BILL Reports Fourth Quarter and Fiscal Year 2024 Financial Results and Announces $300 Million Share Repurchase Program

  • FY24 Total Revenue was $1.3 Billion and Increased 22% Year-Over-Year
  • FY24 Core Revenue was $1.1 Billion and Increased 19% Year-Over-Year
  • Q4 Total Revenue Increased 16% Year-Over-Year
  • Q4 Core Revenue Increased 16% Year-Over-Year

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 22, 2024-- BILL (NYSE: BILL), a leading financial operations platform for small and midsize businesses (SMBs), today announced financial results for the fourth quarter and fiscal year ended June 30, 2024.

“Fiscal 2024 was an important year for BILL as we fortified our position as the essential financial operations platform for SMBs,” said René Lacerte, BILL CEO and Founder. “We launched our integrated platform, provided SMBs with access to capital, and empowered businesses with additional insights and control of their cash flow. Our steadfast commitment to raising the bar to serve SMBs led to strong financial results and an expanding scale.”

“We strongly believe in BILL’s future and the opportunity to drive long-term shareholder value. Our new $300 million share repurchase program is enabled by our strong cash flow generation and reflects our confidence in our strategy and in BILL as an investment opportunity with significant upside,” continued Mr. Lacerte.

“Our financial performance demonstrated the strength of our business and the rigor of our execution in driving growth and expanding profitability in a muted economic environment,” said John Rettig, BILL President and CFO. “In fiscal 2025, we plan to make targeted investments that accelerate our strategic priorities and ability to capture the large, greenfield market opportunity that we are serving. We believe these investments will reinforce our industry leadership and position us to deliver significant, sustainable revenue growth and margin expansion in future periods.”

Financial Highlights for the Fourth Quarter of Fiscal 2024:

  • Total revenue was $343.7 million, an increase of 16% year-over-year.
  • Core revenue, which consists of subscription and transaction fees, was $301.3 million, an increase of 16% year-over-year. Subscription fees were $65.8 million, down 2% year-over-year. Transaction fees were $235.5 million, up 22% year-over-year.
  • Float revenue, which consists of interest on funds held for customers, was $42.4 million.
  • Gross profit was $278.5 million, representing an 81.0% gross margin, compared to $243.4 million, or an 82.2% gross margin, in the fourth quarter of fiscal 2023. Non-GAAP gross profit was $292.0 million, representing an 85.0% non-GAAP gross margin, compared to $257.2 million, or an 86.9% non-GAAP gross margin, in the fourth quarter of fiscal 2023.
  • Operating loss was $22.2 million, compared to an operating loss of $41.4 million in the fourth quarter of fiscal 2023. Non-GAAP operating income was $60.0 million, compared to $42.3 million in the fourth quarter of fiscal 2023, an increase of 42% year-over-year.
  • Net income was $7.6 million, or $0.07 and ($0.03) per share, basic and diluted, respectively, compared to net loss of $15.9 million, or ($0.15) per share, basic and diluted, in the fourth quarter of fiscal 2023. Non-GAAP net income was $63.9 million, or $0.57 per diluted share, compared to non-GAAP net income of $56.3 million, or $0.48 per diluted share in the fourth quarter of fiscal 2023.

Financial Highlights for Fiscal Year 2024:

  • Total revenue was $1,290.2 million, an increase of 22% year-over-year.
  • Core revenue, which consists of subscription and transaction fees, was $1,122.7 million, an increase of 19% year-over-year. Subscription fees were $257.1 million, up 2% year-over-year. Transaction fees were $865.6 million, up 25% year-over-year.
  • Float revenue, which consists of interest on funds held for customers, was $167.4 million.
  • Gross profit was $1,055.6 million, representing an 81.8% gross margin, compared to $864.5 million, or an 81.7% gross margin, in the prior fiscal year. Non-GAAP gross profit was $1,109.9 million, representing an 86.0% non-GAAP gross margin, compared to $916.9 million, or an 86.6% non-GAAP gross margin, in the prior fiscal year.
  • Operating loss was $174.2 million, compared to an operating loss of $295.8 million in the prior fiscal year. Non-GAAP operating income was $196.2 million, compared to $117.1 million in the prior fiscal year, an increase of 68% year-over-year.
  • Net loss was $28.9 million, or ($0.27) per share, basic and diluted, compared to $223.7 million, or ($2.11) per share, basic and diluted, in the prior fiscal year. Non-GAAP net income was $244.0 million, or $2.30 and $2.12 per basic and diluted share, respectively, compared to non-GAAP net income of $157.5 million, or $1.49 and $1.34 per basic and diluted share, respectively, in the prior fiscal year.

