BILL - Earnings call transcript Q2 2025

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Operator

Good afternoon, and welcome to BILL's Second Quarter Fiscal 2025 Earnings Conference Call.

Joining us for today's call are BILL CEO and Founder, Rene Lacerte; President and CFO, John Rettig; and Vice President 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. Second Earnings Fiscal Call. BILL'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 are call Founder and President With Rettig, Chairman, CFO. BILL; Lacerte, today on CEO Rene me John and the and of

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

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

disclosures call, both to financial to these GAAP refer Please for and press today's and we to release measures. performance additional reconciliation financial measures. today's of will non-GAAP the GAAP non-GAAP On regarding refer

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

René Lacerte

everyone. Thank and launched company. innovative execution strong continued of you, product our Karen. delivered afternoon, we In the across updates Good QX, financial results, track record

positioning dedication, lead long-term delivering the to accountants, Through position financial expanding diverse leadership durable we and we and our includes ecosystem and midsized extending for small and our robust that network our partners empower growth. leveraging are We are members. performance and by distribution breadth platform focus BILL and are and depth of businesses,

growth while reflects flow. commitment to strong and second quarter cash our continued Our profitability performance generating balance

expanded revenue Our leading and and expansion. margin Non-GAAP year-over-year AI-enabled operating efficient operation while was core disciplined XX% percentage go-to-market X points great XX% driving growth margin year-over-year. drove platform,

in XX% free with on of flow strong cash cash margin QX. efficiency drove generation focus a Our

During businesses $XX used financial by more the XX was XXX,XXX transacted the nearly in platform. quarter, billion volume using than their across automate BILL Customers transactions to payment our platform operations. million

simple is do make connect to mission clear. Our We business. it and

in We SMB winning are the market.

fragmented We vast fewer quickly to because automate difficult This of SMBs of time. automate XX.X% the These capture why the than midsized GDP. of this and employees. businesses, they is millions are and market to the highly SMBs their well so dollars small processes workers operations the by operations financial positioned of our a to U.S. we and nearly to Yet financial are legacy for are and half use manual XXX market or to technology U.S. for majority trillions small often is the employ reach. still first of are economy, and businesses opportunity with midsized, underserved addressing moving contribute businesses drive BILL why opportunity. are U.S. in is

BILL resorts a manage facilities nearly Resorts, our a X,XXX to since Medical quote, powers dozen hospitality. A rehabilitation during across Resorts, a has Resorts grown payments said customer Ignite X and that Ignite and it from XXXX, great month. the U.S. XX Medical Hanson our supporting about time, ], Ignite medical has Director and SMB Medical "BILL growth. has We Executive [ rapid is of landscape of process more advanced pairs how than Shona example company with across been I changer for the X innovation a been luxury life that operating growth rehabilitation by

including tasks, improving AP bills, many manually. were BILL, coding and handled Before

process a It the with provides management tools, collaboration the can it They'll workflows robust manual replaces game for automated how office You and time-consuming document way. imagine was it making that digitized our and and change back us. running office just our management makeover through now experience, back breeze to XX% stop completely our The and BILL of also there. pay are thousands did running of we expenses transformed expense month. platform." not and its financial bills spend completely each

BILL Resorts all SMBs for operations empower We all types is and of sizes transform across for the and SMBs platform everywhere. Ignite of essential Medical financial industries.

eliminate complexity with their Our so their and that have focus solutions can SMBs they guesswork and management burdened business. frees long operations financial growing them in automation on

required payments in an eliminate support within of at software embedded We've to transactions and since approach ecosystem taken workflows easily scale. wherever our deeply and entry, the AI while SMB platform and customers the market We different to been support serve lets a suppliers architected that us from an order match diverse end-to-end network. other view has fintech broad accelerate and data building beginning the the SMBs our they with companies to are.

financial Our extensive data and the to our transactions foundation with features automation to millions that combined hundreds platform expand large tools, back surface include proprietary office. automated and assets of provides documents, adding solutions area, more the of our

serve we to increasing SMB's continuous financial ability needs. an an innovation, our of our Through operations broadened range

We have as solutions this them. quarters see building of segment the market who of mid-market we for more demand the signals customers, the from recent functionalities our accountants we and needs shared are to serve in that clear fully address

drive experience and Customer to their Some across gains larger tools multi-entity automation enable create to examples our capabilities entities. very these efficiency game-changing include reception investments powerful recent a account to more positive. and newer of is that and all businesses procure-to-pay

the to complex basis. of The problems enables BILL scale face of solve daily a on platform the network of our most richness many businesses that and

increasingly sides together. engaging both that are with our seamlessly work X-sided of more networks so We businesses can

we tax have businesses suppliers It hassle one a After suppliers. and for their both AP For collecting cycle, is example, customers embedded once introduced one. information to this autonomous certain XXXXs a suppliers. process our short recently by requires functionality seamless development and year, into from payments to to for a file XXXX made a transform

small another their in it and as suppliers. is not an our With over suppliers few business. receive a action. AP In means enables customers across X automates January, it via platform, They networks send nearly short XXX,XXX of X-sided can now ] of of XXXX all customers for our all every a simple customers it make paid XXXX through now our and This This electronic it dramatically of also [ only their XXXXs BILL. eliminated X% WX their what Since customers, for they functionality our create automatically all order, clicks, our made file and to running of we important, AP to solution better is do to business. really have can work filings can then connect of demonstrating headache January. example a

payments. to Turning

past expanded card among X The to tripling offerings. our AP of particularly card product customers strategy has years. have our AR execution portfolio, over than led and significantly more We card adoption the

