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Bill.com (BILL)

Bill.com is a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the Bill.com platform to manage end-to-end financial workflows and to process payments. The Bill.com AI-enabled, financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflow. The company partners with several of the largest U.S. financial institutions, the majority of the top 100 U.S. accounting firms, and popular accounting software providers. Bill.com has offices in Palo Alto, California and Houston, Texas.

Company profile

Ticker
BILL
Exchange
Website
CEO
René Lacerte
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Bill.com, LLC • Bill.com Canada, LLC • DivvyPay, LLC • Divvy Peach, LLC • Divvy Credit 1, LLC • Phlo, Inc. ...
IRS number
832261725

BILL stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

5 May 22
8 Aug 22
30 Jun 23
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jun 21 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.67B 1.67B 1.67B 1.67B 1.67B 1.67B
Cash burn (monthly) 6.94M (no burn) 29.2M 27.54M (no burn) (no burn)
Cash used (since last report) 29.73M n/a 125.11M 117.99M n/a n/a
Cash remaining 1.64B n/a 1.55B 1.56B n/a n/a
Runway (months of cash) 237.0 n/a 53.1 56.5 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
30 Jul 22 Lacerte Rene A. RSU Common Stock Grant Acquire A No No 0 85,742 0 85,742
28 Jul 22 Aji Rajesh A. RSU Common Stock Grant Acquire A No No 0 28,581 0 28,581
28 Jul 22 Chung Bora RSU Common Stock Grant Acquire A No No 0 8,166 0 8,166
28 Jul 22 Rettig John R. RSU Common Stock Grant Acquire A No No 0 68,594 0 68,594
15 Jul 22 Chung Bora Common Stock Sell Dispose S No Yes 122.6243 1,731 212.26K 616
15 Jul 22 Chung Bora Common Stock Sell Dispose S No Yes 122.0772 3,379 412.5K 2,347
15 Jul 22 Chung Bora Common Stock Sell Dispose S No Yes 121.0501 1,701 205.91K 5,726
15 Jul 22 Chung Bora Common Stock Sell Dispose S No Yes 119.7503 579 69.34K 7,427
15 Jul 22 Chung Bora Common Stock Sell Dispose S No Yes 118.815 300 35.64K 8,006
15 Jul 22 Chung Bora Common Stock Sell Dispose S No Yes 117.6884 1,164 136.99K 8,306
98.2% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 472 471 +0.2%
Opened positions 94 126 -25.4%
Closed positions 93 86 +8.1%
Increased positions 196 180 +8.9%
Reduced positions 145 130 +11.5%
13F shares Current Prev Q Change
Total value 26.92B 27.72B -2.9%
Total shares 102.41M 102.13M +0.3%
Total puts 1.78M 1.55M +14.5%
Total calls 2.14M 2.82M -24.1%
Total put/call ratio 0.8 0.6 +50.8%
Largest owners Shares Value Change
TROW T. Rowe Price 13.24M $3B +42.2%
Vanguard 8.84M $2.01B +3.1%
BLK Blackrock 8.4M $1.9B +27.3%
MS Morgan Stanley 6.87M $1.56B +4.1%
Capital International Investors 5.74M $1.3B +12.4%
Temasek 5.57M $1.26B 0.0%
Kayne Anderson Rudnick Investment Management 3.9M $884.35M -13.7%
BEN Franklin Resources 3.85M $873.72M -13.4%
DCM Iv L P 1.98M $269.92M 0.0%
STT State Street 1.8M $409.12M +3.8%
Largest transactions Shares Bought/sold Change
TROW T. Rowe Price 13.24M +3.93M +42.2%
Whale Rock Capital Management 884.37K -2.56M -74.4%
BLK Blackrock 8.4M +1.8M +27.3%
Melvin Capital Management 1.62M -1.38M -45.9%
Lone Pine Capital 1.37M +1.37M NEW
WCM Investment Management 1.36M +1.35M +8810.7%
Insight 0 -1.12M EXIT
Norges Bank 0 -746.42K EXIT
Capital International Investors 5.74M +633.05K +12.4%
Kayne Anderson Rudnick Investment Management 3.9M -618.25K -13.7%

