Bill.com Reports Second Quarter Fiscal 2022 Financial Results
Bill.com reported a 190% increase in total revenue to $156.5 million for Q2 FY22, credited to strong growth in core revenue, which rose 197% year-over-year. Key metrics included 85% organic core revenue growth and a 313% spike in transaction fees. Despite a non-GAAP net loss of $220,000 (or $0.00 per share), the company expanded its gross margin to 85.3%. Bill.com served 135,000 customers and processed over $56 billion in payment volume. Guidance for Q3 FY22 anticipates total revenue between $157.0 - $158.0 million.
- Total revenue increased by 190% to $156.5 million.
- Core revenue grew by 197% year-over-year.
- Q2 organic core revenue increased by 85% year-over-year.
- Transaction fees soared by 313% year-over-year.
- Gross margin improved to 85.3%.
- Net loss was $80.4 million, up from $17.2 million year-over-year.
- Loss from operations increased to $76.1 million from $14.2 million.
-
Q2 Core Revenue Increased
197% Year-Over-Year -
Q2 Organic Core Revenue Increased
85% Year-Over-Year -
Q2 Transaction Fees Increased
313% Year-Over-Year -
Q2 Organic Transaction Fees Increased
121% Year-Over-Year
“We continued to see strong growth across our business in the second quarter and delivered accelerated revenue growth at a meaningful scale,” said
"We’re very pleased with our strong revenue growth in the second quarter, especially organic core revenue growth of
Bill.com’s reported financial results for the second quarter fiscal 2022 include the results of Divvy and
Financial highlights for the second quarter of fiscal 2022:
-
Total revenue was
$156.5 million 190% from the second quarter of fiscal 2021. -
Core revenue, which consists of subscription and transaction fees, was
$155.5 million 197% year-over-year. Organic core revenue was$97.0 million 85% year-over-year, and excluded Divvy andInvoice2go revenue of$58.5 million -
Subscription fees were
$49.2 million 85% year-over-year. Organic subscription fees were$40.3 million 51% year-over-year, and excluded Divvy andInvoice2go fees of approximately$8.9 million -
Transaction fees were
$106.3 million 313% year-over year. Organic transaction fees were$56.8 million 121% year-over-year, and excluded Divvy andInvoice2go fees of$49.5 million
-
Subscription fees were
-
Gross profit was
$122.1 million 78.0% gross margin, compared to$40.1 million 74.1% gross margin, in the second quarter of fiscal 2021. Non-GAAP gross profit was$133.5 million 85.3% non-GAAP gross margin, compared to$41.4 million 76.6% non-GAAP gross margin in the second quarter of fiscal 2021. -
Loss from operations was
$76.1 million $14.2 million $3.4 million $1.6 million -
Net loss was
$80.4 million $0.78 $17.2 million $0.21 $220,000 $0.00 $1.1 million $0.01
Business Highlights and Recent Developments
The metrics listed below identified as
-
Served 135,000
Bill.com customers as of the end of the second quarter. Also served 15,500 spending businesses that used Divvy and 223,000 subscribers that usedInvoice2go . -
Processed
$56.4 billion Bill.com customers in the second quarter, an increase of62% year-over-year. Also processed$1.9 billion -
Processed 9.8 million transactions during the second quarter through the
Bill.com platform, representing an increase of35% year-over-year. In addition, processed 5.3 million Divvy card transactions. -
Welcomed seasoned technology executive,
Sarah Acton , as our Chief Marketing Officer. -
Appointed Divvy CEO and co-founder,
Blake Murray , to Chief Revenue Officer ofBill.com .
Financial Outlook
We are providing the following guidance for the fiscal third quarter ending
|
Q3 FY22 Guidance |
|
FY22 Guidance |
Total revenue (millions) |
|
|
|
Year-over-year total revenue growth |
|
|
|
Non-GAAP net loss (millions) |
( |
|
( |
Non-GAAP net loss per share |
( |
|
( |
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.
Conference Call and Webcast Information
In conjunction with this announcement,
About
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 revenue and net loss for the fiscal third quarter ending
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
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 margin include amortization of intangible assets, stock-based compensation, employer payroll taxes related to employee stock-based compensation and depreciation expense. Items excluded from non-GAAP operating expenses include amortization of intangible assets, stock-based compensation, employer payroll taxes related to employee stock-based compensation, depreciation expense, and acquisition and integration-related expenses. Items excluded from non-GAAP net loss and non-GAAP net loss per share include stock-based compensation expense, employer payroll taxes related to employee stock-based compensation, depreciation expense, amortization of intangible assets, acquisition and integration-related expenses, amortization of debt discount (and accretion of debt premium) and issuance costs, and income tax associated with acquisition and non-GAAP adjustments. 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.