AP of card when and leverages part customers traditional make to making to on a to payments. with check this, BILL our This customers' Divvy As vendors alternative product enabling use to continue an now payments progress drive AP card acceptance ACH we of payment. their as their relationship

We as we more adoption differentiated expect to card card create expand experiences.

flow the faced We capital of are working SMBs. continuing Cash challenge SMBs. typically the flow our of expansion to #X cash many into needs is by solve

to of XX% their Goldman XXXX found Small access ability In Businesses businesses capital. that Sachs fact, small concerned were XX,XXX survey Voices the about

it. proprietary to initial that the to provide time invoice more our our need liquidity advances. have large to $XXX over businesses We vendors capabilities than in network unique at and underwriting scale million financing are with they that Since build XX,XXX used and AI-powered product access leveraging our launch, data invoice differentiated access

a thousands U.S. with ecosystem. We banks partner to various and proprietary large to solutions embedded the and network. top Turning have of companies in member firms, provide our accounting software

accounting the and their our on firm but nation's partners largest Jitasa, accounting to For bookkeeping only focused operations also financial exclusively example, solutions clients, own. nonprofits. the their firms, for Take enable serving not transform of

XX% its flow Our have accounts payment for & cash nonprofit ensure Jitasa payable Together them of health better clients, indispensable for stack BILL, BXB of with and part Spend drive modernized business Expense their helping the an clients. decisions. and processes their to tech become approximately solutions

more its to operations, training the clients for With a their efficient BILL, to business. improvement gross led employee which XX% streamline majority able of and margin was Jitasa create on

Accounts to down and are ecosystem have position. part strategic we from the been accounts leadership doubling our our an of important on expand very beginning,

leveraging for accounting existing partners to loop are feedback them efficiently more our help and strategically to serve customer more do and We clients. their

drive XXX,XXX We to are motion accounting in the There are more our include across firms. and firms penetration market. more bookkeeping also XX,XXX than in the CPA go-to-market when you firm omnipresent investing more U.S. than

opens for are to asking solutions, for businesses our access Accounts our embed up new SMBs which and avenues platform. larger

with platform with our for we less working in from largest great extend [ than our the a for to year, learnings serves springboard the out U.S. and partners rolled banks X.X product Embed reach. ] In us a customers. Our tools

businesses functionalities can our and larger making workflow leading streamline they are and so accounting payment We to their firms operations. available

And expanding their systems. here. adoption for ability Expense Spend quarter, our by & integrate The customers with we BILL seamlessly We has good capabilities early customers. during reception added strong, are existing rapidly the with been to the

network distribution data. vast large have suppliers and captures buyers our created amount With the transactional ecosystem, relational we that between and unparalleled and of an a interactions generates

than Over have million X we years, over of the members. more X network network doubled to the size past our

part Serving suppliers expansion of important an our strategy. is

suppliers, adoption initiatives to the ACH platform while continually received their a platform, manual ad to and acceptance with and are relationships our businesses check opportunity on transactions enhance and are scale. These Large volume per a payment which payment of through investing drive simplify help across the that network. our important automation presents these at valorem significant experiences direct We to building streamline suppliers. largest X,XXX large average, quarter eliminate work

and as investing such straight automation enhanced We're advanced ACH. processing through in

and we dedicated complexities go-to-market the these that focused and will believe this are translate focus drive on into addressing specialized large revenue. teams these With efficient specific adding capabilities, of streamlined suppliers. We experiences needs

on we serving focused opportunity ahead, look we that SMBs remain laser solutions bring the aha more with market As large differentiated and moments. penetrating

future further the We about are excited empower we the are SMBs progress to making. and

forward business strong leading and added market. company. will record we Our Intuit to expertise directors them leadership look scaling EVP are strategy. success brands, Manager have talent us has our for consumer of position build consumer Dan our X track and including recently Keri extensive working advance has an groups. and new help as as Board, momentum widen experience our Dan We to that vision Keri business on Wernikoff. General and with They in businesses small the to to attracts that deep extensive SMB-focused. and fintech I both Gohman the and our the at SaaS

making operations, serve. BILL while are millions there to to we delivering run progress great and more profitable enhancing and businesses financial our Hundreds of growth. of closing, platform are thousands payment In trust experiences their

Our none. is to robust product second and broad ecosystem position

intelligent facto de capitalizing operations SMBs. are the financial We this to compelling market opportunity platform on for be

