News Details

BILL Reports Second Quarter Fiscal Year 2024 Financial Results

February 8, 2024
  • Q2 Core Revenue Increased 19% Year-Over-Year
  • Q2 Total Revenue Increased 22% Year-Over-Year

BILL (NYSE: BILL), a leading financial operations platform for small and midsize businesses (SMBs), today announced financial results for the second fiscal quarter ended December 31, 2023.

“We delivered strong growth during the quarter as we automated financial operations for more than 470,000 businesses,” said René Lacerte, BILL CEO and Founder. “We continue to drive innovation and sharpen our focus on the most impactful initiatives to create value for our customers, partners, and shareholders. With our powerful platform, expanding ecosystem, and increasing scale, we are uniquely positioned to be the essential financial operations platform for millions of SMBs.”

“Our financial performance in the second quarter highlights the strength of our business model and our commitment to deliver balanced growth and profitability," said John Rettig, BILL President and CFO. “Total revenue increased 22% year-over-year while non-GAAP net income increased 48% year-over-year and reflected a 23% margin.”

Financial Highlights for the Second Quarter of Fiscal 2024:

  • Total revenue was $318.5 million, an increase of 22% year-over-year.
  • Core revenue, which consists of subscription and transaction fees, was $275.0 million, an increase of 19% year-over-year. Subscription fees were $63.3 million, up 3% year-over-year. Transaction fees were $211.6 million, up 25% year-over-year.
  • Float revenue, which consists of interest on funds held for customers, was $43.5 million.
  • Gross profit was $260.1 million, representing an 81.7% gross margin, compared to $212.5 million, or an 81.7% gross margin, in the second quarter of fiscal 2023. Non-GAAP gross profit was $273.7 million, representing an 85.9% non-GAAP gross margin, compared to $225.4 million, or an 86.7% non-GAAP gross margin, in the second quarter of fiscal 2023.
  • Loss from operations was $67.7 million, compared to a loss from operations of $112.5 million in the second quarter of fiscal 2023. Non-GAAP income from operations was $44.3 million, compared to a non-GAAP income from operations of $30.8 million in the second quarter of fiscal 2023.
  • Net loss was $40.4 million, or ($0.38) per share, basic and diluted, compared to net loss of $95.1 million, or ($0.90) per share, basic and diluted, in the second quarter of fiscal 2023. Non-GAAP net income was $73.2 million, or $0.63 per diluted share, compared to non-GAAP net income of $49.4 million, or $0.42 per share, basic and diluted, in the second quarter of fiscal 2023.

Business Highlights and Recent Developments

  • Served 473,500 businesses using our solutions as of the end of the second quarter.1
  • Processed $75 billion in total payment volume in the second quarter, an increase of 11% year-over-year.
  • Processed 26 million transactions during the second quarter, an increase of 23% year-over-year.
  • Repurchased approximately 2.7 million shares of BILL common stock in the second quarter for a total cost of approximately $197 million.

Financial Outlook

We are providing the following guidance for the fiscal third quarter ending March 31, 2024 and the full fiscal year ending June 30, 2024.

 

 

Q3 FY24
Guidance

 

FY24
Guidance

Total revenue (millions)

$299 - $309

 

$1,226 - $1,251

Year-over-year total revenue growth

10% - 13%

 

16% - 18%

Non-GAAP net income (millions)

$56 - $66

 

$245 - $270

Non-GAAP net income per diluted share

$0.48 - $0.57

 $2.09 - $2.31

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

BILL has not provided a reconciliation of non-GAAP net income or non-GAAP net income per share guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

1Businesses using more than one of our solutions are included separately in the total for each solution utilized.

Conference Call and Webcast Information

In conjunction with this announcement, BILL will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal second quarter 2024 results and our outlook for the fiscal third quarter ending March 31, 2024 and the fiscal year ending June 30, 2024. The live webcast and a replay of the webcast will be available at the Investor Relations section of BILL’s website: https://investor.bill.com/events-and-presentations/default.aspx.

