attributable to common stockholders,
basic
$
0.65
$
0.45
$
1.70
$
0.96
Non-GAAP net income per share attributable to common stockholders,
diluted
$
0.60
$
0.41
$
1.54
$
0.86
(1) Excludes amortization of
capitalized internal-use software costs paid in cash.
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Shares used to compute GAAP and non-GAAP
net income (loss) per share attributable to common stockholders,
basic
105,436
106,597
106,045
105,843
Shares used to compute GAAP net income
(loss) per share attributable to common stockholders, diluted
111,176
106,597
106,045
105,843
Shares used to compute non-GAAP net income
per share attributable to common stockholders, diluted
115,059
117,213
116,666
117,993
BILL HOLDINGS, INC.
FREE CASH FLOW
(Unaudited, in thousands)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
66,809
$
34,031
$
200,151
$
107,413
Purchases of property and equipment
(16
)
(3,338
)
(771
)
(6,499
)
Capitalization of internal-use software
costs
(3,833
)
(6,721
)
(14,595
)
(17,231
)
Free cash flow
$
62,960
$
23,972
$
184,785
$
83,683
BILL HOLDINGS, INC.
REMAINING PERFORMANCE
OBLIGATIONS
(Unaudited, in thousands)
March 31,
2024
June 30,
2023
Remaining performance obligations to be
recognized as revenue:
Within 2 years
$
80,555
$
101,177
Thereafter
17,524
29,960
Total
$
98,079
$
131,137
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502422896/en/
IR Contact:
Karen Sansot ksansot@hq.bill.com
Press Contact:
John Welton john.welton@hq.bill.com
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