Now I'll turn the call John. over to

John Rettig

Rene. investing to marked quarter successfully QX SMBs. growth BILL another profitability, and balancing accelerate strategic innovation of priorities Thanks, our while in for

early impact We creation are BILL. and value potential to great investments sustained indicators our of drive growth the seeing for for of SMBs

investment capital, accounting August, priority outlined payments In areas we and finance. firms supplier our solutions, embedded working and across

year, priorities. of well examples quarters X of progress. a first cover against the the Over few I'll fiscal we've these executed our

We integration additional with an of virtual provider with enhancement an including our This ERP suppliers, launch November. solution are to important for automation systems. improved now card routing benefits up data with in straight-through new live significant payment processing their opens with the

efficiency process. been with and acceptance product in experience with a suppliers as also advancing have We our ongoing on part connection the payment focus of improvements select direct automation our

had We create end, for needs automation of testing haven't BILL ACH new and payment advanced scalable and efficiency in drive with are will large that in solution, the the investing large unique addressing tools suppliers to suppliers, payment a in which the payment also expand choices network. our fast, this receivers volume before. receiving experience. will processes redefine we're beta to solutions more To driving our solution provide payment to automatic This

this expect We launch solution to fully year. this

the On front, the payment to over expanded international countries. of our offering availability we XX local transfer

which ], a to members about create made awareness improvements now have among real-time network significant in we've and [ efficiency payments started in is the set approaching experience. payment customers We

create on investing Shifting engagement new are accounting even mentioned, we capabilities, greater as enhanced go-to-market firms, as both well to focus accountants. product Rene to our with teams as partnership in support

constantly improve solutions are capabilities. bar of We the deliver platform accountant-specific are to firms, for the we and to accounting our more choice raising

solutions, of purchase examples to better multi-entity streamlined accountants product XXXXs. that action and include recent empower clients their and Some bulk serve innovation orders

We and teams, better of also expanded is driving existing which partners. partners with and coverage penetration enhanced our and our account new acquisition

the adds in increased driving XX% net new innovation same Our product results. from our go-to-market and period a In accounting initiatives ago. channel QX, are year

and to XXX large [ solution, fall, forward in scale. a much our BILL. enables numbers to with the our customers using launched ] over businesses progress embedded We the onboard product. We our which We're have solution now cards of Embed these Expense of drivers X.X look employees Turning indicators this for delivered spend. to & for in solutions. embedded at Spend increased early integration faster value We issue partners of and network becoming for material higher creation suppliers this levers usage pleased growth and signs card and customers, early and

than leverage of XX% Shifting from business basis income strong ago. to our profitable year XX% operating QX our produced in is XXX a core in and up operating which progress non-GAAP more margin increased year-over-year investments delivered We non-GAAP operating as from increased a on XX%, QX We our growth and meaningful revenue points results. created year-over-year.

flow free was Our XX%. cash margin

investments the our will position market. making leadership momentum, to are add On in back this the the we of

about quarter. from $XXX $XX up million, year-over-year. Now for in Total up in Core was points on revenue our XX% in fees, revenue $XXX XX% solutions QX, Spend Float funds million, $XXX year-over-year. transaction institution some the our year-over-year. million and more subscription was includes XX% BILL details the and was our and basis excludes million yield Integrated which was was includes up Platform, which QX, revenue, financial quarter. AP/AR channel, Revenue but FBO & the XXX Expense

the was and our per XX% TPV Overall BILL customer Within from as currency seasonality, X% combined solution $XXX TPV on well Integrated slightly year-over-year. growth year-over-year, was Platform, to quarter, transaction our in revenue QX minimal first year-over-year. monetization with XX% up FX ad volatility. established was primarily grew from products down lower million, due TPV for volume more as losses AP/AR valorem

year-over-year our the advance our second rate portfolio from increased payment expand good X compared driven to our solution of AP/AR that prior making new more by total the valorem solutions. growth progress are of with in products our the established payment We features and Note solutions. ad the to adoption quarter newer quarters,

we market, quarter, added. the customers BILL momentum see to with net the During new penetrating AP/AR continued X,XXX on

go-to-market adoption, reduced sales channel sales driving accelerated deepened of Our and the strategic in investments and with accounting Accelerated scale result attrition. using within go-to-market platform journey direct the now deployment AI have AP/AR We our solution. value have expansive our engine, proposition more customers customer the than efficiency. and increased engagement client our of existing investment also firms BILL a XXX,XXX network. This is of is our

and fees in net QX XX,XXX gross spending added Also million, Spend the payment interchange ended & a gross within Expense growth. & our businesses. volume card were X,XXX the interchange revenue solution our Spend our Spend impacted We BILL with fees was were card mix XX% Integrated towards growth Both points of revenue. Platform, rewards lower year-over-year, & businesses XXX shift Spend Expense and Expense volume basis and XX% solution up by to merchant in payment quarter, & new were from categories. $XXX by spending XX% Expense interchange quarter driven

XX% larger with million, InvoiceXgo well strong Our year-over-year. solutions, which acquisition & $XX continues focus financial Spend & customer channel, was and to on for institution and acquiring targeting up these financial Revenue Expense doing businesses Solutions, and businesses. we're a from position, the includes Other Embedded other our be

Moving on to additional financial highlights.