Beginning the quarter ended
We adjust the following items from one or more of our non-GAAP financial measures:
Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock- based compensation expenses using a variety of valuation methodologies and subjective assumptions.
Employer payroll taxes related to employee stock-based compensation. We exclude payroll tax expense related to employee stock-based transactions because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is 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. Employer payroll tax expense related to employee stock-based compensation was not material for all periods prior to
Depreciation expense. We exclude depreciation expenses from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.
Amortization of intangible assets. We exclude amortization of 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 discount (accretion of debt premium) and issuance costs. We exclude amortization of debt discount and issuance costs associated with our issuance of our convertible senior notes and accretion of debt premium associated with our credit agreements 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 acquisition and non-GAAP adjustments. We exclude the income tax effect associated with acquisition and non-GAAP adjustments 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 used in operating activities, increased by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash (if any) 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.
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited, in thousands) | ||||||||
|
|
|||||||
2021 |
2021 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
1,672,166 |
|
$ |
509,615 |
|
||
| Short-term investments |
|
1,117,170 |
|
|
655,314 |
|
||
| Accounts receivable, net |
|
24,433 |
|
|
18,222 |
|
||
| Acquired card receivables, net |
|
213,414 |
|
|
147,093 |
|
||
| Prepaid expenses and other current assets |
|
84,718 |
|
|
67,195 |
|
||
| Funds held for customers |
|
3,380,395 |
|
|
2,208,598 |
|
||
| Total current assets |
|
6,492,296 |
|
|
3,606,037 |
|
||
| Non-current assets: | ||||||||
| Operating lease right-of-use assets, net |
|
76,807 |
|
|
71,925 |
|
||
| Property and equipment, net |
|
52,691 |
|
|
48,902 |
|
||
| Intangible assets, net |
|
472,120 |
|
|
417,341 |
|
||
|
2,363,109 |
|
|
1,772,043 |
|
|||
| Other assets |
|
53,935 |
|
|
52,925 |
|
||
| Total assets | $ |
9,510,958 |
|
$ |
5,969,173 |
|
||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
11,770 |
|
$ |
11,904 |
|
||
| Accrued compensation and benefits |
|
21,146 |
|
|
20,287 |
|
||
| Deferred revenue |
|
30,487 |
|
|
12,848 |
|
||
| Other accruals and current liabilities |
|
87,578 |
|
|
72,022 |
|
||
| Convertible senior notes, net |
|
1,133,825 |
|
|
— |
|
||
| Customer fund deposits |
|
3,380,395 |
|
|
2,208,598 |
|
||
| Total current liabilities |
|
4,665,201 |
|
|
2,325,659 |
|
||
| Non-current liabilities: | ||||||||
| Deferred revenue |
|
2,322 |
|
|
2,926 |
|
||
| Operating lease liabilities |
|
83,547 |
|
|
86,639 |
|
||
| Borrowing from credit facilities, net |
|
78,713 |
|
|
79,534 |
|
||
| Convertible senior notes, net |
|
560,788 |
|
|
909,847 |
|
||
| Other long-term liabilities |
|
27,060 |
|
|
34,978 |
|
||
| Total liabilities |
|
5,417,631 |
|
|
3,439,583 |
