BILL - Earnings call transcript Q1 2022

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Operator

Good afternoon, and welcome to Bill.com's First Quarter of Fiscal 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference call is being recorded. [Operator Instructions] With that, I would like to turn the call over to Karen Sansot, Vice President of Investor Relations, for introductory remarks. Karen?

Karen Sansot

Thank you, operator. First Earnings Fiscal Call. Bill.com's to Quarter Conference XXXX Welcome short press and to We earnings a the time X-K issued our Form release ago related furnished SEC. the of on press Investor The be at found can Relations release section our website investor.bill.com. the is call Founder and Executive With Rettig, Chairman, and President Bill.com; Lacerte, today on CEO Rene me CFO. John Vice the and of

many the or Before could expressed or assumptions, those or Bill.com may make we our of this we call, of If uncertainties. statements. begin, by please and of actual from uncertainties implied results statements risks remember assumptions operations about any that that risks results future during incorrect, materially prove involve if the course these the and forward-looking differ of any develop forward-looking

to measures. to website. GAAP On today's press for measure those measures. is refer forward-looking Please financial factors text and to Form We and number. to to and refer associated statements. non-GAAP including are the Investor to the filed with please GAAP any refer our the the we in risk performance the figures today's our with recent forward-looking issued on on Relations our will release the statements, periodic non-GAAP annual stated disclaim any call, our of and discussed of financial XX-K that today on the with available the SEC, quarterly obligation update The additional SEC section XX-Q reconciliation most financial press report discussion disclosures company's release today Form and filed a reports unless For non-revenue report both non-GAAP, a regarding of GAAP

our discuss month Divvy, organic on therefore, first understand include September acquisition help quarter exclude exclude our XXXX, addition, will At June this organic and closed X listeners on which results. reported or stand-alone fiscal we which XXXX, InvoiceXgo also X, InvoiceXgo's during results, to we of and times our performance. call, results In X, of InvoiceXgo acquired

Now over Rene. to I'll call Rene? turn the

Rene Lacerte

all Good and are the joining Thank what and our thousands growth, well. you, hundreds that doing delivered first you you helped of businesses In afternoon, and hope with of automate off we simplify I InvoiceXgo operations their on quarter, Thank healthy they revenue for strong momentum. year kicked they acquired Karen. do best. of everyone. fiscal can us so today. We focus

increased the of growth above the strength Our growth core expansion Total organic our capabilities. revenue organic trajectory adoption of Bill.com's driven demonstrate management and platform strong XX% solutions. platform's increased continued results and quarter payment spend Revenue of of by business XXX% our revenue year-over-year. our for its from strong our year-over-year. the year-over-year, solution XXX% Divvy

demand performance in the the market financial for the in quarter Our transform to operations. demonstrates solutions digital significant

AR AR to including we and in and an gives Bay solution. mobile-first subscribers Bill.com, The acquisition team a quarter, expands will our than serving in advanced TAM XXX the to network team include InvoiceXgo's X-sided I'm to invoicing Sydney. network leading capabilities, us excited capabilities, acquisition and welcome which by more the AR strengthen our international bringing members. countries. with Area InvoiceXgo, XXX-person to our enhances acquired our payments includes During The sole proprietors footprint members

quarter the with our XXX,XXX acquisition InvoiceXgo, ended Bill.com of the platform. on With more businesses than

small offerings. spend meet financial AR, a to positioned all-in-one management we are single Our SMBs. AP and for platform and businesses the to needs operations with solution, that be looking vision is and are for our midsized We those know comprehensive uniquely

growing to easier their We are making for it to digital, efficiencies passion, their to and realize go have time devote companies more business. true

enabled and start-up Divvy Area-based processing to technology by companies for onboarding faster has Bill.com that Bay invested and studio XX built ease, a and turned bill Labs, in since our Wilbur example, AI For XXXX, system. and ERP of do approvals from and company's Wilbur bank manual the or quote, offline. Labs, account either Bill.com, Nicole wires with I our we collect checks integration said Fiore, would "Before Controller API

process XX%. cut has been by time Our at streamlined least to

is expense box, ready awesome for of reporting free Divvy tool doesn't of of a and the out all-in-one In easy-to-use that's and take set time. an to addition, lot go

allowed F&A have ease. a we scale Both smaller As and team, time for time-intensive Divvy with integration. not Bill.com setup do a the or to have us

solution As where as creating, easy platform enables offerings important. digitally as types collaboration launch transform acquiring all operations, automation grow and we system or to with businesses an having a Thus studio, partnering we ideas. customization including is our companies." launch are of constantly ideal start-up new their are to Our foundational and organizations new all-in-one nonprofit especially

