BILL's Potential In B2B Payments: Analyst Foresees 7-Fold Revenue Increase By 2023

Piper Sandler analyst Brent A. Bracelin reiterated an Overweight rating on BILL Holdings, Inc. BILL, raising the price target to $165 from $110.

The analyst thinks a new unified console across BILL and Divvy could unlock material growth, with every $1 billion GMV cross-sell adding over $250 million in incremental revenue. 

Bracelin applauds BILL's solid growth mirroring broader adoption of B2B payments (63% of sales) and a paid software subscriber base that has quadrupled to 455K+. 

The analyst notes that revenue will increase sevenfold to more than $1 billion in 2023 (ending June) from <$160 million three years ago.

Based on the above, the analyst expects 4Q revenues to be $286.27 million, up 43% year over year. Non GAAP EPS is expected to be $0.43. FY23 revenues are expected to jump 63.4% to $1.05 billion.

The analyst thinks BILL is in the early stages of monetizing over 4.7 million supplier networks. Every 2% incremental supplier attach rate could add $50 million+ in subscription revenue.

The analyst raised the price target on healthy 3P data trends in April and May that point to further stabilization in the core TPV.

FY24 revenues are expected to jump 26.7% to $1.33 billion, while FY25 revenues are predicted to soar by 28.2% to $1.70 billion.

Price Action: BILL shares are trading lower by 1.1% to $114.29 on the last check Thursday.