growth XXs. non-GAAP profit range on Our of the QX, deliver us $XXX operating significantly our and driving non-GAAP gross gross for XX% XX%, focus income above was We to efficient in enabled year-over-year, and from percentage generated core million margin more low our a of created up percentage non-GAAP to X revenue, X than operating representing business points expanded non-GAAP points float non-GAAP QX, excluding margin, operating leverage We've in of million operating as expansion year-over-year. year-over-year X.X%. margin XX% targeted $XX

share X.X last issuance of quarter, new due Non-GAAP by year-over-year, net months, income for diluted per net convertible the weighted and repurchases while to the income net XX% diluted $X.XX. the notes. over X% count partially was our or $XX convert was average income primarily non-GAAP non-GAAP declined Non-GAAP a share shares offset million fully share million representing margin, XX

We took our have strong to liquidity. senior with completing notes a an steps coupon position proactive offering XXXX. we the strengthen convertible balance of million repurchase net due approximately quarter, stock. of XXXX significant by our and of portions and notes the of $X.X billion sheet during And We shares further used million X $XXX significant the our of to X.X net to common XXXX proceeds proceeds convertible $XXX million approximately very purchase

Our strong balance initiatives flow in sheet growth long-term and market and drive enable that us cash leadership. invest to

policy potential There's spend. changes to they and Shifting sentiment fiscal SMB trade may related and to our and outlook. uncertainty increased how impact

in adapt We monitoring to changes that SMBs. to confident implications the near-term carefully successfully the we resilience of are any for are environment SMBs for macro policy

assumes the and of recent remain our transact second and environment Our averages. similar the BXB for quarters fiscal outlook to macro that half XXXX at that spend historical rates consistent SMBs with

Now to on guidance. moving

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

We million million which funds in million will the Float our range approximately in to $XX expected yield $XXX.X is of points. expect to assumes basis on total XXX to be $XXX.X FBO be in QX, be revenue revenue QX.

our profitability to outlook. Turning

in sequential investment operating our year a as to the spending expenses fiscal of some in effect. increase was take expect We incremental starts backloaded that

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

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

guidance. year full to on Moving

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

to total $X.XXX in billion. revenue the range billion to be expect of $X.XXX We

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

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

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

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

conclusion, creation. This In good gives to our great we've ecosystem strong for up thousands them. SMBs, and of progress. of built to efficiently a shareholder which ability leadership And turn Investments team value are creating a extend further capabilities financial drive in our operations showing in by and reach revolutionizing to we Q&A. us years now are our making for business category confidence distribution we'll and positions unique of platform, in empower us SMBs the call open hundreds growth and

Operator

Of with Quintero Instructions] course. from Morgan of Stanley. will line first Chris come question [Operator Our the

open. now is line Your

Christopher Quintero

you to Obviously, you contributing overall some takes factor and was a I want headwinds with would virtual here? if made the and higher But seasonally the those and improvements start, have here. of Maybe card just bit curious monetization and to product all the of side, of the that some much to monetization how of on that can puts delineate dig TPV. between a lot a FX into

John Rettig

including, quarter-to-quarter. influenced for in than and growth the actually mix check grew, showed strength lower shift the anticipating and where think, I December just quarter check our time, Chris. flattish monetization this in which quarter-to-quarter question, but Yes, same And QX rate volume X% valorem from payment up ACH last overall Thanks saw than in discussions at was to at we rate. in were tends slightly seasonality And ad that, volume. Yes. ACH when as lower TPV factors volume, first, a the Several uptick quarter result expectation a we types. our a that

a mix, that the quarter bit result, take lower. influenced a little So in on the ended been as up and has rate

in the small second we -- QX, impact seen whereas increased saw did in that's we And we've Another volatility, changes, losses. some quarter. was FX FX saw a versus gain we particularly QX,

growth about had just rate. in payments. rate prepared that ad also of obviously positive growth. valorem impact and influence. that a December for as not ultimately that change the that ACH We've a investing growth on So in in initiatives think accelerating overall been flat We quarter-to-quarter we remarks, quarter, as our check volume But have fast an number talked payment-type

expect do initiatives ultimately we drive expansion So monetization to from these here.

Christopher Quintero

John. Thanks,

Operator

question. Thank you your for

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

Tien-Tsin Huang

the to help John, you I that answer answer your John, us. hear clarify, Just the to me. -- you wanted gave, to you clarify want Can to question. just can last

did called monetization we to could rate size the out quarter. modest think improvement? So you show half the still last you I currency that volatility, expect second

still actually was And targeted I that spending? I track expected So curious was getting applies? returns in originally on on the you had And with that then that fair if the to spend, the here? you're you are say question $XX million

John Rettig

Thanks the question. for

currency the the to question Overall, part, in before, monetization the we was fiscal and basis And of payments monetization monetization. this expansion indicated we loss portion back expect as our and volatility. 'XX. would in to going on what X.X that we've the is quarter have second below points do related On half expected first about international the of a FX prior overall second

