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Bill.com Reports Third Quarter Fiscal 2020 Financial Results

05/07/2020
  • Total Quarterly Revenue Growth of 46% Year-over-Year
  • Subscription and Transaction Revenue Increases 63% Year-over-Year

PALO ALTO, Calif.--(BUSINESS WIRE)-- Bill.com (NYSE: BILL), a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses, today announced financial results for the third fiscal quarter ended March 31, 2020.

“Bill.com reported solid quarterly results highlighted by strong revenue growth and a healthy pace of new customer acquisition,” commented Bill.com CEO René Lacerte. “Our platform is mission-critical to SMBs and we have found this to be especially true in the current work-from-home environment. We are optimistic that our purpose-built platform will resonate even more with SMBs who are now coping with the reality that the old way of managing their back-office financial operations doesn’t work anymore.”

Financial Highlights for the Third Quarter of Fiscal 2020

  • Total revenue for the quarter was $41.2 million, an increase of 46% from the third quarter of fiscal 2019. Subscription and transaction revenue was $36.1 million, an increase of 63% from the third quarter of fiscal 2019. Interest on funds held for customers, which we refer to as float revenue, was $5.1 million, a decrease of 16% from the third quarter of fiscal 2019.
  • GAAP gross profit was $31.1 million, representing a 75.5% gross margin, compared to $20.3 million, or a 72.0% gross margin, in the third quarter of fiscal 2019. Non-GAAP gross profit was $32.5 million, representing a 78.8% non-GAAP gross margin, compared to $21.5 million, or a 76.0% non-GAAP gross margin in the third quarter of fiscal 2019.
  • Loss from operations was $9.7 million, compared to loss from operations of $2.8 million in the third quarter of fiscal 2019. Non-GAAP loss from operations for the third quarter was $4.3 million, compared to a non-GAAP loss from operations of $1.1 million in the third quarter of fiscal 2019.
  • Net loss was $8.3 million, or ($0.11) per share, basic and diluted, compared to net loss of $2.0 million, or ($0.26) per share, basic and diluted, in the third quarter of fiscal 2019. Non-GAAP net loss was $2.9 million, or ($0.04) per share, basic and diluted, compared to non-GAAP net loss of $138,000, or breakeven on a per share basis, basic and diluted, in the same period last year.
  • Cash, cash equivalents and short-term investments were $382.4 million at March 31, 2020.

Business Highlights

  • Served over 91,000 customers, representing year-over-year customer growth of 28%.
  • Processed $24.2 billion in total payment volume on our platform, an increase of 35% year-over-year.
  • Processed over 6 million transactions, representing an increase of 23% year-over-year.
  • Named a leader in G2’s 2020 Accounts Payable Automation Software category for the small and medium business community.
  • Signed an agreement with Wells Fargo Bank, N.A. to integrate Bill.com into its Commercial Electronic Office® (CEO®) online electronic banking portal.

Conference Call

In conjunction with this announcement Bill.com will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss the third quarter of fiscal 2020 results and our outlook for the fourth quarter of fiscal 2020. The conference call will be available via live webcast and replay at the Investor Relations section of Bill.com’s website: https://investor.bill.com/events-and-presentations/default.aspx.

About Bill.com

Bill.com is a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the Bill.com platform to manage end-to-end financial workflows and to process payments. The Bill.com financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflows. The company partners with several of the largest U.S. financial institutions, the majority of the top 100 U.S. accounting firms, and popular accounting software providers. Bill.com has offices in Palo Alto, California and Houston, Texas. For more information visit www.bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call include forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations for future performance and results in the third quarter of fiscal 2020, the growth of demand on our platform and the expansion of our customers’ utilization of our services. These risks and uncertainties include, but are not limited to, the novel coronavirus outbreak (COVID-19) and its impact to our employees, customers, strategic partners, vendors, our results of operations, liquidity and financial condition, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, the market, interest rate, foreign exchange and other conditions that the customer funds we hold in trust are subject to, our ability to attract new customers and convert trial customers into paying customers, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in registration statements and periodic reports we file with the SEC, including our quarterly report on Form 10-Q filed with the SEC on February 11, 2020, which may be obtained on the Investor Relations section of Bill.com’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. Actual results may differ materially from those presently reported. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update the information contained in this press release or the accompanying conference call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share, basic and diluted. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock- based compensation expense using a variety of valuation methodologies and subjective assumptions.

