In an after-hours trading session on Thursday, BILL Holdings (NYSE:BILL) witnessed a 3.5% drop in its stock value. This downturn followed the release of fiscal Q1 revenue guidance by the automation software provider, which fell short of the average estimate predicted by analysts.
BILL Holdings, a company specializing in providing software solutions to small and midsize businesses, anticipates its fiscal Q1 revenue to range between $295.5 million and $298.5 million. This forecast stands below the consensus estimate of $300.2 million.
The company also disclosed its projection for Q1 non-GAAP EPS (earnings per share) to be in the range of $0.48 to $0.50. Notably, this range surpasses the average analyst estimate of $0.40.
Looking ahead to fiscal 2024, BILL Holdings offers a revenue guidance of $1.2885 billion to $1.3065 billion. In comparison, the consensus estimate for revenue is $1.30 billion. Furthermore, the company’s outlook for non-GAAP EPS for the same period spans from $1.82 to $1.97, slightly deviating from the $1.83 consensus.
Highlighting its recent performance, BILL Holdings managed to achieve a non-GAAP EPS of $0.59 in fiscal Q4, surpassing the consensus estimate of $0.41. This notable rebound in earnings stands in contrast to the -$0.03 EPS reported in the corresponding quarter of the previous year.
During the fourth quarter, BILL Holdings processed a total payment volume of $69.1 billion, representing a YoY increase of 9%. This growth in payment volume signifies the company’s sustained efforts in expanding its operations.
For the quarter concluding on June 30, 2023, BILL Holdings reported a substantial YoY increase of 48% in revenue, amounting to $296.0 million. This impressive performance comfortably exceeded the consensus estimate of $282.6 million.
The core revenue, encompassing both subscription and transaction fees, witnessed a 33% YoY increase, underscoring the company’s ability to generate consistent returns from its business model.
Subscription fees, totaling $66.9 million, demonstrated a 21% YoY increase. Notably, the BILL standalone platform contributed $57.8 million to the subscription fees, indicating a 25% YoY growth.
Transaction fees, amounting to $192.6 million, marked a substantial 38% YoY increase. The BILL standalone platform accounted for $91.5 million of these transaction fees, showcasing a 33% YoY rise.
As BILL Holdings navigates the evolving business landscape, its performance in fiscal Q1 and the upcoming fiscal year will be closely observed by industry analysts and investors alike. The company’s ability to align its operational strategies with its financial goals will play a pivotal role in shaping its future trajectory.
You can listen to the earnings call here.