Business Highlights and Recent Developments:

  • Served 474,600 businesses using our solutions as of the end of the fourth quarter.1
  • Processed $76 billion in total payment volume in the fourth quarter, an increase of 10% year-over-year.
  • Processed 28 million transactions during the fourth quarter, an increase of 19% year-over-year.
  • As of June 30, 2024, 7.1 million BILL standalone network members have originated or received an electronic payment using our platform, an increase of 22% year-over-year compared to the 5.8 million network members we reported a year ago.
  • Named Sarah Acton to the newly created role of Chief Customer Officer.
  • Repurchased an additional $234 million aggregate principal amount of BILL’s outstanding 0.0% Convertible Senior Notes due 2025 and unwound the remaining capped calls, resulting in a $11.0 million net benefit to net income (loss).
___________________________

1

Businesses using more than one of our solutions are included separately in the total for each solution utilized.

Initiation of New Share Repurchase Program

BILL announced today that its Board of Directors has approved a new share repurchase program, pursuant to which BILL intends to purchase up to an aggregate of $300 million of its outstanding common stock.

BILL may repurchase shares of its common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program may be suspended, discontinued or modified at any time, and does not obligate the company to acquire any amount of common stock. The company expects to fund the share repurchase program using existing cash.

Fiscal Year 2024 Share Repurchases

During fiscal 2024, BILL repurchased 2.9 million shares for $212 million. All repurchased shares were retired, completing the company’s previously-authorized $300 million program.

Financial Outlook

We are providing the following guidance for the fiscal first quarter ending September 30, 2024 and the full fiscal year ending June 30, 2025.

 

 

Q1 FY25
Guidance

 

FY25
Guidance

Total revenue (millions)

$346 - $351

 

$1,415 - $1,450

Year-over-year total revenue growth

13% - 15%

 

10% - 12%

Core revenue (millions)

$305 - $310

 

$1,270 - $1,305

Year-over-year core revenue growth

15% - 17%

 

13% - 16%

Non-GAAP operating income (millions)

$52 - $57

 

$160 - $195

Non-GAAP net income (millions)

$53 - $57

 

$154 - $182

Non-GAAP net income per diluted share

$0.48 - $0.51

 

$1.36 - $1.61

The outlook for non-GAAP net income and non-GAAP net income per diluted share includes a non-GAAP provision for income taxes of 20%. The outlook for Non-GAAP net income takes into account the use of corporate cash for investment and other strategic capital allocation, including but not limited to the new share repurchase program announced today. The outlook for Non-GAAP net income per diluted share does not take the share repurchase program into account, as its impact on a per diluted share basis is not reasonably estimable.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

BILL has not provided a reconciliation of its non-GAAP operating income, non-GAAP net income or non-GAAP net income per share guidance to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call and Webcast Information

In conjunction with this announcement, BILL will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal fourth quarter and fiscal year 2024 results and our outlook for the fiscal first quarter ending September 30, 2024 and fiscal year ending June 30, 2025. The live webcast and a replay of the webcast will be available at the Investor Relations section of BILL’s website: https://investor.bill.com/events-and-presentations/default.aspx.

About BILL

BILL (NYSE: BILL) is a leading financial operations platform for small and midsize businesses (SMBs). As a champion of SMBs, we are automating the future of finance so businesses can thrive. Our integrated platform helps businesses to more efficiently control their payables, receivables and spend and expense management. Hundreds of thousands of businesses rely on BILL’s proprietary network of millions of members to pay or get paid faster. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers. For more information, visit bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 of future performance, including guidance for our total revenue, core revenue, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per share for the fiscal first quarter ending September 30, 2024 and full fiscal year ending June 30, 2025, our planned investments in fiscal year 2025, our revenue growth, margin expansion and profitability profile in future years, our share repurchase program, our expectations for 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 macroeconomic factors, including changes in interest rates, inflation and volatile market environments, as well as fluctuations in foreign exchange rates, 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, credit risk related to our BILL Divvy Corporate Cards, our ability to attract new customers and convert trial customers into paying customers, our ability to invest in our business and develop new products and services, increased competition or new entrants in the marketplace, potential impacts of acquisitions and investments, including our ability to integrate acquired businesses, incorporate their technology effectively and implement appropriate internal controls at such businesses, our relationships with accounting firms and financial institutions, the global impacts of ongoing geopolitical conflicts, and other risks detailed in the registration statements and periodic reports we file with the SEC, including our quarterly and annual reports, which may be obtained on the Investor Relations section of BILL’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. 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 or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.