X the Meridian in has largest which locations Library city example, Divvy. serves second the Bill.com District, Idaho, and and uses as both For

has enriching said many this communities, and thousands before, a the that community. hundreds and I've volunteers organizations and the SMBs local As is act example. serve as programs users, heart the we The offers Library of serves of District for of prime

importantly, grow process input credit a COVID, seniors, accounting with removes centers time "We transactional grants connected the platform visibility with and and Finance automate strategic. of accounting component firm mission-critical process-intensive leverages excellent XXXX, to Based their and work and our midsized to gauge accounting last care the Bill.com platform manual During practice to their and how clients. helps were both, the Since in expansion." and national to XX to allows providing XX and The me move Manager and firm's from to expect use Bill.com benefit that has we best services On advisory processing X,XXX work, accountants client their charges. trusted and been least of a more quality Bill.com while and we easy engage help will strategic Bill.com To likely expanded cash learned clients easy-to-use than firms more Online, use makes Divvy services. Kane technology to and small advisory with integral services, growing reduced we accounting up the to very shop valuable UHY, closer QuickBooks on both, achieving deliver that is than Bill.com firm experience. combination vision. XX% role leader growth them us And spent aspects our card streamlined our how practice Divvy fiscal our most outlined of strategic to to child our to budget outreach for stay their actual Bill.com the which families. map." said, integration allowing focus they UHY's With and our recommend clients accounting customers. platform, programs them payments their to platform advisers. time firms responses, books and its practice. I XXX low-income example for a they is great one-stop it we saved Bill.com's It a priorities library most accountants. Using information. eliminates founding, Polakoff, of PPE, for have need programs every earnings solution "Bill.com our into more said, firm go-to road partnered accounting More is happy. our for our reimagined our we their time their their The and accounting our step a believe able operations. with in surveyed them, intuitive and stack services Bill.com on firms recently hours year. the approximately Gerwig, at provide the top to cash top save of of call, have provide they Jennie every frees them businesses that be to makes that year, An is which and apply my client were to per And Bill.com U.S. UHY use efficient.

priority Our first integrate of to offerings Divvy product go-to-market and the InvoiceXgo. is and

strong driving Divvy growth also and are organic through personalized Bill.com teams offers. while to sales cross-selling of discovery solutions, our in-product customers credit Our

simple, are product sign-on features software on as both single integration navigation solutions, Our throughout accounting and working integration. consistent teams such early

analytics. integrated budgeting, to reporting and platform are on We a seamless provide initiatives also experience, longer-term working including

Our payment to expand offerings. our second priority is

We and campaigns; direct our outgoing awareness workflows; product X card-accepting attribute and leveraging suppliers continue we homegrown adoption marketing strong building prominently third, to second, to of with promoting core solutions bill outreach through and first, card network to business solutions, virtual which our inside cross-border match sales, targeted payment payments. see factors: directory

option. in instant will way to widely paid. and funds believe the that can transfer to be is demonstrating new network, available, many signing their Early transfer customer members get Our now solution and results seen elect as adoption, we are encouraging, members need network instant we've default choose businesses to this faster. up When a good receive have

relationships priority third our our is Our and firms. with institutions scale financial accounting to

in for the stages This as label white our and of version U.S. availability be top with the simplified default bank. we X progress insight calendar in solution more beginning piloting which a we XXXX. developed and customers payment in is to invoicing you the have service, will We share platform, this will general SMB of bank

recently more faster onboard channel, accounting them accountants the platform made clients new which we enabled adding Within our and to easier quickly. to

of our For example, Ketel financial making progress able Ketel clients Thorstenson, and closing, building all-in-one for great nearly all their Thorstenson gate. adopted accountant-focused In the to the XXX repeatable accounting we out was platform platform. By sizes. the create team SMBs for of features, Bill.com workflows firm, add standardized a operations leveraging top XXX are on

success our possible the our other is X,XXX customers. Our to because commitment employees each have of and to

welcomed team, experience top capabilities serve and will Scott's enter as to QX, customers we around diverse invaluable world members the a talent of with be Scott markets. experience. expand and scaling our platform's new bring including our we continue Wagner as GoDaddy In to to extensive Director. and Board millions building We new

us by us journey. all of doing the review John our SMBs. John? our like help turn All thank partners call financials. now of are over and Bill.com shareholders this at for we to on to to supporting I'll to energized I'd And are employees, what