|
||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock |
|
2 |
|
|
2 |
|
||
| Additional paid-in capital |
|
4,468,341 |
|
|
2,777,155 |
|
||
| Accumulated other comprehensive loss |
|
(1,850 |
) |
|
(100 |
) |
||
| Accumulated deficit |
|
(373,166 |
) |
|
(247,467 |
) |
||
| Total stockholders' equity |
|
4,093,327 |
|
|
2,529,590 |
|
||
| Total liabilities and stockholders' equity | $ |
9,510,958 |
|
$ |
5,969,173 |
|
||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited, in thousands except per share amounts) | ||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 (1) |
2020 |
2021 (1) (3) |
2020 |
|||||||||||||
| Revenue | $ |
156,478 |
|
$ |
54,045 |
|
$ |
274,827 |
|
$ |
100,254 |
|
||||
| Cost of revenue (2) |
|
34,386 |
|
|
13,973 |
|
|
64,221 |
|
|
26,079 |
|
||||
| Gross profit |
|
122,092 |
|
|
40,072 |
|
|
210,606 |
|
|
74,175 |
|
||||
| Operating expenses | ||||||||||||||||
| Research and development (2) |
|
51,954 |
|
|
20,486 |
|
|
94,426 |
|
|
38,272 |
|
||||
| Sales and marketing (2) |
|
80,817 |
|
|
14,174 |
|
|
143,129 |
|
|
27,082 |
|
||||
| General and administrative (2) |
|
65,396 |
|
|
19,583 |
|
|
123,331 |
|
|
36,773 |
|
||||
| Total operating expenses |
|
198,167 |
|
|
54,243 |
|
|
360,886 |
|
|
102,127 |
|
||||
| Loss from operations |
|
(76,075 |
) |
|
(14,171 |
) |
|
(150,280 |
) |
|
(27,952 |
) |
||||
| Other expenses, net |
|
(5,000 |
) |
|
(3,341 |
) |
|
(8,475 |
) |
|
(2,511 |
) |
||||
| Loss before benefit from income taxes |
|
(81,075 |
) |
|
(17,512 |
) |
|
(158,755 |
) |
|
(30,463 |
) |
||||
| Benefit from income taxes |
|
(635 |
) |
|
(333 |
) |
|
(4,056 |
) |
|
(333 |
) |
||||
| Net loss | $ |
(80,440 |
) |
$ |
(17,179 |
) |
$ |
(154,699 |
) |
$ |
(30,130 |
) |
||||
| Net loss per share attributable to common stockholders, basic and diluted | $ |
(0.78 |
) |
$ |
(0.21 |
) |
$ |
(1.56 |
) |
$ |
(0.37 |
) |
||||
| Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted |
|
102,910 |
|
|
81,519 |
|
|
99,401 |
|
|
80,868 |
|
||||
| ____________________________________ | ||||||||||||||||
| (1) Includes the results of Divvy and |
||||||||||||||||
| (2) Includes stock-based compensation expense as follows: | ||||||||||||||||
| Cost of revenue | $ |
1,285 |
|
$ |
642 |
|
$ |
2,412 |
|
$ |
1,243 |
|
||||
| Research and development |
|
14,280 |
|
|
3,246 |
|
|
24,840 |
|
|
6,315 |
|
||||
| Sales and marketing |
|
11,039 |
|
|
1,871 |
|
|
19,153 |
|
|
3,375 |
|
||||
| General and administrative |
|
23,080 |
|
|
4,930 |
|
|
41,166 |
|
|
9,650 |
|
||||
$ |
49,684 |
|
$ |
10,689 |
|
$ |
87,571 |
|
$ |
20,583 |
|
|||||
| (3) We adopted ASU 2021-08, Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which resulted in adjustments to increase revenue by |
||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 (1) |
2020 |
2021 (1) |
2020 |
|||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net loss | $ |
(80,440 |
) |
$ |
(17,179 |
) |
$ |
(154,699 |
) |
$ |
(30,130 |
) |
||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
| Depreciation and amortization |
|
2,635 |
|
|
999 |
|
|
5,023 |
|
|
1,924 |
|
||||
| Stock-based compensation |
|
49,684 |
|
|
10,689 |
|
|
87,571 |
|
|
20,583 |
|
||||
| Amortization of debt discount (accretion of debt premium) and issuance costs |
|
1,399 |
|
|
3,905 |
|
|
1,955 |
|
|
