Bill Holdings Inc (BILL) saw its stock plummet 29.24% in pre-market trading on Friday, amid disappointing guidance for the upcoming third quarter. The financial operations software provider issued revenue guidance for Q3 that fell short of analyst expectations, overshadowing better-than-expected results for the second quarter ended December 31.
For the second quarter, Bill Holdings reported non-GAAP earnings per share of $0.56, surpassing Wall Street estimates of $0.46. Revenue came in at $362.55 million, slightly above the consensus estimate of $360.23 million, driven by a 16% year-over-year increase in core revenue, which consists of subscription and transaction fees.
However, the company's guidance for the third quarter cast a shadow over the positive Q2 results. Bill Holdings forecasted Q3 revenue between $352.5 million and $357.5 million, falling short of analyst expectations of around $360.4 million. This disappointing guidance points to a slowdown in growth for the company, raising concerns among investors.