John Rettig

discuss Today, for Rene. quarter and first provide full of the financial overview XXXX. quarter I'll Thanks, and XXXX year results our second fiscal outlook an our fiscal

to today's from in reminder, financial non-GAAP to our a measure. the measures. a for reconciliation press Please non-GAAP comparable earnings financial As GAAP discussion refer most tables includes release directly the

organic quarter, InvoiceXgo, the InvoiceXgo of InvoiceXgo. results addition, I'll month first provide In about acquisitions or which closed for and excludes quarter include these our stand-alone the fiscal X, our September fiscal acquisition given and X on recently. Divvy first reported that therefore, insight performance also closed

including growth of Our loss than margin and gross XX% our QX across expectations revenue significantly exceeded core non-GAAP year-over-year, net over a non-GAAP the our results expectations. board, XX% organic lower

their at Divvy stand-alone QX Our to revenue is the in momentum same to near paying year-over-year. and Divvy investing reflected of integration maintain growth in time, the by strong cross-selling enable product term, as strategy while off XXX%

is digital that of transformation to believe in a are are slowing from early back-office. show financial signs trends increasingly continue We embracing the we digital the These paper-based to solutions the legacy no processes automate businesses innings to disrupting their and methods the operations. analog, simplify need small that of global of evolve as managing

value shows revenue strong results, driving and we're progress investments growth. Our turning into for creating customers our successfully our significant

billion pursuing. capital track Our well execution capture our $X innovation September, and combined market product to record of positions us raise we're the proven large in capabilities, with opportunity

on today metrics. additional recent update our for on clarity we InvoiceXgo are an insights to Turning and Divvy providing given Bill.com that Note our results Organic, key acquisitions.

managing new Bill.com metrics quarter. with the later the this including begin net we as consolidated XXX,XXX customers ended fiscal transition to P&L. expect organic X,XXX quarter We to customers. providing first consolidated in year fiscal We one

We XX,XXX the adds in InvoiceXgo's growth spending Divvy the subscribers net also new X,XXX of and of using representing card using AR for XXX,XXX quarter month September. had businesses our solution solution,

from base, representing the new XX% volume processed We've on faster quarter, scaling payment and mid-market growth including larger recent for from organic businesses. experienced driven TPV year-over-year at in TPV, customer our payment $XX part increased activity billion by we quarters, platform significant Looking growth. in organic customers in our

Looking we year. in ahead, the growth TPV we doesn't spike this lower as expect experienced year seasonal we're occur assuming in TPV rates last QX

year card quarter, and Divvy's nearly customers. an of we of spend $XXX spending XXX% businesses, million from billion which InvoiceXgo's from in also last TPV processed increase During the $X.X from is

significant customers is solution us more a volume adoption payments. month invoice the small, for billion $X.X greater of opportunity the leverage send of payment represents drive than September, in volume to InvoiceXgo's in While to which

growth. X.X Bill.com year-over-year on transactions. the on in We reflecting platform Moving payments XX% number processed million of QX, the to

We transactions card and payment over InvoiceXgo XXX,XXX also processed X.X Divvy million transactions.

Organic was Bill.com of million, revenue year-over-year was $X.X review which our XXX% year-over-year. transaction $XXX.X XXX% results. I'll revenue quarter. up million to Now reported fees, Total of year-over-year, growth core last to QX accelerated growth of which from September. for revenue, represents $XXX.X XX% InvoiceXgo the million, XX% revenue Core and subscription compared includes month growth

Subscription strong versus organic year-over-year, businesses card the to organic fees experienced increase of subscription last an we expansion from which up from XXX% ARPU InvoiceXgo $XX number driven success from revenue Divvy XX% quarter, revenue minimal relationships. fee mainly average of basis in subscription Subscription larger from the increased per from mid-market the our by addition, year. the million, month Bill.com growing by accelerated revenue million growth year-over-year, our due very In growth of and platform, using majority was XX% driven with per to prior customer on InvoiceXgo a a and revenue of customer slightly fees includes Note month of with September. size transaction revenue is revenue. that attracting InvoiceXgo for $X subscribers. user

contracts date. their the remeasured impact approximately with fiscal be million customers. revenue subscription the were fair in purchase and accounting annual price contracts market revenue XXXX. from and The of will current XX% for contracts annual approximately $XX reflect deferred adjustment the approximately adjustments $X for fees to that as million InvoiceXgo the to QX from In value was subscription acquisition addition, reflects revenue are existed on from acquisition annual of