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 gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income and non-GAAP net income 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.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.

We exclude the following items from non-GAAP gross profit and non-GAAP gross margin:

  • stock-based compensation and related payroll taxes
  • depreciation and amortization

We exclude the following items from non-GAAP operating expenses and non-GAAP operating income:

  • stock-based compensation and related payroll taxes
  • depreciation and amortization
  • acquisition and integration-related expenses
  • restructuring

We exclude the following items from non-GAAP net income and non-GAAP net income per share:

  • stock-based compensation expense and related payroll taxes
  • depreciation and amortization
  • acquisition and integration-related expenses
  • restructuring
  • gain on debt extinguishment and change on mark to market derivatives associated with notes repurchase and capped call unwind
  • amortization of debt issuance costs
  • non-GAAP provision for income taxes

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 also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise, including our blended U.S. statutory tax rate.

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.

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

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses. We exclude stock-based compensation, which is a non-cash expense, and related payroll taxes from certain of our non-GAAP financial measures because we believe that excluding these items provide meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expenses using a variety of valuation methodologies and subjective assumptions while the related payroll taxes are 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.

Depreciation and amortization. We exclude depreciation and amortization from certain of our non-GAAP financial measures because we believe that excluding this non-cash charge provides meaningful supplemental information regarding operational performance. Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash.

Acquisition and integration-related expenses. We exclude acquisition and integration-related expenses from certain of our non-GAAP financial measures because these costs would have not otherwise been incurred in the normal course of our business operations. In addition, we believe that acquisition and integration-related expenses are non-recurring charges unique to a specific acquisition. Although we may engage in future acquisitions, such acquisitions and the associated acquisition and integration-related expenses are considered unique and not comparable to other acquisitions.

Restructuring. We exclude costs incurred in connection with formal restructuring plans from certain of our non-GAAP financial measures because these costs are exceptional and would have not otherwise been incurred in the normal course of our business operations.

Gain on debt extinguishment and change on mark to market derivatives associated with notes repurchase and capped call unwind. We exclude gain on debt extinguishment and change on mark to market derivatives associated with our March 2024 repurchase of certain of our outstanding 0.0% Convertible Senior Notes due 2025 and the unwind of the capped calls from certain of our non-GAAP financial measures because we believe that excluding this non-cash gain provides better insight regarding our operational performance.

Amortization of debt issuance costs. We exclude amortization of debt issuance costs associated with our issuance of our convertible senior notes and credit arrangement 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.

Non-GAAP provision for income taxes. Consists of assumed provision for income taxes based on the statutory tax rate taking into consideration the nature of the taxed item and the relevant taxing jurisdiction.

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.

Free Cash Flow

Free cash flow is a non-GAAP measure defined as net cash provided by (used in) operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash that is generated, after incurring operating expenses, purchases of property and equipment and capitalization of internal-use software costs, for future operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in the ordinary course of business. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

 

 

June 30,

 

 

2024

 

2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

985,941

 

 

$

1,617,151

 

Short-term investments

 

 

601,535

 

 

 

1,043,110

 

Accounts receivable, net

 

 

28,049

 

 

 

28,233

 

Acquired card receivables, net

 

 

697,216

 

 

 

458,650

 

Prepaid expenses and other current assets

 

 

297,169

 

 

 

170,111

 

Funds held for customers

 

 

3,704,907

 

 

 

3,355,909

 

Total current assets

 

 

6,314,817

 

 

 

6,673,164

 

Non-current assets:

 

 

 

 

Operating lease right-of-use assets, net

 

 

59,414

 

 

 

68,988

 

Property and equipment, net

 

 

88,034

 

 

 

81,564

 

Intangible assets, net

 

 

281,471

 

 

 

361,427

 

Goodwill

 

 

2,396,509

 

 

 

2,396,509

 

Other assets

 

 

38,568

 

 

 

54,366

 

Total assets

 

$

9,178,813

 

 

$

9,636,018

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

7,447

 

 

$

8,519

 

Accrued compensation and benefits

 

 

34,158

 

 

 

32,901

 

Deferred revenue

 

 

17,006

 

 

 

