Why Bill.com Stock Is Falling 20% Friday

Bill.com Holdings Inc BILL shares are trading lower by 21.72% to $100.91 Friday morning after the company reported second-quarter earnings results, issued third-quarter guidance, and FY23 guidance.

What Happened?

Bill.com Holdings reported quarterly earnings of 42 cents per share which beat the analyst consensus estimate of 13 cents. The company also reported quarterly sales of $260.01 million, which beat the analyst consensus estimate of $243.52 million by 6.8%. This is a 66% increase over sales of $156.48 million in the same period last year.

Meanwhile, Bill.com sees third-quarter adj. EPS in the range of $0.22-$0.25 vs. $0.12 estimate, as well as total revenue in the range of $245M-$248 million vs. the $250.84 million estimate.

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Bill.com sees FY23 adj. EPS in the range of $0.99-$1.05 vs. the $0.55 estimate and total revenue in the range of $999 million -$1.007 billion vs. the $999.04 million estimate.

What Else?

The company today also announced that its Board of Directors approved a share repurchase program with authorization to purchase up to $300 million of BILL's common stock.

"The share repurchase program demonstrates our confidence in the strength of our business and our ability to capture the large market opportunity ahead of us," said John Rettig, BILL CFO.

"With our strong balance sheet and cash flow generation, we are well positioned to invest for our future growth prospects while also returning capital to shareholders and minimizing dilution."

According to data from Benzinga Pro, Bill.com has a 52-week high of $262.17 and a 52-week low of $89.87.