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Payments and billing software maker Bill.com (NYSE:BILL) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 10.9% year on year to $358.2 million. On the other hand, next quarter’s revenue guidance of $375.5 million was less impressive, coming in 1.8% below analysts’ estimates. Its non-GAAP profit of $0.62 per share was 65.8% above analysts’ consensus estimates.
Is now the time to buy Bill.com? Find out in our full research report.
Bill.com (BILL) Q1 CY2025 Highlights:
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Revenue: $358.2 million vs analyst estimates of $355.4 million (10.9% year-on-year growth, 0.8% beat)
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Adjusted EPS: $0.62 vs analyst estimates of $0.37 (65.8% beat)
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Adjusted Operating Income: $53.3 million vs analyst estimates of $41.32 million (14.9% margin, 29% beat)
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Revenue Guidance for Q2 CY2025 is $375.5 million at the midpoint, below analyst estimates of $382.3 million
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Management raised its full-year Adjusted EPS guidance to $2.08 at the midpoint, a 8.1% increase
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Operating Margin: -8.1%, in line with the same quarter last year
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Free Cash Flow Margin: 25.3%, up from 19.8% in the previous quarter
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Customers: 488,600
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Market Capitalization: $4.73 billion
Company Overview
Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, Bill.com (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses.
Sales Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Bill.com grew its sales at an exceptional 39.9% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
This quarter, Bill.com reported year-on-year revenue growth of 10.9%, and its $358.2 million of revenue exceeded Wall Street’s estimates by 0.8%. Company management is currently guiding for a 9.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 12.6% over the next 12 months, a deceleration versus the last three years. Still, this projection is above average for the sector and suggests the market is baking in some success for its newer products and services.
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