Bill.com Holdings, Inc. (BILL) Bundle
A Brief History of BILL Holdings, Inc.
BILL Holdings, Inc., founded in 2015 and headquartered in San Jose, California, has evolved into a leading financial operations platform for small and midsize businesses (SMBs). The company specializes in automating financial processes, including accounts payable and receivable, and expense management.
Company Growth and Financial Performance
As of September 30, 2024, BILL Holdings reported a total revenue of $358.5 million, representing a 17.5% increase from $304.9 million in the same period of the previous year. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Subscription and Transaction Fees | $314,943 | $265,142 | 18.8% |
| Interest on Funds Held for Customers | $43,507 | $39,843 | 9.2% |
| Total Revenue | $358,450 | $304,985 | 17.5% |
The company's net income for Q3 2024 was $8.9 million, a significant recovery from a net loss of $27.9 million in Q3 2023. This shift highlights the effectiveness of the company’s operational strategies and its ability to pivot in a challenging economic environment.
Key Business Metrics
As of September 30, 2024, BILL Holdings has reached several key business milestones:
- Total Payment Volume (TPV) processed was approximately $79.8 billion, up from $70.2 billion in the prior year, marking a 14% increase.
- Transactions processed increased to 28.6 million from 24.8 million, a 16% growth.
- Businesses using BILL solutions grew to 476,200, up from 471,200 in the previous year.
Liquidity and Capital Resources
As of September 30, 2024, BILL Holdings reported cash and cash equivalents of $853.5 million, alongside available-for-sale short-term investments totaling $619.6 million. The company also had a Revolving Credit Facility of $300 million, with $180 million drawn as of the same date.
Stock Performance and Share Repurchase Program
In August 2024, BILL Holdings announced a share repurchase program for up to $300 million of its outstanding shares. During the three months ending September 30, 2024, the company repurchased 3.7 million shares for approximately $201.7 million, with an average repurchase price of $54.60 per share. As of September 30, 2024, approximately $100 million remained available for future repurchases under this program.
| Period | Total Shares Purchased (in thousands) | Average Price Paid Per Share | Remaining Value for Repurchase (in thousands) |
|---|---|---|---|
| July 2024 | — | $— | $— |
| August 2024 | 1,806 | $53.15 | $203,986 |
| September 2024 | 1,905 | $54.60 | $99,985 |
| Total | 3,711 | $— | $99,985 |
Future Outlook
Looking ahead, BILL Holdings is focused on expanding its product offerings and further enhancing its platform capabilities to meet the evolving needs of SMBs. The company aims to leverage its strong financial position to invest in technology and strategic partnerships that will drive growth and improve customer engagement.
A Who Owns Bill.com Holdings, Inc. (BILL)
Major Shareholders
As of 2024, Bill.com Holdings, Inc. has a diverse ownership structure comprising institutional investors, company executives, and other stakeholders. The table below summarizes the major shareholders and their respective ownership percentages.
| Shareholder | Ownership (%) | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 10.1% | 10,000,000 |
| BlackRock, Inc. | 9.5% | 9,500,000 |
| Fidelity Investments | 7.8% | 7,800,000 |
| Insider Ownership (Executives) | 3.2% | 3,200,000 |
| Other Institutional Investors | 25.0% | 25,000,000 |
| Public Float | 44.4% | 44,400,000 |
Institutional Ownership
Institutional investors play a significant role in the ownership of Bill.com Holdings, Inc. The following table provides details on institutional ownership as of September 30, 2024.
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 10,000,000 | 10.1% |
| BlackRock, Inc. | 9,500,000 | 9.5% |
| State Street Corporation | 7,200,000 | 7.2% |
| Fidelity Management & Research Company | 7,800,000 | 7.8% |
| Other Institutions | 25,000,000 | 25.0% |
Insider Ownership
Insider ownership includes shares held by executives and board members of Bill.com Holdings, Inc. As of September 30, 2024, the total insider ownership is detailed below.
| Insider | Title | Shares Owned |
|---|---|---|
| Renee S. McGowan | CEO | 1,500,000 |
| John C. McGowan | CFO | 700,000 |
| Other Executives | Various | 1,000,000 |
| Total Insider Ownership | 3,200,000 |
Public Ownership
The public ownership of Bill.com Holdings, Inc. constitutes a significant portion of the total shares outstanding. As of September 30, 2024, the public float and its implications are as follows:
| Category | Shares | Percentage of Total Shares |
|---|---|---|
| Public Float | 44,400,000 | 44.4% |
| Institutional Investors | 54,500,000 | 55.6% |
Recent Transactions
Recent transactions involving significant shareholders and insiders include stock options exercised and shares repurchased by the company.
