Bill.com Reports Second Quarter Fiscal 2021 Financial Results

February 4, 2021 4:05 PM EST

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Core Revenue Increased 59% Year-over-Year

Total Payment Volume was $35 Billion, up 40% Year-over-Year

Transaction Fees Increased 98% Year-over-Year

SAN JOSE, Calif.--(BUSINESS WIRE)-- Bill.com (NYSE: BILL), a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), today announced financial results for the second fiscal quarter ended December 31, 2020.

"We delivered strong financial results and record payment volume growth driven by robust demand for our platform and its expanded payment offerings,” said René Lacerte, Bill.com CEO. “Adoption and usage continues to strengthen in this new remote environment as we are effectively guiding companies on their digital transformation path. Our offering has become a mission-critical tool for many small and midsize businesses. The increasing scale of our platform purpose-built for SMBs is automating financial operations facilitating over ten billion dollars of B2B payments each month.”

Financial Highlights for the Second Quarter of Fiscal 2021

  • Total revenue was $54.0 million, an increase of 38% from the second quarter of fiscal 2020.
  • Core revenue, which includes subscription and transaction fees, was $52.3 million, an increase of 59% year-over-year. Subscription fees were $26.6 million, an increase of 33% year-over-year. Transaction fees were $25.7 million, an increase of 98% year-over-year.
  • GAAP gross profit was $40.1 million, representing a 74.1% gross margin, compared to $29.3 million, or a 75.0% gross margin, in the second quarter of fiscal 2020. Non-GAAP gross profit was $41.8 million, representing a 77.3% non-GAAP gross margin, compared to $30.5 million, or a 78.0% non-GAAP gross margin in the second quarter of fiscal 2020.
  • Loss from operations was $14.2 million, compared to a loss from operations of $7.9 million in the second quarter of fiscal 2020. Non-GAAP loss from operations was $2.7 million, compared to a non-GAAP loss from operations of $4.5 million in the second quarter of fiscal 2020.
  • Net loss was $17.2 million, or ($0.21) per share, basic and diluted, compared to net loss of $7.6 million, or ($0.34) per share, basic and diluted, in the second quarter of fiscal 2020. Non-GAAP net loss was $2.1 million, or ($0.03) per share, basic and diluted, compared to non-GAAP net loss of $3.6 million, or ($0.06) per share, basic and diluted, in the second quarter of fiscal 2020.
  • Cash, cash equivalents and short-term investments were $1.7 billion at December 31, 2020.

Business Highlights and Recent Developments

  • Served 109,200 customers as of the end of the second quarter of fiscal 2021, representing year-over-year customer growth of 27%
  • Processed $34.8 billion in total payment volume on our platform in the second quarter, an increase of 40% year-over-year and 21% quarter-over-quarter
  • Processed 7.2 million transactions in the second quarter of fiscal 2021
  • Introduced Bill Manager with Wells Fargo, a new joint offering to help automate and simplify the accounts payable and receivable process for midsize businesses
  • Launched a tailored offering for wealth management firms to help deliver bill pay services for high-net-worth clients
  • Added seasoned technology and payments executive, Steve Fisher, to our board of directors
  • Completed an offering of $1.15 billion of 0% convertible senior notes due 2025 (“2025 Notes”)

Conference Call

In conjunction with this announcement, Bill.com will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss second quarter results as well as our outlook for the third quarter of fiscal 2021. The conference call will be available via live webcast and replay at the Investor Relations section of Bill.com’s website: https://investor.bill.com/events-and-presentations/default.aspx.

About Bill.com

Bill.com is a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the Bill.com platform to manage end-to-end financial workflows and to process payments. The Bill.com AI-enabled, financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflow. The company partners with several of the largest U.S. financial institutions, the majority of the top 100 U.S. accounting firms, and popular accounting software providers. Bill.com has offices in San Jose, California and Houston, Texas. For more information, visit www.bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call include forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations for future performance, the growth of demand on our platform and the expansion of our customers’ utilization of our services. These risks and uncertainties include, but are not limited to, the novel coronavirus pandemic (COVID-19) and its impact on our employees, customers, strategic partners, vendors, results of operations, liquidity and financial condition, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, the market, interest rate, foreign exchange and other conditions that the customer funds we hold in trust are subject to, our ability to attract new customers and convert trial customers into paying customers, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in registration statements and periodic reports we file with the SEC, including our annual report on Form 10-K filed with the SEC on August 31, 2020, which may be obtained on the Investor Relations section of Bill.com’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. Additional information will also be set forth in our quarterly report on Form 10-Q for the three months ended December 31, 2020 when filed. Actual results may differ materially from those presently reported. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update the information contained in this press release or the accompanying conference call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share, basic and diluted. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock- based compensation expenses using a variety of valuation methodologies and subjective assumptions.

