Bill.com Holdings, Inc. (BILL) Bundle
A Brief History of Bill.com Holdings, Inc. (BILL)
Foundation and Early Development
Bill.com Holdings, Inc. was established in 2006 by René Lacerte. The company's primary focus was to automate the bill payment process for small and medium-sized businesses (SMBs).
By 2014, Bill.com had raised a total of $30 million in a Series D funding round led by GGV Capital, alongside contributions from other investors.
Growth and Expansion
In 2017, Bill.com introduced its platform enhancements, which included integration with accounting software such as QuickBooks and Xero.
In 2018, the company reported processing over $60 billion in payments annually, demonstrating significant growth in its user base.
Financial Performance and IPO
Bill.com filed for an IPO in September 2020, and the company went public on December 9, 2020, under the ticker symbol BILL. The IPO was priced at $22 per share, raising about $200 million.
As of August 2021, Bill.com reported an annual revenue of approximately $160 million.
Recent Developments
In 2021, Bill.com acquired Divvy, a spend management platform, for $2.5 billion. This move aimed to enhance the company's product offerings and strengthen its market position.
By the end of the fiscal year 2022, Bill.com achieved a revenue of around $431 million, representing a growth of approximately 124% year-over-year.
Market Position and User Statistics
As of 2023, Bill.com has over 5 million registered users and processes around $100 billion in payments annually.
| Year | Revenue (in millions) | Number of Users (millions) | Payments Processed (in billions) |
|---|---|---|---|
| 2018 | $60 | 1.5 | $23 |
| 2020 | $160 | 3 | $60 |
| 2021 | $431 | 5 | $100 |
| 2023 | Forecasted at $500+ | Projected 6+ | Projected 120+ |
Stock Performance
Following its IPO, BILL's stock price fluctuated significantly. In October 2021, the stock reached an all-time high of approximately $300 per share.
As of October 2023, the stock price has seen a correction, hovering around $80 per share.
Strategic Partnerships
Bill.com has formed strategic partnerships with major financial institutions and accounting firms to broaden its service offerings.
- Partnership with American Express to facilitate customer transactions.
- Collaboration with CPA firms to enhance user outreach.
Future Outlook
Looking to the future, Bill.com aims to continue expanding its financial technology solutions for businesses, targeting a market opportunity of $85 billion in the SMB segment.
A Who Owns Bill.com Holdings, Inc. (BILL)
Overview of Ownership
Overview of Ownership
As of the latest financial data, Bill.com Holdings, Inc. (BILL) has a diverse ownership structure, including institutional investors, mutual funds, and individual shareholders. The company was founded in 2006 and went public in December 2019.
Top Institutional Shareholders
| Institution | Number of Shares Owned | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 3,772,012 | 8.5% |
| BlackRock, Inc. | 3,404,000 | 7.6% |
| Fidelity Management & Research Company | 3,200,000 | 7.2% |
| Wellington Management Company, LLP | 2,900,000 | 6.5% |
| Price T Rowe Associates, Inc. | 2,500,000 | 5.6% |
Executive Ownership
Executive officers own a notable percentage of shares, providing them with significant interests in the company's performance. As of the last reporting period:
| Executive | Title | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Rene Lacerte | CEO | 1,000,000 | 2.3% |
| John McCauley | CFO | 400,000 | 0.9% |
| Bill.com Holdings, Inc. | Co-Founder | 500,000 | 1.1% |
Shareholder Composition
The following breakdown represents the shareholder composition of Bill.com Holdings, Inc.:
| Type of Shareholder | Percentage of Ownership |
|---|---|
| Institutional Investors | 70% |
| Retail Investors | 20% |
| Insiders | 10% |
Recent Stock Performance
Bill.com Holdings, Inc. has seen fluctuations in its stock price over recent months. As of October 2023, the stock is trading around:
- Last Closing Price: $122.30
- Year-to-Date (YTD) change: +15.6%
- 52-Week High: $130.00
- 52-Week Low: $80.50
Recent Developments in Ownership
In recent quarters, Bill.com has been actively engaging with investors to increase transparency and promote share ownership. Notable movements include:
- Institutional Ownership Increase: +5% in Q2 2023
- Share Repurchase Program: Authorized for up to $50 million
- Increased insider buying reported in Q3 2023
Bill.com Holdings, Inc. (BILL) Mission Statement
Overview of Bill.com
Bill.com Holdings, Inc. (BILL) is a cloud-based software platform that aims to simplify and automate financial operations for small and mid-sized businesses. As of October 2023, the company has a strong presence in the financial technology sector, providing services such as accounts payable, accounts receivable, and cash management.
Mission Statement
The mission statement of Bill.com is: "To remove the barriers to financial success for businesses by creating a seamless payment experience through innovative technology."
Core Values
- Innovation: Continuously developing advanced solutions.
- Customer Focus: Prioritizing the needs and feedback of users.
- Integrity: Maintaining transparency and trustworthiness.
- Collaboration: Fostering strong relationships with stakeholders.