'XX the against change that what good We're August, our we So we're and million. progress in that. outlook outlined there. Shifting spend FY no $XX for incremental for to in striving making

that As actually year. backloaded we of is indicated last spending quarter, into the some

fiscal get And begin 'XX think overall we're those impact a our on reflection to those pointed against out guidance. So that. progress, more through we quarter that as increases this I'd result material into last, are and we signs as points, a further say few had in rates that flow have a into making of that reference business both and quarter OpEx and our some We of you'll of a 'XX. third And the we the see investments. fiscal progress growth

René Lacerte

investment just John. areas. few things on add Thanks, the wanted to I a

driving the think ecosystem. focus across the for of So I scale have with that X diverse relationships accountants; priorities of to deepen our Those we kind three, value annual the lot and our ecosystem. we our in and progress to priorities proposition; said operations, knows call two, made our a with one, everybody across four, we that financial expand to were: have And the our year. experiences; those to augment singular increase of And a we great each supplier at platform quarter. the

And so on the together increase in our the opportunity value prop, built we now product in for where a we ACH. team, is had advanced pulled It an beta. a

adoption their and order members we were able able because we suppliers have X.X in all help transfer The we and we that two-sided our financing. and out X of of very that we in of the definition, a the short expanded the of just was And time. expanded a network. experience, team period called XXXX. million out is drive product the that also and a product important the we the This capabilities the up be reason supplier We called something short for with was to adoption power to came an drove driver our us because that supplier. for think local nature experience customers learning the strong very drive both the future. of network, augmenting we our On capabilities, the will buyer invoice and inside in our on the to have That's network X-sided really

huge us. So win a for was that

helping business. need. was now over which go last for of understanding that what dedicated the important suppliers continues processing, offerings and we've so, to that's straight-through understand have card as all and or teams added we also building also as And suppliers investment well stuff quarter connecting been We And the focused on the that virtual well. part our

The third I account said deepen area again, relationships. was

a have here. asset tremendous We

nonprofit them have close accounts to entire opportunity customer unique a referenced who last ecosystem. I efficient accountant bookkeepers of in a XXX,XXX with they're Jitasa, more I do. of and much the on think That's able have hundreds more And we platform. the serve across of out because is we've the number has in U.S. the more of really the around to to that capabilities. way what work clients X,XXX we We said kind space

us it of example great all adoption. new for that account An having to creates drive capability, opportunity

And the up accounts so of on prepared remarks was net X per XX%. the that, year-over-year, about the we things adds talked overall, was

because is adding, talked working both where are this all obviously, for on multi-entity. TOs, focus around drive we're the of product, obviously, adding ongoing us that XXXXs, we on. product about, These capabilities the a additions. to They're the adding things Now ability

investments. the a But how us. hear focus will a also have do continue for engage because of much the in past to about that with we as and make want part accountants, we platform and to that difference with them, stronger as we excited much the they're had this It's more go-to-market on than we've

years, on last the ] the our around was taken XX This institutions and the that partners over rolling experiences really learning to into customers. for focused we've said the that is last area expand that we And the both our fiscal we platform. financial this the we've everything from Embed were all then ecosystem. So and year banks learned [

add able XXX I usage the to customers more customers more or that more across adopting, they're over and And employees so pull we to had driving that those for highlighted together capabilities were platform. to that's the means S&E quarter, able on And spend, that is on that during say, cards are we access what our the platform. Embed we've across customers that capabilities should

in But of that is FY talk have year and to the all making. about. this the we all we've really 'XX. second been growth into things is point didn't confidence why There of these the obviously the hood So investment we happening and in expect much half under more

the some to thank wanted just additional question, you Tien-Tsin. So for color there. I give

Tien-Tsin Huang

it. Thank it. for going going for you through No. Thanks through

René Lacerte

Thank you.

Operator

question. for you your Thank

comes question the next Citigroup. with Schmidt line from of Our Andrew

Andrew Schmidt

terms want could I run Maybe to valorem comments we just out the in saw ex you of on you real FX take go what through ad back if growth? losses. on to of virtual I expansion curious the about John. had just talk rate second, Just supplier side that know on that a international. things the some card just strip and quick stability acceptance, you for

John Rettig

question, ad valorem the volume Andrew. the for Thanks Sure. Overall, second grew in quarter.

that's X It by the that growth of quarters. So us. Most products. for accelerated versus newer actually a positive driven is prior

things side, So the buyer real-time on these invoice Card, payments. Pay are like financing, By

if products, prior And some with international card, virtual of our was more a consistent second, payments for the established like remove volume we quarter.

there. significant no growth So

card acceptance continued to see on BILL mentioned. as We I similar with trends have volume, the consistent side,

just starting that outlined our to by Some initiatives be and the are now used suppliers. market of Rene select in

But haven't or we impact ad acceptance no on than those those products impact yet. new significant previously. more across of established terms trends in there's seen we've seen material So valorem

Andrew Schmidt

I Perfect. in. sneak just more And X could maybe

Just you're when that just engine, development a been seem terms any think significant cycle, and on up of about pretty there's product like what opportunity general? does opportunity that? things like then it like there in out rolling that, to And recently. look the you changes roll step the just does product things subscription out like ARPU-driving to in products, engine Has products more what

René Lacerte

Thank you, Andrew.