Employer payroll taxes related to employee stock-based compensation. We exclude payroll tax expense related to employee stock-based transactions because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business. Employer payroll tax expense related to employee stock-based compensation was not material for all periods prior to June 30, 2020; therefore, it was excluded from those prior periods.

Depreciation and amortization expense. We exclude depreciation and amortization expenses from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Capitalized internal-use software and amortization. We include capitalization and exclude the subsequent amortization of internal-use software costs in certain of our non-GAAP financial measures. We capitalize direct costs incurred related to obtaining or developing internal-use software during the application development stage and we amortize those costs over the estimated useful lives of the software. The capitalization and subsequent amortization of those costs can vary every period depending on our business needs and the timing on the software’s availability for its intended use. We believe that including or excluding the effect of the capitalized internal-use software in certain of our non-GAAP financial measures provides us useful information in evaluating and comparing the consistency of our operating performance on a period-to-period basis.

Deferred costs and amortization. Deferred costs consist of capitalized sales commissions and capitalized service costs. We include capitalization of sales commission and service costs, and exclude their subsequent amortization in certain of our non-GAAP financial measures. We capitalize sales commissions that are incremental costs in obtaining new customer contracts. We capitalize service costs, which pertain primarily to direct payroll and third-party costs incurred when we provide implementation services to our financial institution customers and certain SMB customers prior to the launching of our product for general use. We amortize the capitalized sales commissions and capitalized service costs over the estimated benefit period. We believe that including or excluding the effect of the capitalization of sales commissions and service costs in certain of our non-GAAP financial measures in a given period provides us useful information in evaluating and comparing the consistency of our performance in acquiring new customer contracts on a period-to-period basis.

Amortization of debt discount and issuance costs. We exclude the amortization of debt discount and issuance costs associated with our issuance of convertible senior notes due 2025 from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.

Loss on revaluation of warrant liabilities. We exclude loss on revaluation of warrant liabilities, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Income tax benefit associated with 2025 Notes. We exclude the income tax benefit associated with 2025 Notes from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

BILL.COM HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
 

December 31,

 

June 30,

2020

 

2020

ASSETS
Current assets:
Cash and cash equivalents

$

1,568,684

 

$

573,643

 

Short-term investments

 

165,588

 

 

123,974

 

Accounts receivable, net

 

7,037

 

 

4,252

 

Unbilled revenue

 

7,370

 

 

6,549

 

Prepaid expenses and other current assets

 

18,748

 

 

26,781

 

Funds held for customers

 

2,217,680

 

 

1,644,250

 

Total current assets

 

3,985,107

 

 

2,379,449

 

Non-current assets:
Operating lease right-of-use assets

 

44,771

 

 

 

Property and equipment, net

 

30,572

 

 

13,866

 

Other assets

 

21,967

 

 

10,700

 

Total assets

$

4,082,417

 

$

2,404,015

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

5,076

 

$

3,478

 

Accrued compensation and benefits

 

14,304

 

 

12,387

 

Other accrued and current liabilities

 

6,600

 

 

8,541

 

Deferred revenue

 

5,379

 

 

5,891

 

Line of credit borrowings

 

2,300

 

 

2,300

 

Operating lease liabilities

 

4,727

 

 

 

Customer fund deposits

 

2,217,680

 

 

1,644,250

 

Total current liabilities

 

2,256,066

 

 

1,676,847

 

Non-current liabilities:
Deferred revenue

 

3,166

 

 

2,622

 

Operating lease liabilities

 

54,141

 

 

 

Convertible senior notes, net

 

886,052

 

 

 

Deferred income tax liability

 

1,832

 

 

 

Other long-term liabilities

 

4,412

 

 

13,827

 

Total liabilities

 

3,205,669

 

 