Depreciation and amortization expense. We exclude depreciation and amortization expense from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Capitalized internal-use software and amortization. We include capitalization and exclude the subsequent amortization of internal-use software costs in certain of our non-GAAP financial measures. We capitalize direct costs incurred related to obtaining or developing internal-use software during the application development stage and we amortize those costs over the estimated useful lives of the software. The capitalization and subsequent amortization of those costs can vary every period depending on our business needs and the timing on the software’s availability for its intended use. We believe that including or excluding the effect of the capitalized internal-use software in certain of our non-GAAP financial measure provides us useful information in evaluating and comparing the consistency of our operating performance on a period-to-period basis.

Capitalized sales commissions and amortization. We include capitalization and exclude the subsequent amortization of sales commissions in certain of our non-GAAP financial measures. We capitalize sales commissions that are incremental costs in obtaining new customer contracts and we amortize such costs over the benefit period of our relationship with the acquired customers. We believe that including or excluding the effect of the capitalization of sales commissions in certain of our non-GAAP financial measures in a given period provides us useful information in evaluating and comparing the consistency of our performance in acquiring new customer contracts on a period-to-period basis.

Capitalized service costs and amortization. We include capitalization and exclude the subsequent amortization of service costs in certain of our non-GAAP financial measures. These service costs, which primarily consist of direct payroll costs, pertain to the implementation services that we provide to our financial institution customers and certain SMB customers prior to the launching of our product for general use. We capitalize such service costs and amortize them over the estimated benefit period. Our implementation service is generally a non-recurring type of service that we perform for our new customers. We believe that including or excluding the effect of the capitalization of service costs in certain of our non-GAAP financial measures provides us useful information in evaluating and comparing the consistency of our operating performance on a period-to-period basis.

Gain or loss on revaluation of warrant liabilities and gain on forfeiture of warrants. We exclude gain or loss on revaluation of warrant liabilities and gain on forfeiture of warrants, which is a non-cash income or expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Stock warrants expense. We exclude stock warrants expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

BILL.COM HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
 

March 31,

June 30,

2020

2019

ASSETS
Current assets:
Cash and cash equivalents

$

228,585

 

$

90,306

 

Short-term investments

 

153,838

 

 

71,969

 

Accounts receivable, net

 

3,440

 

 

4,398

 

Unbilled revenue

 

6,151

 

 

4,795

 

Prepaid expenses and other current assets

 

25,137

 

 

12,326

 

Funds held for customers

 

1,353,552

 

 

1,329,306

 

Total current assets

 

1,770,703

 

 

1,513,100

 

Property and equipment, net

 

12,317

 

 

6,557

 

Other assets

 

6,819

 

 

6,641

 

Total assets

$

1,789,839

 

$

1,526,298

 

 
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable

$

6,477

 

$

5,063

 

Accrued compensation and benefits

 

6,723

 

 

4,333

 

Other accrued and current liabilities

 

10,894

 

 

6,556

 

Redeemable convertible preferred stock warrant liabilities

 

688

 

Deferred revenue

 

6,101

 

 

3,469

 

Line of credit borrowings

 

2,300

 

Customer fund deposits

 

1,353,552

 

 

1,329,306

 

Total current liabilities

 

1,386,047

 

 

1,349,415

 

Deferred revenue, non-current

 

2,098

 

 

1,786

 

Other long-term liabilities

 

11,745

 

 

1,447

 

Total liabilities

 

1,399,890

 

 

1,352,648

 

Commitments and contingencies
Redeemable convertible preferred stock

 

276,307

 

Stockholders' equity (deficit):
Common stock

 

2

 

 

1

 

Additional paid-in capital

 

530,190

 

 

14,672

 

Accumulated other comprehensive (loss) income

 

(994

)

 

326

 

Accumulated deficit

 

(139,249

)

 

(117,656

)

Total stockholders' equity (deficit)

 

389,949

 

 

(102,657

)

Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

$

1,789,839

 

$

1,526,298

 

BILL.COM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
 

Three months ended
March 31,

Nine months ended
March 31,

2020

2019

2020

2019

Revenue
Subscription and transaction fees

$

36,092

 

$

22,112

 

$

97,604

 

$

60,726

 

Interest on funds held for customers

 

5,138

 

 

6,132

 

 

17,886

 

 

15,941

 

Total revenue

 

41,230

 

 

28,244

 

 

115,490

 

 

76,667

 

Cost of revenue (1)

 

10,110

 

 

7,914

 

 

29,044

 

 

21,430

 

Gross profit

 

31,120

 

 

20,330

 

 

86,446

 

 

55,237

 

Operating expenses
Research and development (1)

 

13,969

 

 

7,899

 

 

38,476

 

 

19,477

 

Sales and marketing (1)