now. really we're I we're that things X is from the that at the think scale benefiting of

have scale. We significant

John President and some role drive where focus add team, of business clarity. from and to teams If in to it's size continuing the help into was to really had, the and We the leadership you execution. the it think a on focus where and of clarity ago been today we've few move the just years about to that at the obviously, place, getting drive

will, innovate, There's and thing the list more making that's that actually I our the And and that. lives their the the each goals I everyone free of making we're for experience to I have And the That's just focus. about making faster, company that of can we is the X just efficient. lives the really think, seeing across sure of expand ideas think across driving, the -- if how make inside and of company enabled exciting their is for is customers, us number is easier, you lives us, the phenomenal. is clarity their innovation to --

We're us excited. AI lots for customers. opportunities AI the as are leverage so And continue to internally as is well how for helping of excited experiences do the teams about us I in to that. think There's our

priorities excitement, is our that to energy kind and seeing the tie customer some and the I of driving that the to of so back drive some think, ability really adoption. you're initiatives clarity And of

Operator

from Our Autonomous. the Suchoski next question comes line with Kenneth of

Kenneth Suchoski

in in the the to you're what jumping actually I the X.X to losses. that showed guess, Rene you rate, the and John, actually a it down just basis you sort it's have it point loss back the off point clarify right normalized If back not the is for then on basis. X.X sort thanks that is the quarter-over-quarter impact FX Maybe higher a add I for of right take fiscal I was you on the X.X bit taking but quarter? you on of from basis XQ, guess, XQ, question. add think points, And that way guess X.X little points fiscal quarter-over-quarter? basis saw just it's actually down, FX take because rate, point about to basis

John Rettig

Ken. clarifying the question, for Thanks Yes.

of The I large monetization the is in right. referring to is X.X which think is IP overall that. math FX is a that component change the of

that's strictly we're speed to while going payments item, and expect able onetime and so And product be other gains to do with volatility not the to and minimize of we making forward. losses improvements a the

monetization, the certainly is So as from QX for baseline growth above suggested. you here the overall

Operator

Research. with Wolfe of ] the question Our from next comes line Andrew Elsis [

Darrin Peller

hear Hey, guys, can you me?

René Lacerte

can. we Yes,

Darrin Peller

Darrin on Peller to you volume more up guys Wolfe. and from Okay. customer It's little the I follow TPV seeing. are just trends bit wanted -- a per I

customer? magnitude so the the to seeing much progress your maybe what You've customer And the building you've to I we to to blocks of you on it, have to whole ability more the enable prior transactions. having year see TPV And Help per that on a you the macro customers can in suppliers. in really generally larger aligned business expect? can then -- relative been per progress on see maybe saw from add the around initiatives to your also how quarter made effect. TPV what quarters, spend what these from use platform you're next on the More some worked know or made And with guys seeing understand spend. per standpoint customer, for on you've past of us you transactions, that

René Lacerte

Darrin, the you, Thank for question.

we're I But the macro, more we seeing need. what from talk not of -- the that SMBs, that's but and increasing and It's across general, there's the action optimism are to if can still is general, John obviously, to control, with a platform. we think, yet. think I flattish share in wallet seeing, what the really translating kind can of in

that of about, which across Pay usage opportunity about Card, Spend we're to product. able that's By is doing of the to inside do actually BILL obviously one we things so AP have expanding talking card Expense and whether talked whether leverage the what you opportunities to that's the that, been And with be BILL &

AP your actually our card. you can payments So now make using

actually their And why more excited drives that customer, drive is about us those adoption suppliers we're to products. by having that for on engaged opportunity

gist the consistent. trends of from we So is continue seasonality share there drive. overall is is quarter-to-quarter. I overall TPV then wallet And think are that growing this to There

John Rettig

impact. market, pockets quarter, do be Yes. in TPV a is see But in customer our will of over the per on the businesses, I expectations like estate this mid-market as change for We pretty QX on -- with quarter, significant larger to things just real in expand the industries, add, of strength with emphasis I quarter. a real categories. like in enable bit us of see lower no overall spend customer. related third construction-related will quarter-to-quarter typically size Darrin, things that line categories. We that. time, spend March terms and seasonally the There's would spend And within still mentioned, think our per basis Rene in much year-over-year we've technology, segment compression medium information to of little seen consistent

Operator

with comes Samad from question Samana of Jefferies. next the Our line

Samad Samana

specifics you a well. maybe analysts, to the different hope I Maybe out, have just guess innovated but guys doing I zooming first, earlier are lot. guys you are point on by take an rate,

in trend given off a more you're conservative at giving quarter-to-quarter make forecasting last curious of? maybe you're several related it's -- rolled the well. the change quarters. that, John, baseline the how have a what to quarter-to-quarter? different I'm becoming that volatile it about will to that lot kind just you a as you're payment monetization difficult, been from thinking over more forecast you And of are You've us that to out curious if maybe taking made it's types of swipe be I'm if

John Rettig

for forecast. Thanks say have Samad. it's to do I question, the wouldn't history. difficult more We

We are in more a products transition significant our making with to some established of enhancements.