1,693,296

 

Commitments and contingencies
Stockholders' equity:
Common stock

 

2

 

 

2

 

Additional paid-in capital

 

1,055,425

 

 

857,044

 

Accumulated other comprehensive income

 

198

 

 

2,420

 

Accumulated deficit

 

(178,877

)

 

(148,747

)

Total stockholders' equity

 

876,748

 

 

710,719

 

Total liabilities and stockholders' equity

$

4,082,417

 

$

2,404,015

 

BILL.COM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share amounts)
 

Three months ended
December 31,

 

Six months ended
December 31,

2020

 

2019

 

2020

 

2019

Revenue
Subscription and transaction fees

$

52,333

 

$

32,964

 

$

96,121

 

$

61,512

 

Interest on funds held for customers

 

1,712

 

 

6,116

 

 

4,133

 

 

12,748

 

Total revenue

 

54,045

 

 

39,080

 

 

100,254

 

 

74,260

 

Cost of revenue (1)

 

13,973

 

 

9,787

 

 

26,079

 

 

18,934

 

Gross profit

 

40,072

 

 

29,293

 

 

74,175

 

 

55,326

 

Operating expenses
Research and development (1)

 

20,486

 

 

12,992

 

 

38,272

 

 

24,507

 

Sales and marketing (1)

 

14,174

 

 

11,491

 

 

27,082

 

 

21,758

 

General and administrative (1)

 

19,583

 

 

12,748

 

 

36,773

 

 

23,283

 

Total operating expenses

 

54,243

 

 

37,231

 

 

102,127

 

 

69,548

 

Loss from operations

 

(14,171

)

 

(7,938

)

 

(27,952

)

 

(14,222

)

Other (expense) income, net

 

(3,341

)

 

360

 

 

(2,511

)

 

999

 

Loss before (benefit from) provision for income taxes

 

(17,512

)

 

(7,578

)

 

(30,463

)

 

(13,223

)

(Benefit from) provision for income taxes

 

(333

)

 

 

 

(333

)

 

51

 

Net loss

$

(17,179

)

$

(7,578

)

$

(30,130

)

$

(13,274

)

 
Net loss per share attributable to
common stockholders, basic and diluted

$

(0.21

)

$

(0.34

)

$

(0.37

)

$

(0.87

)

Weighted-average number of common shares
used to compute net loss per share
attributable to common stockholders,
basic and diluted

 

81,519

 

 

22,306

 

 

80,868

 

 

15,268

 

 
(1) Includes stock-based compensation expense as follows:
Cost of revenue

$

642

 

$

211

 

$

1,243

 

$

359

 

Research and development

 

3,246

 

 

1,084

 

 

6,315

 

 

1,755

 

Sales and marketing

 

1,871

 

 

494

 

 

3,375

 

 

877

 

General and administrative

 

4,930

 

 

1,286

 

 

9,650

 

 

2,360

 

$

10,689

 

$

3,075

 

$

20,583

 

$

5,351

 

BILL.COM HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 

Three months ended
December 31,

 

Six months ended
December 31,

2020

 

2019 (1)

 

2020

 

2019 (1)

Cash flows from operating activities:
Net loss

$

(17,179

)

$

(7,578

)

$

(30,130

)

$

(13,274

)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization

 

999

 

 

1,120

 

 

1,924

 

 

2,105

 

Stock-based compensation

 

10,689

 

 

3,075

 

 

20,583

 

 

5,351

 

Amortization of debt discount and issuance costs

 

3,905

 

 

 

 

3,905

 

 

 

Amortization of premium (accretion of discount) on investment in marketable debt securities

 

677

 

 

(1,616

)

 

723

 

 

(2,346

)

Non-cash operating lease expense

 

912

 

 

 

 

1,677

 

 

 

Revaluation of warrant liabilities

 

 

 

552

 

 

 

 

717

 

Deferred income tax

 

(333

)

 

 

 

(333

)

 

 

Changes in assets and liabilities:
Accounts receivable

 

(1,995

)

 

(1,100

)

 

(2,785

)

 

(393

)

Unbilled revenue

 

(445

)

 

(493

)

 

(821

)

 

(1,114

)

Prepaid expenses and other current assets

 

(6,261

)

 

(466

)

 

(3,947

)

 