About BILL

BILL (NYSE: BILL) is a leading financial operations platform for small and midsize businesses (SMBs). As a champion of SMBs, we are automating the future of finance so businesses can thrive. Our integrated platform helps businesses to more efficiently control their payables, receivables and spend and expense management. Hundreds of thousands of businesses rely on BILL’s proprietary member network of millions to pay or get paid faster. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers. For more information, visit bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 of future performance, including guidance for our total revenue, non-GAAP net income, and non-GAAP net income per share for the fiscal third quarter ending March 31, 2024 and full fiscal year ending June 30, 2024, our expectations for 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 macroeconomic factors, including changes in interest rates, inflation and volatile market environments, as well as fluctuations in foreign exchange rates, 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, credit risk related to our BILL Divvy Corporate Cards, 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, the impact of our recent reduction-in-force, potential impacts of acquisitions and investments, including our ability to integrate acquired businesses, incorporate their technology effectively and implement appropriate internal controls at such businesses our relationships with accounting firms and financial institutions, and the global impacts of the conflicts in Ukraine and in Israel, and other risks detailed in the registration statements and periodic reports we file with the SEC, including our quarterly and annual reports, which may be obtained on the Investor Relations section of BILL’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. 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 or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.

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 gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income 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.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Items excluded from non-GAAP gross profit and non-GAAP gross margin include amortization of certain intangible assets, stock-based compensation and related payroll taxes, and depreciation expense. Items excluded from non-GAAP operating expenses include amortization of certain intangible assets, stock-based compensation and related payroll taxes, depreciation expense, acquisition and integration-related expenses, and restructuring. Items excluded from non-GAAP net income and non-GAAP net income per share include stock-based compensation expense and related payroll taxes, depreciation expense, amortization of certain intangible assets, acquisition and integration-related expenses, restructuring, amortization of debt issuance costs, accretion of debt premium and income tax effect associated with acquisitions and non-GAAP adjustments. 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 also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise.

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.

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

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses. We exclude stock-based compensation, which is a non-cash expense, and related payroll taxes from certain of our non-GAAP financial measures because we believe that excluding these items provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expenses using a variety of valuation methodologies and subjective assumptions while the related payroll taxes are dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business.

Depreciation expense. We exclude depreciation expense from certain of our non-GAAP financial measures because we believe that excluding this non-cash expense provides meaningful supplemental information regarding operational performance. Depreciation expense does not include amortization of capitalized internal-use software costs paid in cash.

Amortization of intangible assets. We exclude amortization of acquired intangible assets from certain of our non-GAAP financial measures because we believe that excluding this non-cash expense provides meaningful supplemental information regarding our operational performance.

Acquisition and integration-related expenses. We exclude acquisition and integration-related expenses from certain of our non-GAAP financial measures because these costs would have not otherwise been incurred in the normal course of our business operations. In addition, we believe that acquisition and integration-related expenses are non-recurring charges unique to a specific acquisition. Although we may engage in future acquisitions, such acquisitions and the associated acquisition and integration-related expenses are considered unique and not comparable to other acquisitions.

Restructuring. We exclude costs incurred in connection with formal restructuring plans from certain of our non-GAAP financial measures because these costs are exceptional and would have not otherwise been incurred in the normal course of our business operations.

Amortization of debt issuance costs, net of accretion premium. We exclude amortization of debt issuance costs associated with our issuance of our convertible senior notes and credit arrangement and accretion of debt premium associated with our credit agreement from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.

Income tax effect associated with acquisitions. We exclude the income tax effect associated with acquisitions from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our 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.

