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

Petr Huřťák /
2023/08/16 8:05 am EDT

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

Last quarter Bill.com reported revenues of $272.6 million, up 63.3% year on year, beating analyst revenue expectations by 10.3%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates and accelerating customer growth. The company added 15,200 customers to a total of 197,900.

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 41.1% year on year to $282.6 million, slowing down from the 156% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 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 11.7%.

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. Marqeta delivered top-line growth of 23.8% year on year, beating analyst estimates by 5.13%, and Paylocity reported revenues up 34.7% year on year, exceeding estimates by 2.29%. Marqeta traded up 17.2% on the results, and Paylocity was down 3.15%.

Read our full analysis of Marqeta's results here and Paylocity's results here.

Tech stocks have had a rocky start since 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 8.79% over the last month. Bill.com is down 24.8% during the same time, and is heading into the earnings with analyst price target of $132.7, compared to share price of $101.93.

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.