Bill.com Shares Gain As Analysts Cheer Its Q4 Performance

Bill.com Holdings, Inc BILL clocked 156% revenue growth in the fiscal fourth quarter to $200.2 million, beating the consensus of $183.1 million. The quarterly net loss of 3 cents per share beat consensus for a loss of 13 cents per share.

Needham analyst Scott Berg maintained a Buy rating on Bill.com and set a price target of $200. BILL reported excellent 4Q results and provided solid FY23 guidance despite some weakening of discretionary payments, Berg noted.

Core organic revenue growth was 71% y/y suggesting minimal macro impact versus the 74% growth in 3Q, the analyst said. Payment volume growth decelerated missing expectations (130bps q/q), highlighting the modest change in discretionary purchases, but the 45.6% Y/Y growth beat his estimates. 

However, Divvy payment volumes accelerated, with incremental increases 3x versus 2Q to 3Q increases. Revenue per transaction was up to an all-time high as the payment mix shifted from standard ACH/check payments to more flexible or variable payment options generating higher revenues, he noted. 

Initial FY23 guidance considers a modestly weaker payment level, but the real upside was guidance for BILL's first-ever profitable year, Berg wrote.

Wells Fargo analyst Jeff Cantwell maintained Bill.com with an Overweight and raised the price target from $200 to $230. BILL's 4Q results and FY23 guidance hit the right notes showing exceptional operating momentum and surpassing investor expectations. 

Cantwell termed the quarter as green and guidance as pretty. Organic core revenue was +71% Y/Y in 4Q; the company also added a robust 11.2K new Bill.com customers (and now serves 400K businesses, including Divvy and Invoice2Go).

Bill.com TPV was $60.7 billion, well above the consensus. The analyst also highlighted the growth in the network at 4.7 million members, +47% Y/Y and expects it will further support the company's L-T growth/financial performance. 

BMO Capital analyst Daniel Jester maintained a Buy rating on Bill.com and set a price target of $215. BILL posted a solid set of 4Q results, helped by the float. 

Despite some modest macro impacts in TPV, FY23 guidance for ~50% y/y revenue growth and ~4% net margins exceeded expectations, Jester said. He continues to like the stock as SMBs look to drive efficiencies and automation in their financial back offices.

Price Action: BILL shares traded higher by 14.10% at $170.45 on the last check Friday.