26,328

 

Other accruals and current liabilities

 

 

299,506

 

 

 

194,733

 

Borrowings from credit facilities, net

 

 

 

 

 

135,046

 

Customer fund deposits

 

 

3,704,907

 

 

 

3,355,909

 

Total current liabilities

 

 

4,063,024

 

 

 

3,753,436

 

Non-current liabilities:

 

 

 

 

Deferred revenue

 

 

4,167

 

 

 

410

 

Operating lease liabilities

 

 

62,847

 

 

 

72,477

 

Borrowings from credit facilities, net

 

 

180,009

 

 

 

 

Convertible senior notes, net

 

 

733,991

 

 

 

1,704,782

 

Other long-term liabilities

 

 

574

 

 

 

18,944

 

Total liabilities

 

 

5,044,612

 

 

 

5,550,049

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

5,233,037

 

 

 

4,946,623

 

Accumulated other comprehensive loss

 

 

(1,890

)

 

 

(4,488

)

Accumulated deficit

 

 

(1,096,948

)

 

 

(856,168

)

Total stockholders' equity

 

 

4,134,201

 

 

 

4,085,969

 

Total liabilities and stockholders' equity

 

$

9,178,813

 

 

$

9,636,018

 

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)

 

 

 

Three months ended June 30,

 

Year ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

Subscription and transaction fees (1)

 

$

301,306

 

 

$

259,510

 

 

$

1,122,733

 

 

$

944,710

 

Interest on funds held for customers

 

 

42,359

 

 

 

36,473

 

 

 

167,439

 

 

 

113,758

 

Total revenue

 

 

343,665

 

 

 

295,983

 

 

 

1,290,172

 

 

 

1,058,468

 

Cost of revenue

 

 

 

 

 

 

 

 

Service costs (1)

 

 

53,905

 

 

 

41,327

 

 

 

189,894

 

 

 

151,010

 

Depreciation and amortization (2)

 

 

11,295

 

 

 

11,225

 

 

 

44,722

 

 

 

42,967

 

Total cost of revenue

 

 

65,200

 

 

 

52,552

 

 

 

234,616

 

 

 

193,977

 

Gross profit

 

 

278,465

 

 

 

243,431

 

 

 

1,055,556

 

 

 

864,491

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development (1)

 

 

79,609

 

 

 

81,841

 

 

 

336,754

 

 

 

314,632

 

Sales and marketing (1)

 

 

123,732

 

 

 

117,199

 

 

 

478,540

 

 

 

515,858

 

General and administrative (1) (3)

 

 

70,500

 

 

 

64,954

 

 

 

277,662

 

 

 

249,054

 

Provision for expected credit losses (3)

 

 

14,785

 

 

 

8,487

 

 

 

60,105

 

 

 

32,224

 

Depreciation and amortization (2)

 

 

11,670

 

 

 

12,348

 

 

 

49,072

 

 

 

48,496

 

Restructuring

 

 

392

 

 

 

 

 

 

27,587

 

 

 

 

Total operating expenses

 

 

300,688

 

 

 

284,829

 

 

 

1,229,720

 

 

 

1,160,264

 

Operating loss

 

 

(22,223

)

 

 

(41,398

)

 

 

(174,164

)

 

 

(295,773

)

Other income, net

 

 

29,819

 

 

 

26,264

 

 

 

147,845

 

 

 

72,856

 

Income (loss) before provision for income taxes

 

 

7,596

 

 

 

(15,134

)

 

 

(26,319

)

 

 

(222,917

)

Provision for income taxes

 

 

 

 

 

737

 

 

 

2,559

 

 

 

808

 

Net income (loss)

 

$

7,596

 

 

$

(15,871

)

 

$

(28,878

)

 

$

(223,725

)

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

 

$

(0.15

)

 

$

(0.27

)

 

$

(2.11

)

Diluted

 

$

(0.03

)

 

$

(0.15

)

 

$

(0.27

)

 

$

(2.11

)

Weighted-average number of common shares used to compute net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

 

Basic

 

 

106,289

 

 

 

106,414

 

 

 

106,102

 

 

 

105,976

 

Diluted

 

 

107,326

 

 

 

106,414

 

 

 

106,102

 

 

 

105,976

 

______________________________________

(1) Includes stock-based compensation charged to revenue and expenses as follows (in thousands):

 

 

Three months ended June 30,

 

Year ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Revenue - subscription and transaction fees

 

$

528

 

$

188

 