annual organic QX in driven transaction to mix accounting ad from was TPV revenue this renew revenue we the in revenue million. million course, up XXX% have fee regular InvoiceXgo’s will Without increase fiscal strong XXX% Transaction increased for Bill.com transaction adjustment, would an over $X September. products subscription annual based million, full $XX.X contracts revenue card the solution, mainly growth towards growth. was on As year-over-year, and Divvy interchange approximately $XX.X see revenue been our payment Divvy shifts value. year-over-year. valorem by revenue

the revenue revenue. of from fee reminder, solution a As is minimal our Divvy subscription with majority transaction-based,

driven Non-GAAP a from to gross mix up and higher XX.X% our by interchange transaction was XX.X%, for gross quarter, and results variable QX. of margin Turning operating margin last revenue.

a loss loss weighted mainly net a on non-GAAP acquisitions our loss Non-GAAP an portfolio a financial resulting our integrate or with QX margin payment reward above gross and expenses to million quarter, and previously. in expenses. QX, $XX.X XX% the was investing expectations, from manage a to of expenses $XX.X increased of marketing card be was we we term, $X.XX first platform, a $XX.X profit from of and of institutions XX% expect quarter reflecting range of enhance provided higher to share of operating Non-GAAP scale net our payment outstanding. in having operating profile. As due offerings, increased was revenue each margin our QX. a are million, increased were Sales and of $X from In Divvy full non-GAAP per to million inclusion near the basic million million our relationships the quarter interchange for increase processors. our expenses and gross as G&A $X.X we reminder, And million different R&D a margin. increased million, $XX.X million full XX.X go-to-market slightly based gross from $XXX.X Divvy. shares QX our gross non-GAAP the above

Our our significantly loss due to margin expectations was and than primarily strong profile gross revenue results. better

September, InvoiceXgo. stock cash in Also approximately common $XXX proceeds the acquisition we billion transactions billion approximately of the million $X.X of a Now costs. $X.X to QX convertible approximately sheet. in notes $X.X were our at cash after and through billion $X.X on concurrent raised new from Cash, September, net of offering up totaled for $X of short-term moving and offering In billion, X we the billion used QX. due Net of from end in of capital XXXX. million equivalents balance $XXX in investments

capitalized the see. our We in to invest are well business many growth given opportunities we scaling

XX% As funds of of September the increase our $X.X significant on processed the customer QX. to XX, balance we we had in up sheet, in billion was QX end during which due from TPV

second acquisitions. quarter provide disclosure details to of providing outlook financial that don't recent revenue the for additional we basis, or as X XXXX. go-forward full on On managing organic consolidated we business. year to are a growth on InvoiceXgo are Bill.com Bill.com, fiscal expect we our separately moving fiscal Now Note and Divvy given

our are market in extend opportunity investing and We the to significant leadership market. this capture SMB position

seen value the chain are towards situation while SMBs haven't set material challenges. us we to phase creating uncertainty expanded momentum bias many greatly features pandemic, business continuing experiencing any our investing confidence for a with for There gives date, next Our our is supply monitoring impact are significant of the in we of closely. the growth. businesses And to regarding and

be we to or assumed impact our of macroeconomic chain our won't there by from material outlook, that supply XXXX have purposes issues customers. For faced negative business a our fiscal

For revenue be assumes $XXX of of for on total our a XX% fiscal to revenue in approximately organic QX, basis. the we which million to expect million $XXX growth core range Bill.com stand-alone

InvoiceXgo the revenue from $X million, expect We accounting mentioned I contribute earlier. adjustment to reflecting approximately

terms expect Divvy associated integration with increase institution with innovation. scaling and for investments payments with financial platform R&D operating InvoiceXgo, to and expenses, In of we activities partners

we addition, investments go-to-market our initiatives. in accelerate expect In opportunistically to joint

the and bottom share per of non-GAAP on share in QX, $X.XX to expect non-GAAP range report million loss weighted for based XXX.X a count $XX million the $X.XX line, to On to of basic we loss of net a million $XX shares a outstanding.