AP cycle So an upgrade customers us. that is both we're with if in, existing new suppliers, will, early somewhat to and you

think those the have impact clarity we on I really of ultimate good investments.

changes about we We're not operating uncertainty So think in obviously outcomes have change that some a there's from control, is the to present view range the there we but SMB. based available that SMBs on hear us. environment any significant we there things to are what levers try We of in expecting really, balanced philosophy. the are external primarily in, no we of the that that

of the we to the it. like we're So trying outlook call for 'XX, that philosophy continuing it the feels we've how rest to had near-term see us in

René Lacerte

thing innovate and add we we on as It the And way said we total said continue and One beat would strong just a bottom we're on I revenue. core. would. continuing we've had -- what overall second, spot. a to to We delivered the just invest is line

what we the present is business going everybody with we're grow. feel think and to guide to So going is to understanding always to our into how goal happen business and the make obviously we --

Samad Samana

in that it a then that because impacted follow-up was, us maybe by negatively mix several you Spend the much the -- little think more lower seen the than years, gross both? a Just I the bigger. an business for just Can December on side, heard guess, that think quarter-over-quarter that TPV or to interchange. dynamic? And say bit Was that a the I just seasonally was Expense obviously impact Understood. I & you maybe on seems submitting in John, revenue prepared help is we've I remarks or understand past it muted

John Rettig

growth category. rate XX% card the Obviously, Samad. in we that advertising really growth. follow-up the question, XX% volume to product, a for a had strong with reference really to Thanks amongst mix declining revenue we shift S&E growth saw growth pointing prepared remarks categories merchant The Yes. was on the transaction in

proactive payment online to volume from of And moving was driven effect their the the ACH in shifts policies, so which payments to player some by largest this acceptance making the card payments. ad space has

to tends because Spend that had business, the interchange rate also it average business to spend. S&E impacts a higher then interchange a headwind being to effect overall As of category and Expense gross advertising our relates for both slight our the the be than card &

So quarter. we it into that about when something in revenue factored and step our the was going in that X back forward. quarter, estimates at of we It's of impact look the for impact S&E the shift points

it so spend. definitely did both monetization And card and impact

Operator

Bryan Keane with the Our question Bank. from of comes line next Deutsche

Bryan Keane

I guess, which to I monetization but think for I you will at, be, slightly you're I to John, on quarter midpoint think, up. think, XX%, in third though core revenue down, the growth, is be XX%, it in XX% guiding of kind came said even

that full on understand So just raised guidance why be. then year was revenue, trying the it core would year. sure last make to the quarter the full I And for

actually reduction about was cut, trying why of it the at quarter, for think, I full $X just sure million core understand revenue end. make small in to And This the the kind growth I high year.

John Rettig

Yes.

the favorable passing that interest revenue we're of And the through, impact performance higher second rates Obviously, on midpoint the implied of essentially QX for benefit half and reaffirming we've the both the estimates providing the the from first float obviously, for the of time, first thanks question, And for the layered in QX. profitability. QX longer had estimates for we've has and for of So in Bryan. our and guidance. then half year. We're core for our we're year, the QX revenue

of core there's QX just QX. growth, and terms In a shift revenue between mix

So we, out our put the for time, first numbers. QX

tighter move gets The which range total but our core estimates. brought in the as revenue reaffirming So slightly, down the we net essentially year. increased through QX effect is and QX of we

the that's upper reason end. only So change on the for the

Bryan Keane

follow-up. Got then helpful. And it. a That's maybe just

clients' more financials? a are might impact you do when rollout? hearing? that material curious for for What appetite ACH, Just on timing to the have enhanced you think it And

René Lacerte

Thank Bryan, you, for question. the

We suppliers. enhance relationship about the are excited the with ability to

referenced payments point kind which or a in suppliers prepared that X,XXX the of is fact we ACH. are largest remarks BILL check through a have our Just quarter

And that's lot a so for them. hassle of

their able part their they and get exactly They And a these away. the interest, about So is make from their they and excited customers need in it we'll when understand excitement, as of business learn now is and product how to that it, strong. we be And tools need to we're their to continue, headache what that we're evolving roll ask it need capabilities managing chance beta. go and you definitely of that out. obviously,

business. expect that believe will it calendar this will impact in will we out have be rolled year, the on We and it -- an

Operator

Sachs. from of with line the William comes question next Our Nance Goldman

can now us? your is William, open. now is William, line open. hear line Your you

Karen Sansot

move can We queue. next on the in to the

Operator

Okay.

great. Sounds

next question with KeyCorp. of Alexander comes Our the line Markgraff from

Alexander Markgraff

me? you all hear Can

Unknown Executive

We can.

Alexander Markgraff

Great.

us treasury could curious be on in is banking you as launched refresh how maybe that I'm platform just office? sort SMB back the a broadening the that reach an of showed to just in? or area SMB, question, products. think far your product you peers a office and BILL your of in the couple expect of And of maybe the about think Just eventually back participate sort reaching have

René Lacerte

that Yes. Alex. question, appreciate I

obviously broad payment a We have very platform.

