Bill Holdings Stock Plunges On Q2 Earnings: What's Going On?

BILL Holdings Inc BILL shares are diving in Thursday’s after-hours session after the company reported second-quarter financial results. Here’s a rundown of the report.

• Q2 Revenue: $362.55 million, versus estimates of $360.23 million

• Q2 Adjusted EPS: 56 cents, versus estimates of 46 cents

Total revenue increased 14% year-over-year, while core revenue climbed 16%. Core revenue consists of subscription and transaction fees. The company ended the quarter with $1.57 billion in cash and cash equivalents.

“We delivered strong financial results and innovated at a rapid pace as we executed on our vision to be the de facto intelligent financial operations platform for SMBs,” said René Lacerte, founder and CEO of Bill Holdings.

“We are leveraging our leadership position to empower small and mid-sized businesses and the partners that we serve, and we are extending our lead by expanding the depth and breadth of our platform and diverse distribution ecosystem. Today, more than 480,000 businesses rely on BILL to manage their day-to-day financial workflow. We are moving fast to address a vast market opportunity to transform the financial operations for millions of SMBs.”

See Also: Amazon.com Q4 Earnings: Jassy Highlights ‘Successful’ Holiday Season, Q1 Guidance Disappoints Investors

What’s Next: Bill Holdings expects third-quarter revenue of $352.5 million to $357.5 million versus estimates of $360.36 million. The company sees third-quarter adjusted earnings in the range of 35 cents to 38 cents per share versus estimates of 34 cents per share, according to Benzinga Pro.

Bill Holdings also raised its full-year outlook. The company expects full-year revenue of $1.45 billion to $1.47 billion versus estimates of $1.46 billion. Bill expects full-year adjusted earnings to be between $1.87 and $1.97 per share.

Management is currently discussing the quarter on a conference call that started at 4:30 p.m. ET.

BILL Price Action: Bill Holdings shares were down 31.76% after hours, trading at $65.75 at the time of publication Thursday, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.