BILL Holdings BILL reported earnings of 63 cents per share in the first quarter of fiscal 2025, beating the Zacks Consensus Estimate by 28.57% and increasing 43.2% year over year.

Revenues of $358.5 million increased 17.5% year over year and surpassed the consensus mark by 3.01%. The top line was driven by 18.8% growth in BILL’s core revenues.

The company processed $79.9 billion in total payment volume (TPV) in the reported quarter, increasing 13.8% year over year. This included $72.8 billion in TPV in its Integrated Platform (up 12.7%) and $7.1 billion in Embedded & Other Solutions (up 26.8%).

BILLHoldings’ solutions served 476.2K businesses at the end of the fiscal first quarter, increasing from 471.2K in the prior year. This included 192.5K customers in its Integrated Platform (up 10.8%) and 283.7K in Embedded & Other Solutions (down 4.6%).

BILL Holdings processed 29 million transactions in the fiscal first quarter, a 16% year-over-year increase.

BILL shares have declined 6.4% year to date, underperforming the Zacks Computer & Technology sector’s return of 28.5%. However, shares rose 1.82% in the pre-market trading, driven by accelerated core revenue growth and optimistic guidance.

BILL Holdings’ Quarter in Detail

In the first quarter of fiscal 2025, core revenues, consisting of subscription and transaction fees, were $314.9 million.

Subscription fees (21.4% of core revenues) of $67.4 million increased 8% year over year. Transaction fees (78.6% of core revenues) were $247.5 million, up 22.1% from the year-ago period.

Revenues from Integrated Platform — comprising the BILL AP/AR, and BILL Spend and Expense sub-segments — were $294.9 million, increasing 18.2% year over year. This contributed 93.6% to core revenues and 82.3% to total revenues.

Revenues from Embedded & Other Solutions were $20.1 million, which increased 28% year over year. This contributed 6.4% to core revenues and 5.6% to total revenues.

Float revenues, which consist of interest on funds held for customers, were $43.5 million in the reported quarter, up 9.2% year over year.

Operating Details for Bill Holdings

In the quarter under review, non-GAAP gross profit was $307 million, up 16.9% year over year. The gross margin of 85.6% contracted 50 basis points (bps) year over year.

In the first quarter of fiscal 2025, adjusted research and development expenses totaled $54.7 million, down 10.6% year over year. Adjusted sales and marketing expenses rose 10.6% to $115.4 million. However, adjusted general and administrative expenses decreased 5.2% to $49.1 million.

BILL Holdings reported a non-GAAP operating income of $67.1 million, marking a 100.9% year-over-year surge. The operating margin expanded 780 bps on a year-over-year basis to 18.7%.

BILL’s Balance Sheet & Cash Flow statement

As of Sept. 30, 2024, cash, cash equivalent and short-term investments were $1.47 billion compared with $1.59 billion as of June 30, 2024.

Cash flow from operations was $88.6 million in the first quarter of fiscal 2025 compared with $78.6 million in the fourth quarter of fiscal 2024.

In the fiscal first quarter, BILL repurchased 3.7 million shares of its common stock for $200 million.

BILL Holdings’ Guidance Positive

For the second quarter of fiscal 2025, BILL expects revenues between $355.5 million and $360.5 million, suggesting year-over-year growth of 12-13%. Non-GAAP earnings per share are projected between 44 cents and 48 cents.

For the fiscal 2025, the company expects revenues between $1.44 billion and $1.46 billion, implying 12-13% year-over-year growth. Non-GAAP earnings per share are expected between $1.65 and $1.83.

Zacks Rank & Stocks to Consider

Currently, BILL Holdings has a Zacks Rank #3 (Hold).

CyberArk Software CYBR, NVIDIA NVDA and Bilibili BILI are some better-ranked stocks in the broader Zacks Computer and Technology sector. CyberArk Software sports Zacks Rank #1 (Strong Buy), and NVIDIA and Bilibili carry Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CyberArk Software shares have gained 34.6% year to date. CYBR is set to report its third-quarter 2024 results on Nov. 13.

NVIDIA shares have surged 200.3% year to date. NVIDIA is set to report third-quarter fiscal 2025 results on Nov. 20.

Bilibili shares have gained 98.6% year to date. BILI is set to report its third-quarter 2024 results on Nov. 14.

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