$

1,831

 

$

188

Cost of revenue - service costs

 

 

2,185

 

 

2,391

 

 

9,309

 

 

9,111

Research and development

 

 

24,674

 

 

23,213

 

 

103,382

 

 

93,364

Sales and marketing

 

 

11,427

 

 

13,480

 

 

49,070

 

 

130,421

General and administrative

 

 

19,525

 

 

18,579

 

 

81,209

 

 

80,619

Restructuring

 

 

 

 

 

 

3,574

 

 

Total stock-based compensation *

 

$

58,339

 

$

57,851

 

$

248,375

 

$

313,703

*Consists of acquisition-related equity awards (Acquisition Related Awards), which include equity awards assumed and retention equity awards granted to certain employees of acquired companies in connection with acquisitions, and modified equity awards in connection with the Restructuring Plan (Restructuring Awards), and non-acquisition related equity awards (Non-Acquisition Related Awards), which include all other equity awards granted to existing employees and non-employees in the ordinary course of business. The following table presents stock-based compensation recorded for the periods presented and as a percentage of total revenue (in thousands):

 

 

 

 

 

 

 

 

 

As a % of total revenue

 

Three months ended June 30,

 

Year ended June 30,

 

Three months ended June 30,

 

Year ended June 30,

 

2024

 

2023

 

2024

 

2023

 

2024

 

2023

 

2024

 

2023

Acquisition Related Awards

$

2,512

 

$

4,088

 

$

15,474

 

$

107,815

 

1

%

 

1

%

 

1

%

 

10

%

Restructuring Awards

 

 

 

 

 

3,574

 

 

 

%

 

%

 

0

%

 

%

Non-Acquisition Related Awards

 

55,827

 

 

53,763

 

 

229,327

 

 

205,888

 

16

%

 

18

%

 

18

%

 

19

%

Total stock-based compensation

$

58,339

 

$

57,851

 

$

248,375

 

$

313,703

 

17

%

 

20

%

 

19

%

 

29

%

(2) Depreciation and amortization do not include amortization of capitalized internal-use software costs paid in cash.

(3) Provision for expected credit losses was included in general and administrative expenses in fiscal 2023.

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

 

2024

 

2023

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,595

 

 

$

(15,871

)

 

$

(28,878

)

 

$

(223,725

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

58,339

 

 

 

57,850

 

 

 

248,375

 

 

 

313,567

 

Amortization of intangible assets

 

 

19,293

 

 

 

20,221

 

 

 

79,956

 

 

 

80,205

 

Depreciation of property and equipment

 

 

3,671

 

 

 

3,351

 

 

 

13,838

 

 

 

11,258

 

Amortization of capitalized internal-use software costs

 

 

3,037

 

 

 

1,206

 

 

 

9,369

 

 

 

4,215

 

Amortization of debt issuance costs

 

 

1,064

 

 

 

1,747

 

 

 

6,238

 

 

 

6,964

 

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

 

 

(15,777

)

 

 

(13,484

)

 

 

(55,062

)

 

 

(37,194

)

Accretion of discount on loans held for investment

 

 

(3,678

)

 

 

(118

)

 

 

(9,209

)

 

 

(127

)

Provision for expected credit losses on acquired card receivables and other financial assets

 

 

12,826

 

 

 

8,504

 

 

 

60,105

 

 

 

32,189

 

Gain on debt extinguishment

 

 

(10,939

)

 

 

 

 

 

(46,654

)

 

 

 

Non-cash operating lease expense

 

 

2,052

 

 

 

2,379

 

 

 

8,642

 

 

 

9,493

 

Deferred income taxes

 

 

(235

)

 

 

(192

)

 

 

(361

)

 

 

(1,361

)

Other

 

 

(32

)

 

 

(103

)

 

 

1,756

 

 

 

1,254

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

3,864

 

 

 

5,487

 

 

 

69

 

 

 

(4,482

)

Prepaid expenses and other current assets

 

 

(12,238

)

 

 

(9,367

)

 

 

(6,825

)

 

 

(16,844

)

Other assets

 

 

9,596

 

 

 

2,360

 

 

 

7,528

 

 

 

320

 

Accounts payable

 

 

773

 

 

 

(421

)

 

 

(1,125

)

 

 

(1,686

)

Other accruals and current liabilities

 

 

14,180

 

 

 

24,826

 

 

 

20,992

 

 

 

34,465

 

Operating lease liabilities

 

 

