Bill.com (BILL) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/11/01 3:05 am EDT

Payments and billing software maker Bill.com (NYSE:BILL) will be reporting results tomorrow afternoon. Here's what to expect.

Last quarter Bill.com reported revenues of $296 million, up 47.8% year on year, beating analyst revenue expectations by 4.75%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full year. The company added 3,100 customers to a total of 201,000.

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 30% year on year to $298.8 million, slowing down from the 94.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 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 9.76%.

Looking at Bill.com's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Paychex delivered top-line growth of 6.62% year on year, beating analyst estimates by 0.97%, and Workiva reported revenues up 19.1% year on year, exceeding estimates by 1.65%. Paychex traded up 3.89% on the results, and Workiva was down 3.3%.

Read our full analysis of Paychex's results here and Workiva's results here.

The whole tech sector has been facing a sell-off, and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Bill.com is down 11.4% during the same time, and is heading into the earnings with analyst price target of $131, compared to share price of $90.78.

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.

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