Bill.com (BILL) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/08/17 6:46 am EDT

Payments and billing software maker Bill.com (NYSE:BILL) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Bill.com reported revenues of $166.9 million, up 179% year on year, beating analyst revenue expectations by 5.7%. It was an impressive quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth. The company added 11,600 customers to a total of 146,600.

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 133% year on year to $183.1 million, improving on the 85.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.

Bill.com Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. 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 12.7%.

Looking at Bill.com's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Paycom Software delivered top-line growth of 30.8% year on year, beating analyst estimates by 2.7% and Avalara reported revenues up 23.3% year on year, missing analyst estimates by 0.28%. Paycom Software traded up 1.69% on the results, and Avalara traded flat on the results. Read our full analysis of Paycom Software's results here and Avalara's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 16.1% over the last month. Bill.com is up 21.9% during the same time, and is heading into the earnings with analyst price target of $186.2, compared to share price of $152.

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.