BILL Reports Fourth Quarter and Fiscal Year 2023 Financial Results

  • FY23 Total Revenue Exceeded $1 Billion
  • Q4 Core Revenue Increased 33% Year-Over-Year
  • Q4 Total Revenue Increased 48% Year-Over-Year

SAN JOSE, Calif.--()--BILL (NYSE: BILL), a leader in financial automation software for small and midsize businesses (SMBs), today announced financial results for the fourth quarter and fiscal year ended June 30, 2023.

“Fiscal 2023 was a defining year for BILL. We exceeded $1 billion in annual revenue, delivered our first year of non-GAAP profitability, and transacted payment volume that accounted for approximately 1% of U.S. GDP,” said René Lacerte, BILL CEO and Founder. “Our solutions are helping more than 460,000 businesses automate their financial operations and gain better visibility and control of their cash flow. With our increasing scale, enhanced platform, and expanding ecosystem, we are uniquely positioned to be the essential financial operations platform for millions of SMBs.”

“In Q4, we delivered strong financial results, including revenue growth of 48% year-over-year and continued expansion of our non-GAAP net income margin,” said John Rettig, BILL CFO. “Our financial performance demonstrated the strength of our durable business model and the rigor of our execution in driving growth and achieving non-GAAP profitability.”

Financial Highlights for the Fourth Quarter of Fiscal 2023:

The financial measures listed below identified as BILL standalone exclude the results of Divvy, Invoice2go, and Finmark.

  • Total revenue was $296.0 million, an increase of 48% year-over-year.
  • Core revenue, which consists of subscription and transaction fees, was $259.5 million, an increase of 33% year-over-year.
    • Subscription fees were $66.9 million, up 21% year-over-year. This includes $57.8 million of subscription fees from the BILL standalone platform, which increased 25% year-over-year.
    • Transaction fees were $192.6 million, up 38% year-over-year. This includes $91.5 million of transaction fees from the BILL standalone platform, which increased 33% year-over-year, and $99.9 million of transaction fees from our Divvy spend and expense management solution, which increased 44% year-over-year.
  • Float revenue, which consists of interest on funds held for customers, was $36.5 million.
  • Gross profit was $243.4 million, representing an 82.2% gross margin, compared to $156.8 million, or a 78.3% gross margin, in the fourth quarter of fiscal 2022. Non-GAAP gross profit was $257.2 million, representing an 86.9% non-GAAP gross margin, compared to $168.5 million, or a 84.2% non-GAAP gross margin, in the fourth quarter of fiscal 2022.
  • Loss from operations was $41.4 million, compared to a loss from operations of $83.4 million in the fourth quarter of fiscal 2022. Non-GAAP income from operations was $42.3 million, compared to a non-GAAP loss from operations of $3.2 million in the fourth quarter of fiscal 2022.
  • Net loss was $15.9 million, or ($0.15) per share, basic and diluted, compared to net loss of $84.9 million, or ($0.81) per share, basic and diluted, in the fourth quarter of fiscal 2022. Non-GAAP net income was $69.4 million, or $0.59 per diluted share, compared to non-GAAP net loss of $3.3 million, or ($0.03) per share, basic and diluted, in the fourth quarter of fiscal 2022.

Financial Highlights for Fiscal Year 2023:

The financial measures listed below identified as BILL standalone exclude the results of Divvy, Invoice2go, and Finmark.

