- Wells Fargo analyst Jeff Cantwell listed multiple takeaways based on QTD mobile data for Bill.com Holdings, Inc BILL and Divvy web traffic.
- Daily active users (DAUs) of Bill.com's mobile app QTD accelerated triple-digits Y/Y and grew over 3x vs. the same quarter a year ago.
- The QTD unique visitors to Divvy's login page grew nearly 80% Y/Y with similar strength in site visits and total page views, which he saw as supportive of management's expected 120% growth in Divvy revenue for 4Q.
- The strength in DAUs gave him confidence in its above-consensus 4Q TPV estimate, and he thought TPV growth could accelerate Q/Q.
- Based on the data thus far, he also sees potential for upside to his and consensus 4Q revenue estimates.
- A robust secular tailwind of digitization is driving Bill.com's business. It has emerged from the pandemic particularly well-positioned to capitalize on a surge in interest by businesses for high-quality digital solutions that help them manage their back offices.
- He expects to see a continued strong financial performance by Bill.com over the next two years as it further expands its customer base, grows subscription-based and transaction-based revenue, and improves profitability.
- He expects Bill.com to grow revenue well above peers' and above the consensus' current forecast. He expects share price appreciation.
- Cantwell reiterated an Overweight on the stock with a price target of $250 (122% upside).
- Price Action: BILL shares traded higher by 1.14% at $114.10 on the last check Wednesday.
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