Bill.com (BILL) shares slide as take-rate decline overshadows solid FQ2 results
Bill.com’s (NYSE: BILL) shares fell 5% in premarket trading Friday as investors reacted to a worse-than-feared take-rate decline, eclipsing strong FQ2 results.
For the second quarter, the cloud software provider delivered an EPS of $0.63, exceeding the consensus estimate of $0.40. The company's revenue for the quarter stood at $318.5 million, notably above the expected $298.82 million.
Total payment volume for the quarter reached $75 billion, marking an 18% year-over-year increase and beating the estimate of $64.17 billion.
Gross profit hit $260.1 million, a 22% increase from the previous year and higher than the forecasted $241.5 million.
The number of customers grew significantly to 473,500 from 182,700 YoY, though slightly below the estimate of 474,910.
Looking ahead, Bill.com has provided guidance for the third quarter of 2024, expecting an EPS between $0.48 and $0.57, against a consensus estimate of $0.43.
Revenue is projected to be between $299 million and $309 million, closely aligned with the consensus estimate of $301.7 million.
For the full fiscal 2024, the company expects adjusted EPS in the range of $2.09 to $2.21, up from the previous guidance of $1.64 to $1.97, and above the consensus projection of $1.88.
For revenue, Bill.com now expects it will land between $1.23 billion and $1.25 billion in this fiscal year, compared to the previous forecast range of $1.21 billion to $1.25 billion, while analysts estimated $1.23 billion.
“We delivered strong growth during the quarter as we automated financial operations for more than 470,000 businesses,” said René Lacerte, CEO and founder of Bill.com.
“We continue to drive innovation and sharpen our focus on the most impactful initiatives to create value for our customers, partners, and shareholders."
Jefferies analysts Samad Samana and Jeremy Sahler commended Bill's robust FQ2 report but raised concerns over the quarter-on-quarter take-rate decline.
"The Bill.com take rate declined 0.003% q/q, in line with previous mgmt expectations for an F2Q downtick but worse than our 0.002% estimate," analysts said.
"Additionally, the opportunity to serve BofA's existing customers appears to be more in flux. On balance, we do not see the solid F2Q results as enough to shake off concerns," they added.
By Vahid Karaahmetovic