  • Total revenue was $1,058.5 million, an increase of 65% from the prior fiscal year.
  • Core revenue, which consists of subscription and transaction fees, was $944.7 million, an increase of 49% from the prior fiscal year.
    • Subscription fees were $253.3 million, up 31% year-over-year. This includes $217.4 million of subscription fees from the BILL standalone platform, which increased 33% year-over-year.
    • Transaction fees were $691.4 million, up 57% year-over-year. This includes $331.4 million of transaction fees from the BILL standalone platform, which increased 45% year-over-year, and $353.1 million of transaction fees from our Divvy spend and expense management solution, which increased 69% year-over-year.
  • Float revenue, which consists of interest on funds held for customers, was $113.8 million.
  • Gross profit was $864.5 million, representing a 81.7% gross margin, compared to $497.0 million, or a 77.4% gross margin, in the prior fiscal year. Non-GAAP gross profit was $916.9 million, representing a 86.6% non-GAAP gross margin, compared to $542.1 million, or a 84.4% non-GAAP gross margin in the prior fiscal year.
  • Loss from operations was $295.8 million, compared to a loss from operations of $316.8 million in the prior fiscal year. Non-GAAP income from operations was $117.1 million, compared to a non-GAAP loss from operations of $14.7 million in the prior fiscal year.
  • Net loss was $223.7 million, or ($2.11) per share, basic and diluted, compared to net loss of $326.4 million, or ($3.21) per share, basic and diluted, in the prior fiscal year. Non-GAAP net income was $194.4 million, or $1.65 per diluted share, compared to non-GAAP net loss of $24.3 million, or ($0.24) per share, basic and diluted, in the prior fiscal year.

Business Highlights and Recent Developments:

The metrics listed below identified as BILL standalone exclude the results of Divvy, Invoice2go, and Finmark.

  • Served 461,000 businesses using our solutions as of the end of the fourth quarter. This included 201,000 BILL standalone customers, 29,200 spending businesses that used our Divvy spend and expense management solution, and 230,800 subscribers that used Invoice2go. Approximately 7,200 of these businesses used more than one of our solutions as of June 30, 2023.1
  • Processed $69.1 billion in total payment volume in the fourth quarter, an increase of 9% year-over-year. This included $65.1 billion of total payment volume on our BILL standalone platform, an increase of 7% year-over-year, and $3.8 billion in total card payment volume for Divvy, an increase of 42% year-over-year.
  • Processed 23.4 million transactions during the fourth quarter, an increase of 29% year-over-year. This included 11.6 million transactions on our BILL standalone platform, representing an increase of 11% year-over-year, and 11.4 million Divvy card transactions, an increase of 56% year-over-year.
  • As of June 30, 2023, 5.8 million BILL standalone network members have originated or received an electronic payment using our platform, an increase of 23% year-over-year compared to the 4.7 million network members we reported a year ago.
  • Extended agreement with JPMorgan Chase Commercial Banking for Cashflow360, powered by BILL, for another five years.

Financial Outlook

We are providing the following guidance for the fiscal first quarter ending September 30, 2023 and the full fiscal year ending June 30, 2024.

 

 

Q1 FY24
Guidance

 

FY24
Guidance

Total revenue (millions)

$295.5 - $298.5

 

$1,288.5 - $1,306.5

Year-over-year total revenue growth

28% - 30%

 

22% - 23%

Non-GAAP net income (millions)

$56.5 - $59.5

 

$217 - $235

Non-GAAP net income per diluted share

$0.48 - $0.50

 

$1.82 - $1.97

_________________________
1
Businesses using more than one of our solutions are included separately in the total for each solution utilized.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

BILL has not provided a reconciliation of non-GAAP net income or non-GAAP net income per share guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call and Webcast Information

In conjunction with this announcement, BILL will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal fourth quarter 2023 results and our outlook for the fiscal first quarter and fiscal year ending June 30, 2024. The live webcast and a replay of the webcast will be available at the Investor Relations section of BILL’s website: https://investor.bill.com/events-and-presentations/default.aspx.