(2,280

)

 

 

(2,592

)

 

 

(9,839

)

 

 

(10,303

)

Other long-term liabilities

 

 

(11,963

)

 

 

(2,825

)

 

 

(14,580

)

 

 

(3,097

)

Deferred revenue

 

 

(529

)

 

 

(2,603

)

 

 

(5,564

)

 

 

(7,343

)

Net cash provided by operating activities

 

 

78,619

 

 

 

80,355

 

 

 

278,771

 

 

 

187,768

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for acquisition, net of acquired cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

(28,902

)

Purchases of corporate and customer fund short-term investments

 

 

(639,810

)

 

 

(349,245

)

 

 

(2,682,659

)

 

 

(2,743,763

)

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

 

 

654,887

 

 

 

773,132

 

 

 

2,512,107

 

 

 

3,283,961

 

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

 

 

 

 

 

 

 

 

1,539

 

 

 

11,607

 

Purchases of loans held for investment

 

 

(140,711

)

 

 

(5,341

)

 

 

(359,654

)

 

 

(5,878

)

Principal repayments of loans held for investment

 

 

134,311

 

 

 

4,147

 

 

 

326,172

 

 

 

4,472

 

Acquired card receivables, net

 

 

(45,636

)

 

 

(36,012

)

 

 

(185,486

)

 

 

(234,256

)

Purchases of property and equipment

 

 

(205

)

 

 

(1,090

)

 

 

(976

)

 

 

(7,589

)

Capitalization of internal-use software costs

 

 

(5,322

)

 

 

(6,383

)

 

 

(19,917

)

 

 

(23,614

)

Proceeds from beneficial interest

 

 

 

 

 

 

 

 

 

 

 

2,080

 

Other

 

 

(500

)

 

 

 

 

 

(500

)

 

 

1,167

 

Net cash provided by (used in) investing activities

 

 

(42,986

)

 

 

379,208

 

 

 

(409,374

)

 

 

259,285

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payments for repurchase of convertible senior notes

 

 

(222,256

)

 

 

 

 

 

(933,187

)

 

 

 

Proceeds from unwind of capped calls

 

 

1,190

 

 

 

 

 

 

11,442

 

 

 

 

Customer fund deposits liability and other

 

 

198,588

 

 

 

250,482

 

 

 

353,964

 

 

 

204,390

 

Repurchase of common stock

 

 

 

 

 

(63,614

)

 

 

(211,902

)

 

 

(87,615

)

Prepaid card deposits

 

 

2,875

 

 

 

5,520

 

 

 

(17,901

)

 

 

26,584

 

Proceeds from line of credit borrowings

 

 

 

 

 

 

 

 

45,000

 

 

 

60,000

 

Proceeds from exercise of stock options

 

 

1,589

 

 

 

3,012

 

 

 

8,114

 

 

 

13,872

 

Tax withholdings related to net share settlements of equity awards

 

 

(2,181

)

 

 

 

 

 

(3,862

)

 

 

 

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

 

 

 

 

 

 

 

 

16,495

 

 

 

17,879

 

Contingent consideration payout

 

 

 

 

 

 

 

 

(10,762

)

 

 

 

Net cash provided by (used in) financing activities

 

 

(20,195

)

 

 

195,400

 

 

 

(742,599

)

 

 

235,110

 

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

157

 

 

 

(50

)

 

 

(240

)

 

 

(38

)

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

 

 

15,595

 

 

 

654,913

 

 

 

(873,442

)

 

 

682,125

 

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

 

 

3,335,803

 

 

 

3,569,927

 

 

 

4,224,840

 

 

 

3,542,715

 

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

 

$

3,351,398

 

 

$

4,224,840

 

 

$

3,351,398

 

 

$

4,224,840

 

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

 

 

 

 

Cash and cash equivalents

 

$

985,941

 

 

$

1,617,151

 

Restricted cash included in other current assets

 

 

174,101

 

 

 

87,322

 

Restricted cash included in other assets

 

 

5,297

 

 

 

13,810

 

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

 

 

2,186,059

 

 

 

2,506,557

 

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

 

$

3,351,398

 

 

$

4,224,840

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest during the period

 

$

12,611

 

 

$

7,440

 

Cash paid for income taxes during the period

 

$

5,628

 

 

$

1,266

 

Noncash investing and financing activities:

 

 

 

 

Payable on purchases of acquired card receivables

 

$

105,406

 

 

$

 