And different call BILL we I treasury and their to become. $XXX essentially, BILL to allows able X% X at instant transact payments those That what have make able of account we to would a billion customers what a early of be balance X any say, would of have And be is think over an we payment actually a GDP. Balance. It's stage, obviously of products year, products. suppliers. to I product

original space? question platform lesson leverage that. we So to I just was are capabilities There's when have, View the BILL the we can you already customers that And ]. Cash is help in play about think think in overall that history that on build space. your we name, like, broad [ that more will little We playing a

is always for how give I've all to customers' that customers that can the to capabilities flow and across the their all things manage cash they missions the manage of democratize treasury treasury function that had X so And we their to basically do. so insight

on able that And the that. why do. way our much on focus that all think things And at that's we're space be the and so do think go we so all transactions, we to and I leading to is and we'll defining different executing I and core the payment actually products

Operator

your you question. Thank for

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

Scott Berg

pretty I ones. probably X guess it's easy

saw analyst about about level guidance prior excited person, Rene, that kind was QX. do does your asked exiting change that have I was year? last revenue XX% a think ago last QX of think X maybe to and to Or are about of that reaccelerate target? about enthusiasm growth -- that the this progresses? how year you Do on in stated -- how still you QX, and pretty a what think it that with objective core you we asked you or between all it But shift there's your core, you mentioned

René Lacerte

definitely target. the I'm excited about

building XX you mission confidence forward. to you and is what's our very and that green distribution I've iteration, drive a and the lot iterate advantage And the really something years helping initiatives over that us that advantage, We execute using a using the that have it to will. ecosystem shoots, takes a customer make our difference it seeing one, learning see we're growth then -- and strong the to going of our scale and impact focus if team and takes of advantage, obviously, And strong to we -- have using, to on capabilities have doing and deliver are companies to in that. our in our all the then we early a across we're initiatives going the that driving learned focus of is

and we as we've bottom we obviously revenue is we the through we been year. thought overall pass when exceed of kind to line. what well this And reaffirmed an step So -- the as actually for able back, would do

the feel time, which exceptionally They make is we're near where to at need innovation to different which to at. they we it and every opportunity stress heart, ] is And same the So drive need good day. they [ day. dear innovation, is my that now. about need every And very something it

We others them don't have to that the with for do something opportunity an have. platform

Scott Berg

there's now. thought been rest on the about in caution level for new when you any really cautious Was was didn't of John, guidance? guidance the you several have kind it cautious for no last The a if used explicit you on just different know then, quarters, a reason And was of bit all the the there the seemed change macro but Helpful. year, view? little couple quarters of incremental or I tagline your like Understood. maybe than of a little that the

John Rettig

implications and Thanks need I'd I'd that to to obviously, play for the say Scott. understand environment in eventually moving change the translates or environment, macro say now operating question, out there's for that the in how spend. the to parts they're that for better SMBs, BXB no there's the real view. philosophy us right more to

those given any considerations but it's And number that of more something the closely watching that now say of parts. into top I'd moving us. much so is of explicitly for didn't in we guidance, we're mind factor

Operator

America. the of Brad from of comes Bank line question next with Our Sills

Bradley Sills

rate. Great. question, on a another the I ask wanted to one take

impact If confidence lighter little you you being just you you give ad half, core had look valorem, which that. point on initiatives this on quarter the see to ex love and some you would get you'll expected improvement some out of that second kind growth a than Would color currency the bit that monetization at the of that here? to

René Lacerte

Card right? Spend happening opportunities we're & talked By front. We And see for BILL those continue respect customers Or customers, of the about larger -- the especially we I difference. ACH strong with our you, those, think we or things, we had mid-market our and see and they AP. we things and to and going or progress that's have whether in invoice calling question. And we initiatives for products, work advanced card, and we to a initiatives. with virtual understand me understand continue help the suppliers, start ability It's will, one to important, for the need, make you the Yes, to John Thank The other shoots think because if continue pick the it's for a whether of to it's products, newer them many also Pay the then on across Expense financing, that's side I'll all what of Expense Spend are accountants, the going & valorem see see green us of focus value We that's whether on ability think -- the us. growth inside adoption success hard Brad, drive any but to of overall ad add. let to with the we're to the each to things of platform, around obviously, good customers. that what

One our of support we being the things good that on those about progress as businesses feel out there. that have said and to able larger we

what a you was is higher so the when than And team ago. at of size the is XX% it building look deal year year-over-year,

kind and of So of you that's overall -- the monetization also really side. combine leads things, details gave obviously, confidence, but the the I all those on what some you to

it that, With to going with need everybody. I think up okay. to So we're wrap

I And BILL. thank team to appreciate the puts innovation. so the everybody call. joining understanding the I and all, really want time into thank for dedication first of you also for their

well strong strategic we believe market and today We initiatives, more growth. to and executing care. our are we coming bringing and Thank quarters. to adoption the to long-term across are lead you, We looking will durable value forward these against making Take their suppliers investments SMBs are everyone.

Operator

for day. concludes enjoy That your your participation, rest the Thank call. you today's and of

Bill.com (BILL) 6 Feb 252025 Q2 Earnings call transcript