About BILL

BILL (NYSE: BILL) is a leader in financial automation software for small and midsize businesses (SMBs). As a champion of SMBs, we are automating the future of finance so businesses can thrive. Hundreds of thousands of businesses rely on BILL to more efficiently control their payables, receivables and spend and expense management. BILL’s network connects millions of members so they can pay or get paid faster. Headquartered in San Jose, California, BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers. For more information, visit bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations of future performance, including guidance for our total revenue, non-GAAP net income, and non-GAAP net income per share for the fiscal first quarter ending September 30, 2023 and full fiscal year ending June 30, 2024, our expectations for the growth of demand on our platform and the expansion of our customers’ utilization of our products. These risks and uncertainties include, but are not limited to, macroeconomic factors, including interest rate, inflationary and recessionary environments and SMBs’ heightened sensitivity thereto, fluctuations in foreign exchange rates, instability in the U.S. and global banking systems, the global impact of the ongoing war in Ukraine, the coronavirus pandemic (COVID-19), variants thereof, and their impact on our employees, customers and strategic partners and on supply chains and labor markets, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, the market, interest rate, foreign exchange and other conditions that the customer funds we hold in trust are subject to, our ability to attract new customers and convert trial customers into paying customers, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impacts of acquisitions and investments, including our ability to integrate Divvy, Invoice2go and Finmark, our accounting for and internal controls related to acquired businesses’ operating results, changes in staffing levels, the volatility in our interest earned on customer funds, and other risks detailed in registration statements and periodic reports we file with the Securities and Exchange Commission (SEC), including our quarterly and annual reports, which may be obtained on the Investor Relations section of BILL’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Items excluded from non-GAAP gross profit and non-GAAP gross margin include amortization of certain intangible assets, stock-based compensation and related payroll taxes, and depreciation expense. Items excluded from non-GAAP operating expenses include amortization of certain intangible assets, stock-based compensation and related payroll taxes, depreciation expense, and acquisition and integration-related expenses. Items excluded from non-GAAP net income (loss) and non-GAAP net income (loss) per share include stock-based compensation expense and related payroll taxes, depreciation expense, amortization of certain intangible assets, acquisition and integration-related expenses, amortization of debt issuance costs, accretion of debt premium, and income tax effect associated with acquisitions. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses. We exclude stock-based compensation, which is a non-cash expense, and related payroll taxes from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expenses using a variety of valuation methodologies and subjective assumptions while the related payroll taxes are dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business.

Depreciation expense. We exclude depreciation expense from certain of our non-GAAP financial measures because we believe that excluding this non-cash expense provides meaningful supplemental information regarding operational performance. Depreciation expense does not include amortization of capitalized internal-use software costs.

Amortization of intangible assets. We exclude amortization of acquired intangible assets from certain of our non-GAAP financial measures because we believe that excluding this non-cash expense provides meaningful supplemental information regarding our operational performance.

Acquisition and integration-related expenses. We exclude acquisition and integration-related expenses from certain of our non-GAAP financial measures because these costs would have not otherwise been incurred in the normal course of our business operations. In addition, we believe that acquisition and integration-related expenses are non-recurring charges unique to a specific acquisition. Although we may engage in future acquisitions, such acquisitions and the associated acquisition and integration-related expenses are considered unique and not comparable to other acquisitions.

Amortization of debt issuance costs, net of accretion premium. We exclude amortization of debt issuance costs associated with our issuance of our convertible senior notes and credit agreement and accretion of debt premium associated with our credit agreement from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.

Income tax effect associated with acquisitions. We exclude the income tax effect associated with acquisitions from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

Free Cash Flow

Free cash flow is a non-GAAP measure that we calculate as net cash provided by (used in) operating activities, adjusted by purchases of property and equipment and capitalization of internal-use software costs. We believe that free cash flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

 

 

 

June 30,

 

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,617,151

 

 

$

1,596,542

 

Short-term investments

 

 

1,043,110

 

 

 

1,108,493

 

Accounts receivable, net

 

 

28,233

 

 

 

24,045

 

Acquired card receivables, net

 

 

458,650

 

 

 

256,392

 

Prepaid expenses and other current assets

 

 

170,111

 

 

 

151,258

 

Funds held for customers

 

 

3,355,909

 

 

 

3,142,660

 

Total current assets

 

 

6,673,164

 

 

 

6,279,390

 

Non-current assets:

 

 

 

 

Operating lease right-of-use assets, net

 

 

68,988

 

 

 

76,445

 

Property and equipment, net

 

 

81,564

 

 

 

56,985

 

Intangible assets, net

 

 

361,427

 

 

 

432,583

 

Goodwill

 

 

2,396,509

 

 

 

2,362,893

 

Other assets

 

 

54,366

 

 

 

47,730

 

Total assets

 

$

9,636,018

 

 

$

9,256,026

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

8,519

 

 

$

9,948

 

Accrued compensation and benefits

 

 

32,901

 

 

 

29,004

 

Deferred revenue

 

 

26,328

 

 

 

31,868

 

Other accruals and current liabilities

 