Fair value of shares issued as consideration for acquisition

 

$

 

 

$

3,375

 

Fair value of earn-out consideration for acquisition

 

$

 

 

$

10,762

 

BILL HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands except percentages and per share amounts)

 

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

GAAP gross profit

$

278,463

 

 

$

243,431

 

 

$

1,055,556

 

 

$

864,491

 

Add:

 

 

 

 

 

 

 

Depreciation and amortization (1)

 

11,295

 

 

 

11,225

 

 

 

44,722

 

 

 

42,967

 

Stock-based compensation and related payroll taxes charged to cost of revenue

 

2,243

 

 

 

2,495

 

 

 

9,594

 

 

 

9,428

 

Non-GAAP gross profit

$

292,001

 

 

$

257,151

 

 

$

1,109,872

 

 

$

916,886

 

GAAP gross margin

 

81.0

%

 

 

82.2

%

 

 

81.8

%

 

 

81.7

%

Non-GAAP gross margin

 

85.0

%

 

 

86.9

%

 

 

86.0

%

 

 

86.6

%

_____________________________

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs paid in cash.

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

GAAP research and development expenses

$

79,609

 

 

$

81,841

 

 

$

336,754

 

 

$

314,632

 

Less - stock-based compensation and related payroll taxes

 

(25,261

)

 

 

(23,935

)

 

 

(105,760

)

 

 

(95,876

)

Non-GAAP research and development expenses

$

54,348

 

 

$

57,906

 

 

$

230,994

 

 

$

218,756

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expenses

$

123,732

 

 

$

117,199

 

 

$

478,540

 

 

$

515,858

 

Less - stock-based compensation and related payroll taxes

 

(11,565

)

 

 

(13,802

)

 

 

(50,073

)

 

 

(132,414

)

Non-GAAP sales and marketing expenses

$

112,167

 

 

$

103,397

 

 

$

428,467

 

 

$

383,444

 

 

 

 

 

 

 

 

 

GAAP general and administrative expenses (1)

$

70,500

 

 

$

64,954

 

 

$

277,662

 

 

$

249,054

 

Less:

 

 

 

 

 

 

 

Stock-based compensation and related payroll taxes

 

(19,768

)

 

 

(18,937

)

 

 

(82,565

)

 

 

(82,178

)

Acquisition and integration-related expenses

 

 

 

 

(1,004

)

 

 

(972

)

 

 

(1,506

)

Non-GAAP general and administrative expenses

$

50,732

 

 

$

45,013

 

 

$

194,125

 

 

$

165,370

 

_____________________________

(1) Provision for expected credit losses was includedin general and administrative expenses in fiscal 2023.

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of operating loss:

 

 

 

 

 

 

 

GAAP operating loss

$

(22,223

)

 

$

(41,398

)

 

$

(174,164

)

 

$

(295,773

)

Add:

 

 

 

 

 

 

 

Depreciation and amortization (1)

 

22,965

 

 

 

23,573

 

 

 

93,794

 

 

 

91,463

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses (2)

 

58,837

 

 

 

59,169

 

 

 

247,992

 

 

 

319,896

 

Acquisition and integration-related expenses

 

 

 

 

1,004

 

 

 

972

 

 

 

1,506

 

Restructuring

392

 

 

 

 

27,587

 

 

 

Non-GAAP operating income

$

59,971

 

 

$

42,348

 

 

$

196,181

 

 

$

117,092

 

_____________________________

(1) Excludes amortization of capitalized internal-use software costs paid in cash.

(2) Excludes stock-based compensation charged to Restructuring.

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of net income (loss):

 

 

 

 

 

 

 

GAAP net income (loss)

$

7,596

 

 

$

(15,871

)

 

$

(28,878

)

 

$

(223,725

)

Add - GAAP provision for income taxes

 

 

 

 

737

 

 

 

2,559

 

 

 

808

 

Income (loss) before taxes

 

7,596

 

 

 

(15,134

)

 

 

(26,319

)

 

 

(222,917

)

Add (less):

 

 

 

 

 

 

 

Depreciation and amortization (1)

 

22,965

 

 

 

23,573

 

 

 

93,794

 

 

 

91,463

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

58,837

 

 

 

59,169

 

 

 

247,992

 

 

 

319,896

 

Acquisition and integration-related expenses

 

 

 

 

1,004

 

 

 

972

 

 

 

1,506

 

Restructuring

 

392

 

 

 

 

 

 

27,587

 