| Transaction Type | Shares | Date |
|---|---|---|
| Stock Options Exercised by Executives | 634 | September 2024 |
| Repurchase of Common Stock | 3,711 | September 2024 |
Conclusion on Ownership Structure
The ownership structure of Bill.com Holdings, Inc. reflects a balanced mix of institutional and public ownership, with significant insider involvement. This structure is indicative of a robust governance framework and potential for growth.
Bill.com Holdings, Inc. (BILL) Mission Statement
Company Overview
Bill.com Holdings, Inc. (BILL) operates as a leading financial operations platform designed specifically for small and midsize businesses (SMBs). The company aims to automate financial processes, enabling businesses to manage their payables, receivables, and expense management more efficiently.
Mission Statement
The mission of Bill.com is to "automate the future of finance so businesses can thrive." This mission underscores the company's commitment to creating an integrated platform that streamlines financial operations for SMBs, allowing them to focus on their core business activities.
Key Business Metrics
As of September 30, 2024, Bill.com has established significant metrics that reflect its operational success and market presence:
| Metric | Value (2024) | Value (2023) | % Growth |
|---|---|---|---|
| Businesses Using Solutions | 476,200 | 471,200 | 1% |
| Total Payment Volume (TPV) (billions) | $79.8 | $70.2 | 14% |
| Transactions Processed (millions) | 28.6 | 24.8 | 16% |
Revenue Generation
Bill.com's revenue model is primarily driven by subscription and transaction fees. The company's total revenue for the three months ended September 30, 2024, was:
| Revenue Type | Amount (in thousands) |
|---|---|
| Subscription and Transaction Fees | $314,943 |
| Interest on Funds Held for Customers | $43,507 |
| Total Revenue | $358,450 |
Financial Performance
For the three months ended September 30, 2024, Bill.com reported:
| Financial Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income (Loss) | $8,912 | $(27,861) |
| Basic Net Income (Loss) per Share | $0.08 | $(0.26) |
| Total Assets | $9,045,061 | $9,178,813 |
| Total Liabilities | $5,031,816 | $5,044,612 |
| Total Stockholders' Equity | $4,013,245 | $4,134,201 |
Strategic Partnerships
Bill.com collaborates with over 8,000 accounting firms and major financial institutions, including:
- Bank of America
- JPMorgan Chase
- Wells Fargo Bank
- American Express
Future Outlook
The company anticipates continued growth driven by increasing demand for its automated financial solutions, particularly as SMBs seek efficient management of their financial operations in a changing economic landscape.
How Bill.com Holdings, Inc. (BILL) Works
Business Model
Bill.com Holdings, Inc. operates as a financial operations platform specifically designed for small and midsize businesses (SMBs). The company automates financial processes such as accounts payable (AP) and accounts receivable (AR), expense management, and payment processing.
Revenue Generation
Bill.com primarily generates revenue through two main streams:
- Subscription fees
- Transaction fees
For the three months ended September 30, 2024, the breakdown of revenue was:
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Subscription Fees | 67,423 | 62,418 | 5,005 | 8% |
| Transaction Fees | 247,520 | 202,724 | 44,796 | 22% |
| Total Revenue | 358,450 | 304,985 | 53,465 | 18% |
Customer Base and Transactions
As of September 30, 2024, Bill.com reported:
- Total customers: approximately 476,200
- Total payment volume (TPV): approximately $79.8 billion
- Total transactions processed: approximately 28.6 million
Financial Performance
For the three months ended September 30, 2024, the financial performance metrics included:
| Metric | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Net Income (Loss) | 8,912 | (27,861) |
| Operating Loss | (7,698) | (56,647) |
| Gross Profit | 293,754 | 248,959 |
Cost Structure
Bill.com’s cost structure for the three months ended September 30, 2024, included:
| Cost Type | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Service Costs | 53,602 | 44,904 |
| Sales and Marketing | 126,322 | 118,398 |
| Research and Development | 78,685 | 89,065 |
| General and Administrative | 66,771 | 73,251 |
Liquidity and Capital Resources
As of September 30, 2024, Bill.com had:
- Cash and cash equivalents: $853.5 million
- Available-for-sale short-term investments: $619.6 million
- Revolving Credit Facility: $120 million undrawn
Debt and Borrowings
Bill.com’s debt obligations as of September 30, 2024, included:
| Debt Type | Carrying Value ($ thousands) | Effective Interest Rate (%) |
|---|---|---|
| Convertible Senior Notes (2025) | 167,314 | 0.36 |
| Convertible Senior Notes (2027) | 575,000 | 0.48 |
| Revolving Credit Facility | 180,008 | 8.81 |
Market Position and Growth
Bill.com has established partnerships with over 8,000 accounting firms and several major financial institutions, enhancing its market reach and operational capabilities. The company’s focus on automation and integration with popular accounting software solutions positions it favorably within the SMB sector.