 

194,733

 

 

 

120,080

 

Borrowings from credit facilities, net

 

 

135,046

 

 

 

75,097

 

Customer fund deposits

 

 

3,355,909

 

 

 

3,142,660

 

Total current liabilities

 

 

3,753,436

 

 

 

3,408,657

 

Non-current liabilities:

 

 

 

 

Deferred revenue

 

 

410

 

 

 

2,159

 

Operating lease liabilities

 

 

72,477

 

 

 

82,728

 

Convertible senior notes, net

 

 

1,704,782

 

 

 

1,697,985

 

Other long-term liabilities

 

 

18,944

 

 

 

20,803

 

Total liabilities

 

 

5,550,049

 

 

 

5,212,332

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

4,946,623

 

 

 

4,598,737

 

Accumulated other comprehensive loss

 

 

(4,488

)

 

 

(10,217

)

Accumulated deficit

 

 

(856,168

)

 

 

(544,828

)

Total stockholders' equity

 

 

4,085,969

 

 

 

4,043,694

 

Total liabilities and stockholders' equity

 

$

9,636,018

 

 

$

9,256,026

 

 

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)

 

 

Three months ended June 30,

 

Year ended June 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022(1)

Revenue

 

 

 

 

 

 

 

 

Subscription and transaction fees(3)

 

$

259,510

 

 

$

194,820

 

 

$

944,710

 

 

$

633,365

 

Interest on funds held for customers

 

 

36,473

 

 

 

5,401

 

 

 

113,758

 

 

 

8,594

 

Total revenue

 

 

295,983

 

 

 

200,221

 

 

 

1,058,468

 

 

 

641,959

 

Cost of revenue

 

 

 

 

 

 

 

 

Service costs(3)

 

 

41,327

 

 

 

33,269

 

 

 

151,010

 

 

 

105,496

 

Depreciation and amortization of intangible assets(2)

 

 

11,225

 

 

 

10,172

 

 

 

42,967

 

 

 

39,508

 

Total cost of revenue

 

 

52,552

 

 

 

43,441

 

 

 

193,977

 

 

 

145,004

 

Gross profit

 

 

243,431

 

 

 

156,780

 

 

 

864,491

 

 

 

496,955

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development(3)

 

 

81,841

 

 

 

66,908

 

 

 

314,632

 

 

 

219,818

 

Sales and marketing(3)

 

 

117,199

 

 

 

102,484

 

 

 

515,858

 

 

 

307,151

 

General and administrative(3)

 

 

73,441

 

 

 

58,686

 

 

 

281,278

 

 

 

241,174

 

Depreciation and amortization of intangible assets(2)

 

 

12,348

 

 

 

12,057

 

 

 

48,496

 

 

 

45,630

 

Total operating expenses

 

 

284,829

 

 

 

240,135

 

 

 

1,160,264

 

 

 

813,773

 

Loss from operations

 

 

(41,398

)

 

 

(83,355

)

 

 

(295,773

)

 

 

(316,818

)

Other income (expense), net

 

 

26,264

 

 

 

(970

)

 

 

72,856

 

 

 

(13,861

)

Loss before provision for (benefit from) income taxes

 

 

(15,134

)

 

 

(84,325

)

 

 

(222,917

)

 

 

(330,679

)

Provision for (benefit from) income taxes

 

 

737

 

 

 

617

 

 

 

808

 

 

 

(4,318

)

Net loss

 

$

(15,871

)

 

$

(84,942

)

 

$

(223,725

)

 

$

(326,361

)

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.15

)

 

$

(0.81

)

 

$

(2.11

)

 

$

(3.21

)

Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted

 

 

106,414

 

 

 

104,439

 

 

 

105,976

 

 

 

101,753

 

______________________________________

(1) Includes the results of Invoice2go from the acquisition date on September 1, 2021.

(2) Depreciation expense does not include amortization of capitalized internal-use software wage costs.