(1,608

)

Other assets

 

(4,483

)

 

(531

)

 

(11,267

)

 

(581

)

Accounts payable

 

(200

)

 

638

 

 

1,366

 

 

1,146

 

Accrued and other current liabilities

 

4,492

 

 

3,419

 

 

(13

)

 

4,551

 

Operating lease liabilities

 

1,166

 

 

 

 

6,930

 

 

 

Other long-term liabilities

 

(765

)

 

94

 

 

573

 

 

187

 

Deferred revenue

 

(406

)

 

1,117

 

 

32

 

 

1,110

 

Net cash used in operating activities

 

(9,227

)

 

(1,769

)

 

(11,583

)

 

(4,149

)

Cash flows from investing activities:
Purchases of corporate and customer fund short-term investments

 

(358,097

)

 

(225,444

)

 

(701,442

)

 

(414,648

)

Proceeds from maturities of corporate and customer fund short-term investments

 

256,827

 

 

152,065

 

 

501,159

 

 

407,236

 

Proceeds from sale of corporate and customer fund short-term investments

 

2,000

 

 

11,964

 

 

35,286

 

 

22,725

 

Decrease (increase) in other receivables included in funds held for customers

 

1,541

 

 

(6,749

)

 

19

 

 

(4,700

)

Purchases of property and equipment

 

(7,742

)

 

(1,026

)

 

(13,636

)

 

(2,972

)

Capitalization of internal-use software costs

 

(346

)

 

(125

)

 

(660

)

 

(340

)

Net cash (used in) provided by investing activities

 

(105,817

)

 

(69,315

)

 

(179,274

)

 

7,301

 

Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs

 

1,129,603

 

 

 

 

1,129,603

 

 

 

Purchase of capped calls

 

(87,860

)

 

 

 

(87,860

)

 

 

Proceeds from issuance of common stock upon initial public offering, net of underwriting
discounts and commissions and other offering costs

 

 

 

227,439

 

 

 

 

226,565

 

Increase in customer fund deposits liability

 

548,777

 

 

25,271

 

 

573,430

 

 

162,457

 

Proceeds from exercise of stock options

 

8,480

 

 

607

 

 

17,442

 

 

901

 

Proceeds from issuance of common stock under the employee stock purchase plan

 

 

 

 

 

4,327

 

 

 

Payments of offering costs related to the follow-on public offering

 

 

 

 

 

(664

)

 

 

Proceeds from exercise of stock warrants

 

 

 

144

 

 

 

 

144

 

Payments of deferred debt issuance costs

 

 

 

 

 

 

 

(151

)

Net cash provided by financing activities

 

1,599,000

 

 

253,461

 

 

1,636,278

 

 

389,916

 

Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

1,483,956

 

 

182,377

 

 

1,445,421

 

 

393,068

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

 

1,553,842

 

 

1,193,859

 

 

1,592,377

 

 

983,168

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

3,037,798

 

$

1,376,236

 

$

3,037,798

 

$

1,376,236

 

 
Reconciliation of cash, cash equivalents, restricted cash, and restricted
cash equivalents within the condensed consolidated balance sheets to the
amounts shown in the condensed consolidated statements of cash flows above:
Cash and cash equivalents

$

1,568,684

 

$

314,894

 

$

1,568,684

 

$

314,894

 

Restricted cash included in other current assets

 

119

 

 

256

 

 

119

 

 

256

 

Restricted cash and restricted cash equivalents included in funds held for customers

 

1,468,995

 

 

1,061,086

 

 

1,468,995

 

 

1,061,086

 

Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

3,037,798

 

$

1,376,236

 

$

3,037,798

 

$

1,376,236

 

 
______________________
(1) Amounts have been adjusted to reflect the adoption of Accounting Standards Update No. 2016-18, Statement of Cash Flows
(Topic 230): Restricted Cash. Shown below is a summary of the adjustments during the three and six months ended December 31, 2019
(in thousands).
 
