Bill.com Earnings: What To Look For From BILL

Kayode Omotosho /
2022/11/02 3:39 am EDT
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Payments and billing software maker Bill.com (NYSE:BILL) will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Last quarter Bill.com reported revenues of $200.2 million, up 155% year on year, beating analyst revenue expectations by 9.35%. It was a very strong quarter for the company, with a significant improvement in gross margin and very optimistic guidance for the next quarter. The company added 11,200 customers to a total of 157,800.

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 78.2% year on year to $210.9 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 $0.06 per share.

Bill.com Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and two 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 Q1 earnings results, giving us a hint of what we can expect. Paycom Software reported revenues up 30.4% year on year, exceeding estimates by 1.79%. Paycom traded up 1.91% on the results. Read our full analysis of Paycom Software's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.98% over the last month. Bill.com is down 2.68% during the same time, and is heading into the earnings with analyst price target of $201.20, compared to share price of $130.69.

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.