Bill.com (BILL) Q1 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/05/04 7:41 am EDT

Payments and billing software maker Bill.com (NYSE:BILL) will be reporting results tomorrow after market close. Here's what you need to know.

Last quarter Bill.com reported revenues of $156.4 million, up 189% year on year, beating analyst revenue expectations by 19.3%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter. The company added 8,200 customers to a total of 135,000.

Is Bill.com buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Bill.com's revenue to grow 162% year on year to $157 million, improving on the 44.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.

Bill.com Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 13.4%.

Looking at Bill.com's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Paycom Software delivered top-line growth of 29.8% year on year, beating analyst estimates by 3% and Workiva reported revenues up 24.4% year on year, exceeding estimates by 1.76%. Paycom traded up 9.11%, while Workiva traded down 10.8 on the results. Read our full analysis of Paycom Software's results here and Workiva's results here.

Tech stocks have been under pressure since the end of last year and software stocks have not been spared, with share price down on average 16.6% over the last month. Bill.com is down 27.4% during the same time, and is heading into the earnings with analyst price target of $301.9, compared to share price of $168.25.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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