Free Cash Flow

Free cash flow is a non-GAAP measure that we calculate as net cash provided by (used in) operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs. We believe that free cash flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

 

 

December 31,
2023

 

June 30,
2023

 

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,579,633

 

 

$

1,617,151

 

Short-term investments

 

 

972,621

 

 

 

1,043,110

 

Accounts receivable, net

 

 

26,652

 

 

 

28,233

 

Acquired card receivables, net

 

 

516,980

 

 

 

458,650

 

Prepaid expenses and other current assets

 

 

204,726

 

 

 

170,111

 

Funds held for customers

 

 

3,655,435

 

 

 

3,355,909

 

Total current assets

 

 

6,956,047

 

 

 

6,673,164

 

Non-current assets:

 

 

 

 

Operating lease right-of-use assets, net

 

 

63,505

 

 

 

68,988

 

Property and equipment, net

 

 

86,577

 

 

 

81,564

 

Intangible assets, net

 

 

320,985

 

 

 

361,427

 

Goodwill

 

 

2,396,509

 

 

 

2,396,509

 

Other assets

 

 

48,788

 

 

 

54,366

 

Total assets

 

$

9,872,411

 

 

$

9,636,018

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

8,772

 

 

$

8,519

 

Accrued compensation and benefits

 

 

33,228

 

 

 

32,901

 

Deferred revenue

 

 

17,327

 

 

 

26,328

 

Other accruals and current liabilities

 

 

268,409

 

 

 

194,733

 

Borrowings from credit facilities, net

 

 

135,021

 

 

 

135,046

 

Customer fund deposits

 

 

3,655,435

 

 

 

3,355,909

 

Total current liabilities

 

 

4,118,192

 

 

 

3,753,436

 

Non-current liabilities:

 

 

 

 

Deferred revenue

 

 

4,174

 

 

 

410

 

Operating lease liabilities

 

 

67,725

 

 

 

72,477

 

Convertible senior notes, net

 

 

1,708,208

 

 

 

1,704,782

 

Other long-term liabilities

 

 

22,267

 

 

 

18,944

 

Total liabilities

 

 

5,920,566

 

 

 

5,550,049

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

5,088,799

 

 

 

4,946,623

 

Accumulated other comprehensive income (loss)

 

 

237

 

 

 

(4,488

)

Accumulated deficit

 

 

(1,137,193

)

 

 

(856,168

)

Total stockholders' equity

 

 

3,951,845

 

 

 

4,085,969

 

Total liabilities and stockholders' equity

 

$

9,872,411

 

 

$

9,636,018

 

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

 

 

 

 

 

 

 

 

Subscription and transaction fees (2)

 

$

274,992

 

 

$

231,095

 

 

$

540,134

 

 

$

445,706

 

Interest on funds held for customers

 

 

43,503

 

 

 

28,911

 

 

 

83,346

 

 

 

44,224

 

Total revenue

 

 

318,495

 

 

 

260,006

 

 

 

623,480

 

 

 

489,930

 

Cost of revenue

 

 

 

 

 

 

 

 

Service costs (2)

 

 

47,239

 

 

 

36,965

 

 

 

92,143

 

 

 

71,786

 

Depreciation and amortization of intangible assets (1)

 

 

11,138

 

 

 

10,502

 

 

 

22,260

 

 

 

20,789

 

Total cost of revenue

 

 

58,377

 

 

 

47,467

 

 

 

114,403

 

 

 

92,575

 

Gross profit

 

 

260,118

 

 

 

212,539

 

 

 

509,077

 

 

 

397,355

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development (2)

 

 

86,489

 

 

 

78,910

 

 

 

175,552

 

 

 

154,030

 

Sales and marketing (2)

 

 

118,305

 

 

 

164,683

 

 

 

236,704

 

 

 

283,308

 

General and administrative (2)

 

 

85,583

 

 

 

69,381

 

 

 

170,909

 

 

 

136,119

 

Depreciation and amortization of intangible assets (1)

 

 

12,324

 

 

 

12,028

 

 

 

25,141

 

 

 

24,055

 

Restructuring

 

 

25,091

 

 

 

 

 

 

25,091

 

 

 

 

Total operating expenses

 

 

327,792

 

 

 

325,002

 

 

 

633,397

 

 

 

597,512

 

Loss from operations

 

 

(67,674

)

 

 

(112,463

)

 

 

(124,320

)

