SAN JOSE, California – Bill.com Holdings Inc. (NYSE: NYSE:) reported better-than-expected fourth-quarter results and provided first-quarter revenue guidance above analyst expectations, while full-year guidance was mixed.
The company’s shares rose more than 5% in premarket trading on Friday.
The financial transactions platform for small and mid-sized businesses posted adjusted earnings per share of $0.57 for the fourth quarter, beating analyst consensus of $0.46. Revenue rose 16% year over year to $343.7 million, beating expectations of $328.06 million.
“The 2024 financial year was an important year for BILL, as we strengthened our position as an essential platform for financial transactions for SMEs,” said CEO René Lacerte. “We launched our integrated platform, giving SMEs access to capital and giving businesses additional insights and control over their cash flow.”
For the first quarter, Bill.com expects revenue between $346 and 351 million, above the consensus of $337 million. However, first-quarter earnings guidance of $0.48-$0.51 fell short of the $0.51 estimate.
The company’s fiscal 2025 outlook was mixed. It expects revenue of $1.42 billion to $1.45 billion, in line with the $1.44 billion consensus. But the EPS estimate of $1.36-$1.61 came in well below expectations of $2.23.
Bill.com also announced a new $300 million share repurchase program, citing confidence in its strategy and future growth potential.
At the end of the fourth quarter, the company served 474,600 businesses using its solutions. It processed a total payment volume of $76 billion, up 10% year over year.
Following the publication of the report, BTIG analysts said:
“Overall, this was a strong quarter and management appears more confident in the broader stabilization of customer base trends, but with the additional spend and lack of upside indicators in the sector, we remain neutral for now until we see a larger see momentum in the sector.” the company to truly guarantee a return to growth above 20%.”
Meanwhile, Morgan Stanley analysts said this is the second consecutive quarter in which BILL’s key metrics have stabilized, indicating the company has “regained its footing.”
“Stable macro and improving momentum from new initiatives are driving management’s expectations of growth above 20% in FY26, but it may take some time for investors to buy into that acceleration,” she added, noting a Equal Weight rating for the stock reiterated.
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