3,905 |
|
||||
| Amortization of intangible assets |
|
19,768 |
|
|
— |
|
|
36,440 |
|
|
— |
|
||||
| Amortization of premium (accretion of discount) on investments in marketable debt securities |
|
3,781 |
|
|
677 |
|
|
6,638 |
|
|
723 |
|
||||
| Non-cash operating lease expense |
|
2,123 |
|
|
912 |
|
|
4,083 |
|
|
1,677 |
|
||||
| Provision for losses on acquired card receivables |
|
5,486 |
|
|
— |
|
|
9,535 |
|
|
— |
|
||||
| Deferred income taxes |
|
(399 |
) |
|
(333 |
) |
|
(3,822 |
) |
|
(333 |
) |
||||
| Changes in assets and liabilities: | ||||||||||||||||
| Accounts receivable |
|
(4,618 |
) |
|
(1,995 |
) |
|
(3,420 |
) |
|
(2,785 |
) |
||||
| Prepaid expenses and other current assets |
|
(14,868 |
) |
|
(6,706 |
) |
|
(8,547 |
) |
|
(4,768 |
) |
||||
| Other assets |
|
286 |
|
|
(4,483 |
) |
|
(1,099 |
) |
|
(11,267 |
) |
||||
| Accounts payable |
|
(1,291 |
) |
|
(200 |
) |
|
(2,023 |
) |
|
1,366 |
|
||||
| Other accruals and current liabilities |
|
6,500 |
|
|
4,492 |
|
|
(11,430 |
) |
|
(13 |
) |
||||
| Operating lease liabilities |
|
(2,160 |
) |
|
1,166 |
|
|
(2,952 |
) |
|
6,930 |
|
||||
| Other long-term liabilities |
|
(1,577 |
) |
|
(765 |
) |
|
(1,698 |
) |
|
573 |
|
||||
| Deferred revenue |
|
761 |
|
|
(406 |
) |
|
4,381 |
|
|
32 |
|
||||
| Net cash used in operating activities |
|
(12,930 |
) |
|
(9,227 |
) |
|
(34,064 |
) |
|
(11,583 |
) |
||||
| Cash flows from investing activities: | ||||||||||||||||
| Cash paid for acquisition, net of acquired cash and cash equivalents |
|
(89 |
) |
|
— |
|
|
(144,541 |
) |
|
— |
|
||||
| Purchases of corporate and customer fund short-term investments |
|
(843,867 |
) |
|
(358,097 |
) |
|
(1,452,419 |
) |
|
(701,442 |
) |
||||
| Proceeds from maturities of corporate and customer fund short-term investments |
|
348,947 |
|
|
256,827 |
|
|
667,854 |
|
|
501,159 |
|
||||
| Proceeds from sale of corporate and customer fund short-term investments |
|
27,510 |
|
|
2,000 |
|
|
44,744 |
|
|
35,286 |
|
||||
| Increase in other receivables included in funds held for customers |
|
(7,289 |
) |
|
1,541 |
|
|
(8,235 |
) |
|
19 |
|
||||
| Increase in acquired card receivables |
|
(37,507 |
) |
|
— |
|
|
(69,224 |
) |
|
— |
|
||||
| Purchases of property and equipment |
|
(1,063 |
) |
|
(7,742 |
) |
|
(2,467 |
) |
|
(13,636 |
) |
||||
| Capitalization of internal-use software costs |
|
(2,081 |
) |
|
(346 |
) |
|
(5,023 |
) |
|
(660 |
) |
||||
| Net cash used in investing activities |
|
(515,439 |
) |
|
(105,817 |
) |
|
(969,311 |
) |
|
(179,274 |
) |
||||
| Cash flows from financing activities: | ||||||||||||||||
| Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs |
|
(445 |
) |
|
— |
|
|
1,341,152 |
|
|
— |
|
||||
| Proceeds from issuance of convertible senior notes, net of discounts and issuance costs |
|
(2,629 |
) |
|
1,129,603 |
|
|
560,075 |
|
|
1,129,603 |
|
||||
| Purchase of capped call |
|
— |
|
|
(87,860 |
) |
|
(37,893 |
) |
|
(87,860 |
) |
||||
| Increase in customer fund deposits liability |
|
947,874 |
|
|
548,777 |
|
|
1,171,797 |
|
|
573,430 |
|
||||
| Proceeds from exercise of stock options |
|
14,448 |
|
|
8,480 |
|
|
22,784 |
|
|
17,442 |
|
||||
| Proceeds from issuance of common stock under the employee stock purchase plan |
|
— |
|
|
— |
|
|
5,726 |
|
|
4,327 |
|
||||
| Other |
|