 

 

(200,157

)

Other income, net

 

 

28,919

 

 

 

17,022

 

 

 

58,227

 

 

 

22,970

 

Loss before provision for (benefit from) income taxes

 

 

(38,755

)

 

 

(95,441

)

 

 

(66,093

)

 

 

(177,187

)

Provision for (benefit from) income taxes

 

 

1,666

 

 

 

(365

)

 

 

2,189

 

 

 

(471

)

Net loss

 

$

(40,421

)

 

$

(95,076

)

 

$

(68,282

)

 

$

(176,716

)

 

 

 

 

 

 

 

 

 

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

 

$

(0.38

)

 

$

(0.90

)

 

$

(0.64

)

 

$

(1.68

)

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

 

 

105,914

 

 

 

105,906

 

 

 

106,350

 

 

 

105,494

 

___________________

(1)

Depreciation expense does not include amortization of capitalized internal-use software costs paid in cash.

(2)

Includes stock-based compensation charged to revenue and expenses as follows (in thousands):

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Revenue - subscription and transaction fees

$

486

 

$

 

$

856

 

$

Cost of revenue

 

2,388

 

 

2,298

 

 

4,934

 

 

4,299

Research and development

 

26,160

 

 

26,981

 

 

53,526

 

 

47,831

Sales and marketing

 

12,789

 

 

69,522

 

 

26,674

 

 

98,779

General and administrative

 

20,322

 

 

20,641

 

 

41,302

 

 

41,152

Restructuring

 

3,355

 

 

 

 

3,355

 

 

Total stock-based compensation (3)

$

65,500

 

$

119,442

 

$

130,647

 

$

192,061

(3)

Consists of acquisition related equity awards (Acquisition Related Awards), which include equity awards assumed and retention equity awards granted to certain employees of acquired companies in connection with acquisitions and modified equity awards in connection with the Restructuring Plan (Restructuring Awards), and non-acquisition related equity awards (Non-Acquisition Related Awards), which include all other equity awards granted to existing employees and non-employees in the ordinary course of business. The following table presents stock-based compensation recorded for the periods presented and as a percentage of total revenue:

 

Three Months Ended
December 31,

 

As a % of total revenue

 

Six Months Ended
December 31,

 

As a % of total revenue

 

 

Three Months Ended

December 31,

 

 

Six Months Ended

December 31,

 

 

2023

 

 

2022

 

2023

 

 

2022

 

 

 

2023

 

 

2022

 

2023

 

 

2022

 

Acquisition Related Awards

$

4,003

 

$

63,962

 

1

%

 

25

%

 

$

9,073

 

$

92,914

 

1

%

 

19

%

Restructuring Awards

 

3,355

 

 

 

1

%

 

%

 

 

3,355

 

 

 

1

%

 

%

Non-Acquisition Related Awards

 

58,142

 

 

55,480

 

18

%

 

21

%

 

 

118,219

 

 

99,147

 

19

%

 

20

%

Total stock-based compensation

$

65,500

 

$

119,442

 

20

%

 

46

%

 

$

130,647

 

$

192,061

 

21

%

 

39

%

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(40,421

)

 

$

(95,076

)

 

$

(68,282

)

 

$

(176,716

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Stock-based compensation

 

65,500

 

 

 

119,305

 

 

 

130,647

 

 

 

191,925

 

Amortization of intangible assets

 

20,222

 

 

 

19,994

 

 

 

40,443

 

 

 

39,763

 

Depreciation of property and equipment

 

3,240

 

 

 

2,535

 

 

 

6,958

 

 

 

5,081

 

Amortization of capitalized internal-use software costs

 

2,387

 

 

 

977

 

 

 

3,739

 

 

 

1,901

 

Amortization of debt issuance costs, net of accretion of debt premium

 

1,762

 

 

 

1,771

 

 

 

3,523

 

 

 

3,483

 

Amortization of premium (accretion of discount) on investments in marketable debt securities

 

(11,078

)

 

 

(8,186

)

 

 

