BILL Holdings BILL shares have plunged 36.2% since the company reported second-quarter fiscal 2025 results on Feb. 6. The decline was due to the company’s weaker-than-expected revenue guidance and challenges from FX volatility impacting monetization.

Click here to check the details of BILL’s second-quarter fiscal 2025 results.

BILL shares have outperformed the Zacks Computer & Technology sector and its Zacks Internet - Software industry peer Intuit INTU in the trailing six months. While BILL’s shares have gained 28.1%, Intuit shares have plunged 9.3% in the same time frame. The broader sector has returned 11.5% over the trailing six-month period.

The outperformance can be attributed to strong revenue growth, increased platform adoption, AI-driven automation, expanded payment solutions, and expanding partnerships enhancing its SMB ecosystem.

Six Month Performance

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In the second quarter of fiscal 2025, revenues of $362.6 million increased 13.8% year over year. The top line was driven by 16.3% growth in BILL’s core revenues, reflecting its growing customer base and expanded use of its platform.

The growth was further fueled by the company’s AI-enabled automation capabilities and a refined go-to-market strategy. BILL’s focus on delivering value to SMBs (Small and Medium-sized Businesses) and simplifying SMB’s financial operations allowed it to capture more clients and boost its revenue stream.

BILL Expands User Base With AI-Driven Financial Solutions

BILL is strengthening its position in the financial technology sector with an expanding portfolio, which has played a key role in driving its success.

In the second quarter of fiscal 2025, BILL’s platform saw a broad increase in users, with over 480,000 businesses using its automation tools to streamline their financial workflows. 

The company processed $85 billion across 30 million transactions, indicating high user engagement and an expanding customer base. The rise in both users and transaction volume reflects the growing demand for BILL’s suite of financial solutions, which is central to the company's increasing success.

BILL’s investments in artificial intelligence and product enhancements, such as the integration of automated 1099 filing and expanded card offerings, attracted more customers to its platform, making financial operations even more efficient. As these advancements gained traction, they contributed significantly to BILL's growing presence in the financial technology space.

In the reported quarter, the company introduced new features like the embedded 1099 functionality, which simplified tax form filing, enhancing the platform’s appeal to small and medium-sized businesses and driving further customer engagement. 

BILL Expands SMB Reach With Key Partnerships

BILL’s customer base continued to expand, with a growing number of small and medium-sized businesses adopting its platform for digital payment and invoicing needs. This increase in adoption reflects a broader trend in the SMB sector toward streamlining financial operations and embracing digital solutions for greater efficiency.

The company’s expanding SMB clientele, including Adyen ADYEY, Regions Financial RF and Xero, has been a key catalyst.

The company’s partnership with Regions Bank to introduce Regions CashFlowIQSM, a digital solution aimed at simplifying payments and improving cash management for commercial clients, further solidifies its position as a leader in digital payment solutions.

BILL’s partnership with Adyen integrates advanced acquiring and issuing capabilities into its financial operations platform for SMBs, enhancing accounts payable and receivable solutions with Adyen’s technology.

BILL Holdings’ Q3 Guidance

For the third quarter of fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, suggesting year-over-year growth of 9-11%. Non-GAAP earnings are projected to be between 35 cents and 38 cents per share.

For fiscal 2025, BILL Holdings expects revenues between $1.45 billion and $1.47 billion, implying 13-14% year-over-year growth. Non-GAAP earnings are expected to be between $1.87 and $1.97 per share.

Earnings Estimate Shows Mixed Trend

The Zacks Consensus Estimate for the third quarter of fiscal 2025 revenues is pegged at $355.32 million, indicating year-over-year growth of 10%.

The consensus mark for earnings is pegged at 36 cents per share, which has increased by a penny over the past 30 days. The figure calls for a year-over-year decline of 40%

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.46 billion, indicating year-over-year growth of 13.19%.

The consensus mark for earnings is pegged at $1.83 per share, which has increased by a couple of pennies over the past 30 days. The figure calls for a year-over-year decline of 13.68%.

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

BILL Stock is Currently Overvalued

BILL stock is not so cheap, as suggested by the Value Score of F.

In terms of the forward 12-month Price/Sales, BILL is trading at 3.97X, higher than the industry’s 3.33X.

Price/Sales (F12M)

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What Should Investors Do With BILL Stock?

BILL’s expanding customer base, robust product portfolio and focus on automation continue to drive strong growth and profitability, positioning the company for sustained success.

The company also maintained strong cash generation, with a free cash flow margin of 20% in the fiscal second quarter of 2025, demonstrating the success of its efforts to balance growth with profitability.

BILL Holdings currently carries a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Regions Financial Corporation (RF) : Free Stock Analysis Report

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BILL Holdings, Inc. (BILL) : Free Stock Analysis Report

Adyen N.V. Unsponsored ADR (ADYEY) : Free Stock Analysis Report

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