BILL - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to BILL's Fourth Quarter Fiscal 2024 Earnings Conference Call.

Joining us for today's call are BILL CEO, Rene Lacerte; President and CFO, John Rettig; and VP of Investor Relations, Karen Sansot. With that, I would like to turn the call over to Karen Sansot for introductory remarks. Karen

Karen Sansot

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

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

discussion, annual on quarterly our filed periodic release any the the text For refer to obligation including on reports recent forward-looking and We report to Form to statements. update in reports our issued and additional Form company's please XX-Q. most disclaim today any SEC, with the press XX-K

and will solutions. to On go during accounts planning this GAAP refer these non-GAAP formerly the which performance of to we times BILL's financial measures. today's will voice release in to reconciliation GAAP both refer financial Expense BILL's our measures. Spend for exclude receivable disclosures at additional Note & today's regarding and call, financial discuss press we Please Divvy, results, stand-alone Finmark was that management, called call, which and to non-GAAP

will which investors AP, fiscal reference. XXXX The which integrated channel. our This and review of of It view investor will of first an our this metrics with fiscal to Expense, Spend presentation institution the that and our an of embedded a evolving AR presentation platform, institution reflect provide be enhanced presentation enhanced we QX X-quarter other & beginning appendix quarter key financial InvoiceXgo set. BILL our other for provide also solution solutions. back new view product includes and and includes the Note XXXX provides will revising solutions, financial our the excluding channel, deck look in

turn I'll to the Rene. Now call over

René Lacerte

Thank was and launched delivered more integrated capital cash important control more We platform, their to SMBs. for year Fiscal BILL. XXXX an you, everyone. afternoon, with Karen. innovations businesses small midsized accessible empowered our insights with Good We flow. made and and

environment. that results. In SMBs addition, steadfast valuable and laying rely organizational the tight we built to change, especially raising led a is In the BILL SMBs constant strong serve These financial bar economic to face of foundation alignment, innovations as to for for growth. on. are the world they uncertain commitment The future an can future they

the SMBs. During objective on be for XX% billion, for the year-over-year, first up we and growth revenue and we executed to year, financial enhanced platform XXXX revenue our fiscal billion Total for operations time. exceeded as $X delivered the profitability strong essential $X.X core was

float we growing were as revenue. excluding the headwinds and year. We totaled behaviors year-over-year shifting XX% delivered profitability experienced non-GAAP income of substantial these and during the operating economic we million, benefit nearly Importantly, despite profitable achieved we results expansion SMB $XXX

essential as moved foundation than served partners, nearly tech and volume transactions. than demonstrated $XXX we we the million facilitated payment and institutions used stack Many they part XXXX, and their including and for quickly, with more arose, BILL accounting million an firms payment XXX ability provide nearly the of top fiscal financial more to to clients. in X,XXX billion industry-leading In we much a adapt safeguarded future. exited our year challenges the stronger X.X When businesses, scale

SMBs through of up increased scale reflection is the capabilities platform delivered built suppliers. for as XX% members year-over-year a our X.X to network further direct Our to This million, incredible we value SMBs We and automated simple, and better complexity tools We financial the provides that office empower turned drains visibility run products of control. and SMBs services. into money to that back businesses. time

of to flow. BILL category-defining then Expense platform, and their and We & businesses In fiscal solutions. the AP our we data platform, XXXX, launched added incorporating our comprehensive of a Spend combined analytics our integrated a view strength layer providing cash

We continue personalize to simplify AI user experiences platform. leveraging by the and throughout

ground or go. operate In our can addition, platform, their mobile The in from sure up business making office our app redesigned where our increasingly on we leverage the evolving customers the they're to the Expense X,XXX our our & of resonates integrated the ago. XXXX, SMBs. with and up businesses -- platform of end AP year both from a And at value XX,XXX used solutions, Spend fiscal approximately

a with and past capabilities foundational speed more payment payment and our payment SMBs year, new infrastructure Since more one we payments. provide capital. to fast processed fast, to access the powerful fiscal enhanced enables us payment have unlocked has we and $X largest faster platform and of of us our and drive better. to making experiences volume, innovate than choice. is secure XXXX, affordable BXB of We trillion advantage In faster total providers that Scale the

launched our of and multitude example, data than across is critical hundreds trillion more leveraging transactions. across new For to allows $X us millions platform. offerings This of we engine, faster payment extend payment better moving we XXXX, our payment for a which fiscal in manage drive of speed as and our risk experience

We relationships experiences. by also engagement suppliers establishing their direct with and enhancing activating supplier user started

management. payment we platform. breadth international for made For currency them key risk extensive product local is there who accept new Behind have experiences. streamlined innovative the choices From experience payments rigorous want it compliance each through and our choice, X, suppliers a example, an of for they easier in day offering, onboarding and claim made to of component the we

enabled This local for support year, and FedNow we international for transfer transfer. payments instant

a we and is exhibited our one strong which both and addition, solutions of capital the repeat In working executed early financing, launch first invoice of controlled product adoption usage.

ecosystem. our reach direct partner through channel our We SMBs and

types innovation to achieve results. all and enables focus and of value provide Our partners constant tangible

BILL. area of inception focus been since the a Accountants have core

has tailored And business. rapidly Our channel. of driver the today, partner our to service they advisory critical represent practice their acquisition been We innovation areas. to expanding client largest build customer with accountants a solutions

Our is channel. accountant retention result that a have customers of the half accounting our sticky and very from more than very high relationships rate. are are The