(24,171

)

 

 

(10,401

)

Provision for losses on acquired card receivables and other financial assets

 

16,288

 

 

 

8,431

 

 

 

28,689

 

 

 

15,042

 

Non-cash operating lease expense

 

2,164

 

 

 

2,376

 

 

 

4,552

 

 

 

4,718

 

Deferred income taxes

 

(74

)

 

 

(527

)

 

 

(116

)

 

 

(826

)

Other

 

(2,052

)

 

 

(414

)

 

 

(2,615

)

 

 

516

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(3,317

)

 

 

(2,278

)

 

 

390

 

 

 

(7,052

)

Prepaid expenses and other current assets

 

4,553

 

 

 

(3,284

)

 

 

(151

)

 

 

(4,623

)

Other assets

 

(166

)

 

 

(742

)

 

 

(1,240

)

 

 

(1,880

)

Accounts payable

 

2,741

 

 

 

2,000

 

 

 

233

 

 

 

3,511

 

Other accruals and current liabilities

 

23,230

 

 

 

11,161

 

 

 

20,944

 

 

 

15,408

 

Operating lease liabilities

 

(2,494

)

 

 

(2,408

)

 

 

(4,917

)

 

 

(4,794

)

Other long-term liabilities

 

(15

)

 

 

1

 

 

 

(47

)

 

 

35

 

Deferred revenue

 

(2,788

)

 

 

(406

)

 

 

(5,237

)

 

 

(1,709

)

Net cash provided by operating activities

 

79,682

 

 

 

55,230

 

 

 

133,342

 

 

 

73,382

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Cash paid for acquisition, net of acquired cash and cash equivalents

 

 

 

 

(28,902

)

 

 

 

 

 

(28,902

)

Purchases of corporate and customer fund short-term investments

 

(590,652

)

 

 

(781,282

)

 

 

(990,240

)

 

 

(1,641,193

)

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

 

524,336

 

 

 

845,314

 

 

 

1,281,505

 

 

 

1,683,413

 

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

 

 

 

 

5,088

 

 

 

 

 

 

5,088

 

Purchases of loans held for investment

 

(77,357

)

 

 

 

 

 

(110,113

)

 

 

 

Principal repayments of loans held for investment

 

68,970

 

 

 

 

 

 

94,300

 

 

 

 

Acquired card receivables, net

 

29,991

 

 

 

5,590

 

 

 

(12,342

)

 

 

(102,353

)

Purchases of property and equipment

 

(352

)

 

 

(1,785

)

 

 

(755

)

 

 

(3,161

)

Capitalization of internal-use software costs

 

(5,117

)

 

 

(5,746

)

 

 

(10,762

)

 

 

(10,510

)

Proceeds from beneficial interest

 

 

 

 

 

 

 

 

 

 

2,080

 

Other

 

 

 

 

500

 

 

 

 

 

 

1,000

 

Net cash provided by (used in) investing activities

 

(50,181

)

 

 

38,777

 

 

 

251,593

 

 

 

(94,538

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Purchase of capped calls

 

 

 

 

 

 

 

 

 

 

 

Customer fund deposits liability and other

 

390,960

 

 

 

351,318

 

 

 

299,770

 

 

 

325,846

 

Prepaid card deposits

 

(2,505

)

 

 

(4,108

)

 

 

(16,484

)

 

 

6,815

 

Repurchase of common stock

 

(199,841

)

 

 

 

 

 

(211,902

)

 

 

 

Proceeds from line of credit borrowings

 

 

 

 

37,500

 

 

 

 

 

 

37,500

 

Proceeds from exercise of stock options

 

2,106

 

 

 

4,316

 

 

 

5,052

 

 

 

8,217

 

Proceeds from issuance of common stock under the employee stock purchase plan

 

 

 

 

 

 

 

7,846

 

 

 

8,494

 

Contingent consideration payout

 

 

 

 

 

 

 

(5,471

)

 

 

 

Net cash provided by financing activities

 

190,720

 

 

 