 

 

 

Amortization of debt issuance costs

 

1,064

 

 

 

1,747

 

 

 

6,238

 

 

 

6,964

 

Gain on debt extinguishment and change on mark to market derivatives associated with notes repurchase and capped call unwind

 

(10,974

)

 

 

 

 

 

(45,271

)

 

 

 

Non-GAAP net income before non-GAAP tax adjustments

$

79,880

 

 

$

70,359

 

 

$

304,993

 

 

$

196,912

 

Non-GAAP provision for income taxes (2)

 

(15,976

)

 

 

(14,072

)

 

 

(60,999

)

 

 

(39,382

)

Non-GAAP net income

$

63,904

 

 

$

56,287

 

 

$

243,994

 

 

$

157,530

 

_____________________________

(1) Excludes amortization of capitalized internal-use software costs paid in cash.

(2) The non-GAAP provision for income taxes is calculated using a blended tax rate of 20%, taking into consideration the nature of the taxed item and the applicable statutory tax rate in each relevant taxing jurisdiction.

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of net income (loss) per share attributable to common stockholders, basic and diluted:

 

 

 

 

 

 

 

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

$

0.07

 

 

$

(0.15

)

 

$

(0.27

)

 

$

(2.11

)

Add - GAAP provision for income taxes

 

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

Income (loss) before taxes

 

0.07

 

 

 

(0.14

)

 

 

(0.25

)

 

 

(2.10

)

Add (less):

 

 

 

 

 

 

 

Depreciation and amortization (1)

 

0.22

 

 

 

0.22

 

 

 

0.88

 

 

 

0.86

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

0.55

 

 

 

0.56

 

 

 

2.34

 

 

 

3.02

 

Acquisition and integration-related expenses

 

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

Restructuring

 

0.00

 

 

 

 

 

 

0.26

 

 

 

 

Amortization of debt issuance costs

 

0.01

 

 

 

0.02

 

 

 

0.06

 

 

 

0.07

 

Gain on debt extinguishment and change on mark to market derivatives associated with notes repurchase and capped call unwind

 

(0.10

)

 

 

 

 

 

(0.43

)

 

 

 

Non-GAAP net income before non-GAAP tax adjustments per share attributable to common stockholders, basic

$

0.75

 

 

$

0.66

 

 

$

2.87

 

 

$

1.86

 

Non-GAAP net income before non-GAAP tax adjustments per share attributable to common stockholders, diluted

$

0.72

 

 

$

0.60

 

 

$

2.64

 

 

$

1.67

 

Less - Non-GAAP provision for income taxes

 

(0.15

)

 

 

(0.13

)

 

 

(0.57

)

 

 

(0.37

)

Non-GAAP net income per share attributable to common stockholders, basic

$

0.60

 

 

$

0.53

 

 

$

2.30

 

 

$

1.49

 

Non-GAAP net income per share attributable to common stockholders, diluted

$

0.57

 

 

$

0.48

 

 

$

2.12

 

 

$

1.34

 

___________________

(1) Excludes amortization of capitalized internal-use software costs paid in cash.

 

Three Months Ended

June 30,

 

Year Ended

June 30,

 

2024

 

2023

 

2024

 

2023

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

106,289

 

106,414

 

106,102

 

105,976

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

107,326

 

106,414

 

106,102

 

105,976

Shares used to compute non-GAAP net income per share attributable to common stockholders, diluted

111,399

 

117,022

 

115,345

 

117,827

BILL HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)

 

 

Three months ended June 30,

 

Year ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net cash provided by operating activities

$

78,619

 

 

$

80,355

 

 

$

278,771

 

 

$

187,768

 

Purchases of property and equipment

 

(205

)

 

 

(1,090

)

 

 

(976

)

 

 

(7,589

)

Capitalization of internal-use software costs

 

(5,322

)

 

 

(6,383

)

 

 

(19,917

)

 

 

(23,614

)

Free cash flow

$

73,092

 

 

$

72,882

 

 

$

257,878

 

 

$

156,565

 

BILL HOLDINGS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(Unaudited, in thousands)

 

June 30,
2024

Remaining performance obligations to be recognized as revenue:

 

Over the next 1 year

$

30,225

Between 1 to 2 years

 

16,887

Thereafter

 

39,733

Total

$

86,845

 

IR Contact:

Karen Sansot
ksansot@hq.bill.com

Press Contact:

John Welton
john.welton@hq.bill.com

Source: BILL