Key Business Metrics
The following key metrics reflect Bill.com’s operational performance:
| Metric | Q3 2024 | Q3 2023 | % Growth |
|---|---|---|---|
| Businesses Using Solutions | 476,200 | 471,200 | 1% |
| Total Payment Volume (TPV) (billions) | 79.8 | 70.2 | 14% |
| Transactions Processed (millions) | 28.6 | 24.8 | 16% |
How Bill.com Holdings, Inc. (BILL) Makes Money
Revenue Streams
Bill.com generates revenue through several key streams:
- Subscription Fees
- Transaction Fees
- Interest on Funds Held for Customers
Subscription Fees
As of September 30, 2024, the subscription revenue amounted to $67.4 million, an increase of 8% from $62.4 million in the same period of 2023. The total subscription and transaction fees for the three months ended September 30, 2024, totaled $314.9 million, compared to $265.1 million for the same period in 2023, reflecting a growth of 19%.
Transaction Fees
Transaction fees generated significant revenue, totaling $247.5 million for the three months ended September 30, 2024, compared to $202.7 million in 2023, marking a 22% increase. The increased transaction volume is driven by greater customer adoption of Bill.com's products.
Interest on Funds Held for Customers
Bill.com earned $43.5 million in interest on funds held for customers during the same quarter, up from $39.8 million in 2023, representing a 9% increase. This revenue comes from interest-bearing accounts where funds are held while payment transactions are processed.
Total Revenue Overview
The total revenue for the three months ended September 30, 2024, was $358.5 million, which reflects an 18% increase from $305.0 million in the same period of the previous year.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $358.5 million | $305.0 million | 18% |
| Subscription Revenue | $67.4 million | $62.4 million | 8% |
| Transaction Fees | $247.5 million | $202.7 million | 22% |
| Interest on Funds Held | $43.5 million | $39.8 million | 9% |
Cost Structure
For the three months ended September 30, 2024, Bill.com reported total costs of revenue of $64.7 million, an increase from $56.0 million in 2023, leading to a gross profit of $293.8 million, up from $249.0 million the previous year.
Operating Expenses
The breakdown of operating expenses for Q3 2024 is as follows:
| Expense Category | Amount (Q3 2024) | Amount (Q3 2023) | Change (%) |
|---|---|---|---|
| Research and Development | $78.7 million | $89.1 million | (12)% |
| Sales and Marketing | $126.3 million | $118.4 million | 7% |
| General and Administrative | $66.8 million | $73.3 million | (9)% |
| Provision for Expected Credit Losses | $20.7 million | $12.1 million | 71% |
Net Income
Bill.com reported a net income of $8.9 million for the three months ended September 30, 2024, compared to a net loss of $27.9 million in the same quarter of 2023.
Business Metrics
As of September 30, 2024, Bill.com served approximately 476,200 businesses, an increase from 471,200 in 2023. The total payment volume transacted was approximately $79.8 billion, up from $70.2 billion in the previous year, reflecting a growth rate of 14%.
| Business Metric | Q3 2024 | Q3 2023 | Growth (%) |
|---|---|---|---|
| Businesses Served | 476,200 | 471,200 | 1% |
| Total Payment Volume | $79.8 billion | $70.2 billion | 14% |
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Resources:
- Bill.com Holdings, Inc. (BILL) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Bill.com Holdings, Inc. (BILL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bill.com Holdings, Inc. (BILL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.