Bill.com (NYSE:BILL) Delivers Impressive Q1, Stock Jumps 11.7%

Radek Strnad /
2021/11/04 4:49 pm EDT

Payments and billing software maker Bill.com (NYSE:BILL) reported Q1 FY2022 results topping analyst expectations, with revenue up 151% year on year to $116.4 million. Guidance for next quarter's revenue was surprisingly good, being $130.5 million at the midpoint, 11.5% above what analysts were expecting. Bill.com made a GAAP loss of $75.6 million, down on its loss of $12.9 million, in the same quarter last year.

Is now the time to buy Bill.com? Access our full analysis of the earnings results here, it's free.

Bill.com (BILL) Q1 FY2022 Highlights:

  • Revenue: $116.4 million vs analyst estimates of $104.5 million (11.2% beat)
  • EPS (non-GAAP): -$0.15 vs analyst estimates of -$0.21
  • Revenue guidance for Q2 2022 is $130.5 million at the midpoint, above analyst estimates of $116.9 million
  • The company lifted revenue guidance for the full year, from $478 million to $539.5 million at the midpoint, a 12.8% increase
  • Free cash flow was negative $25.4 million, down from positive free cash flow of $14.6 million in previous quarter
  • Customers: 126,800, up from 121,200 in previous quarter
  • Gross Margin (GAAP): 74.3%, in line with same quarter last year

“We kicked off our fiscal year with momentum and strong first quarter results that exceeded our expectations,” said René Lacerte, Bill.com CEO and Founder.

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.

The adoption of financial technology software is propelled by an ongoing drive to reduce costs, and as a greater number of small-medium sized businesses digitize their back offices the demand for services like Bill.com is likely to grow.

Sales Growth

As you can see below, Bill.com's revenue growth has been incredible over the last year, growing from quarterly revenue of $46.2 million, to $116.4 million.

Bill.com Total Revenue

This was another standout quarter with the revenue up a splendid 151% year on year. On top of that, revenue increased $38.1 million quarter on quarter, a very strong improvement on the $18.5 million increase in Q4 2021, and a sign of re-acceleration of growth, which is very nice to see indeed.

Analysts covering the company are expecting the revenues to grow 83.9% over the next twelve months, although estimates are likely to change post earnings.

There are others doing even better than Bill.com. Founded by ex-Google engineers, a small company making software for banks has been growing revenue 90% year on year and is already up more than 400% since the IPO in December. You can find it on our platform for free.

Customer Growth

You can see below that Bill.com reported 126,800 customers at the end of the quarter, an increase of 5,600 on last quarter. That's in line with the customer growth we have seen over the last couple of quarters, suggesting that the company can maintain its current sales momentum.

Bill.com Customers

Key Takeaways from Bill.com's Q1 Results

Since it has still been burning cash over the last twelve months it is worth keeping an eye on Bill.com’s balance sheet, but we note that with a market capitalization of $30 billion and more than $2.83 billion in cash, the company has the capacity to continue to prioritize growth over profitability.

We were impressed by how strongly Bill.com outperformed analysts’ revenue expectations this quarter. And we were also excited to see the really strong revenue growth. Zooming out, we think this impressive quarter should have shareholders feeling very positive. The company is up 11.7% on the results and currently trades at $327.61 per share.

Bill.com may have had a good quarter, so should you invest right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our actionable report which you can read here, it's free.

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The author has no position in any of the stocks mentioned.