What Happened:
Shares of payments and billing software maker Bill.com (NYSE:BILL) jumped 16.2% in the afternoon session after the company posted a solid third-quarter with total payment volume (TPV), revenue, free cash flow, and earnings per share (EPS) all exceeding analysts' estimates. Impressively, TPV beat by roughly 10%. Customer growth also accelerated. Guidance for the full year was raised, and guidance for the next quarter came in above Consensus estimates. Overall, it was a nearly perfect quarter for the company, especially considering the mixed earnings results from its high-growth SaaS peers.
What is the market telling us:
Bill.com's shares are very volatile and over the last year have had 71 moves greater than 5%. But moves this big are very rare even for Bill.com and that is indicating to us that this news had a significant impact on the market's perception of the business.
Bill.com is down 17.2% since the beginning of the year, and at $90.18 per share it is trading 49.1% below its 52-week high of $177.31 from August 2022. Investors who bought $1,000 worth of Bill.com's shares at the IPO in December 2019 would now be looking at an investment worth $2,550.
Is now the time to buy Bill.com? Access our full analysis of the earnings results here, it's free.