Payments and billing software maker Bill.com (NYSE:BILL) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Bill.com beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $343.7 million, up 16.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but management forecasting growth to slow.
Is Bill.com a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bill.com’s revenue to grow 13.8% year on year to $347 million, slowing from the 32.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bill.com has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.3% on average.
Looking at Bill.com’s peers in the finance and HR software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 14.3%, beating analysts’ expectations by 1.9%, and Paycom reported revenues up 11.2%, topping estimates by 1.1%. Paylocity traded up 3.3% following the results while Paycom was also up 21.3%.
Read our full analysis of Paylocity’s results here and Paycom’s results here.
There has been positive sentiment among investors in the finance and HR software segment, with share prices up 7% on average over the last month. Bill.com is up 9.6% during the same time and is heading into earnings with an average analyst price target of $68.32 (compared to the current share price of $59.05).
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