XXXX. fiscal for outlook our to Turning

revenue expect fiscal be with million, InvoiceXgo. million from revenue XXXX. growth stand-alone approximately range in of total or million We assumes organic the core This to of $XX XX% in $XXX $XXX to Bill.com

Based on net a million in non-GAAP XXXX, $XX XXX.X $XX weighted to of a the per of of $X.XX. a share and the line, count for report shares million fiscal we million outstanding. loss range to basic On bottom expect loss $X.XX to non-GAAP share

of for digitization years. the back driving past the the financial been have XX office We

opportunity for were the in leadership realizing capabilities growing moment more We run TAM. pursuing. large the large increasingly been market a for and never that solutions, digital in the financial and investments way a well SMB businesses about transformation market of at in we've the ahead, and With back-office we're are built SMBs financial capabilities and of address our and look operations. position our happening the excited massive are we're time, positioned in we reach to that expanded InvoiceXgo As the is this center we mission-critical. are Divvy

of We are companies. businesses platform the smallest midsized entities the all-in-one for building to financial from operations ranging

we that record leveraging revenue base now track the innovation, engaged confident network. this are Karen. our growth I'll We and hand of large long-term of can sustained to opportunity drive by to use call SMBs back massive

Karen Sansot

Thanks, John.

opening up request Before Q&A, that we for to question. limit you just yourself X

have enough time today. get we call on the to to everyone So

If are Thanks. ask for now back we queue. follow-up questions. have question, you you we jump Operator, a that the in ready

Operator

question first Samana from the of Jefferies. Your comes Samad with line

Samad Samana

Congrats blowout just on quarter. another

X,XXX So customers. maybe, Rene, had it company when to I acquired ask about want you, the Divvy,

You've company How associating want that together doubled understand given know that already that. were even Divvy? from a the a that crazy I for driving maybe X almost just much is for motion I much of the it's years momentum to many or before customers that. they cross-selling perspective how that's -- stand-alone strong brand

Rene Lacerte

to talk to Good you.

to all across we're are So seeing. that's I'd digital positioned that all the across paying think is of and on embracing and relentless acquired off SMBs I solve really the assets SMBs board some We're what focus uniquely for that problem across all, we've And our helping built say, of SMBs. first payments. transformation X frictionless companies. the

so to us actually seeing executing date all our strategies. And growth organic on what is you're

But -- on customers early introduce to We cross-selling of those started to kind days the it's that. have Bill.com. to opportunities

I transformation. and support point built all digital SMBs to able this, company want frictionless is being their the serve time, passions excited So They business. and easy. forward move been for the the it They success SMBs think want about in we're has payments. in they of be as This to in want that and

Samad Samana

a what's rules if it's up just of Bill? for impressive up world. just going follow-up with kind have right away. is XX% And more in considering different Is broadly year-over-year. just John, of XX% But impressive. TPV Great. sign seasonality, per I customer a really in signing really of growth is And breaking customer the plus customers that more per apologize answered the larger you I on that TPV more Or where than you that's average

John Rettig

Bill.com segment Yes. a customer Thanks, of success of we've larger demand. the a combination we seen mid-market as Samad. slightly a have It's for in where average lot size

capabilities, TPV. we're we're think our just customer that pretty customers increasing in I customers on features also more the could growing their those share allows by place. our businesses that to in per of to with types as wallet more That payment our TPV relying do the one platform mean consistently increasing by and opposed better serving having

So we're really happy with the results.

Operator

comes question Peller next Darrin from the Wolfe Your of line with Research.

Darrin Peller

customer some adds the of banks another we're a seeing? there's to given versus from. want quarter organic minute of momentum pandemic levels demand. the helped you over of demand, just or X,XXX a seeing, with kind new out But different business think mean there I on we're I that if the really touch demand something can these And direct seeing growth, getting and accounting channels the I customers was the the lot we're because, again, on also you're about that COVID kind a core of volume you're for investors that of you just the revisit just know coming thought

Rene Lacerte

you, Thank Sure. Brent.

really of right? channels, their great and really traction across across and supporting segments I needs. So kind So meeting all helpful been we've customers lots of say, all and really

transformation growth But we the a digitization, digital think, frictionless we're is it that pandemic is payments. so And really move about. and I this seeing, tailwind that somewhat talked to

of But thank front sorry, looking -- apologies, somebody question. names I me. Darrin, I your for the just So you name got and think at wrong, I'm in

Operator

comes question Piper Brent Sandler. Bracelin line with from the of next Your

Brent Bracelin

customers offering the this back My here that momentum the business. There Divvy wanted customers to you that card, is have one continue I you Divvy XXX,XXX are remarks, the talk XX,XXX have. And in go obviously, the and using to question, a with be in that your first that Rene handful kind the card to a now is Bill.com impressed has, both. of about customers big of did a opening gap between

longer So been be out cross-sell term the the could cross-sell X feedback? broader looking across what X, Bill.com potential potential that look kind few Divvy and what today using help of the like between customers the potential years And bridge What’s could card us gap a years? in base? that

