BTIG Reiterates Neutral Rating on Bill.com Holdings Inc. (BILL)
BTIG analyst Matt VanVliet reiterated a Neutral rating on Bill.com Holdings Inc. (NYSE: BILL).
The analyst comments "On Thursday, August 22nd, AMC, BILL reported 4Q24 results that beat on both the top and bottom line with revenue of $343.7mn (+16.1% y/y) coming in ~$14mn above guidance and non-GAAP EPS of $0.57 vs BTIG/Street at $0.44/$0.46. Revenue growth continues to be driven by strong Core revenue (up 16.1%), with mgmt. again highlighting the contributions from Spend & Expense (formerly Divvy), which grew 26% y/y this quarter. The performance with Spend & Expense was mainly driven by card growth, and BILL added 300+ net new businesses here this quarter. It was noted that the joint customer opportunity between core solutions and Spend & Expense is significant as joint customers grew to 11,500, 60% y/y growth. These joint customers are stickier and have higher net dollar retention. Operating margin performance of 17.5% was up 320 bps y/y (vs. BTIG/Street 15.1%/16.6%) and continues to highlight the ongoing operating leverage of the business model. Looking forward, BILL plans to start additional hiring for its R&D and GTM teams, as it wants to position itself to reach core growth of at least 20% in 2026 (part of a multi-year growth plan). Overall, this was a strong quarter and mgmt. seems more confident in the broader stabilization of trends in the customer base, but with the added spending and lack of upside indicators in the business, we remain Neutral for now until we see greater momentum in the business to truly underwrite a return to 20%-plus growth."
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Shares of Bill.com Holdings Inc. closed at $50.74 yesterday.