Bill.com Holdings Inc
NYSE:BILL
Bill.com Holdings Inc
In the bustling landscape of financial technology, Bill.com Holdings Inc. has carved out a niche by transforming how small and mid-sized businesses manage their back-office financial operations. Founded in 2006 by René Lacerte, the company embarked on its mission to streamline payments and eliminate the paper trail that has traditionally bogged down business transactions. With a cloud-based software platform at its core, Bill.com digitizes and automates the payables and receivables process, connecting businesses, suppliers, and clients in a seamless ecosystem. Central to its offering is the ability to integrate with popular accounting software, enhancing the financial workflow and providing users with a consolidated view of their cash flows. This technological prowess not only reduces time spent on manual data entry but also minimizes errors, thus providing tangible value to its clients.
Bill.com generates its revenue primarily through a subscription-based model, where customers pay for access to the platform's suite of services, designed to cater to the wide spectrum of business needs. Additionally, the company benefits from transaction-based fees, which are incurred each time a customer processes a transaction through its platform. This model is particularly lucrative given the volume of transactions it manages, acting as a multiplier on its revenue stream. Furthermore, Bill.com has expanded its services by incorporating artificial intelligence and machine learning capabilities, which enhances its competitive edge and deepens customer engagement. Through strategic integrations and robust, user-friendly solutions, Bill.com not only simplifies financial operations but also empowers businesses to make more informed financial decisions.
In the bustling landscape of financial technology, Bill.com Holdings Inc. has carved out a niche by transforming how small and mid-sized businesses manage their back-office financial operations. Founded in 2006 by René Lacerte, the company embarked on its mission to streamline payments and eliminate the paper trail that has traditionally bogged down business transactions. With a cloud-based software platform at its core, Bill.com digitizes and automates the payables and receivables process, connecting businesses, suppliers, and clients in a seamless ecosystem. Central to its offering is the ability to integrate with popular accounting software, enhancing the financial workflow and providing users with a consolidated view of their cash flows. This technological prowess not only reduces time spent on manual data entry but also minimizes errors, thus providing tangible value to its clients.
Bill.com generates its revenue primarily through a subscription-based model, where customers pay for access to the platform's suite of services, designed to cater to the wide spectrum of business needs. Additionally, the company benefits from transaction-based fees, which are incurred each time a customer processes a transaction through its platform. This model is particularly lucrative given the volume of transactions it manages, acting as a multiplier on its revenue stream. Furthermore, Bill.com has expanded its services by incorporating artificial intelligence and machine learning capabilities, which enhances its competitive edge and deepens customer engagement. Through strategic integrations and robust, user-friendly solutions, Bill.com not only simplifies financial operations but also empowers businesses to make more informed financial decisions.
Core Revenue Beat: Core revenue grew 17% year-over-year to $375 million, exceeding the top end of guidance and accelerating versus last quarter.
Profitability: Non-GAAP operating margin reached 18%, improving both sequentially and year-over-year, reflecting strong cost discipline and operational efficiency.
Guidance Raised: Full-year core revenue guidance was increased by approximately 170 basis points and margin guidance was also raised, highlighting management's confidence.
AI & Product Innovation: Ongoing investment and rapid deployment of agentic AI capabilities are driving automation, risk management, and customer engagement, with measurable gains in self-service and workflow elimination.
Invoice Financing Growth: Customers using invoice financing grew by nearly 50% year-over-year and origination volume increased by more than 30%, with improved unit economics.
Upmarket Focus: The company is prioritizing larger customers and introducing targeted price increases, resulting in higher ARPU and record card spend per business.
Positive Volume Trends: Spend volumes improved across the platform, bolstered by recovery in manufacturing, construction, advertising, and retail sectors.
Strong Early Results in Embedded & SPP: New Embed 2.0 channel partnerships and Supplier Payments Plus (SPP) showed promising initial traction.