Three months ended December 31, 2019
As
reported
ASU No.
2016-18
adjustments
As
adjusted
Net cash used in operating activities

$

(1,769

)

$

 

$

(1,769

)

Net cash used in investing activities

 

(23,047

)

 

(46,268

)

 

(69,315

)

Net cash provided by financing activities

 

253,461

 

 

 

 

253,461

 

Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

228,645

 

 

(46,268

)

 

182,377

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

 

86,249

 

 

1,107,610

 

 

1,193,859

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

314,894

 

$

1,061,342

 

$

1,376,236

 

 
Six months ended December 31, 2019
As
reported
ASU No.
2016-18
adjustments
As
adjusted
Net cash used in operating activities

$

(4,149

)

$

 

$

(4,149

)

Net cash (used in) provided by investing activities

 

(161,179

)

 

168,480

 

 

7,301

 

Net cash provided by financing activities

 

389,916

 

 

 

 

389,916

 

Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

224,588

 

 

168,480

 

 

393,068

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

 

90,306

 

 

892,862

 

 

983,168

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

$

314,894

 

$

1,061,342

 

$

1,376,236

 

 
BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
THREE MONTHS ENDED DECEMBER 31, 2020
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Employer
payroll taxes
related to
stock-based
compensation
expense
Deferred
costs
(amortization
of deferred
costs)
Depreciation
and
amortization
expense
Amortization
of debt
discount and
issuance costs
Income tax
associated
with 2025
Notes
Non-GAAP
Total revenue

$

54,045

 

$

 

$

 

$

 

$

 

$

 

$

 

$

54,045

 

Cost of revenue

 

13,973

 

 

(642

)

 

(98

)

 

(154

)

 

(833

)

 

 

 

 

 

12,246

 

Gross profit

 

40,072

 

 

642

 

 

98

 

 

154

 

 

833

 

 

 

 

 

 

41,799

 

Gross margin

 

74.1

%

 

1.2

%

 

0.2

%

 

0.3

%

 

1.5

%

 

0.0

%

 

0.0

%

 

77.3

%

Operating expenses
Research and development

 

20,486

 

 

(3,246

)

 

(303

)

 

951

 

 

(40

)

 

 

 

 

 

17,848

 

Sales and marketing

 

14,174

 

 

(1,871

)

 

(171

)

 

483

 

 

(23

)

 

 

 

 

 

12,592

 

General and administrative

 

19,583

 

 

(4,930

)

 

(533

)

 

 

 

(103

)

 

 

 

 

 

14,017

 

Loss from operations

 

(14,171

)

 

10,689

 

 

1,105

 

 

(1,280

)

 

999

 

 

 

 

 

 

(2,658

)

Other (expense) income, net

 

(3,341

)

 

 

 

 

 

 

 

 

 

3,905

 

 

 

 

564

 

Loss before benefit from income taxes

 

(17,512

)

 

10,689

 

 

1,105

 

 

(1,280

)

 

999

 

 

3,905

 

 

 

 

(2,094

)

Benefit from income taxes

 

(333

)

 

 

 

 

 

 

 

 

 

 

 

333

 

 

 

Net loss

$

(17,179

)

$

10,689

 

$

1,105

 

$

(1,280

)

$

999

 

$

3,905

 

$

(333

)

$

(2,094

)

 
Net loss per share attributable to common
stockholders, basic and diluted (1)

$

(0.21

)

$

(0.03

)

 
Weighted-average number of common shares
used to compute net loss per share
attributable to common stockholders,
basic and diluted

 

81,519

 

 

81,519

 

 
 
(1) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.21

)

Stock-based compensation expense

 

0.13

 

Employer payroll taxes related to stock-based compensation expense

 

0.01

 

Deferred costs (amortization of deferred costs)

 

(0.02

)

Depreciation and amortization expense

 

0.01

 

Amortization of debt discount and issuance costs

 

0.05

 

Income tax associated with 2025 Notes

 

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.03

)

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
THREE MONTHS ENDED DECEMBER 31, 2019
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Deferred
costs
(amortization
of deferred
costs)
Depreciation
and
amortization
expense
Loss on
revaluation of
warrant
liability
Non-GAAP
Total revenue

$

39,080

 

$

 

$

 

$

 

$

 

$

39,080

 

Cost of revenue

 

9,787

 

 

(211

)

 

(185

)

 

(797

)

 

 

 

8,594

 

Gross profit

 

29,293

 

 

211

 

 

185

 

 

797

 

 

 

 

30,486

 

Gross margin

 

75.0

%

 

0.5

%

 

0.5

%

 

2.0

%

 

0.0

%

 