"At example Services in the platform mindset A firms empowers of our and accounting cultivated provide great of at and accounting partner is Managed Ambra Operations, every national I to advisory how level business founded Wellbeloved premier firm. growth differentiated a services value firm shared of quote Aprio,we Aprio, XXXX.

trusted business. for over and BILL XX over advisory part We which backbone practices, the adopted BILL for XXX operations together grown years. our we XX is was have financial have technology leader clients a of XXXX past in over the Today, fastest-growing our national and client the locations.

leaders provide the of the and account of held together Payable our state firms enable BILL accounting meeting like strategic influential allows value recommended Spend as differentiated stay to of we clients' allows Using automation. most more some stack part country and of us their BILL's ahead and partner and clients. profession and recently & solutions game to empower from tech provide a accounting expand value of thousands clients." for industry Expense innovative us Accounts having Aprio, bringing to clients. and across annual our BILL financial firms discuss And we from the account our sixth to to the the We Just our for

and made growing progress -- maps excited and opportunity serve 'XX accounting and their the BILL's better SMBs developing business, investing these by These energized the to road were fiscal Together, we for firms behind we to we opportunities. are in expand are leveraging capabilities. joint are

sales additional functionality tools support fiscal more to areas Some accountants partner our to flow, with for multi-entity and providing of and include efforts even scale insights deeply investment for growth budgeting, increasing them help 'XX in forecasting them. cash and more

SMBs ecosystem. they using we serve means work hard to commitment them to Our robust that our are wherever

different financial them embedded and In for institutions work of solutions they scalable software been customers. our reach for years customers laying over serving for is accounts, business. institutions. solutions our the strategy and addition we about with by to to companies long to embedded expanding the do core SMBs serve foundation enabling We've want value with with creating The where their term. across financial ecosystem closely channels

easily also and acquired an platform. to BILL onto our thousands through help bank acquisition expenses, our label real-time them large Recently, partners streamline offering Pay our they visibility commercial migrated and is reporting customers management to expense more of one of This customers white their automate controls. bank solution provide

Regional customers. banks value are to more also looking to their provide

label One Card, to bank international a platform and banks recently offer do payment virtual advanced suite white our many clients. Pay payments. This payment and more for offerings, large offerings largest our workflows and including their leverages to of of our the By card regional began

top our shared have partnership extended better. years current as with their been of to to them with We the partners APIs we use our also with X this additional available bank modify X for bank needs for we've amendment. our of our offering. contract with our to fit agreement strategy, our part you, embedded made U.S. X evolving working recently we Consistent As an

beta platform serving in market the partner, over of capabilities for with a the the I'm time partnership solution soon last strategic launch solutions with to our opened year, into and software. payment Earlier expertise our available plus our informed our and in in customers, rapidly amplify Xero will has software avenues that our overall our to strategy, demonstrates partners. banks Xero's experience U.S. which Our power more Xero. ability and embed announced be bill to up to this decade embed translated we onboarding new fast excited its to

the this offerings our well seeing we learnings in strong support investments demand. More in positioned market and finance make are more, for interest us embedded and to

surface have The to SMBs of $X of just is GDP we summary, capture trillions business, pursuing and confident the ability X are million it. built immense U.S. in of and and with we're growing potential. dollars billion in annually. market In employees, scratching a we we the they our There are are contribute opportunity the

We a are into highly focused multibillion-dollar business. profitable growing on

on the we leadership fiscal and XXXX, widen In XXXX our market. in fiscal capitalize we the created momentum in to intend position

our are simplify payment enhance and priorities and offerings and diversify and ecosystem. enrich Our top to to new to deliver deepen to existing experience options platform payment continue our

experience value addition a investments fiscal that priorities, and increase XXXX card, in In delivering our target we virtual international of making working driving solutions and number deepening investments, relationships suppliers, our existing the capabilities with capital, accounting payments expansion new expanding support are capabilities to platform the augmenting including and and go-to-market embedded enhancing for solutions. of of proposition for adoption to ongoing ecosystem these and firms

strong growth put since year every streams model our and business We that a a balanced We record profitability. operating track and strategically IPO, significant behind and balance and unique resources multiple to growth. and margin believe while of non-GAAP increased we driving have strong generates leadership. driving we With revenue priorities well generation cash our are our solidify proven extend our these top sheet, capitalized that

and the our scale for profitability believe and leadership BILL. long-term growth of We critical category are

planning are our with strong the sheet strategically business. offense We of to balance potential our long-term prioritize

allocation business with the As focused we keenly balancing return of shareholders. we do on in and this, are to investments capital capital

that have in in our million Today, that repurchase the This we investment upside. significant confidence a Board an team the new Board, strategy the and share as $XXX I authorized reflects BILL management opportunity announced with program. and

We deliver and success taking are deeply our actions committed value. to committed to that

in also in the our employees customers serving place to I'd the for all their and to and dedication in partners other. win that SMBs SMBs, thank are trust to I we thank and like us. our continued each constant for We to for all they want we created. And are market

the turn I'll call Now John. over to

John Rettig

Thanks, Rene.

important proactively we adapting fiscal by responded headwinds decisively We acted and when product BXB partners. to a adjusted expenses spend preferences. experiences operating moderated our working During our in cyclical and shift resources our diligently execution method most on go-to-market with We improving focused initiatives, profitability. quickly and payment improve caused XXXX, and priorities

non-GAAP -- million XX% fiscal These growth, free flow. monetization, XX% $XXX non-GAAP delivered and revenue a operating us margin actions enhance for In XXXX, acquisition for in continued in and payment leadership. -- and enabled million income $XXX improve and profitability BILL operating stabilize to customer of we market and position cash

In operating income, addition, $XX in revenue, we compared excluding ago. float to delivered $X a year million non-GAAP million

repurchased actions weighted XXXX to notes. XXXX we million common year-over-year. retired fiscal and $XXX year These declining our million full stock aggregate share principal count 'XX, by diluted of fiscal During in amount X% contributed average convertible $XXX our in

'XX, fiscal in foundation In addition our most the and for importantly, we strengthened future.

and clear executing strategy We have us. needs the a centered market of we opportunity around SMBs, to the vision are ahead capture of large and

generation value free optimizing shareholder while cash strong on long-term through flow We driving are profit laser and our focused capital structure.

