Bill.com (BILL) Erupts on 'Impressive' FQ4 Sales and Guidance, Gets a New Street-High PT
Shares of Bill.com (NYSE: BILL) are up over 14% in pre-open Friday after the company delivered a strong FQ4 earnings report and guidance.
Bill said it recorded FQ4 EPS of negative $0.07 to miss on the analyst estimate of -$0.04. Revenue for the quarter came in at $78.3 million to easily beat the consensus estimate of $61.98 million.
“We delivered record growth in fiscal 2021 as we helped SMBs across the country automate their financial operations and make billions of dollars in payments,” said René Lacerte, Bill.com CEO and Founder.
“Our strategic initiatives drove strong adoption of our platform and set us up well for future opportunities. We expanded our e-payment offerings to make it easy for businesses to get paid faster, extended our reach with new strategic partners, and entered the spend management space with our acquisition of Divvy. We are building the one-stop shop platform for SMBs to manage all their financial operations and B2B spend.”
Bill.com projects FY2022 EPS of negative $0.92 to negative $0.88 and FY2022 revenue of $476 million to 480 million.
Numerous research firms raised their price targets on BILL following FQ4 earnings, including a new Street-high from BofA analyst Brad Sils, who went from $185.00 per share to $320.00 per share on the Buy-rated company.
“Q4 organic results were impressive, with TPV ramp resulting from accel. SMB spend and Bill.com’s growing share of spend as customers digitize more spend under Bill.com’s payable and payments suite. Strong txn monetization was driven by continued ramp in variable vCard and cross border, now representing 2.2% and 4.1% of TPV, up from an est. 0.8% and 3% in Q4FY20. Guidance for 45% core rev growth exceeded our 36%, backed by momentum in TPV growth and monetization. Divvy contribution of $153.5mn suggests growth over the $100mn ARR (as of CYQ1) is outpacing a strong core, led by accel. adoption of digital solutions to manage corporate card spending, representing incremental 25% of SMB industry spend vol,” Sils said in a client note.
Needham analyst Scott Berg also hiked the price target to $280.00 per share from prior $215.00 on the Buy-rated stock following the company’s “most impressive quarter to date.”
“The core BILL.com sales trajectory was strong, with subscription revenue growth accelerating from 3QF21 with net new customer additions in line with recent quarterly trends. The company provided additional Divvy details and a first look at its recent Invoice2go acquisition which we are overall quite bullish on regarding Divvy's growth rate and gross margin profile along with Invoice2go offering a new payment opportunity, future international growth, and bigger entry into the AR market. FY22 guidance was significantly higher than our prior expectations on the heels of core BILL strength,” Berg said.