(69 |
) |
|
— |
|
|
(351 |
) |
|
(664 |
) |
||||
| Net cash provided by financing activities |
|
959,179 |
|
|
1,599,000 |
|
|
3,063,290 |
|
|
1,636,278 |
|
||||
| Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents |
|
97 |
|
|
— |
|
|
(75 |
) |
|
— |
|
||||
| Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents |
|
430,907 |
|
|
1,483,956 |
|
|
2,059,840 |
|
|
1,445,421 |
|
||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period |
|
3,438,625 |
|
|
1,553,842 |
|
|
1,809,692 |
|
|
1,592,377 |
|
||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ |
3,869,532 |
|
$ |
3,037,798 |
|
$ |
3,869,532 |
|
$ |
3,037,798 |
|
||||
| Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | ||||||||||||||||
| Cash and cash equivalents | $ |
1,672,166 |
|
$ |
1,568,684 |
|
$ |
1,672,166 |
|
$ |
1,568,684 |
|
||||
| Restricted cash included in other current assets |
|
16,364 |
|
|
119 |
|
|
16,364 |
|
|
119 |
|
||||
| Restricted cash included in other assets |
|
6,724 |
|
|
— |
|
|
6,724 |
|
|
— |
|
||||
| Restricted cash and restricted cash equivalents included in funds held for customers |
|
2,174,278 |
|
|
1,468,995 |
|
|
2,174,278 |
|
|
1,468,995 |
|
||||
| Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ |
3,869,532 |
|
$ |
3,037,798 |
|
$ |
3,869,532 |
|
$ |
3,037,798 |
|
||||
| (1) Includes the results of Divvy and |
||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| (Unaudited, in thousands except percentages and per share amounts) | ||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 (2) |
2021 (1) |
2020 (2) |
|||||||||||||
| Reconciliation of gross profit: | ||||||||||||||||
| GAAP gross profit | $ |
122,092 |
|
$ |
40,072 |
|
$ |
210,606 |
|
$ |
74,175 |
|
||||
| Add: | ||||||||||||||||
| Amortization of intangible assets |
|
9,285 |
|
|
— |
|
|
17,686 |
|
|
— |
|
||||
| Stock-based compensation expense |
|
1,285 |
|
|
642 |
|
|
2,412 |
|
|
1,243 |
|
||||
| Payroll taxes related to stock-based compensation expense |
|
89 |
|
|
98 |
|
|
252 |
|
|
143 |
|
||||
| Depreciation expense |
|
763 |
|
|
589 |
|
|
1,484 |
|
|
1,069 |
|
||||
| Non-GAAP gross profit | $ |
133,514 |
|
$ |
41,401 |
|
$ |
232,440 |
|
$ |
76,630 |
|
||||
| GAAP gross margin |
|
78.0 |
% |
|
74.1 |
% |
|
76.6 |
% |
|
74.0 |
% |
||||
| Non-GAAP gross margin |
|
85.3 |
% |
|
76.6 |
% |
|
84.6 |
% |
|
76.4 |
% |
||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 (2) |
2021 (1) |
2020 (2) |
|||||||||||||
| Reconciliation of operating expenses: | ||||||||||||||||
| GAAP research and development expenses | $ |
51,954 |
|
$ |
20,486 |
|
$ |
94,426 |
|
$ |
38,272 |
|
||||
| Less: | ||||||||||||||||
| Stock-based compensation expense |
|
(14,280 |
) |
|
(3,246 |
) |
|
(24,840 |
) |
|
(6,315 |
) |
||||
| Payroll taxes related to stock-based compensation expense |
|
(659 |
) |
|
(303 |
) |
|
(1,241 |
) |
|
(574 |
) |
||||
| Depreciation expense |
|
(577 |
) |
|
(40 |
) |
|
(1,165 |
) |
|
(99 |
) |
||||
| Non-GAAP research and development expenses | $ |
36,438 |
|
$ |
16,897 |
|
$ |
67,180 |
|
$ |
31,284 |
|
||||
| GAAP sales and marketing expenses | $ |
80,817 |
|
$ |
14,174 |
|
$ |
143,129 |
|
$ |
27,082 |
|
||||
| Less: | ||||||||||||||||
| Amortization of intangible assets |
|
(10,483 |
) |
|
— |
|
|
(18,754 |
) |
|
— |
|
||||
| Stock-based compensation expense |
|