Core operating our delivered total to transaction was profitable [ and also a includes In up our was XX% increased few year-over-year. growth. million reflecting XX% Float QX $XX fees, $XX revenue a was of XXX% income, million, million, which We goal operating on fiscal up year-over-year. highlights year-over-year, Non-GAAP $XXX grew $XXX float and revenue, was margin. revenue QX, income XX% XX% Now $XX million. of and than year-over-year. Non-GAAP results. against subscription more million ] excluding revenue, was

solutions. Turning updates to $XXX BILL's -- QX, up million our on year-over-year. revenue a key stand-alone X% in was

customer FIs, customer new Simple of X,XXX -- was customer new Our Pay past FI consistent several we of XX%, channel, our accounting go-to-market customers rate earlier year, higher acquisition. customers, subscription net enhanced excluding with annual in impact our and levels initiatives or channels. revenue, retention XX%. added direct the The excludes of years. sunset stand-alone stand-alone Intuit drove In X% added FI BILL's the healthy financial excluding We partners, X,XXX customers. which Bill over institution increased year-over-year in a BILL's QX. the in was retention the We net

Overall, Transfer which products changes and of In scale quarters. take over that year, channel. reflects and impacted in line is cards was cross-border last revenue year-over-year. TPV declined payment in cost in or which some Instant revenue BILL grew rate X% XX% payments recent QX exceeded with FI BILL's transaction newer while from QX X.X% penetration higher our of our X% X% existing as products. expectations ago, stand-alone stand-alone our virtual rates. on Vendor BILL's sensitivity we were stand-alone up year QX, TPV we TPV, X.X%. set offerings a Monetization subscription enhanced were monetization persisted in

slightly We suite volume offerings -- of rates year overall payments XX% cost These currency a to ago acceptance. total vendors our lower in cross-border of the were compared Foreign represented quarter. their expanded payment and as penetration optimized payment of

XX, June stand-alone XXXX, BILL's dollar-based As net was for of a retention rate our XX%. revenue --

payment As lower and impacted volume, the payment by the expected, was this impacted which environment, choice fees during spend year. subscription

of Excluding amendment, continue -- for XX%. retention was partner we be returns contract we the offerings our XXX% new to expect net a roll impact revenue and to We this rate large SMBs. dollar-based to above the FI economy out mode as growth

& excludes of the our our net revenue reminder, dollar-based retention a As rate offering. impact Spend Expense

as We we in of revenue QX, added growth. spend. were X,XXX XXX up Spend Divvy, expense to in totaled basis spending driven which was Spend points. expectations & higher a BILL's net new year-over-year, $XXX on & to on line Moving Expense XX% million Expense, formerly Rewards payment with revenue. by XX% known focusing spending card were our volume are with propensity businesses, as XX% Interchange businesses fees

of at both QX end The the expanded The customer is an compared who strong as stickier suite strong XX,XXX a leveraging customers revenue and attrition XX% ago. engagement value and joint fiscal capabilities year are of to of XXXX, in Expense other dollar-based use with and reflecting an to proposition customers. SMBs. compared show rates resonating to low platform increase BILL in increased & Joint customers reflected retention of number Spend AP of net nearly

QX, ad portfolio payment payment company of volume, and was up drive ad our a XX% year creates Our avenues in FI XX% offerings multiple a excluding adoption penetration, payment penetration. to ago. On valorem level, valorem from

our TPV. we above rates long will ad valorem a to of our portfolio an provide as products the We basis. payment can As opposed that our be over integrated annual XX% ex-FI converge, solutions believe of valorem individual ad on consolidated rate solution term,

year-over-year, to was $XXX gross and QX on gross XX%. up non-GAAP million, XX% was profit in highlights. margin Non-GAAP financial Moving

consistently us gross business software fintech model enables is strong that the among deliver best-in-class Our for a margin to and companies.

income We points drive year-over-year. $XX margin our leverage operating a X non-GAAP QX XX% million, ability our to demonstrate to of year-over-year, in continue Non-GAAP an and was representing expansion business. for up XX% operating

X% primarily $XX Stock-based our by was income notes a XX% compensation convertible year QX Non-GAAP XX% shares of ago. the XX% average to revenue, down during million year. Weighted due declined net a diluted or to and from repurchase total year-over-year, initiatives was $X.X million, in shares margin. reflecting

performance Turning or obligations remaining to RPO.

our this top an As the agreement associated years, remain extending a existing timing out consistent, but shift by Rene X RPO X it for additional discussed, partner we years. X spread now fulfill The RPO. bank with U.S. amended the approximately in with causing a is to over in

APIs to our set strategy. our product agreement the this embedded newest expanded with also include We available consistent under