Financial Performance
In the fiscal year ending June 30, 2023, Bill.com reported significant financial growth. Key financial metrics include:
| Metric | 2023 Value | 2022 Value | Year-over-Year Growth |
|---|---|---|---|
| Revenue | $202 million | $146 million | 38.4% |
| Net Income | -($12 million) | -($15 million) | 20.0% improvement |
| Gross Profit | $153 million | $112 million | 36.7% |
| Operating Income | -$18 million | -$25 million | 28.0% improvement |
Key Market Insights
As of Q3 2023, Bill.com serves over 5 million users globally. The company has also integrated with over 1,000 accounting firms, enhancing its reach in the market.
Market Positioning
Bill.com is positioned as a leader in the financial automation space, with an estimated 15% market share within the SMB sector as of 2023.
Future Goals
- Expand product offerings.
- Enhance user experience through AI integration.
- Increase market penetration in Europe and Asia.
Conclusion
Bill.com Holdings, Inc. continues to focus on its mission by leveraging technology to facilitate financial operations for its customers, aiming for sustainable growth and improved financial health for businesses worldwide.
How Bill.com Holdings, Inc. (BILL) Works
Business Model
Bill.com Holdings, Inc. operates primarily as a cloud-based financial platform that automates accounts payable and receivable processes. The company focuses on facilitating seamless transactions for small to medium-sized businesses (SMBs). Their model is designed to enable businesses to manage their cash flow efficiently.
Key Features
- Automated Workflow: The platform automates invoicing and payment processes.
- Integration Capabilities: Bill.com integrates with various accounting software, including QuickBooks and Xero.
- Mobile Access: Users can manage payments and invoices through a mobile application.
- Collaboration Tools: Features that facilitate collaboration between businesses and their accountants.
- Payment Options: Offers multiple payment methods, including ACH and credit card payments.
Financial Performance
As of the fiscal year 2023, Bill.com reported the following financial metrics:
| Metric | Amount (in millions) |
|---|---|
| Revenue | $441 |
| Net Income | -$113 |
| Gross Profit | $300 |
| Operating Expenses | $413 |
| Cash and Cash Equivalents | $342 |
Market Position
Bill.com holds a significant share in the fintech sector, particularly in automating accounts payable and receivable for SMBs. The company competes with other financial platforms such as:
| Competitor | Market Share (%) |
|---|---|
| Intuit (QuickBooks) | 28 |
| Xero | 12 |
| FreshBooks | 8 |
| Zoho | 6 |
| Bill.com | 10 |
Customer Base
Bill.com serves over 125,000 businesses worldwide, with a significant focus on sectors such as:
- Professional Services
- Healthcare
- Non-Profit Organizations
- E-commerce
- Construction
Recent Developments
In 2023, Bill.com made strategic acquisitions to enhance its technology and expand its service offerings. Notably, they acquired Divvy, a spend management software, for approximately $2.5 billion.
Stock Performance
As of October 2023, Bill.com's stock (BILL) was trading at approximately $76.15 per share, reflecting a year-to-date growth of around 35%.
Future Outlook
Analysts project Bill.com to reach a revenue target of $600 million by the fiscal year 2025, driven by increasing adoption of digital payment solutions among SMBs.
How Bill.com Holdings, Inc. (BILL) Makes Money
Revenue Streams
Bill.com generates revenue through a variety of channels that cater to businesses seeking automation in accounts payable and receivable.
Subscription Revenue
The primary source of revenue for Bill.com comes from subscription fees charged to customers who use their platform. As of fiscal year 2023, the company reported:
| Subscription Tier | Monthly Price | Annual Revenue per User (ARPU) |
|---|---|---|
| Basic | $29 | $348 |
| Plus | $49 | $588 |
| Enterprise | Varies | $1,200 |
Transaction Revenue
In addition to subscription fees, Bill.com earns revenue through transaction fees. As of Q4 2023, the company reported:
| Transaction Type | Fee Structure | Estimated Annual Transactions |
|---|---|---|
| ACH Payments | $0.50 - $1.00 per transaction | ~$20 million |
| Wire Transfers | $15.00 per transaction | ~$5 million |
| Credit Card Processing | 2.9% + $0.30 per transaction | ~$10 million |
Partnerships and Integrations
Bill.com also partners with various software providers and financial institutions, generating additional revenue through integrations. In 2023, key partnerships contributed approximately:
| Partner | Type of Revenue | Estimated Annual Contribution |
|---|---|---|
| QuickBooks | Referral Fees | $5 million |
| Xero | Referral Fees | $3 million |
| Bank Partnerships | Commission | $4 million |
Financial Performance Metrics
For the fiscal year ending June 30, 2023, Bill.com reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue | $340 million |
| Year-over-Year Growth | 42% |
| Net Income | -$50 million |
| Gross Margin | 75% |
Market Position and Customer Base
As of September 2023, Bill.com has a customer base exceeding 140,000 businesses. Key statistics about its market position include:
| Category | Statistic |
|---|---|
| Market Share in AP Automation | 30% |
| Number of Transactions Processed | ~$50 billion annually |
| Customer Retention Rate | 95% |
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