BILL Holdings' Q4 Results: 6 Analysts Respond To Macro Headwinds Impacting Revenue Projections

Shares of BILL Holdings Inc BILL rose in early trading on Friday, amid big moves by Information Technology stocks.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Mizuho Securities On BILL Holdings

Analyst Siti Panigrahi maintained a Neutral rating, while reducing the price target from $110 to $95.

BILL Holdings reported a revenue beat in the fiscal fourth quarter, despite macro headwinds, Panigrahi said in a note. “FY24 revenue growth guidance was 22-23% Y/Y, below consensus of 25% Y/Y,” he added.

“Although FY24 guidance appears conservative, we believe that net customer adds could remain pressured given the increasing competitive threat of Intuit INTU, which is launching native AP/bill pay soon,” the analyst further wrote.

BMO Capital Markets On BILL Holdings

Analyst Daniel Jester reiterated a Market Perform rating, while lowering the price target from $120 to $116.

“Against an uneven backdrop, BILL delivered mixed results,” Jester wrote in a note. He added that the lower-than-expected revenue growth guidance for fiscal 2024 reflects “the ongoing uncertainty in SMB spending trends.”

“This, coupled with concerns about the competitive environment, causes us to remain on the sidelines,” the analyst further stated.

Piper Sandler On BILL Holdings

Analyst Brent Bracelin reaffirmed an Overweight rating and price target of $165.

BILL Holdings reported subscription revenue growth of 21% year-over-year and rising interest rates drove float revenue of $36.5 million, Bracelin said. “Core TPV (total payment volume) grew 7% y/y during the quarter (vs. the 1% y/y implied guide),” with pressure from macro headwinds, he added.

“BILL remains one of our highest conviction growth stocks to own ahead of the next major Divvy (33% of sales) product catalyst this Fall,” the analyst further wrote.

Check out other analyst stock ratings.

Canaccord Genuity On BILL Holdings

Analyst Joseph Vafi maintained a Buy rating and price target of $175.

BILL Holdings’ TPV now accounts for about 1% of GDP and is “emerging as a real economic indicator of the health of the small business economy,” Vafi said.

“We are still encouraged by SMB transaction volume remaining steady in FQ4; it's just that dollar volumes per transaction are slightly muted,” he added.

Needham On BILL Holdings

Analyst Scott Berg reiterated a Buy rating and price target of $200.

“Bill reported very good 4QF23 financial results driven by positive net new customer additions but core BIll TPV growth moderated as customers remain cautious in the current macro driving weaker revenue outperformance than recent past,” Berg wrote in a note.

“Our positive takeaways were core BILL customer adds of 5,300 were higher than 2Q and 3Q, Divvy TPV growth holding up better than expected, and revenue/traction ticking higher as payment mix shifts more to higher margin products,” he added.

Oppenheimer On BILL Holdings

Analyst Ken Wong reaffirmed an Outperform rating and price target of $149.

“The outlook is a little noisy,” with the revenues from the Bank of America BAC partnership being pushed out, Wong said.

“Management continues to message caution with lingering macro headwinds weighing on buying decisions, and potentially pressuring TPV/ customer,” he added.

BILL Price Action: Shares of BILL Holdings were up 8.0% to $109.73 at the time of publication Friday.

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