(3) Includes stock-based compensation cost charged to revenue and expenses as follows (in thousands):

 

 

Three months ended June 30,

 

 

Year ended June 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

 

$

188

 

$

 

$

188

 

$

 

Cost of revenue

 

 

2,391

 

 

1,470

 

 

9,111

 

 

5,144

 

Research and development

 

 

23,213

 

 

16,155

 

 

93,364

 

 

54,907

 

Sales and marketing

 

 

13,480

 

 

23,325

 

 

130,421

 

 

60,237

 

General and administrative

 

 

18,579

 

 

15,826

 

 

80,619

 

 

76,869

 

Total stock-based compensation (4)

 

$

57,851

 

$

56,776

 

$

313,703

 

$

197,157

 
_______________________________

(4)

Consists of acquisition-related equity awards (Acquisition Related Awards), including equity awards assumed and retention equity awards granted to certain employees of acquired companies in connection with acquisitions, and non-acquisition related equity awards (Non-Acquisition Related Awards), which include all other equity awards granted to existing employees and non-employees in the ordinary course of business. The following table presents stock-based compensation recorded for the periods presented and as a percentage of total revenue:

 

 

 

 

 

 

 

 

 

 

As a % of total revenue

 

Three months ended June 30,

 

Year ended June 30,

 

Three months ended June 30,

 

Year ended June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

2023

 

2022

 

2023

 

2022

Acquisition Related Awards

$

4,105

 

$

22,993

 

$

107,815

 

$

100,698

 

1

%

 

11

%

 

10

%

 

16

%

Non-acquisition Related Awards

 

53,746

 

 

33,783

 

 

205,888

 

 

96,459

 

18

%

 

17

%

 

19

%

 

15

%

Total stock-based compensation

$

57,851

 

$

56,776

 

$

313,703

 

$

197,157

 

19

%

 

28

%

 

29

%

 

31

%

 

BILL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

 

Three Months Ended
June 30,

 

Year Ended
June 30,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022(1)

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(15,871

)

 

$

(84,942

)

 

$

(223,725

)

 

$

(326,361

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

57,850

 

 

 

56,776

 

 

 

313,567

 

 

 

197,157

 

Amortization of intangible assets

 

 

20,221

 

 

 

19,768

 

 

 

80,205

 

 

 

75,977

 

Depreciation of property and equipment

 

 

3,351

 

 

 

2,460

 

 

 

11,258

 

 

 

9,161

 

Amortization of capitalized internal-use software costs

 

 

1,206

 

 

 

847

 

 

 

4,215

 

 

 

2,366

 

Amortization of debt issuance costs, net of accretion of debt premium

 

 

1,747

 

 

 

1,415

 

 

 

6,964

 

 

 

4,777

 

Amortization of premium (accretion of discount) on investments in marketable debt securities

 

 

(13,484

)

 

 

1,347

 

 

 

(37,194

)

 

 

11,386

 

Provision for losses on acquired card receivables

 

 

8,504

 

 

 

4,258

 

 

 

32,189

 

 

 

19,879

 

Non-cash operating lease expense

 

 

2,379

 

 

 

2,294

 

 

 

9,493

 

 

 

8,601

 

Deferred income taxes

 

 

(193

)

 

 

616

 

 

 

(1,361

)

 

 

(4,075

)

Other

 

 

(220

)

 

 

(726

)

 

 

1,127

 

 

 

(726

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

5,487

 

 

 

2,814

 

 

 

(4,482

)

 

 

(3,032

)

Prepaid expenses and other current assets

 

 

(9,367

)

 

 

(10,004

)

 

 

(16,844

)

 

 

(12,970

)

Other assets

 

 

2,360

 

 

 

6,073

 

 

 

320

 

 

 

5,105

 

Accounts payable

 

 

(421

)

 

 

664

 

 

 

(1,686

)

 

 

(3,771

)

Other accruals and current liabilities

 

 

24,826

 

 

 

(5,205

)

 

 

34,465

 

 

 

7,460

 

Operating lease liabilities

 

 

(2,592

)

 

 

(2,286

)

 

 

(10,303

)

 

 

(7,877

)

Other long-term liabilities

 

 

(2,825

)

 

 

(7,051

)

 

 

(3,097

)

 

 

(6,749

)

Deferred revenue

 

 

(2,603

)

 

 

408

 

 

 

(7,343

)

 

 

5,599

 

Net cash provided by (used in) operating activities

 