389,026

 

 

 

78,811

 

 

 

386,872

 

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

 

173

 

 

 

459

 

 

 

(7

)

 

 

182

 

Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

220,394

 

 

 

483,492

 

 

 

463,739

 

 

 

365,898

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

 

4,468,186

 

 

 

3,425,121

 

 

 

4,224,841

 

 

 

3,542,715

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

4,688,580

 

 

$

3,908,613

 

 

$

4,688,580

 

 

$

3,908,613

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,579,633

 

 

$

1,616,758

 

 

$

1,579,633

 

 

$

1,616,758

 

Restricted cash included in other current assets

 

103,462

 

 

 

103,809

 

 

 

103,462

 

 

 

103,809

 

Restricted cash included in other assets

 

7,116

 

 

 

6,724

 

 

 

7,116

 

 

 

6,724

 

Restricted cash and restricted cash equivalents included in funds held for customers

 

2,998,369

 

 

 

2,181,322

 

 

 

2,998,369

 

 

 

2,181,322

 

Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

4,688,580

 

 

$

3,908,613

 

 

$

4,688,580

 

 

$

3,908,613

 

BILL HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands except percentages and per share amounts)

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

GAAP gross profit

$

260,118

 

 

$

212,539

 

 

$

509,077

 

 

$

397,355

 

Add:

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets (1)

 

11,138

 

 

 

10,502

 

 

 

22,260

 

 

 

20,789

 

Stock-based compensation and related payroll taxes charged to cost of revenue

 

2,446

 

 

 

2,353

 

 

 

5,074

 

 

 

4,419

 

Non-GAAP gross profit

$

273,702

 

 

$

225,394

 

 

$

536,411

 

 

$

422,563

 

GAAP gross margin

 

81.7

%

 

 

81.7

%

 

 

81.7

%

 

 

81.1

%

Non-GAAP gross margin

 

85.9

%

 

 

86.7

%

 

 

86.0

%

 

 

86.2

%

___________________

(1)

Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash.

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

GAAP research and development expenses

$

86,489

 

 

$

78,910

 

 

$

175,552

 

 

$

154,030

 

Less - stock-based compensation and related payroll taxes

 

(26,550

)

 

 

(27,310

)

 

 

(54,437

)

 

 

(48,667

)

Non-GAAP research and development expenses

$

59,939

 

 

$

51,600

 

 

$

121,115

 

 

$

105,363

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expenses

$

118,305

 

 

$

164,683

 

 

$

236,704

 

 

$

283,308

 

Less - stock-based compensation and related payroll taxes

 

(13,009

)

 

 

(69,818

)

 

 

(27,091

)

 

 

(100,010

)

Non-GAAP sales and marketing expenses

$

105,296

 

 

$

94,865

 

 

$

209,613

 

 

$

183,298

 

 

 

 

 

 

 

 

 

GAAP general and administrative expenses

$

85,583

 

 

$

69,381

 

 

$

170,909

 

 

$

136,119

 

Less:

 

 

 

 

 

 

 

Stock-based compensation and related payroll taxes

 

(20,547

)

 

 

(20,989

)

 

 

(41,934

)

 

 

(41,907

)

Acquisition and integration-related expenses

 

(872

)

 

 

(215

)

 

 

(969

)

 

 

(215

)

Non-GAAP general and administrative expenses

$

64,164

 

 

$

48,177

 

 

$

128,006

 

 

$

93,997

 

 

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of loss from operations:

 

 

 

 

 

 

 

GAAP loss from operations

$

(67,674

)

 

$

(112,463

)

 

$

(124,320

)

 

$

(200,157

)

Add:

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets (1)

 

23,462

 

 

 

22,530

 

 

 

47,401

 

 

 

44,844

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses (2)

 

62,552

 

 

 

120,470

 

 

 

128,536

 

 

 

195,003

 

Acquisition and integration-related expenses

 

872

 

 

 

215

 

 

 

969

 

 

 

215

 

Restructuring

 

25,091

 

 

 

 

 

 

25,091

 

 

 

 

Non-GAAP income from operations

$

44,303

 

 

$

30,752

 

 

$

77,677

 

 

$

39,905

 

___________________

(1)

Excludes amortization of capitalized internal-use software costs paid in cash.