Moving on to allocation. capital

repurchased principal our usage million in We resulting and aggregate In diluted cash share reduction notes, of convertible continue in to of non-GAAP capital million optimize in a structure. amount we QX, XXXX our $XXX of weighted repurchase in net expenses, results. to shares. is in these million and count GAAP results The an from reflected our of but non-GAAP X.X resulted which income excluded $XX million other notes benefit our $XXX

$X.X capitalized We investments. short-term cash with equivalents well in are and billion cash,

to Shifting outlook. our

fiscal we capitalize market we've penetrate the to on help the As further better SMBs to enter and positioned opportunity been never XXXX, succeed.

of critical run are tools give solutions to their and grow Our part a them best daily industry's the operations business. better their and

is We long-term growing between which are ecosystem will, the dynamic platform We our confident in and business shareholders. and that strong success. balance BILL proposition value turn, our believe a positions maintaining essential for leadership, of to value for growth deliver continued growth and customer long-term profitability and

and are category across We market for With leadership investing discipline. to our ahead a strong we acceleration us invest, sheet, have enables our lines. business execution balance delivering strong purpose extension while which free our strategically and growth attractive opportunity and capabilities do margins cash flow us, of significant and we of with the generate which

be These the accelerate both We of model optimism market BILL's great us view significant we the a factors float future. flow. opportunities. have to view as in as enable we as from $XXX longer-term for to as share which Board-authorized our pace free generate competitive investments our key open fund advantage a which well we where program, We as includes as well unique a opportunistically revenue, opportunity repurchase buy cash deploying that will indication shares our of an million investment business

deliver As greenfield revenue we growth strategic that and over of fiscal pursuing. discussed, will be believe ability growth the targeted that will a in significant expansion capture our accelerate but our profitability we are many investments the making large Rene in We position us opportunity our investments moderate to XXXX, sustainable market years, near number to margin and these priorities term.

business road export objective be basis profitable. both operate our free significant We cash over intend time to to the with to becoming GAAP the to non-GAAP on and on profitable scale a flow. generate We

XXXX, incremental be fiscal approximately For we year. most making of initiatives our will throughout in million important the investments $XX

from We we we the the for flat have our actions and took in and business strong R&D time in believe the macro invest to is as seen of X now headcount we last talent go-to-market are additional year. holding hiring After momentum now last signs right environment teams. stabilization the continued quarters,

investments XX% of core deliver initiatives or greater to revenue our growth expect XXXX. We today BILL will position and in fiscal

Expense The investments non-GAAP increased despite midpoint expenses rewards a basis income our guidance And solution additional of as and planned in on increase an full operating our reflects year scales. Spend slight ex-float

our investing for We are prudently while growth. expenses managing

the quickly we to term. non-GAAP our As margins over us and leverage. margin time drive could our scale achieving our long will IPO, and that we leverage At long obstacles prevent discussed the significantly have our higher growth, over term. Since XX% also our to from see or revenue ability business, operating no demonstrated accelerate more income of expanded continuing then, we in the be create be we we operating to

to on guidance. moving Now

with payment increased quarters spend Our the latter BXB year. recent modestly guidance valorem macro rates the monetization ad assumes consistent adoption of environment and and in the part fiscal that remained and

million fiscal XX% reflects QX, million, to revenue $XXX which total For expect to in be we XX% year-over-year range the of to growth. $XXX

in growth. in year-over-year million be to range XX% of the to XX% million $XXX to revenue core $XXX QX, expect reflects which We

funds Float be yield basis revenue will in and $XX on XXX FBO expected assumes is QX, approximately our million to which be points. --

to QX, for net to On the $XX million in income of we range bottom income to report non-GAAP million. million operating range of the million $XX expect non-GAAP $XX in and $XX line, the

and per shares of XXX We expect income a net range $X.XX outstanding. based on to $X.XX of million in in QX count diluted average non-GAAP share diluted share the weighted

a reminder, net for for our taxes non-GAAP includes a guidance income of provision income XX%. As non-GAAP

year full to guidance. Shifting

For we which total fiscal in range of $X.XXX reflects growth. the billion, XXXX, expect XX% to XX% billion be to $X.XXX year-over-year revenue to

billion, growth. core expect XX% to in the of $X.XXX We range be XX% to to reflects which $X.XXX year-over-year revenue billion

exit of float XXXX, to fiscal FBO for approximately basis June points be and million yield revenue rate We of basis approximately on which XXX assumes expect year an the XXX of points in $XXX funds funds XXXX. a as Fed

the we in On net million operating non-GAAP income to the range line, the $XXX to $XXX bottom XXXX, income million million. non-GAAP of expect $XXX in report to million for $XXX fiscal and range of

We diluted per be our share diluted count do non-GAAP Note outstanding. to million a XXX per expect repurchase share QX on impact and share guidance of program. share the $X.XX count non-GAAP year and shares net reflect share that of for full our -- $X.XX, not average to income income weighted net based and

revenue. we to of expect XXXX, stock-based be total expenses approximately XX% fiscal For compensation

are with to long value to now opportunity investing for opportunity we of optimize and for our business automate we results perfectly opportunity large platform, to and In market operations positioned and pursuing to capture closing, dedicated BILL We've extend creating drive lead a is pace large levers which team. this accelerate financial we the the strong SMBs, expanding will and are shareholders. and our a ecosystem and for market believe the growth, dynamic with capturing our powerful built term,

the for Q&A. And up open now we'll call

Operator

Instructions]. [Operator

question comes with Goldman William Sachs. first from Nance may Our

William Nance

Could step Embedded Solutions FI start unpack and channel remains contemplated part that? think business just the when that about of called know the RPO you the I'll taking appreciate renewal mentioned, how from you that on additional I down initially just you you're John, quarterly years. that just taken it's of subscription you changes. over but revenue had question that Maybe out what similar, means terms I a here. maybe the I the thinking in the spread

how flow the over would coming So numbers the that through year?