Rene Lacerte

Yes, a was products. the of the fact exciting – is that just large Brent, had for of customers that Yes. it things cross-section we one diligence in the was us that both were using

And customers they’re so about. now openly of able use kind they we’re and to products why more to about talk those both excited what

and we wanted transformation. to And the this important from believe these to the you want They have to pocket. because so has make with it to pandemic topped Businesses we shop to things, to They do think to things the able – digital we if they go be be platform They that this payments. super feature think them we for operations, frictionless to technology. is financial all-in-one with it’s want able easy. that be their one able mentality manage I do want these that their want that business back have, do

is technology and of And reluctance so for going technology the going is up. down and desire for acceptance the the technology

continue adoption is showcasing the products for customers we’re and what messaged going so that’s to And base. about. of And the to That’s say pain excited drive for is the exact we joint to to need we learning businesses. deal, life really But I’d did part introduce opportunity for everything about we’re those the is to the points simpler make customer that vision. we’re the understand into that that keep why reason be us, excited

Operator

of Securities. Brad BofA next question the with Your from line comes Sills

Brad Sills

get quarter. seeing an real another start where kind here. product outstanding from could of yet I sign-on, in you map at leg also Great done imagine you Because Congratulations should to there we I understand results of expect ahead single When already. on there? work you, road heavy see. here help to Divvy strong that a Could on can us up end this Divvy. question that into point, integration, that growth is the of my just lot would the you're be on promotion? integration lifting guess Obviously, is

Rene Lacerte

Brad. some software simplified customers sign-on started consistent we have thank customer We have as that product with as navigation will that across experiences with a to the that the teams more that to the and synergies already. more in you might Yes. need we'll cross-sell is introduction think that we integration busy we X hard ultimately -- else software would and working with the that we go understanding on to are now, market agree be single right conversation I forward. start confident you, the drive opportunities do the be that, The to that what are able get the a We've capabilities, drive to well the placements once and able to part of accounting business.

Operator

line KBCM. comes Josh of question from next with Your Beck the

Josh Beck

taking quarter, I an area to was thank like good source was It quite upside. question. disclosure, it. mid-market. had just team that comments wanted very where And Thank John, of back momentum perhaps this your you, on for you the clear. seemed for you really the go of appreciate I to a some

So the just give little maybe where a momentum update see us headed? about there and that you opportunity

Rene Lacerte

lot all we thank we started across years that a we focused been mid-market that focusing Sure. of channels. Josh. things saying, the ago, all customers that realizing one a companies we And coming had on us. of understanding couple started serve Well, the to and segments were probably of the of you, We've

through if organic the we so have you you will And and fine-tuned the go-to-market business. the sales process, process, if will,

segment. a I customer in of naturally think Divvy larger was already kind

have larger. business we the as if products so business. additional ad helps And driving grow valorem obviously some we businesses, helps are the add TPV, you that scale And will, customers those that because continued to and is as that the

all but verticals. the I to way the maybe ready adopt, see bit say So enables it are And that -- across technology businesses companies little need. mid-market all and we that a really more would segments in a they

Operator

question next with Ken comes Autonomous line Your of Research. Suchoski from the

Ken Suchoski

to dig InvoiceXgo just bit. I a little wanted into

most more business. this billion of side of billion about ask I think invoice just is wanted activity. the processing in $XX XX%. InvoiceXgo business is software, I payment of $X think And only than to I the the

-- just So do this And rate in can what's penetration over think does years? couple that time? guys opportunity for where then and the where of the business a revenue model you X% revenue go

Rene Lacerte

Thank you, Ken. question. Great

one we payments customers, have already, all learned that it frictionless it I on sides. our see is about mentioned the I've of that think things something want. is And businesses we and that

that. Instant One put suppliers this in And learning the some kind Instant last is, of kind market up we and and seen going of is to We've Transfer solution to method been the Instant out of to InvoiceXgo examples of some via what the indirectly of the the a quarters. for Transfer this more of data with sign Transfer in default market potential of that Transfer, receiving did we of about couple early others. kind gets have the be paid Instant they versus of

to case, be and that or involved that want technology the as in people they're SMBs willing they is payments. them. reason at SMBs $XX kind for They're growing to invoices billion going of get and so bring sole make you prop We believe going more SOHO, to look to happen when that that that to acting likely frictionless and want going the the they're process. up that And are the in I number data of InvoiceXgo and

was in deal. but think of we the I and that early the we're really do days, thesis part to So the believe