Financial report summary

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Risks
  • Our recent rapid growth, including growth in our volume of payments, may not be indicative of our future growth, and if we continue to grow rapidly, we may not be able to manage our growth effectively. Our rapid growth also makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.
  • Our risk management efforts may not be effective to prevent fraudulent activities by our customers, spending businesses or their counterparties, which could expose us to material financial losses and liability and otherwise harm our business.
  • We transfer large sums of customer funds daily, and are subject to the risk of errors, which could result in financial losses, damage to our reputation, or loss of trust in our brand, which would harm our business and financial results.
  • We earn revenue from interest earned on customer funds held in trust while payments are clearing, which is subject to market conditions and may decrease as customers’ adoption of electronic payments and technology continues to evolve.
  • If we are unable to attract new customers or convert trial customers into paying customers, our revenue growth and operating results will be adversely affected.
  • If we are unable to retain our current customers, sell additional functionality and services to them, or develop and launch new payment products, our revenue growth will be adversely affected.
  • We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors with respect to our operating results, our stock price and the value of your investment could decline.
  • We may not be successful in our efforts to promote Divvy corporate card usage through marketing and promotion and spending business rewards, which may materially impact our results of operations and financial condition.
  • Our business depends, in part, on our strategic partnerships with financial institutions.
  • Our business depends, in part, on our relationship with Intuit.
  • We depend upon several third-party service providers for processing our transactions. If any of our agreements with our processing providers are terminated, we could experience service interruptions.
  • Interruptions or delays in the services provided by AWS or other third-party data centers or internet service providers could impair the delivery of our platform and our business could suffer.
  • We operate in an emerging and evolving market, which may develop more slowly or differently than we expect. If our market does not grow as we expect, or if we cannot expand our platform to meet the demands of this market, our revenue may decline or fail to grow, and we may incur additional operating losses.
  • Payments and other financial services-related regulations and oversight are material to our business. Our failure to comply could materially harm our business.
  • If we lose our founder or key members of our management team or are unable to attract and retain executives and employees we need to support our operations and growth, our business may be harmed.
  • Future acquisitions, strategic investments, partnerships, collaborations, or alliances could be difficult to identify and integrate, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our operating results and financial condition.
  • If we fail to offer high-quality customer support, or if our support is more expensive than anticipated, our business and reputation could suffer.
  • If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, and changing business needs, requirements, or preferences, our products may become less competitive.
  • If the prices we charge for our services are unacceptable to our customers, our operating results will be harmed.
  • We typically provide service level commitments under our strategic partner agreements. If we fail to meet these contractual commitments, we could be obligated to provide credits or refunds for prepaid amounts related to unused subscription services or face contract terminations, which could adversely affect our revenue.
  • We may not be able to scale our business quickly enough to meet our customers’ growing needs, and if we are not able to grow efficiently, our operating results could be harmed.
  • Failure to effectively develop and expand our sales and marketing capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our products.
  • We are subject to governmental regulation and other legal obligations, particularly those related to privacy, data protection, and information security, and our actual or perceived failure to comply with such obligations could harm our business, by resulting in litigation, fines, penalties, or adverse publicity and reputational damage that may negatively affect the value of our business and decrease the price of our common stock. Compliance with such laws could also result in additional costs and liabilities to us or inhibit sales of our products.
  • We, our strategic partners, our customers, and others who use our services obtain and process a large amount of sensitive data. Any real or perceived improper or unauthorized use of, disclosure of, or access to such data could harm our reputation as a trusted brand, as well as have a material adverse effect on our business.
  • We currently handle cross-border payments and plan to expand our offering to new customers and to make payments to new countries, creating a variety of operational challenges.
  • We use open source software in our products, which could subject us to litigation or other actions.
  • If we fail to maintain and enhance our brands, our ability to expand our customer base will be impaired and our business, operating results, and financial condition may suffer.
  • If we fail to adequately protect our proprietary rights, our competitive position could be impaired and we may lose valuable assets, generate less revenue and incur costly litigation to protect our rights.
  • We have been in the past, and may in the future be, subject to intellectual property disputes, which are costly and may subject us to significant liability and increased costs of doing business.
  • Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, data protection, and other losses.
  • Changes to payment card networks rules or fees could harm our business.
  • Our business is subject to extensive government regulation and oversight. Our failure to comply with extensive, complex, overlapping, and frequently changing rules, regulations, and legal interpretations could materially harm our business.
  • Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
  • Changes in our effective tax rate or tax liability may adversely affect our operating results.
  • Natural catastrophic events, pandemics, and man-made problems such as power-disruptions, computer viruses, data security breaches, and terrorism may disrupt our business.
  • We have identified a material weakness in our internal control over financial reporting, and if our remediation of such material weakness is not effective, or if we fail to develop and maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired.
  • Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the U.S.
  • If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.
  • Any future litigation against us could be costly and time-consuming to defend.
  • Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.
  • We are subject to governmental laws and requirements regarding economic and trade sanctions, anti-money laundering, and counter-terror financing that could impair our ability to compete in international markets or subject us to criminal or civil liability if we violate them.
  • If we cannot maintain our company culture as we grow, our success and our business may be harmed.
  • We may not have the ability to raise the funds necessary for cash settlement upon conversion of the 2025 Notes or to repurchase the 2025 Notes for cash upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion of the 2025 Notes or to repurchase the 2025 Notes.
  • The conditional conversion feature of the notes, if triggered, may adversely affect our financial condition and operating results.
  • The Capped Calls may affect the value of our 2025 Notes and our common stock.
  • We are subject to counterparty risk with respect to the Capped Calls.
  • Concentration of ownership of our common stock among our existing executive officers, directors, and principal stockholders may prevent new investors from influencing significant corporate decisions.
  • We have incurred and will continue to incur increased costs as a result of operating as a public company, and our management is required to devote substantial time to compliance with our public company responsibilities and corporate governance practices.
  • We do not intend to pay dividends for the foreseeable future.
  • If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, our stock price and trading volume could decline.
  • Sales of substantial amounts of our common stock in the public markets, particularly sales by our directors, executive officers, and significant stockholders, or the perception that these sales could occur, could cause the market price of our common stock to decline and may make it more difficult for you to sell your common stock at a time and price that you deem appropriate.
Management Discussion
  • (1) Includes the results of Divvy from the acquisition date on June 1, 2021.
  • Subscription and transaction fees increased to $232.3 million during fiscal 2021 from $136.4 million during fiscal 2020, an increase of $95.9 million or 70%.
  • Interest on funds held for customers decreased to $6.0 million during fiscal 2021 from $21.2 million during fiscal 2020, a decrease of $15.2 million or 72%. The decrease was due mainly to the decrease in the yield we earned from investing customer funds, partially offset by the increase in the balance of customer funds held while payment transactions clear. The average rate of return earned on customer funds held was 0.32% during fiscal 2021, a decrease of 123 basis points from fiscal 2020. The decrease in yield was due mainly to the U.S. Federal Reserve’s action to cut the federal funds rate during calendar year 2020 in response to the COVID-19 pandemic.

Content analysis

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Legalese
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H.S. junior Avg
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Removed: Abuse, assistance, closure, distinct, estimating, manufacturing, proportion