Why Are BILL Holding's Shares Diving Today?

BILL Holdings Inc BILL shares are trading lower by over 30% after it reported Q1 FY24 earnings and cut FY24 outlook.

Revenue rose 33% Y/Y to $305.0 million, beating the consensus of $298.0 million.

Core revenue increased 24% Y/Y to $265.1 million, with subscription fees growing 7% Y/Y to $62.4 million and transaction fees up 30% Y/Y to $202.7 million.

As of Q1-end, the company served 471,200 businesses using their solutions.

BILL processed $70 billion in total payment volume (+8% Y/Y) and 25 million transactions (+26% Y/Y) in Q1. 

Adjusted gross profit rose to $262.7 million from $197.2 million, with a margin of 86.1% (vs 85.8% prior year).

Adjusted income from operations stood at $33.4 million vs. $9.1 million in Q1 FY23.

Adjusted EPS of $0.54, beating the consensus of $0.50. 

As of September 30, cash and cash equivalents stood at $2.6 billion. 

"During the quarter, we also launched our integrated financial operations platform that empowers SMBs to manage their accounts payable, accounts receivable, and spend & expense all in one place with intelligent workflow and consolidated insights," said René Lacerte, CEO and Founder.

Outlook: BILL expects Q2 revenue of $293 million-$303 million (vs. $318.8 million estimate) and adjusted EPS of $0.35-$0.44 vs. $0.48 estimate.

For FY24, the company cut the revenue outlook to $1.205 billion-$1.245 billion (from $1.288 billion-$1.306 billion) vs. $1.300 billion street view and revised the adjusted EPS forecast to $1.64-$1.97 (from $1.82-$1.97) vs. consensus of $1.95.

Also, BILL disclosed the promotion Of Chief Financial Officer (CFO) John Rettig to President.

Also Read: Fintech Stocks: Analyst Foresees Revenue Surge for BILL, Flywire, Global Payments, Mastercard and Shopify

Price Action: BILL shares are down 32.9% at $60.06 premarket on the last check Friday.