John Rettig

for question, Will. the Thanks Yes.

the there the that of large is throughout $XX partner million, Our talked where RPO particular finalized consistent end RPO we year ended for contract of is where the amendment meaningful as year the we FI contract, a the about it on the percentage that And of the and customer the left we've as extended about by of is year. X we had that instead years. for have X and year,

revenue So years. recognizing we'll that be X over

And obviously success any in support in financial to we're there. newest with way -- to we their program and available as drive partners our marrying addition that, strategy to in APIs working the our making and them embedded can new our with well, bank help institution

that's numbers. So extent not much moving the of of kind the from the ending. the There's parts change on the really

William Nance

just is maybe I broader question. it. That helpful. And a appreciate that. Got

how us and methods of commentary may monetization the valorem that's think mix of take you advances XX% how long-term of you'll sort should monetization ad I about in forward? of be You the ultimate the communicating help of those kind Just how revenue. mentioned on rate volumes? hear the goal think payments going kind get impact about we volumes on that payment just the of that of

John Rettig

to suppliers, term help sure. with already drive question. will improve and of those expand I which volumes say I'd think a and customers things, payment there's near improve good product Yes, experiences, those that making existing a reconciliation offering and relatively and we're are we products initiatives. are short-term investments speed, associated monetization It's number that

portfolio to payment we generally addition see payments of payment in larger the products. mix the BILL part card a that, being In of

do what we Expense with So & Spend like that. things beyond and

across to of we able suppliers so view where as of buyers term, take of and products, value that products. longer we for sort going really our mix see floor a we're payment and that mix about good that all we're And we of the to offering monetization that to more proposition XX% payment levers both frankly, as with we evolving, be the this and feel have

William Nance

you the Appreciate taking questions.

John Rettig

bet. You

Operator

comes next JPMorgan. from Huang with question Our Tien-Tsin

Tien-Tsin Huang

$XX core here, else in how heard to the these 'XX, that. What thinking but you build the kind payback or growth do about Just we spend off I just can investments million? you expect of expect? XX% do return curious quickly of what

And new opportunities? driven Or a then the catch-up clarify, last are pause from period uncertainty new by is macro quarters? these competitive it Or by in given X driven changes? this to in just was also the investments just spending X, a of

René Lacerte

question. Great Tien-Tsin. Thanks,

Let what happening shift in me the very -- background made team we a of exceptional throughout kind saw mean, the the just give first. rest the delivered -- I agile we we and of year. was some We in market. adapted quickly, results

drive. have seeing of obviously we're would to that So and year, year fiscal the efficiency last that great the end calendar able and we had results through the

high think year XXX%, so our last over operating just less from about $XX income increase. million float the you level, if or And grew

bunch context, seeing And we're innovation like wait. so seeing don't leaders. the and this And strength category, just giving opportunities, that you we're the of then a able leaders again, all more my that to and perspective, drive defined BILL, we've just

market our going We're opportunities understand the when in market And them. a we be we going we're maker. partners, and providing or a value customers, hear not and taker, expand suppliers, we're ecosystem or to direct be to interact larger our see customers to customers, whether or that accountant network with suppliers they're there's

category would good what how the and we've is this on us we're feel from I continue that's to define that drive done to we for capital And and executing everything defining the ability team is deploy to because do to I really invest been reason so growth the think, to we've day about going X, that. really is,

how doing kind specific we're we have areas we're of that investing is in. X And that

value that are for say proposition the our existing expanding would The enhancing first is one we I solutions. and

more So if expand transfer we we're give platform. card to that think card. about across roll going already payments, leverage to international folks uses local to the John the opportunities that you out. We're started referenced going going some capabilities. We're to

second and we're ton. platform. dedicated the us again more want value what and the for then going the And a for and we more to a And that's lot create developing, would that's year for the having they go to we augment suppliers. We've across a through what thing of next thing, them, have. leveraging that even I opportunity significant that's was halfway volume is that that the automation, to reconciliation, learned started doing experience on better market we're teams say where experience have that AI hearing the we're suppliers to to What talk There's invest.

then to thing And in, going going invest third the it's our that relationships. be deepening accounting we're to on

We and accounts. We've about ago years CPA.com they're to and you talking XXX. line XX an with quote now of And platform no heard from have with for Ambra have entirely client customers started and practices. the cash Aprio on create a new AICPA advisory BILL defined services, over how worked business they

But lot when support manage customers customers, challenging. a becomes those you you have XXX and more how

many how efficiency platform create to cash have clients customer strategic opportunity to have and we since we an their clients actually to so advisory entities experiences create services an their insights opportunity that. we we multi the have, around accounts and have for and manage the they opportunity better flow provide have And through an of

we're so that. And investing behind

And strategy. when months what proud believe And that see we be And our of. the resources. our to from with in part super we investment what doing critical driving roughly that APIs. go we're of of we we our We beginning. able going we've go-to-market That's Xero, an us from the really the opportunity our of announced very when able ecosystem And and beta. I We're is X platform is the something a advancing were you in to and there's we're do to is to in what were to investing investing done is be more. this area expansion ecosystem. to going market final know for do And fourth think

the John of there let from maybe question So go I'll and rest there. answer your

John Rettig

Sure.

