BILL Holdings, Inc., a leading provider of financial operations solutions for small and medium-sized businesses (SMBs), reported strong fourth-quarter and fiscal year 2024 earnings, exceeding analysts’ expectations.
The company posted a quarterly loss of 3 cents per share, significantly beating the consensus estimate of a loss of 20 cents. This positive performance was driven by robust revenue growth, reaching $343.665 million, surpassing the analyst estimate by 5.47% and representing a 16.11% year-over-year increase.
BILL’s core revenue, comprised of subscription and transaction fees, saw a notable 16% year-over-year increase to $301.3 million. While subscription fees declined by 2% to $65.8 million, transaction fees surged by 22% to $235.5 million, highlighting the company’s growing transaction volume.
The company also reported $42.4 million in float revenue, generated from interest on customer funds held by BILL.
In a positive move for shareholders, BILL announced a $300 million share repurchase program, demonstrating confidence in the company’s future prospects.
Looking ahead, BILL anticipates fiscal year 2025 adjusted earnings to range between $1.36 and $1.61 per share, exceeding the current analyst estimate of $2.06. Revenue is projected to be between $1.415 billion and $1.45 billion, exceeding the current estimate of $1.275 billion.
René Lacerte, BILL’s CEO, expressed optimism about the company’s performance, stating, “Fiscal 2024 was an important year for BILL as we fortified our position as the essential financial operations platform for SMBs. We launched our integrated platform, provided SMBs with access to capital, and empowered businesses with additional insights and control of their cash flow. Our steadfast commitment to raising the bar to serve SMBs led to strong financial results and an expanding scale.”
Following the announcement, BILL Holdings shares surged by 3.47% in after-hours trading, reaching $52.50. This positive market reaction reflects investor confidence in the company’s strong performance and promising outlook.