 

80,355

 

 

 

(10,474

)

 

 

187,768

 

 

 

(18,093

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for acquisition, net of acquired cash and cash equivalents

 

 

 

 

 

 

 

 

(28,902

)

 

 

(144,349

)

Purchases of corporate and customer fund short-term investments

 

 

(349,245

)

 

 

(625,570

)

 

 

(2,743,763

)

 

 

(2,801,697

)

Proceeds from maturities of corporate and customer fund short-term investments

 

 

773,132

 

 

 

593,824

 

 

 

3,283,961

 

 

 

1,902,474

 

Proceeds from sale of corporate and customer fund short-term investments

 

 

 

 

 

5,000

 

 

 

11,607

 

 

 

55,744

 

Increase in acquired card receivables, net

 

 

(36,011

)

 

 

(39,269

)

 

 

(234,256

)

 

 

(129,178

)

Purchases of property and equipment

 

 

(1,090

)

 

 

(1,619

)

 

 

(7,589

)

 

 

(5,377

)

Capitalization of internal-use software costs

 

 

(6,383

)

 

 

(2,850

)

 

 

(23,614

)

 

 

(10,259

)

Proceeds from beneficial interest

 

 

 

 

 

6,699

 

 

 

2,080

 

 

 

6,699

 

Other

 

 

(1,194

)

 

 

(1,167

)

 

 

(239

)

 

 

(1,359

)

Net cash provided by (used in) investing activities

 

 

379,208

 

 

 

(64,952

)

 

 

259,285

 

 

 

(1,127,302

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs

 

 

 

 

 

 

 

 

 

 

 

1,341,122

 

Proceeds from issuance of convertible senior notes, net of discounts and issuance costs

 

 

 

 

 

 

 

 

 

 

 

560,075

 

Purchase of capped calls

 

 

 

 

 

 

 

 

 

 

 

(37,893

)

Increase in customer fund deposits liability and other

 

 

250,482

 

 

 

119,960

 

 

 

204,390

 

 

 

941,003

 

Repurchase of common stock

 

 

(63,614

)

 

 

 

 

 

(87,615

)

 

 

 

Increase in prepaid card deposits

 

 

5,520

 

 

 

29,886

 

 

 

26,584

 

 

 

29,886

 

Proceeds from line of credit borrowings

 

 

 

 

 

37,500

 

 

 

60,000

 

 

 

37,500

 

Payments on line of credit and bank borrowings

 

 

 

 

 

(40,000

)

 

 

 

 

 

(40,000

)

Proceeds from exercise of stock options

 

 

3,012

 

 

 

4,908

 

 

 

13,872

 

 

 

34,024

 

Proceeds from issuance of common stock under the employee stock purchase plan

 

 

 

 

 

 

 

 

17,879

 

 

 

12,849

 

Net cash provided by financing activities

 

 

195,400

 

 

 

152,254

 

 

 

235,110

 

 

 

2,878,566

 

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

(51

)

 

 

(149

)

 

 

(38

)

 

 

(149

)

Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

 

654,913

 

 

 

76,679

 

 

 

682,125

 

 

 

1,733,022

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

 

 

3,569,927

 

 

 

3,466,036

 

 

 

3,542,715

 

 

 

1,809,693

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

 

$

4,224,840

 

 

$

3,542,715

 

 

$

4,224,840

 

 

$

3,542,715

 

______________________________________

(1) Includes the results of Invoice2go from the acquisition date on September 1, 2021.

 

 

Year Ended
June 30,

 

 

 

2023

 

 

2022(1)

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:

 

 

 

 

Cash and cash equivalents

 

$

1,617,151

 

$

1,596,542

 

Restricted cash included in other current assets

 

 

87,322

 

 

85,252

 

Restricted cash included in other assets

 

 

13,810

 

 

6,724

 

Restricted cash and restricted cash equivalents included in funds held for customers

 

 

2,506,557

 

 

1,854,197

 

Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

 

$

4,224,840

 

$

3,542,715

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest during the period

 

$

7,440

 

$

4,867

 

Cash paid for income taxes during the period

 

$

1,266

 

$

 

Noncash investing and financing activities:

 

 

 

 

Payable on purchases of property and equipment and internal-use software costs

 

$

174

 

$

1,936

 

Fair value of shares issued as consideration for acquisition

 

$

3,375

 

$

488,494

 

Fair value of stock-based awards assumed in acquisition

 

$

 

$

21,724

 

Fair value of earn-out consideration for acquisition

 

$

10,762

 

$

 

Recognition of beneficial interest

 

$

1,682

 

$

4,690

 

______________________________________

(1) Includes the results of Invoice2go from the acquisition date on September 1, 2021.