(2)

Excludes stock-based compensation charged to Restructuring.

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of net loss:

 

 

 

 

 

 

 

GAAP net loss

$

(40,421

)

 

$

(95,076

)

 

$

(68,282

)

 

$

(176,716

)

Add (less):

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets (1)

 

23,462

 

 

 

22,530

 

 

 

47,401

 

 

 

44,844

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

62,552

 

 

 

120,470

 

 

 

128,536

 

 

 

195,003

 

Acquisition and integration-related expenses

 

872

 

 

 

215

 

 

 

969

 

 

 

215

 

Restructuring

 

25,091

 

 

 

 

 

 

25,091

 

 

 

 

Amortization of debt issuance costs, net of accretion of debt premium

 

1,762

 

 

 

1,771

 

 

 

3,523

 

 

 

3,483

 

Income tax effect associated with acquisitions

 

(94

)

 

 

(526

)

 

 

(136

)

 

 

(526

)

Non-GAAP net income

$

73,224

 

 

$

49,384

 

 

$

137,102

 

 

$

66,303

 

___________________

(1)

Excludes amortization of capitalized internal-use software costs paid in cash.

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of net loss per share attributable to common stockholders, basic and diluted:

 

 

 

 

 

 

 

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

$

(0.38

)

 

$

(0.90

)

 

$

(0.64

)

 

$

(1.68

)

Add:

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets (1)

 

0.21

 

 

 

0.21

 

 

 

0.44

 

 

 

0.43

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

0.59

 

 

 

1.14

 

 

 

1.21

 

 

 

1.85

 

Acquisition and integration-related expenses

 

0.01

 

 

 

0.00

 

 

 

0.01

 

 

 

0.00

 

Restructuring

 

0.24

 

 

 

 

 

 

0.24

 

 

 

 

Amortization of debt issuance costs, net of accretion of debt premium

 

0.02

 

 

 

0.02

 

 

 

0.03

 

 

 

0.03

 

Income tax effect associated with acquisitions

 

(0.00

)

 

 

(0.00

)

 

 

(0.00

)

 

 

(0.00

)

Non-GAAP net income per share attributable to common stockholders, basic

$

0.69

 

 

$

0.47

 

 

$

1.29

 

 

$

0.63

 

Non-GAAP net income per share attributable to common stockholders, diluted

$

0.63

 

 

$

0.42

 

 

$

1.17

 

 

$

0.56

 

___________________

(1)

Excludes amortization of capitalized internal-use software costs paid in cash.

Three Months Ended

December 31,

 

Six Months Ended

December 31,

 

2023

 

2022

 

2023

 

2022

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

105,914

 

105,906

 

106,350

 

105,494

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

116,712

 

117,258

 

117,471

 

118,039

BILL HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by operating activities

$

79,682

 

 

$

55,230

 

 

$

133,342

 

 

$

73,382

 

Purchases of property and equipment

 

(352

)

 

 

(1,785

)

 

 

(755

)

 

 

(3,161

)

Capitalization of internal-use software costs

 

(5,117

)

 

 

(5,746

)

 

 

(10,762

)

 

 

(10,510

)

Free cash flow

$

74,213

 

 

$

47,699

 

 

$

121,825

 

 

$

59,711

 

BILL HOLDINGS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(Unaudited, in thousands)

 

 

December 31,
2023

 

June 30,
2023

Remaining performance obligations to be recognized as revenue:

 

 

 

Within 2 years

$

92,509

 

$

101,177

Thereafter

 

17,461

 

 

29,960

Total

$

109,970

 

$

131,137

 

IR Contact:

Karen Sansot
ksansot@hq.bill.com

Press Contact:

John Welton
john.welton@hq.bill.com

Source: BILL