 

11,802

 

 

7,365

 

 

33,560

 

 

20,165

 

General and administrative (1)

 

15,064

 

 

7,904

 

 

38,347

 

 

20,245

 

Total operating expenses

 

40,835

 

 

23,168

 

 

110,383

 

 

59,887

 

Loss from operations

 

(9,715

)

 

(2,838

)

 

(23,937

)

 

(4,650

)

Other income, net

 

1,397

 

 

734

 

 

2,396

 

 

1,737

 

Loss before provision for (benefit from) income taxes

 

(8,318

)

 

(2,104

)

 

(21,541

)

 

(2,913

)

Provision for (benefit from) income taxes

 

1

 

 

(70

)

 

52

 

 

(97

)

Net loss

$

(8,319

)

$

(2,034

)

$

(21,593

)

$

(2,816

)

 
Net loss per share attributable to common stockholders, basic and diluted

$

(0.11

)

$

(0.26

)

$

(0.63

)

$

(0.37

)

Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted

 

72,379

 

 

7,946

 

 

34,167

 

 

7,701

 

 
(1) Includes stock-based compensation expense as follows:
Cost of revenue

$

422

 

$

93

 

$

781

 

$

205

 

Research and development

 

1,466

 

 

379

 

 

3,221

 

 

731

 

Sales and marketing

 

767

 

 

299

 

 

1,643

 

 

586

 

General and administrative

 

2,430

 

 

605

 

 

4,791

 

 

1,055

 

$

5,085

 

$

1,376

 

$

10,436

 

$

2,577

 

BILL.COM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 

Three months ended
March 31,

Nine months ended
March 31,

2020

 

2019

 

2020

 

2019

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss

$

(8,319

)

$

(2,034

)

$

(21,593

)

$

(2,816

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization

 

1,100

 

 

846

 

 

3,205

 

 

2,419

 

Stock-based compensation

 

5,085

 

 

1,376

 

 

10,436

 

 

2,577

 

Accretion of discount on investment in marketable debt securities

 

(509

)

 

(424

)

 

(2,855

)

 

(885

)

Revaluation of warrant liabilities and forfeiture of warrants

 

166

 

 

717

 

 

(139

)

Issuance of warrants

 

87

 

 

139

 

Deferred income taxes

 

(69

)

 

(113

)

Changes in assets and liabilities:
Accounts receivable

 

1,351

 

 

668

 

 

958

 

 

(1,704

)

Unbilled revenue

 

(242

)

 

(502

)

 

(1,356

)

 

(1,385

)

Prepaid expenses and other current assets

 

(9,235

)

 

(1,345

)

 

(10,843

)

 

(4,341

)

Other assets

 

(466

)

 

(203

)

 

(1,047

)

 

(804

)

Accounts payable

 

(2,621

)

 

881

 

 

(1,475

)

 

3,140

 

Accrued and other current liabilities

 

2,342

 

 

927

 

 

6,893

 

 

1,782

 

Other long-term liabilities

 

10,502

 

 

(103

)

 

10,689

 

 

(212

)

Deferred revenue

 

1,834

 

 

(170

)

 

2,944

 

 

264

 

Net cash provided by (used in) operating activities

 

822

 

 

101

 

 

(3,327

)

 

(2,078

)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of corporate and customer fund short-term investments

 

(416,046

)

 

(218,079

)

 

(830,694

)

 

(633,405

)

Proceeds from maturities of corporate and customer fund short-term investments

 

189,075

 

 

167,830

 

 

596,311

 

 

550,814

 

Proceeds from sale of corporate and customer fund short-term investments

 

2,612

 

 

25,553

 

 

25,337

 

 

54,715

 

Decrease (increase) in restricted cash and cash equivalents and other receivables included in funds held for customers

 

276,228

 

 

57,799

 

 

102,498

 

 

(240,851

)

Purchases of property and equipment

 

(2,764

)

 

(688

)

 

(5,736

)

 

(2,259

)

Capitalization of internal-use software costs

 

(149

)

 

(482

)

 

(489

)

 

(1,315

)

(Increase) decrease in restricted cash

 

(550

)

 

550

 

 

(550

)

Net cash provided by (used in) investing activities

 

48,956

 

 

31,383

 

 

(112,223

)

 

(272,851

)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs

 

(1,021

)

 

225,544

 

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

 

18,074

 

 

87,875

 

(Decrease) increase in customer fund deposits liability

 

(138,211

)

 

(32,916

)

 

24,246

 

 

264,897

 

Proceeds from line of credit borrowings

 

2,300

 

 

2,300

 