we're improvements be driving to we're not. our I year, And of of your revenue to a rate making as question plus We're we XXXX, nature, more growth it bit pacing. we spread in the and things of as of increase impact to at our investments, to the mentioned than look adding Just expect the throughout part about little go-to-market that earlier. to front-loaded these with expecting efficiency be the platform, ongoing able

that's And multiyear mentioned, the [ that improvements of phase that's the the by beginning multiyear as our have. embedded some investments, growth we we've forward there, FY not we it's expansion. driving we horizon and those in time than -- the ] It's capabilities so to growth really It's not do end 'XX 'XX, seen technology some both as expanding evidenced profitability go-to-market as same FY multiyear platform, that And pulling time, growth. particularly Rene at just beyond in rate we're as of of be expect goal the more on a view in dollars. our investment and 'XX our beginning

René Lacerte

opens so is John is shares market company strong I going just as one and when would we're to that I that doing. up, is And as both the more well buying have thing conviction the be add the

John Rettig

second that comment. Yes, I'll

Tien-Tsin Huang

it well. answered really both you think I

clarify It Just to these offensive, sounds Rene. not mentioned like -- really I quickly you investments. defensive are think

to clarify wanted that. Just

René Lacerte

Absolutely. about We're offense. all

are innovation. following innovate, day to customers count every their that customers each of do need going need. with innovating what see up, The and have on they us. somebody and they other that's defined people that to the in we're category. businesses, have to and that's advantage SMBs keep need the playing We widening and the We them we catch us gap because

it's do I see we important, to opportunities. to So super going that we're think continue and when

Operator

comes Citigroup. with question Andrew Schmidt next from Our

Andrew Schmidt

deeper you're teams X seeing be you some of relationships. terms of early . bit reads the the on -- in comments, maybe what wanted some little that kind I finer a maybe the in quarter just the a but point John, tag those have had better Anything you 'XX. acceptance. on just supplier and could know to that. have know then you to on acceptance on you And to and the helpful. you what for on I put managed relationships. put Maybe drill fourth when enablement FY Maybe in So I place supplier that on pushed fronts environment down those into supplier fiscal saw would

René Lacerte

thank Well, yes, Andrew. you,

it's going want First thing They we a say checks. I would but not to suppliers, don't to really want as surprise, don't checks. talk is be they

amount and our from coming tremendous a have BILL. electronic more we reconciliation are that automating that of help payments, volume drive getting need platform. through in help more like We they They but from they the need all things

clear, receiving go-to-market services around they talk with as so dollars they're we're actually us. we're R&D just the well as and engaging that have putting different as end, that we with so creating experience, dollars for And not suppliers, and hearing at them a loud

through they these transactions think about we examples the that's collaborating what I to but can our poor that they tremendous where opportunity have transactions today. goes reconciliation customers, of which be think market an are we with volume in And customers. ability there. see experience an kind attributed to things to of on a of value payments and that the there's are want, All would and have suppliers those not amount one obviously for potentially on something ACH, understand these a drive product their the very take we have and is, we

on right customers value that them keep our But have business to for better. and the serving example, that's that better us give suppliers now keep confidence create opportunity an an us I'll that to more we the learning to you gives job just doing their there's really going

Andrew Schmidt

your it. customer. can Got broadly, into I on on you that about 'XX had just think per and into how translate you TPV like And stabilization. thoughts FY the talk environment comments things might macro more Maybe some heading John,

John Rettig

few We've part Andrew. last pretty the consistent quarters. on small Yes. Thanks, businesses the of behaviors seen over

that customer in up seen in play down our TPV pretty maybe You've that same consistent, X%, but numbers being out X%, per range.

Obviously, our has of And 'XX. quarters bit FY overall our ahead TPV environment of throughout for a expecting we're similar a expectations. last growth couple little the been

this I in stability -- engagement. think is showing up the

transactions quarter, in fourth uptick the the is transaction that small per for healthy of in customers. slight We a that businesses saw reflective was very in. have for everyone We operating dollars but still environment lower slightly

embedded in So FY of side, spending current we we're expectations the or rebound good stability about the in flip any level rapid any BXB assuming assumptions in and feel 'XX, the deterioration activity. for our in not

Operator

Berg with Needham Our next Company. question Scott & comes from

Scott Berg

a I couple of John, questions. here. Rene, nice quarter guess

do think on? what I the financing. Rene's early prescripted maybe supplier in about kind set story of 'XX. know fiscal remarks kind impact around it guess, part seems just of maybe and I expectations seeing I was a recently be your product on business? the into you you're reacceleration how guess help I can that of released quantify to we the the you there

René Lacerte

Thank you, Scott, for the question.

just bringing of invoice we're think market. to I that example another innovation is the financing

have just you We scale. unique and us a set we It data with about have machine. learning a think when scale of what makes

for like seeing and the We it's data around risk that modeling much so have work across of for we're to and so leverage us what us platform, many stuff that. to financing our of and lots the there's days, invoice customers. is early opportunities in And kind do for profiles

they is use customers it we're and want it and seeing again. what But again

will system more of of to expansion of and to And that this do go we beyond. have, back-end as we one And the it's we revenue important roll to into is valorem be the experience find we ad so they I so continue think what drivers our can going out 'XX broadly. kind of refine the do forward

