Billing and payment software maker Bill.com (NYSE:BILL) beat analysts' expectations in the first quarter of fiscal 2024, with revenue rising 18.5% year-over-year to $323 million. Furthermore, revenue guidance for the upcoming quarter ($325 million at the midpoint) was surprisingly good and 3.3% higher than analysts had expected. It generated non-GAAP earnings of $0.60 per share, improving from its earnings of $0.50 per share in the same quarter last year.
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Bill.com (BILL) Q1 2024 Highlights:
- he won: $323 million vs. analyst estimates of $306 million (5.6% win)
- Earnings per share (non-GAAP): $0.60 vs. analyst estimates of $0.54 (12.1% win)
- Revenue guidance for Q2 2024 It is $325 million at the midpoint, higher than analyst estimates of $314.5 million
- Gross Profit Margin (GAAP): 83%, down from 86.1% in the same quarter last year
- Free cash flow With a value of $62.96 million, a decrease of 15.2% from the previous quarter
- Market value: $6.60 billion
It was started by Rene Lacerte in 2006 after he sold his previous payroll and accounting software company PayCycle to Intuit (NASDAQ:), Bill.com (NYSE:BILL) is a software as a service platform aimed at making payments and billing easier for small and medium-sized businesses.
Finance and Accounting Software Finance and accounting software benefit from the dual trends of cost savings and ease of use. The first is to create SaaS for businesses, large and small, that much prefer the flexibility of cloud-based software delivered through a web browser and paid on a subscription basis rather than the hassle and expense of purchasing and managing on-premises enterprise software. The second is business software consumption, where multiple independent processes such as supply chain and tax management are brought together into one easy-to-use platform.
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Sales Growth As you can see below, Bill.com's revenue growth has been impressive over the past three years, rising from $59.74 million in the third quarter of 2021 to $323 million this quarter.
This quarter, Bill.com's quarterly revenue was again up 18.5% year over year. However, its growth has slowed compared to the last quarter as the company's revenues increased by only $4.53 million in the first quarter compared to $13.51 million in the fourth quarter of 2023. Although we would like to see revenues increase by a larger amount each quarter, One-time fluctuations are not usually a cause for concern.
Next quarter's guidance indicates that Bill.com expects revenue to grow 9.8% year-over-year to $325 million, slowing from the 47.8% year-over-year increase it reported in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 9.1% over the next 12 months before the earnings results were announced.
Cash Is King If you've followed StockStory for a while, you know that we emphasize free cash flow. Why are you asking? We believe that in the end, cash is king, and you can't use accounting profits to pay bills. Bill.com's free cash flow was $62.96 million in the first quarter, up 163% year over year.
Bill.com generated $257.7 million in free cash flow over the last 12 months, representing 20.7% of revenue. This high FCF margin stems from its asset-light business model and strong competitive position, giving it the option of returning capital to shareholders or reinvesting in its business while maintaining a cash cushion.
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Key Takeaways from Bill.com's Q1 Results We enjoyed seeing Bill.com beat analysts' revenue expectations this quarter. We were also pleased that revenue guidance for the upcoming quarter came in above Wall Street estimates. On the other hand, gross profit margin decreased. Overall, we think this was a really good quarter that should please shareholders. However, investors were likely expecting more, and the stock fell 2% after the reporting, trading at $62 per share.
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The post Bill.com (NYSE:BILL) Reports Upbeat Q1, Provides Optimistic Full-Year Guidance By Stock Story first appeared on Investorempires.com.