Payments on bank borrowings

 

(416

)

 

(833

)

Proceeds from exercise of stock options

 

845

 

 

367

 

 

1,746

 

 

1,316

 

Proceeds from exercise of stock warrants

 

144

 

Payments of deferred debt issuance costs

 

(151

)

Net cash (used in) provided by financing activities

 

(136,087

)

 

(14,891

)

 

253,829

 

 

353,255

 

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

 

(86,309

)

 

16,593

 

 

138,279

 

 

78,326

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

314,894

 

 

84,134

 

 

90,306

 

 

22,401

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

228,585

 

$

100,727

 

$

228,585

 

$

100,727

 

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
FOR THE THREE MONTHS ENDED MARCH 31, 2020
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Other cost
and operating
expenses (1)
Non-
GAAP
Total revenue

$

41,230

 

$

$

$

41,230

 

Cost of revenue

 

10,110

 

 

(422

)

 

(956

)

 

8,732

 

Gross profit

 

31,120

 

 

422

 

 

956

 

 

32,498

 

Gross margin

 

75.5

%

 

1.0

%

 

2.3

%

 

78.8

%

Operating expenses
Research and development

 

13,969

 

 

(1,466

)

 

280

 

 

12,783

 

Sales and marketing

 

11,802

 

 

(767

)

 

506

 

 

11,541

 

General and administrative

 

15,064

 

 

(2,430

)

 

(133

)

 

12,501

 

Loss from operations

 

(9,715

)

 

5,085

 

 

303

 

 

(4,327

)

Other income, net

 

1,397

 

 

1,397

 

Loss before provision for income taxes

 

(8,318

)

 

5,085

 

 

303

 

 

(2,930

)

Provision for income taxes

 

1

 

 

1

 

Net loss

$

(8,319

)

$

5,085

 

$

303

 

$

(2,931

)

 
Net loss per share attributable to common stockholders, basic and diluted (2)

$

(0.11

)

$

(0.04

)

 
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted

 

72,379

 

 

72,379

 

 
 
(1) Other cost and operating expenses adjustments consist of depreciation and amortization expense of $1.1 million; offset by capitalization of contract and service costs (net of amortization) of $797,000.
 
(2) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.11

)

Stock-based compensation expense

 

0.07

 

Depreciation and amortization and other expense adjustments

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.04

)

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
FOR THE THREE MONTHS ENDED MARCH 31, 2019
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Other cost
and operating
expenses (1)
Non-
GAAP
Total revenue

$

28,244

 

$

$

$

28,244

 

Cost of revenue

 

7,914

 

 

(93

)

 

(1,050

)

 

6,771

 

Gross profit

 

20,330

 

 

93

 

 

1,050

 

 

21,473

 

Gross margin

 

72.0

%

 

0.3

%

 

3.7

%

 

76.0

%

Operating expenses
Research and development

 

7,899

 

 

(379

)

 

530

 

 

8,050

 

Sales and marketing

 

7,365

 

 

(299

)

 

348

 

 

7,414

 

General and administrative

 

7,904

 

 

(605

)

 

(182

)

 

7,117

 

Loss from operations

 

(2,838

)

 

1,376

 

 

354

 

 

(1,108

)

Other income, net

 

734

 

 

166

 

 

900

 

Loss before benefit from income taxes

 

(2,104

)

 

1,376

 

 

520

 

 

(208

)

Benefit from income taxes

 

(70

)

 

(70

)

Net loss

$

(2,034

)

$

1,376

 

$

520

 

$

(138

)

 
Net loss per share attributable to common stockholders, basic and diluted (2)

$

(0.26

)

$

 
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted (3)

 

7,946

 

 

60,031

 

 
 
(1) Other cost and operating expenses adjustments consist of depreciation and amortization expense of $847,000, loss on revaluation of redeemable convertible preferred stock warrant liabilities of $166,000 and warrant expense of $87,000; offset by capitalization of contract and service costs (net of amortization) of $580,000.
 