Scott Berg

you customers roughly Solutions. using over and on Helpful. the year, products and the X? there over examples anything this AP the properly both better is last year-over-year. simply away made It's from have plus a X retention it. there just comment X better And up is, I can been that at plus then Expense than guess, is equals now time? both the where XX% retention Spend of integrated Or the a rates? take X is combined X the customers those Got rates you & Is number any equals more

René Lacerte

I X also platform. than -- There's the the opportunity makes continue card X. extend getting is It's getting & We've more opportunities. to of talked plus about was we X true, capabilities I comes platform. formerly retention definitely across but more Expense obviously, platform. the mean payments. across we're you more have usage That our the that with we're if proliferation, that Divvy platform to known Spend from all our now the as will, think

think these more a see software all area. is that unification is to and platforms. for maybe that's the area So driving different market need an think about And a I that consolidation fintech we high-level proliferation of the of solutions actually and in

we We think are financial the solution. best the insights get you give giving world-class today provide best AP and we S&E from able best flow about when what We're perspective, the so operations forecasting capabilities. to them And them customers solution. a cash world-class

ours, we're for These into customer are more things about. the add that excited platform and continue that experience their across it's we that something value create to of portfolio the usage

So far than I X think think going to and the main thing X. be greater do X is we is

Operator

with comes Samana from Samad Our next Jefferies. question

Samad Samana

Great.

more the First, the think comment but really you and think you getting reaccelerating business especially stabilization revenue XX%, Rene for Can and year? that to to getting of the fire about drive? as John, or just fiscal -- blocks and adoption you're as that XXXX growth XX% existing is next guys 'XX much ad us to building This that be maybe about already investments the of for of is what side so how has new called the how pieces that over encouraging you've new far. highlighted that streams valorem customer of the help have much again going out you acquisition of versus you line anticipating maybe blocked versus of and to understand kind you tackled sight are

René Lacerte

what over want. running the one things to learned have kind And That's the I've and act a great Samad. a business got last obviously decades balancing got of you've you've is you that X question, what of between

more actually results across have as business is doing across really aligned we're But teams and teams we is have what the so clarity the innovation definitely consolidated the And the same balancing act. driven on the also around drives a existing that what clarity being we've about business. There company. the organizations

with going serve going good to what think the we're obviously have. always balance reasonably I also customers to to we But invest it's to we're invest X, so And and between innovate. a

And so that. we're balancing

to committed that I highly know about to Maybe it's is of that lot company X call investment to part trillion efficiency folks countries now. X multiple of tools is the because drive and the long-term investment They for that invest that over billion over I think the growth big of last We're to This internal capabilities that's got money going $XXX to and in of thing behind talked And we're a business. didn't is earlier have -- that support we right the being do years important to we continue other We've the for this. a to profitable. tools. a we're highly customers. is teams area movement out year. of $X and need scale,

Samad Samana

just follow-up the been then, disclosure have on X banks. John, appreciate a And on would NRR. maybe I top ex what Great. the the

how And million, I So was if $XXX I could where wondering think type? just that was to last it -- of think we installed base of contraction, due and maybe versus what help forward? going should to the the was portion contraction understand down drove you the about of TPV million of selection from that Just year, how trying year maybe payment the mechanics to to shape this us understand $XX much of it.

John Rettig

on transaction change obviously contributor are environment spend really SMB the Thanks in, operating translates is lower retention TPV which a driven Yes. a lower to basis customers the of Samad. for by into which Most that from significant that revenue dynamic. the question, the our year-to-year is growth,

number. is thing of lesser number small basis. partner a Those in about, large like that combined, with variables and change that It's things things like users on majority are vast of maybe very of probably X grand associated are year-to-year though, a customer second that retention the FI The than the the to we've talked scheme extent revenue the per TPV. the

Samad Samana

the questions. Appreciate taking for my Great. Thanks clarity.

Tien-Tsin Huang

from with comes Peller question Darrin next Wolfe Research. Our

Darrin Peller

you go-to-market. last year, cross-sold First the question it over up fiscal saw customers year. from of XX,XXX this is end X,XXX you just jumped like by so around mean I or to I said, was

obviously And good so showing progress. that's

kind the go-to-market of BILL approach offering and solutions really touch between now what of and has maybe on what's unified really cross-sell and more if Divvy Just the the anything -- X changed, now? the the

far? that, accelerate so still even you you the size your of accomplished versus look you can long base and really at runway a you've have when what And customers

And add the just to on to that, on strategy go-to-market the I on side. financial guess

to financial successful. at all institutions, the seen accounting changed channel a very the has Now lot on be versus that we've focus of

Just side, the is the focus on curious where financial institution guys. you too,

René Lacerte

I'm you cross-selling. on Good success. and a would again. innovate kind then learn It's to business driving approach adapt innovate, say and to in when the going go-to-market it Darrin. I've question, I of you use you wash, rinse, always framing comes a repeat. that had . you then Like

enables together it's And us so more platforms, adoption using about, And as is going solutions, from we and learning iterative. to we're organizations customers going when have. platforms both obviously, be the of customers joint core the that far we -- customers talking drive more using pull we the that to you're which have what to up, future more be lined is that go-to-market have we the state the

to and success that I listen customer And drive the And of alignment and the think that. organization drive going so across customers within continued see base. we to to kind learning we're continue to

I'll if answer come and John And I'll and let want, anything add, you add back to ecosystem question. the