BILL HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands except percentages and per share amounts)

 

 

Three Months Ended
June 30,

 

Year Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

GAAP gross profit

$

243,431

 

 

$

156,780

 

 

$

864,491

 

 

$

496,955

 

Add:

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets(1)

 

11,225

 

 

 

10,172

 

 

 

42,967

 

 

 

39,508

 

Stock-based compensation and related payroll taxes charged to cost of revenue

 

2,495

 

 

 

1,534

 

 

 

9,428

 

 

 

5,599

 

Non-GAAP gross profit

$

257,151

 

 

$

168,486

 

 

$

916,886

 

 

$

542,062

 

GAAP gross margin

 

82.2

%

 

 

78.3

%

 

 

81.7

%

 

 

77.4

%

Non-GAAP gross margin

 

86.9

%

 

 

84.2

%

 

 

86.6

%

 

 

84.4

%

_____________________________

(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized internal-use software costs.

 

Three Months Ended
June 30,

 

Year Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

GAAP research and development expenses

$

81,841

 

 

$

66,908

 

 

$

314,632

 

 

$

219,818

 

Less - stock-based compensation and related payroll taxes

 

(23,935

)

 

 

(16,681

)

 

 

(95,876

)

 

 

(57,760

)

Non-GAAP research and development expenses

$

57,906

 

 

$

50,227

 

 

$

218,756

 

 

$

162,058

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expenses

$

117,199

 

 

$

102,484

 

 

$

515,858

 

 

$

307,151

 

Less - stock-based compensation and related payroll taxes

 

(13,802

)

 

 

(23,551

)

 

 

(132,414

)

 

 

(61,366

)

Non-GAAP sales and marketing expenses

$

103,397

 

 

$

78,933

 

 

$

383,444

 

 

$

245,785

 

 

 

 

 

 

 

 

 

GAAP general and administrative expenses

$

73,441

 

 

$

58,686

 

 

$

281,278

 

 

$

241,174

 

Less:

 

 

 

 

 

 

 

Stock-based compensation and related payroll taxes

 

(18,937

)

 

 

(16,191

)

 

 

(82,178

)

 

 

(81,307

)

Acquisition and integration-related expenses

 

(1,004

)

 

 

 

 

 

(1,506

)

 

 

(10,985

)

Non-GAAP general and administrative expenses

$

53,500

 

 

$

42,495

 

 

$

197,594

 

 

$

148,882

 

 

 

Three Months Ended
June 30,

 

Year Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of loss from operations:

 

 

 

 

 

 

 

GAAP loss from operations

$

(41,398

)

 

$

(83,355

)

 

$

(295,773

)

 

$

(316,818

)

Add:

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets(1)

 

23,573

 

 

 

22,229

 

 

 

91,463

 

 

 

85,138

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

59,169

 

 

 

57,957

 

 

 

319,896

 

 

 

206,032

 

Acquisition and integration-related expenses

 

1,004

 

 

 

 

 

 

1,506

 

 

 

10,985

 

Non-GAAP income (loss) from operations

$

42,348

 

 

$

(3,169

)

 

$

117,092

 

 

$

(14,663

)

_____________________________

(1) Excludes amortization of capitalized internal-use software costs.