Operator

Berg comes next the Company. with Scott Your question line & from of Needham

Scott Berg

and looking X-part question sales of here. great evolving John, and quarter here I guess kind marketing. Rene a

you, marketing expense and XXX% a sales been getting you’re quarter-over-quarter, within there there try to something marketing motion, motion. and sales obviously, the is larger build the that’s additional your wanted from maybe the to it which to up, that one has than a all, model? efficient relative is Is I channel revenues call strong your InvoiceXgo. FI much of little Divvy and the we’ll for maybe René. sales understand First less But

that of AR going label white Divvy with talked Does about part and the AP. solution joint You white-labeled solution forward? become

Rene Lacerte

Scott, across InvoiceXgo first the channels to take and the solution segments. gets answer this across believe did mentality, idea with one. for and When all you, SMBs. and the let Thank really John one And the we deals second that’s platform Divvy, I’ll back we and the all-in-one all both question

happen. is And take to to those integrations it so obviously make time going

So going it’s that as something the that kind is and hard to easy, option to to and that well it’s our partners so understand make we’re easy believe will hard to needs work opt to we continue refuse. something their capability. as into integration in have it that the But to of

I’ll John, it take you from there. So let

John Rettig

Sure.

a quarter-to-quarter consolidated the the for month. quarter – On the vast Divvy increase X of obviously We’ve sales expense, and marketing with in programs on is their of Bill.com inclusion that full driven marketing by InvoiceXgo Scott, and programs. the marketing the majority for the then

continue We continue acquisition feel and to about efficiency all solutions set the combined that record. have good we’re how great track unit customer to of up across economics and

Operator

Matt of line the from comes question VanVliet next with BTIG. Your

Matt VanVliet

the products each terms an guess all looking are since at those And on there's of in a still Great get updates are ramping? some job maybe couple is I on development generally partnerships, you some them? of available? But recent to now there some of a Or on know quarter. update bank I of going more the the some on time those. on been those of I how of announced wanted lot the

Rene Lacerte

Matt. you, Thank

understand We are always base. across can their working adoption our with how to accelerate we partners

one disclosure or of -- business the being 'XX. across on they adoption conversations teams And the But the in specific up calendar bank, drive and would example is to generally how available all had discussions entire be That's so have with about what customers their pilot and Customers that say that I I X important. would every we top in find super and has say our is more bank end stuff because it. that love customers saving the that quotes they time, the banks take business. back the the It's which are we of and we continue questions. of can customer that offer, how insight we'll the really help with one-stop products Scott's them that about things to time other are institutions the build. is that we're building over the shop kind advantage growing have the that. and excited it's to of give using we financial on into the more And But more to importantly,

Operator

Schwartz the Oppenheimer. with from of comes Brian line question next Your

Brian Schwartz

X Bill.com X.XX ask on question got on just to wanted wondering are quick the second the all real InvoiceXgo. already what One one. just any, million Those just it’s if subscribers, I if plus about percentage, I platform? And Or InvoiceXgo. greenfield? then

XXX countries. like sounds much worldwide. mentioned You that’s It they’re pretty in that

how about accelerate that think wondering, the SMB Just global penetrating does you market?

Rene Lacerte

look easier think, XXX,XXX Great InvoiceXgo we we the see I that the platform, the smaller We the see businesses. as as, And Brian. Thanks, greenfield. at mostly term question. when those on

going While might independently, they our that there we majority some are businesses overlap. in vast run network. the are acting are and to be The be really gamut,

So to paying there’s be subscriber, going think greenfield. to there, it’s as going a but we be overlap

kind internationally. opportunity of There’s into they’re things with One, question of And the points international of of InvoiceXgo. couple so second kind about operating a that the that.

awesome. that’s So That’s great for us.

markets what are out have that understanding U.S. commerce that And and types do happening They and That’s kind that drive understand of XXX very international of What other strategy how and the has to ties date accelerate out that are our getting it for new into to we been learning also countries. products in us. U.S.-based what countries. being help the that’s suppliers, nicely as the those leverage awesome businesses? us learning payments there, something of ultimately help countries? is countries InvoiceXgo between We’re to types of and And customers see to about going into insights for that businesses the that.

