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DJ Bill.com Up 22% After 2Q Results Beat Analyst Expectations

· 02/05/2021 10:55

By Michael Dabaie

Bill.com shares were up 22% to $171.03 in Friday morning trading.

The provider of cloud-based software for back-office financial operations after the market closed Thursday reported second-quarter revenue of $54 million, up from $39.1 million a year earlier and beating the FactSet consensus forecast for $47.1 million.

Adjusted loss per share was 3 cents, narrower than the FactSet consensus for a loss of 8 cents.

The company said it served 109,200 customers as of the end of the second quarter, for year-over-year customer growth of 27%. Bill.com said it processed $34.8 billion in total payment volume on its platform in the quarter, an increase of 40% year-over-year and 21% quarter-over-quarter.

During its earnings call, the company said it expects third-quarter total revenue of $53.7 million to $54.7 million. FactSet consensus had been for $49.4 million.

"Regarding our planned operating expenses, we will continue to develop our platform's capabilities and invest in R&D to support product development work relating to our new financial institution partnerships. We will continue our disciplined approach with regards to sales and marketing investment and will increase our investment as opportunities and unit economics dictate," Chief Financial Officer John Rettig said on the call.

The company's guidance is for a quarterly adjusted loss per share was 8 cents to 7 cents. The FactSet consensus had been for a 7-cent loss.

"Although customer growth could moderate post-pandemic, we believe the secular growth in digital payment usage and a mix shift towards more real-time payments will drive 40% core revenue growth for several years and support one of the highest valuations in our Enterprise Software universe," Needham said in a research report.

"We are increasing our price target from $120 to $170 given our belief Bill.com is in the early stages of a massive growth opportunity across all of their customer channels," Needham said.

KeyBanc Capital Markets said it retains an overweight recommendation on the stock on a "compelling, multiyear growth runway to modernize" small and midsize business back-office operation.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

February 05, 2021 10:55 ET (15:55 GMT)

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