Bill.com Q4 Core Revenues Grow 100%; Shares Leap 16%

Bill.com (BILL) shares jumped almost 16% in Friday’s pre-market trading session after the company delivered blowout fiscal Q4 revenues and introduced FY2022 guidance.

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Notably, shares of the provider of cloud-based software with the current market capitalization of $18 billion have gained 106% over the past year.

The beat was driven by the expansion of e-payment offerings, strong momentum of the company’s platform, excellent execution from strategic initiatives, and positive synergies from the Divvy acquisition.

Markedly, revenues jumped a whopping 86% year-over-year to $78.3 million and significantly exceeded consensus estimates of $61.98 million. The increase in revenues reflected a 100% surge in core revenue, which includes subscription and transaction fees, including Divvy interchange revenue, to $77.5 million.

Further, transaction fees increased 204% year-over-year to $46.3 million, while subscription fees jumped 32% to $31.2 million. (See Bill.com Holdings stock charts on TipRanks)

However, the company reported an adjusted loss of $0.07 per share, lagging analysts’ expectations of a loss of $0.04 per share.

Bill.com CFO John Rettig commented, “We are pursuing a large, global opportunity to help millions of small businesses digitally transform their financial operations. With the strength of our organic business and the acquisition of Divvy, we believe we are on a path to extend our leadership position in serving the large SMB market.”

Bill.com Introduces Fiscal 2022 Outlook

Based on strong Q4 revenues, the company launched guidance for the first quarter and full year of Fiscal 2022.

The company forecasts an adjusted loss in the range of $0.88 to $0.92 per share. Revenues are forecast to be in the range of $476 – 480 million.

For the fiscal first quarter, an adjusted loss is likely to range between $0.20 and $0.21 per share. Revenues are projected to be in the range of $103.2 million to 104.2 million.

Following the Q4 results, Piper Sandler analyst Brent Bracelin increased the price target on the stock from $180 to $280 (27.8% upside potential) and reiterated a Buy rating.

Bracelin remains impressed with fiscal 2022 revenue guidance and thinks that Bill.com is “cementing its leadership position in AP automation and B2B payments through robust organic growth coupled with the first full-year contribution from the Divvy expense card acquisition.”

Overall, the stock has a Strong Buy consensus rating based on 11 Buys and 1 Hold. The average Bill.com Holdings price target of $241 implies 10.02 upside potential from current levels.