BILL Holdings to Report Q3 Earnings: What's in Store?

BILL Holdings BILL is scheduled to report third-quarter fiscal 2024 results on May 2.
BILL Holdings' third-quarter fiscal 2024 revenues are projected between $299 million and $309 million, suggesting year-over-year growth of 10-13%. Non-GAAP earnings are expected between 48 cents and 57 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $304.95 million, suggesting an increase of 11.88% from the year-ago quarter's reported number.
The consensus mark for third-quarter fiscal 2024 earnings is pegged at 53 cents per share, unchanged in the past 30 days.

BILL Holdings beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 53.47%.
Let's see how things have shaped up for BILL prior to this announcement.

Factors to Note

BILL Holdings' third-quarter fiscal 2024 performance is expected to have benefited from an expanding small and medium business SMB clientele as well as a diversified business model. 

The company's expanding clientele, which includes the likes of Adyen ADYEY, is expected to have driven solid traction across small- and medium-scale businesses. 

BILL's partnership with Adyen will enable the latter to enhance advanced acquiring and issuing experiences for BILL's accounts payable and accounts receivable solutions. Benefits from this partnership are likely to have been reflected in the quarter under review. 

Bill's expanding portfolio to meet the evolving needs of its customers is expected to have been a major growth driver in the to-be-reported quarter.  

Strong momentum across its financial operations platform, owing to its BILL Insights and BILL Cash Flow Forecasting solutions for SMBs and accountants, is likely to have been a tailwind. 

In the second quarter of fiscal 2024, BILL launched its new integrated platform, which combines its BILL AP and Divvy Spend and Expense Solutions to offer a unified customer experience. The increased adoption of this integrated platform is expected to have contributed to revenue growth as more businesses utilize the platform for their financial operations. 

BILL is also leveraging artificial intelligence that makes its solutions easier to use, more automated and predicted. It is working on integrating generative AI in its solutions to enhance customer experience. This is likely to have contributed well in the quarter under review. 

Additionally, BILL's efforts to enrich payment experiences and drive penetration of its ad valorem solutions, such as virtual cards, instant transfers and invoice financing, are expected to have contributed to revenues by capturing more wallet share and increasing payment adoption among its customers and network members.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
BILL Holdings currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1.
Arista Networks' shares have gained 12% year to date. ANET is set to report its first-quarter 2024 results on May 7.
NVIDIA NVDA has an Earnings ESP of +2.50% and a Zacks Rank #2.
NVIDIA's shares have gained 203.5% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.

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