Loading...
01/11 03:19
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong revenue growth, profitability, and strategic initiatives like AI and Embed 2.0. The Q&A session reveals sustained efficiency efforts and a focus on mid-market expansion, driving higher ARPU. The new share repurchase plan and reduced stock-based compensation are positive for shareholders. However, management's lack of specific timelines for AI monetization and pricing initiatives introduces some uncertainty. Overall, the optimistic guidance, strategic plans, and shareholder returns suggest a positive stock price movement in the short term.
Core Revenue $358 million, up 14% year-over-year. The increase was attributed to strong execution and disciplined investment.
Non-GAAP Operating Margin 17%, a significant expansion due to continued focus on profitability.
BILL AP/AR Revenue Grew 10% year-over-year. Subscription revenue grew 6%. The growth reflects enhanced focus on higher ROI customer acquisition and ARPU expansion.
BILL Spend & Expense Card Payment Volume Increased 21% year-over-year, driven by strength in retail spend.
Spend & Expense Revenue $157 million, reflecting a 19% growth year-over-year. Rewards increased to 132 basis points as a percentage of payment volume, up 10 basis points compared to Q1 '25.
Non-GAAP Operating Income $68 million, $10 million ahead of the high end of guidance, driven by disciplined expense management and deferred investment timing.
Reduction in Force Approximately 6%, resulting in $9 million of restructuring charges. This was part of a broader initiative to align the organization with strategic priorities and increase operational efficiency.
BILL Cash Account: Launched as a high-yield, fully integrated operating bank account to optimize cash flow, enable faster payments, earn interest, and provide seamless control and visibility across transactions.
Agentic AI: Introduced new AI agents for automation, including W-9 agent, expense processing agent, and onboarding assistant, aimed at reducing manual workflows and enabling touchless B2B transactions.
Supplier Payments Plus (SPP): Entered commercial scaling phase, designed for large suppliers to unify payments, workflows, and account management.
Embed 2.0 Partnerships: Signed partnerships with NetSuite, Paychex, and Acumatica, collectively serving nearly 1 million SMBs and representing $1 trillion in annual payment volume.
Accounting Channel Expansion: Added over 250 accounting firms, bringing the total to over 9,300 firms.
Profitability Expansion: Achieved a non-GAAP operating margin of 17%, reflecting disciplined expense management and operational efficiency.
Reduction in Force: Executed a 6% workforce reduction to align cost structure and streamline operations.
AI Leadership: Advanced AI capabilities with Agentic AI to redefine financial workflows and enhance customer engagement.
Focus on High-Value Customers: Shifted focus to acquiring higher ROI customers and ARPU expansion over net adds growth.
Customer Acquisition: The company has shifted its focus to higher ROI customer acquisition and ARPU expansion over net adds growth, which has resulted in a lower sequential level of net new customer additions. This could impact the pace of customer base growth.
Rewards Structure: The company is scrutinizing and adjusting its reward structure for Spend & Expense solutions, which may lead to flattening or declining rewards as a percentage of TPV. This could affect customer satisfaction or retention.
Reduction in Workforce: A 6% reduction in workforce was executed to align with strategic priorities and increase operational efficiency. This could lead to short-term disruptions or morale issues within the organization.
Economic Environment: The updated float yield assumption reflects expectations of a rate cut in calendar '25, which could impact float revenue and overall financial performance.
Enterprise Sales Cycle: The sales cycle for the Supplier Payments Plus solution is longer than historical SMB trials, which could delay revenue realization and require additional investment in enterprise go-to-market capabilities.
Operational Efficiency: The company is undergoing a comprehensive cost structure assessment and implementing structural changes, which could pose risks if not executed effectively.
Core Revenue Guidance: For fiscal Q2 '26, core revenue is expected to be in the range of $359 million to $369 million, reflecting 12% to 15% year-over-year growth. For fiscal '26, core revenue is projected to be between $1.46 billion and $1.49 billion.
Total Revenue Guidance: For fiscal Q2 '26, total revenue is expected to be in the range of $395 million to $405 million. For fiscal '26, total revenue is projected to be between $1.6 billion and $1.63 billion.
Non-GAAP Operating Income Guidance: For fiscal Q2 '26, non-GAAP operating income is expected to be in the range of $63 million to $68 million. For fiscal '26, non-GAAP operating income is projected to be between $257 million and $277 million, reflecting a non-GAAP operating margin of 16% to 17%.
Float Revenue Guidance: Float revenue for fiscal '26 is expected to be $134 million, $5 million lower than prior guidance.
Spend & Expense Card Payment Volume: Card payment volume is expected to grow in the high teens year-over-year in fiscal '26, with a take rate slightly above 250 basis points.
Stock-Based Compensation Expenses: Stock-based compensation expenses for fiscal '26 are expected to be approximately $260 million, which is $30 million or 10% lower than previously communicated.
Profitability Expansion: The company expects an ex-float margin expansion of more than 290 basis points compared to fiscal '25.
The selected topic was not discussed during the call.
The earnings call highlights strong revenue growth, profitability, and strategic initiatives like AI and Embed 2.0. The Q&A session reveals sustained efficiency efforts and a focus on mid-market expansion, driving higher ARPU. The new share repurchase plan and reduced stock-based compensation are positive for shareholders. However, management's lack of specific timelines for AI monetization and pricing initiatives introduces some uncertainty. Overall, the optimistic guidance, strategic plans, and shareholder returns suggest a positive stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