Operator

from question with John next comes Coffey of SIG. line the Your

John Coffey

my question. really modeling So question is a

transaction about as define Divvy sources now would since IPO, to how kind assumptions Just the into and Broadly and by So pieces here? and seem payment if and take moving the of pretty to make take that are the a and will how calculation you think thinking numerator the due take the affect should they straightforward InvoiceXgo? how rate rate. own go the of revenue rate speaking, the this big impact acquisitions transaction like we denominator broadly TPV, about divided those is their the the what analysts could on

John Rettig

try that rate Bill.com well expansion the that. up had of was our And receive we've businesses, that approximately metric. more more to Divvy and is it in obviously, expansion And significant as you have much with business Sure. $X to we products product on how revenues. payment seen a gross is I'd the electronic today. of us of With is in a much, optimize said, XX% those fees at steady we adopt which take Divvy progress spending as customers I in we InvoiceXgo that. transaction, growth pretty steady or revenue try defined that to growing around continues card result. than and they're to to I'll in higher Thanks, Yes, mix, and What to that say transaction the our we quarter, manage upon IPO take drive take products our we transaction drive portfolio kind John. the Bill.com adoption increases you've since that often both valorem-priced about just payments. pretty because take do look a overall $X.XX, changing average rate, per progress the produce that And these trend. It the are we transactions the our monetization year-over-year, improves measure rate seen think ad continue pretty positions don't

Operator

question of next line Genuity. the Joseph comes from with Vafi Your Canaccord

Joseph Vafi

results from me Gentlemen, well. as great

on one side strategic maybe here. Just the

some acquisitions the ones You’ve in here? capital be from done may shop as of of map function. obvious road management. just wondering what payroll, the you key kind out, SMB strategic FP&A to was I working we in build one-stop think should say, and the for of couple provide a more a the about I mean

Just may you of and momentum what a lot some on sheet you’ve it. be the to Obviously, focusing balance strategic do on next? thoughts got

Rene Lacerte

ultimately, Thank you, business. could can from think the discrete as a We be through an opportunity be Joseph. which We be or don’t investment across look can And about adjacent, at internal. investing acquisitions opportunities entire M&A perspective. the

the example, be able And the we to We products wallet businesses. offering by well about, have working which ability that that’s Some of Others to and been – partner to adjacent a be area a as maybe to continue move innovate expanding continue SMBs. we payment that do is a for could we of capital, would credit. you of frictionless the that that our receive share think little There’s about. working more as be like lots there. need will adjacencies ways think to for extending bill very that. on, by extend are bit talked interesting for make They payments

HR an do we for as, again, and that’s opportunity so And shop. the part at then of ultimately, overall look us. And payroll one-stop

to that on together to first ways of to we’re can or think more. going foremost, decade over kind lots But been the as businesses So about the focus of where we’ve and one-stop shop last we work building X continue and making extend. the one, have to

Operator

of Andrew have the Bauch we question for time line more question. comes from And your with And one SMBC.

Andrew Bauch

cards. could of single-use us in I your could week, how you guess AP question augmented wanted a to is, powering and Marqeta Is saw card? versus sense of to headline which going And be touch existing this here? translate will virtual virtual upon adoption that we increased I what you have last a give product? Bill's to it of of be experience planned type an the kind

Rene Lacerte

Yes. channels. -- thank cards and you, all across virtual with The Andrew. all segments opportunity The across

suppliers last we kind right really our also that do know FI I and take the And supplier so of been advantage investing could in the being business get FI that deal really faster. has position year, paid partners that in helps card now. to and the appreciate the that network with to our a that something supporting and a a of over channel able been it we've Marqeta building team's go is and enabling drive product virtual the we're announced ability build We've the to that that been solution

do excited the you FI extend and to that business with we're Marqeta, So brand the to and it them. into we having partnership and that to with important, if them super for the genesis, will, kind the for of that Great. want is ability was

to thanks, -- I everyone So wanted just say

Operator

Bill.com, I’d any gentlemen, and for the Lacerte, over closing to call turn remarks. Rene Ladies like back of to CEO

Rene Lacerte

everyone, Okay. today. joining you, thank for Great. us Well,

communicating progress we day. We’re tremendous us. you, great opportunity have our year fiscal off new pursue of as a start looking and to forward in to a the strong the and ahead Thank

Operator

we thank This conference participation. call. Ladies and you for gentlemen, today's does conclude your

disconnect. now may You

Bill.com (BILL) 5 Nov 212022 Q1 Earnings call transcript