BILL Holdings Q2 Earnings & Revenues Beat Estimates, Shares Fall

BILL Holdings BILL reported earnings of 56 cents per share in the second quarter of fiscal 2025, beating the Zacks Consensus Estimate by 19.15% and increasing 9.8% year over year.Revenues of $362.6 million increased 13.8% year over year and surpassed the consensus mark by 0.83%. The top line was driven by 16.3% growth in BILL’s core revenues.The company processed $84.5 billion in total payment volume (TPV) in the reported quarter, which increased 12.8% year over year. This included $77.1 billion in TPV in its Integrated Platform (up 12.1%) and $7.4 billion in Embedded and Other Solutions (up 21.3%).BILL’s solutions served 481.3 thousand businesses at the end of the fiscal second quarter, increasing from 473.5 thousand in the prior year. This included 198.4 thousand customers in its Integrated Platform (up 13.5%) and 282.9 thousand in Embedded and Other Solutions (down 5.3%).BILL Holdings, Inc. Price, Consensus and EPS Surprise  BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. QuoteBILL Holdings processed 30 million transactions in the fiscal second quarter, a 17.2% year-over-year increase.BILL shares have gained 13.8% year to date, outperforming the Zacks Computer & Technology sector’s return of 1.9%. However, shares fell 28.40% in the pre-market trading following the results.BILL Holdings’ Quarter in DetailIn the second quarter of fiscal 2025, core revenues, consisting of subscription and transaction fees, were $319.6 million.Subscription fees (21.2% of core revenues) of $67.7 million increased 7% year over year. Transaction fees (78.8% of core revenues) were $251.9 million, up 19% from the year-ago period.Revenues from Integrated Platform — comprising the BILL AP/AR, and the BILL Spend and Expense sub-segments — were $300.7 million, increasing 16.2% year over year. This contributed 94.1% to core revenues and 82.9% to total revenues.Revenues from Embedded and Other Solutions were $18.9 million, which increased 16% year over year. This contributed 5.9% to core revenues and 5.2% to total revenues.Float revenues, which consist of interest on funds held for customers, were $42.9 million in the reported quarter, down 1.3% year over year.Operating Details for Bill HoldingsIn the quarter under review, non-GAAP gross profit was $308.9 million, up 12.9% year over year. The gross margin of 85.2% contracted 70 basis points (bps) year over year.In the second quarter of fiscal 2025, adjusted research and development expenses totaled $55 million, down 8.2% year over year. Adjusted sales and marketing expenses rose 15.7% to $121.9 million. However, adjusted general and administrative expenses decreased 1.6% to $47.9 million.BILL Holdings reported a non-GAAP operating income of $62.8 million, marking 41.8% year-over-year growth. The operating margin expanded 340 bps on a year-over-year basis to 17.3%.BILL’s Balance Sheet & Cash Flow statementAs of Dec. 31, 2024, cash, cash equivalent and short-term investments were $2.21 billion compared with $1.47 billion as of Sept. 30, 2024.The cash flow from operations was $78.7 million in the second quarter of fiscal 2025 compared with $88.6 million in the first quarter of fiscal 2025.In the fiscal second quarter, the company repurchased 2.3 million shares of its common stock for $200 million.BILL Holdings’ Q3 GuidanceFor the third quarter of fiscal 2025, BILL expects revenues between $352.5 million and $357.5 million, suggesting year-over-year growth of 9-11%. Non-GAAP earnings are projected between 35 cents and 38 cents per share.For fiscal 2025, BILL Holdings expects revenues between $1.45 billion and $1.47 billion, implying 13-14% year-over-year growth. Non-GAAP earnings are expected between $1.87 per share and $1.97 per share.Zacks Rank & Other Stocks to ConsiderCurrently, BILL flaunts a Zacks Rank #1 (Strong Buy).Twilio TWLO, (CYBR), Pitney Bowes PBI and KT KT are some other top-ranked stocks in the broader Zacks Computer and Technology sector. These three companies currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Twilio shares have risen 36.4% year to date. TWLO is set to report fourth-quarter 2024 results on Feb. 13.Pitney Bowes shares have gained 19.6% year to date. PBI is set to report fourth-quarter 2024 results on Feb. 11.KT shares have returned 9.8% year to date. KT is set to report its fourth-quarter 2024 results on Feb. 13.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. 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