(2) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.26

)

Stock-based compensation expense

 

0.17

 

Depreciation and amortization and other expense adjustments

 

0.07

 

Impact of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

0.02

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

 
(3) Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

 

7,946

 

Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

52,085

 

Shares used to compute non-GAAP net loss per share attributable to common stockholders, basic and diluted

 

60,031

 

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
FOR THE NINE MONTHS ENDED MARCH 31, 2020
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Other cost
and operating
expenses (1)
Non-
GAAP
Total revenue

$

115,490

 

$

$

$

115,490

 

Cost of revenue

 

29,044

 

 

(781

)

 

(2,926

)

 

25,337

 

Gross profit

 

86,446

 

 

781

 

 

2,926

 

 

90,153

 

Gross margin

 

74.9

%

 

0.7

%

 

2.5

%

 

78.1

%

Operating expenses
Research and development

 

38,476

 

 

(3,221

)

 

452

 

 

35,707

 

Sales and marketing

 

33,560

 

 

(1,643

)

 

1,647

 

 

33,564

 

General and administrative

 

38,347

 

 

(4,791

)

 

(325

)

 

33,231

 

Loss from operations

 

(23,937

)

 

10,436

 

 

1,152

 

 

(12,349

)

Other income, net

 

2,396

 

 

717

 

 

3,113

 

Loss before provision for income taxes

 

(21,541

)

 

10,436

 

 

1,869

 

 

(9,236

)

Provision for income taxes

 

52

 

 

52

 

Net loss

$

(21,593

)

$

10,436

 

$

1,869

 

$

(9,288

)

 
Net loss per share attributable to common stockholders, basic and diluted (2)

$

(0.63

)

$

(0.14

)

 
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted (3)

 

34,167

 

 

65,246

 

 
 
(1) Other cost and operating expenses adjustments consist of depreciation and amortization expense of $3.2 million and loss on revaluation of redeemable convertible preferred stock warrant liabilities of $717,000; offset by capitalization of contract and service costs (net of amortization) of $2.1 million.
 
(2) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.63

)

Stock-based compensation expense

 

0.31

 

Depreciation and amortization and other expense adjustments

 

0.05

 

Impact of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

0.13

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.14

)

 
(3) Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

 

34,167

 

Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

31,079

 

Shares used to compute non-GAAP net loss per share attributable to common stockholders, basic and diluted

 

65,246

 

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
FOR THE NINE MONTHS ENDED MARCH 31, 2019
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Other cost
and operating
expenses (1)
Non-
GAAP
Total revenue

$

76,667

 

$

$

$

76,667

 

Cost of revenue

 

21,430

 

 

(205

)

 

(2,588

)

 

18,637

 

Gross profit

 

55,237

 

 

205

 

 

2,588

 

 

58,030

 

Gross margin

 

72.0

%

 

0.3

%

 

3.4

%

 

75.7

%

Operating expenses
Research and development

 

19,477

 

 

(731

)

 

2,004

 

 

20,750

 

Sales and marketing

 

20,165

 

 

(586

)

 

825

 

 

20,404

 

General and administrative

 

20,245

 

 

(1,055

)

 

(364

)

 

18,826

 

Loss from operations

 

(4,650

)

 

2,577

 

 

123

 

 

(1,950

)

Other income, net

 

1,737

 

 

(128

)

 

1,609

 

Loss before benefit from income taxes

 

(2,913

)

 

2,577

 

 

(5

)

 

(341

)

Benefit from income taxes

 

(97

)

 

(97

)

Net loss

$

(2,816

)

$

2,577

 

$

(5

)

$

(244

)

 
Net loss per share attributable to common stockholders, basic and diluted (2)

$

(0.37

)

$

 
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted (3)

 

7,701

 

 

56,628

 

 
 
(1) Other cost and operating expenses adjustments consist of depreciation and amortization expense of $2.4 million and warrant expense of $139,000; offset by capitalization of contract and service costs (net of amortization) of $2.4 million and net gain on forfeiture of warrants and revaluation of redeemable convertible preferred stock warrant liabilities and of $139,000.
 
(2) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.37

)

Stock-based compensation expense

 

0.33

 

Depreciation and amortization and other expense adjustments

Impact of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

0.04

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

 
(3) Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

 

7,701

 

Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

48,927

 

Shares used to compute non-GAAP net loss per share attributable to common stockholders, basic and diluted

 

56,628

 

BILL.COM HOLDINGS, INC.
FREE CASH FLOW
(Unaudited, in thousands)
 
Three months ended
March 31,
Nine months ended
March 31,

2020

 

2019

 

2020

 

2019

Net cash provided by (used in) operating activities

$

822

 

$

101

 

$

(3,327

)

$

(2,078

)

Purchases of property and equipment

 

(2,764

)

 

(688

)

 

(5,736

)

 

(2,259

)

Capitalization of internal-use software costs

 

(149

)

 

(482

)

 

(489

)

 

(1,315

)

Free cash flow

$

(2,091

)

$

(1,069

)

$

(9,552

)

$

(5,652

)

 

IR Contact:
Carolyn Bass
Investor@ir.bill.com

Press Contact:
PR@hq.bill.com

Source: Bill.com

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