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DJ Bill.com Stock Is Soaring. The CEO Says the Pandemic Has Been a Tailwind. -- Barrons.com

· 02/05/2021 10:30
By Eric J. Savitz

Bill.com Holdings stock spiked 10% in after-hours trading Thursday on better-than-expected results for the company's fiscal second quarter ended Dec. 31.

Bill.com (ticker: BILL), a provider of cloud-based financial software for small- and medium-sized businesses, posted quarterly revenue of $54 million, up 38% from a year ago, and well ahead of the Wall Street analyst consensus forecast of $47.1 million. Bill.com said "core revenue, " which includes subscription and transaction fees, was $52.3 million, up 59%. The company had a non-GAAP loss of 3 cents a share in the quarter, narrower than the Street consensus forecast for a loss of 8 cents.

"We had a very strong quarter, as the platform continued to scale and grow," CEO Rene Lecerte said in an interview with Barron's. He noted that total payment volume was $35 billion in the quarter, up 40% from $25 billion a year ago, while total customers grew to 109,000, up 27% from 86,000 a year ago. He said that adoption is unfolding across segments, and through multiple sales channels.

Lecerte notes that early in the pandemic period, the company saw both increased interest in the platform as well as higher attrition, as the economic downturn affected some customers. But he says that the situation has shifted, and customer retention increased in the latests quarter. Overall, he says, the pandemic has been a tailwind for the business.

For the March quarter, he says, the company expects revenue of $53.7 million to $54.7 million, with a non-GAAP loss of 7 cents to 8 cents a share. Previous consensus estimates called for $49.4 million in revenue and a non-GAAP loss of 7 cents. Lecerte says the company sees core revenue for the quarter of $52.9 million to $53.8 million.

In Friday morning trading Thursday, Bill.com stock is up 25.6% to $175.72.

Write to Eric J. Savitz at eric.savitz@barrons.com

(END) Dow Jones Newswires

February 05, 2021 10:30 ET (15:30 GMT)

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