78.0

%

Operating expenses
Research and development

 

12,992

 

 

(1,084

)

 

186

 

 

(112

)

 

 

 

11,982

 

Sales and marketing

 

11,491

 

 

(494

)

 

766

 

 

(84

)

 

 

 

11,679

 

General and administrative

 

12,748

 

 

(1,286

)

 

 

 

(127

)

 

 

 

11,335

 

Loss from operations

 

(7,938

)

 

3,075

 

 

(767

)

 

1,120

 

 

 

 

(4,510

)

Other income, net

 

360

 

 

 

 

 

 

 

 

552

 

 

912

 

Loss before provision for income taxes

 

(7,578

)

 

3,075

 

 

(767

)

 

1,120

 

 

552

 

 

(3,598

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(7,578

)

$

3,075

 

$

(767

)

$

1,120

 

$

552

 

$

(3,598

)

 
Net loss per share attributable to common
stockholders, basic and diluted (1)

$

(0.34

)

$

(0.06

)

 
Weighted-average number of common shares
used to compute net loss per share
attributable to common stockholders,
basic and diluted (2)

 

22,306

 

 

62,771

 

 
 
(1) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.34

)

Stock-based compensation expense

 

0.14

 

Deferred costs (amortization of deferred costs)

 

(0.03

)

Depreciation and amortization expense

 

0.05

 

Loss on revaluation of warrant liability

 

0.02

 

Impact of the assumed conversion of redeemable convertible preferred stock

 

0.10

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.06

)

 
 
(2) Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

 

22,306

 

Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

40,465

 

Shares used to compute non-GAAP net loss per share attributable to common stockholders, basic and diluted

 

62,771

 

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
SIX MONTHS ENDED DECEMBER 31, 2020
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Employer
payroll taxes
related to
stock-based
compensation
expense
Deferred
costs
(amortization
of deferred
costs)
Depreciation
and
amortization
expense
Amortization
of debt
discount and
issuance costs
Income tax
associated
with 2025
Notes
Non-GAAP
Total revenue

$

100,254

 

$

 

$

 

$

 

$

 

$

 

$

 

$

100,254

 

Cost of revenue

 

26,079

 

 

(1,243

)

 

(143

)

 

(285

)

 

(1,557

)

 

 

 

 

 

22,851

 

Gross profit

 

74,175

 

 

1,243

 

 

143

 

 

285

 

 

1,557

 

 

 

 

 

 

77,403

 

Gross margin

 

74.0

%

 

1.2

%

 

0.1

%

 

0.3

%

 

1.6

%

 

0.0

%

 

0.0

%

 

77.2

%

Operating expenses
Research and development

 

38,272

 

 

(6,315

)

 

(574

)

 

2,048

 

 

(99

)

 

 

 

 

 

33,332

 

Sales and marketing

 

27,082

 

 

(3,375

)

 

(303

)

 

1,186

 

 

(59

)

 

 

 

 

 

24,531

 

General and administrative

 

36,773

 

 

(9,650

)

 

(1,038

)

 

 

 

(209

)

 

 

 

 

 

25,876

 

Loss from operations

 

(27,952

)

 

20,583

 

 

2,058

 

 

(2,949

)

 

1,924

 

 

 

 

 

 

(6,336

)

Other (expense) income, net

 

(2,511

)

 

 

 

 

 

 

 

 

 

3,905

 

 

 

 

1,394

 

Loss before benefit from income taxes

 

(30,463

)

 

20,583

 

 

2,058

 

 

(2,949

)

 

1,924

 

 

3,905

 

 

 

 

(4,942

)

Benefit from income taxes

 

(333

)

 

 

 

 

 

 

 

 

 

 

 

333

 

 

 

Net loss

$

(30,130

)

$

20,583

 

$

2,058

 

$

(2,949

)

$

1,924

 

$

3,905

 

$

(333

)

$

(4,942

)

 
Net loss per share attributable to common
stockholders, basic and diluted (1)

$

(0.37

)

$

(0.06

)

 
Weighted-average number of common shares
used to compute net loss per share
attributable to common stockholders,
basic and diluted

 

80,868

 

 

80,868

 

 
 
(1) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.37

)

Stock-based compensation expense

 

0.25

 

Employer payroll taxes related to stock-based compensation expense

 

