Bill Holdings (BILL -2.26%), a leading platform provider for automated financial operations for small and midsize businesses (SMBs), released its earnings report for the first quarter of its fiscal 2025 on Nov. 7, 2024. For the period, which ended Sept. 30, the company reported total revenue of $358.5 million, surpassing management's guidance range of $346 million to $351 million. Core revenue jumped by 19% to $314.9 million, exceeding the expected range of $305 million to $310 million. Non-GAAP operating income and net income also outperformed estimates, with figures of $67.1 million and $68.6 million, respectively, well above the provided guidance. The company posted earnings per share of $0.63, beating the predicted range of $0.48 to $0.51.
| Metric | Fiscal Q1 2025 Result | Fiscal Q1 2025 Management Guidance | Fiscal Q1 2024 Result | % Change YOY |
|---|---|---|---|---|
| Total revenue | $358.5 million | $346 million to $351 million | $305 million | 18% |
| Core revenue | $314.9 million | $305 million to $310 million | $265.1 million | 19% |
| Non-GAAP operating income | $67.1 | $52 million to $57 million | $33.4 million | 101% |
| Non-GAAP net income | $68.6 million | $53 million to $57 million | $51.6 million | 33% |
| Earnings per share (diluted) | $0.63 | $0.48 to $0.51 | $0.44 | 43% |
Source: Management's guidance from fiscal Q4 2024 earnings report published Aug. 22.
Overview of Bill Holdings' Business
Bill Holdings provides an AI-enabled financial operations platform designed to automate key back-office functions for SMBs. The platform includes features such as accounts payable and receivables automation, and spend and expense management, and it synchronizes with existing accounting systems. The integration of artificial intelligence (AI) tools has strengthened its offerings, providing smart data features like anomaly detection, aiding customers in making informed decisions.
The company is focused on expanding its business network and increasing the reach of its financial operations solutions. It has grown to serve over 476,200 businesses, with a total payment volume of $80 billion.
Quarterly Performance Insights
Bill Holdings reported total revenue of $358.5 million for fiscal 2025's first quarter, an 18% increase from the $304.9 million recorded in the same quarter last year. This was driven by a 19% rise in core revenue, which reached $314.9 million. The growth in revenue was attributed to the company's ability to scale its AI-driven platform, maintaining its competitive positioning through enhanced automation and financial anomaly detection capabilities.
Non-GAAP operating income surged by 101% to $67.1 million. Non-GAAP net income improved to $68.6 million, up from $51.6 million a year ago. Moreover, the earnings per share rose to $0.63, well beyond the projected range.
Operating losses significantly dropped from $56.6 million in the year-ago period to $7.7 million this quarter, reflecting the company's streamlined operations and strategic management of expenditures. Gross profit also increased, supported by an 82.0% margin versus 81.6% in fiscal 2024's comparable period.
Economic conditions continue to present risks as SMBs face constraints that could impact their spending abilities and affect Bill Holdings’ transaction volume.
Looking Ahead
For the upcoming fiscal quarter, Bill Holdings projects total revenue of between $355.5 million and $360.5 million, with core revenue expected to grow by 15% to 17% year over year. Management maintains a positive outlook for fiscal 2025, with revenue forecast to land in the $1.439 billion to $1.464 billion range. This suggests slight moderation of growth rates compared to fiscal Q1, yet still signifies a strong path toward achieving sustained profitability.
