BILL Holdings’s BILL shares have surged 44.8% in the past month, outperforming the broader Zacks Computer & Technology sector’s 0.8% return and the Zacks Internet - Software industry’s 5.5% growth.

BILL outpaced industry peers including AvidXchange AVDX and Dayforce DAY.

Shares of AvidXchange have gained 12.5% while those of Dayforce have lost 4.2% over the same time frame.

BILL Holdings has been riding on its market-leading financial operations platform, network expansion and consecutive quarters of strong financial results.

BILL Rides on Strong Q1 Results

BILL has a long history of reporting strong quarterly performance, with earnings surpassing the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.84%. 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the first quarter of fiscal 2025, BILL’s earnings of 63 cents per share jumped 43.2% year over year and beat the Zacks Consensus Estimate by 28.57%.

Total revenues grew 17.5% year over year to $358 million, led by 18.8% growth in BILL’s core revenues. 

Core revenues, which include subscription and transaction fees, reached $315 million, up 19% year over year. BILL’s integrated platform revenues, which include BILL AP, AR and Spend & Expense solutions, reached $295 million, marking 18% year over year growth.

BILL’s first-quarter fiscal 2025 results reflect strong growth in total payment volume (TPV). The company processed $79.9 billion in TPV in the quarter, up 13.8% year over year. 

Higher TPV reflects BILL’s success in driving customer engagement and expanding its network, leading to operational efficiencies.

BILL Rides on Platform and Customer Expansion

BILL's platform is a leader in financial operations, catering effectively to small and medium-sized businesses (SMBs). The company is actively expanding its presence in this essential market segment, aiming to bring comprehensive financial operations tools to more SMBs.

Over the past year, more than 1,000 accounting firms joined the BILL platform, bringing the total to more than 8,500 firms in the United States. Together, they now serve tens of thousands of SMBs, helping simplify operations and expand business growth. Its vast network includes accounts payable and receivable solutions, which enable businesses to streamline operations, process faster payments and achieve greater operational efficiencies.

BILL has expanded the availability of its Divvy card to AP customers, offering it as an alternative to traditional check and ACH payments. This not only encourages increased spending through the Divvy card but also provides a seamless pathway for AP customers to upgrade to BILL's comprehensive Spend & Expense platform.

At the close of the fiscal first quarter, BILL Holdings served 476.2K businesses, a slight increase from 471.2K in the same period the previous year. This total included 192.5K customers on its Integrated Platform and 283.7K in Embedded & Other Solutions.

BILL’s Q2 Outlook Looks Optimistic

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

The Zacks Consensus Estimate for revenues is pegged at $358.57 million, indicating a rise of 12.58% year over year. The consensus mark for earnings is pegged at 44 cents per share, indicating a 22.2% upward revision in the past 30 days.

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

The Zacks Consensus Estimate for revenues is pegged at $1.45 billion, indicating year-over-year growth of 12.75%.

The consensus mark for 2025 earnings is pegged at $1.73 per share, implying a 14.6% upward revision over the past 30 days.

Zacks Rank & Another Stock to Consider

BILL Holdings currently has a Zacks Rank #2 (Buy).

MACOM Technology Solutions MTSI is a better-ranked stock in the broader tech sector, which sports a Zacks Rank #1 (Strong Buy) at present.  You can see the complete list of today’s Zacks #1 Rank stocks here.

MTSI’s shares have risen 48.4% year to date. The long-term earnings growth rate is currently pegged at 21.04%.

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