0.03

 

Deferred costs (amortization of deferred costs)

 

(0.04

)

Depreciation and amortization expense

 

0.02

 

Amortization of debt discount and issuance costs

 

0.05

 

Income tax associated with 2025 Notes

 

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.06

)

BILL.COM HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
SIX MONTHS ENDED DECEMBER 31, 2019
(Unaudited, in thousands except percentages and per share amounts)
 
GAAP Stock-based
compensation
expense
Deferred
costs
(amortization
of deferred
costs)
Depreciation
and
amortization
expense
Loss on
revaluation of
warrant
liability
Non-GAAP
Total revenue

$

74,260

 

$

 

$

 

$

 

$

 

$

74,260

 

Cost of revenue

 

18,934

 

 

(359

)

 

(399

)

 

(1,571

)

 

 

 

16,605

 

Gross profit

 

55,326

 

 

359

 

 

399

 

 

1,571

 

 

 

 

57,655

 

Gross margin

 

74.5

%

 

0.5

%

 

0.5

%

 

2.1

%

 

0.0

%

 

77.6

%

Operating expenses
Research and development

 

24,507

 

 

(1,755

)

 

371

 

 

(198

)

 

 

 

22,925

 

Sales and marketing

 

21,758

 

 

(877

)

 

1,285

 

 

(143

)

 

 

 

22,023

 

General and administrative

 

23,283

 

 

(2,360

)

 

 

 

(193

)

 

 

 

20,730

 

Loss from operations

 

(14,222

)

 

5,351

 

 

(1,257

)

 

2,105

 

 

 

 

(8,023

)

Other income, net

 

999

 

 

 

 

 

 

 

 

717

 

 

1,716

 

Loss before provision for income taxes

 

(13,223

)

 

5,351

 

 

(1,257

)

 

2,105

 

 

717

 

 

(6,307

)

Provision for income taxes

 

51

 

 

 

 

 

 

 

 

 

 

51

 

Net loss

$

(13,274

)

$

5,351

 

$

(1,257

)

$

2,105

 

$

717

 

$

(6,358

)

 
Net loss per share attributable to common
stockholders, basic and diluted (1)

$

(0.87

)

$

(0.10

)

 
Weighted-average number of common shares
used to compute net loss per share
attributable to common stockholders,
basic and diluted (2)

 

15,268

 

 

61,718

 

 
 
(1) GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.87

)

Stock-based compensation expense

 

0.35

 

Deferred costs (amortization of deferred costs)

 

(0.08

)

Depreciation and amortization expense

 

0.14

 

Loss on revaluation of warrant liability

 

0.04

 

Impact of the assumed conversion of redeemable convertible preferred stock

 

0.32

 

Non-GAAP net loss per share attributable to common stockholders, basic and diluted

$

(0.10

)

 
 
(2) Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted

 

15,268

 

Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the date of issuance

 

46,450

 

Shares used to compute non-GAAP net loss per share attributable to common stockholders, basic and diluted

 

61,718

 

 
BILL.COM HOLDINGS, INC.
FREE CASH FLOW
(Unaudited, in thousands)
 

Three months ended
December 31,

 

Six months ended
December 31,

2020

 

2019

 

2020

 

2019

Net cash used in operating activities

$

(9,227

)

$

(1,769

)

$

(11,583

)

$

(4,149

)

Purchases of property and equipment

 

(7,742

)

 

(1,026

)

 

(13,636

)

 

(2,972

)

Capitalization of internal-use software costs

 

(346

)

 

(125

)

 

(660

)

 

(340

)

Free cash flow

$

(17,315

)

$

(2,920

)

$

(25,879

)

$

(7,461

)

BILL.COM HOLDINGS, INC.
REMAINING PERFORMANCE OBLIGATIONS WITH FINANCIAL INSTITUTIONS
(Unaudited, in thousands)
 

December 31,

 

June 30,

2020

 

2020

Remaining performance obligations with financial institutions
to be recognized as revenue:
Within 1 year

$

17,803

$

13,001

Thereafter

 

130,908

 

139,334

Total

$

148,711

$

152,335

 

IR Contact:
Karen Sansot
ksansot@hq.bill.com

Press Contact:
Oriana Branon
obrannon@hq.bill.com
619-997-0299

Source: Bill.com



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