John Rettig

much effort far our marketing come within To has on so channel. just the efforts. our we've would customers we've from predominantly a made add seen acquired degree that I we've smaller through as Yes. progress this who cross-sell direct accounting activity cross-sell

about extending to establishing working new motion, down just new lead activate relationships, their clients in very to firms provide our talk starting it's regard. also doubling and cross-sell accounting solutions this this on So with and when not it's accountants, we closely

accounting growth the is of the twofold. of which is left. we And is channel. opportunity well, for lots one do really it's So There's biggest area spaces an in

René Lacerte

the And center accounts what to that it over each. XX% on comes has around just over leading to we center distribution business. been when be to you the ecosystem, to X,XXX center there. see year-over-year, growing the the at give strategy firms at ecosystem with channels the some And long-term need of BILL framing market is, obviously, surround with our and we always Yes. you half we're when comes direct, the are We're at the just it

is Xero with new obviously, and be in financial play the partnership with come. our then And accounting here to to others going partners and longer-term institution our

the we're with the opportunity ourselves always win just to position our us to It's and to a with so, to in broadly. that for position is the going we're in part along. ecosystem of partners And strategy place And win. a more all make that's sure that

say would to from financial expansion I an I in and there's you with shift say engage opportunity of a more aggregators Xero. because market not we're the institutions, And so it's small it's starting now saw with would business like those outside

Darrin Peller

can then quickly that? on assumed squeeze maybe John, is in would just the maybe you I those be any great. just that can also give RPOs, can X guide if your And BofA for take this is about us or direction assumption -- last may follow-up on have on wasn't year there included helpful. we an dollars in Very rate been framing what's any think

John Rettig

Darrin. Sure,

second half lack would are at of the we expand with stability bringing the will in couple rate, the 'XX we to and at end essentially better end to in, point term be lot rate, obviously, the at assuming On of take where progress uptick quarters for to half frankly, be the an expect of We've these 'XX. of trough of in we're year. of And made the above second and think the a the of which we, flattish we take a year. first start

terms lot and year, of other we the contract a XX% of end X a of our that this RPO approximately we with FI and to there large as the balance X give be the particular with RPO amended it's than dynamics spread that years. is of partner detail the not to will In partner, there's can think I subject of referred over

Darrin Peller

helpful. Very

Operator

from question next Bryan comes with Our Keane Deutsche Bank.

Bryan Keane

penetration the you and just VC see -- back will cross-border be you and bit and a and the little that bounce John, or in up follow would do think to second higher in this half modalities that. year on up of guess, I payment confident Why will particular? -- year why are

John Rettig

Yes. Thanks for the question, Bryan.

earlier as and we think I additional I that portfolio, product couple additional -- valorem we're will confidence a your on to think holes I'd as interesting yes, mentioned improvements other say part have of do we're in there's volumes the second well, I perhaps the products. filling ad making, Rene adoption. in drive those say, other and I'd which there's question, of product

customers And that and it's give into suppliers the that take around these to we of when further rates 'XX. the rate on us as dynamics and we road at back short-term get expanding we'll confidence look volume adoption that start penetration from expectations FY very and

Bryan Keane

rate That's more core 'XX, And then just kind is help of follow-up the it. for does assume Got to growth us normal? expansion. And that normal is helpful. fiscal XX% back sequential organic take you that can year in that revenue getting maybe what to

John Rettig

growth the that to we'll in the that's XX% of about, getting FY 'XX. and half all, a be right? make progression, of first to talked -- the through obviously progress say we We're second that 'XX going to I'd continue going

the We growth higher, payments happen within both that starting sole is 'XX, monetization And will expansion well. volume of card proliferation Spend -- for driver our revenue in obviously have about product. the much but BILL We incremental to ecosystem 'XX of we the as range assuming growth that on & talked of not our and than a that's better are Expense 'XX. XX% in belief provide in

of that gives So frankly, above, it's all the us confidence there.

we to as higher it would basis, as back get upticks, we as levels sequential think of to annual the an on much expect those as in far we expansion. terms quarterly of do As start don't to that

Karen Sansot

-- you, X have thank time question. more We're we Yes. for operator. And

Operator

question final Ken Of course, our from comes Wong Oppenheimer. with

Hoi-Fung Wong

I over RPO years? Okay. we X out now asked, of amount X mechanics final the kind was year the wanted -- Or clarification, Fantastic. have playing there of it with now make renewal? that mine of that's but the understood of side, sure on number Most that uptick Or how to spread guess dollar a years? an increase X what's Just number final there? static that's did was over in been just the spread

John Rettig

Yes. large remain The FI with the roughly partner same. RPO the associated

expansion significant contract term And FY as amended contraction the or exited is no So on now we years. 'XX. that X

Hoi-Fung Wong

it. Got

preexisting multiple balance same. guys as a sort you a roughly of years just was a renegotiated that across there It's and instead year. the So of remained then single

XX some not So than would by like hypothetically divided be it divided X. X, bigger XX by number

John Rettig

That's right.

Hoi-Fung Wong

Great. okay. Okay,

René Lacerte

wanted to fiscal to say and Okay. and leadership of our our about Thank -- growth appreciate to us really and position, say wanted agility of with you, today. look of beyond. extending XXXX the 'XX I'm and I finished X just a months you, and everybody. great team's you strong are drive future. foundation in I everybody. in proud We they've I year, forward exceptionally joining the momentum shown adaptability the energized very all to We FY last thank just

for you joining thank great us, and So evening. a have

Operator

you today's will conclude for participation. call. all Thank conference That your

your lines. disconnect now may You

Bill.com (BILL) 22 Aug 242024 Q4 Earnings call transcript