 

Three Months Ended
June 30,

 

Year Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of net loss:

 

 

 

 

 

 

 

GAAP net loss

$

(15,871

)

 

$

(84,942

)

 

$

(223,725

)

 

$

(326,361

)

Add (less):

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets(1)

 

23,573

 

 

 

22,229

 

 

 

91,463

 

 

 

85,138

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

59,169

 

 

 

57,957

 

 

 

319,896

 

 

 

206,032

 

Acquisition and integration-related expenses

 

1,004

 

 

 

 

 

 

1,506

 

 

 

10,985

 

Amortization of debt issuance costs, net of accretion of debt premium

 

1,747

 

 

 

1,415

 

 

 

6,964

 

 

 

4,777

 

Gain on debt extinguishment

 

 

 

 

(566

)

 

 

 

 

 

(566

)

Income tax effect associated with acquisitions

 

(193

)

 

 

616

 

 

 

(1,685

)

 

 

(4,322

)

Non-GAAP net income (loss)

$

69,429

 

 

$

(3,291

)

 

$

194,419

 

 

$

(24,317

)

_____________________________

(1) Excludes amortization of capitalized internal-use software costs.

 

Three Months Ended
June 30,

 

Year Ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of net loss per share attributable to common stockholders, basic and diluted

 

 

 

 

 

 

 

GAAP net loss per share attributable to common stockholders,

basic and diluted

$

(0.15

)

 

$

(0.81

)

 

$

(2.11

)

 

$

(3.21

)

Add (less):

 

 

 

 

 

 

 

Depreciation and amortization of intangible assets(1)

 

0.22

 

 

 

0.21

 

 

 

0.86

 

 

 

0.84

 

Stock-based compensation and related payroll taxes charged to cost of revenue and operating expenses

 

0.55

 

 

 

0.55

 

 

 

3.02

 

 

 

2.02

 

Acquisition and integration-related expenses

 

0.01

 

 

 

 

 

 

0.01

 

 

 

0.11

 

Amortization of debt issuance costs, net of accretion of debt premium

 

0.02

 

 

 

0.02

 

 

 

0.07

 

 

 

0.05

 

Gain on debt extinguishment

 

 

 

 

(0.01

)

 

 

 

 

 

(0.01

)

Income tax effect associated with acquisitions

 

 

 

 

0.01

 

 

 

(0.02

)

 

 

(0.04

)

Non-GAAP net income (loss) per share attributable to common stockholders, basic

$

0.65

 

 

$

(0.03

)

 

$

1.83

 

 

$

(0.24

)

Non-GAAP net income (loss) per share attributable to common stockholders, diluted

$

0.59

 

 

$

(0.03

)

 

$

1.65

 

 

$

(0.24

)

___________________

(1) Excludes amortization of capitalized internal-use software costs.

 

Three Months Ended
June 30,

 

 

 

Year Ended
June 30,

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

Shares used to compute GAAP and non-GAAP net income (loss) per share attributable to common stockholders, basic

106,414

 

104,439

 

105,976

 

101,753

Shares used to compute GAAP and non-GAAP net income (loss) per share attributable to common stockholders, diluted (1)

117,022

 

104,439

 

117,827

 

101,753

___________________

(1) GAAP net loss per share attributable to common stockholders, diluted was computed using weighted-average number of common shares, basic for the three months and year ended June 30, 2023.

 

BILL HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)

 

 

Three months ended
June 30,

 

Year ended
June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net cash provided by (used in) operating activities

$

80,355

 

 

$

(10,474

)

 

$

187,768

 

 

$

(18,093

)

Purchases of property and equipment

 

(1,090

)

 

 

(1,619

)

 

 

(7,589

)

 

 

(5,377

)

Capitalization of internal-use software costs

 

(6,383

)

 

 

(2,850

)

 

 

(23,614

)

 

 

(10,259

)

Free cash flow

$

72,882

 

 

$

(14,943

)

 

$

156,565

 

 

$

(33,729

)

 

BILL HOLDINGS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(Unaudited, in thousands)

 

 

June 30,
2023

 

June 30,
2022

Remaining performance obligations to be recognized as revenue:

 

 

 

Within 2 years

$

101,177

 

$

98,723

Thereafter

 

29,960

 

 

51,567

Total

$

131,137

 

$

150,290

 

Contacts

IR Contact:
Karen Sansot
ksansot@hq.bill.com

Press Contact:
John Welton
john.welton@hq.bill.com

Contacts

IR Contact:
Karen Sansot
ksansot@hq.bill.com

Press Contact:
John Welton
john.welton@hq.bill.com