(11,039 |
) |
|
(1,871 |
) |
|
(19,153 |
) |
|
(3,375 |
) |
||||
| Payroll taxes related to stock-based compensation expense |
|
(288 |
) |
|
(171 |
) |
|
(483 |
) |
|
(303 |
) |
||||
| Depreciation expense |
|
(437 |
) |
|
(23 |
) |
|
(850 |
) |
|
(59 |
) |
||||
| Non-GAAP sales and marketing expenses | $ |
58,570 |
|
$ |
12,109 |
|
$ |
103,889 |
|
$ |
23,345 |
|
||||
| GAAP general and administrative expenses | $ |
65,396 |
|
$ |
19,583 |
|
$ |
123,331 |
|
$ |
36,773 |
|
||||
| Less: | ||||||||||||||||
| Stock-based compensation expense |
|
(23,080 |
) |
|
(4,930 |
) |
|
(41,166 |
) |
|
(9,650 |
) |
||||
| Payroll taxes related to stock-based compensation expense |
|
(2,343 |
) |
|
(533 |
) |
|
(3,385 |
) |
|
(1,038 |
) |
||||
| Depreciation expense |
|
(432 |
) |
|
(103 |
) |
|
(851 |
) |
|
(209 |
) |
||||
| Acquisition and integration-related expenses |
|
(4,417 |
) |
|
— |
|
|
(10,742 |
) |
|
— |
|
||||
| Non-GAAP general and administrative expenses | $ |
35,124 |
|
$ |
14,017 |
|
$ |
67,187 |
|
$ |
25,876 |
|
||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 (2) |
2021 (1) |
2020 (2) |
|||||||||||||
| Reconciliation of loss from operations: | ||||||||||||||||
| GAAP loss from operations | $ |
(76,075 |
) |
$ |
(14,171 |
) |
$ |
(150,280 |
) |
$ |
(27,952 |
) |
||||
| Add: | ||||||||||||||||
| Amortization of intangible assets |
|
19,768 |
|
|
— |
|
|
36,440 |
|
|
— |
|
||||
| Stock-based compensation expense |
|
49,684 |
|
|
10,689 |
|
|
87,571 |
|
|
20,583 |
|
||||
| Payroll taxes related to stock-based compensation expense |
|
3,379 |
|
|
1,105 |
|
|
5,361 |
|
|
2,058 |
|
||||
| Depreciation expense |
|
2,209 |
|
|
755 |
|
|
4,350 |
|
|
1,436 |
|
||||
| Acquisition and integration-related expenses |
|
4,417 |
|
|
— |
|
|
10,742 |
|
|
— |
|
||||
| Non-GAAP income (loss) from operations | $ |
3,382 |
|
$ |
(1,622 |
) |
$ |
(5,816 |
) |
$ |
(3,875 |
) |
||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 (2) |
2021 (1) |
2020 (2) |
|||||||||||||
| Reconciliation of net loss: | ||||||||||||||||
| GAAP net loss | $ |
(80,440 |
) |
$ |
(17,179 |
) |
$ |
(154,699 |
) |
$ |
(30,130 |
) |
||||
| Add (less): | ||||||||||||||||
| Amortization of intangible assets |
|
19,768 |
|
|
— |
|
|
36,440 |
|
|
— |
|
||||
| Stock-based compensation expense |
|
49,684 |
|
|
10,689 |
|
|
87,571 |
|
|
20,583 |
|
||||
| Payroll taxes related to stock-based compensation expense |
|
3,379 |
|
|
1,105 |
|
|
5,361 |
|
|
2,058 |
|
||||
| Depreciation expense |
|
2,209 |
|
|
755 |
|
|
4,350 |
|
|
1,436 |
|
||||
| Acquisition and integration-related expenses |
|
4,417 |
|
|
— |
|
|
10,742 |
|
|
— |
|
||||
| Amortization of debt discount (accretion of debt premium) and issuance costs |
|
1,399 |
|
|
3,905 |
|
|
1,955 |
|
|
3,905 |
|
||||
| Income tax effect associated with acquisition and non-GAAP adjustments |
|
(636 |
) |
|
(333 |
) |
|
(4,059 |
) |
|
(333 |
) |
||||
| Non-GAAP net loss | $ |
(220 |
) |
$ |
(1,058 |
) |
$ |
(12,339 |
) |
$ |
(2,481 |
) |
||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 (2) |
2021 (1) |
2020 (2) |
|||||||||||||
| 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 | $ |
(0.78 |
) |
$ |
(0.21 |
) |
$ |
(1.56 |
) |
$ |
(0.37 |
) |
||||
| Add (less): | ||||||||||||||||
| Amortization of intangible assets |
|
0.19 |
|
|
— |
|
|
0.37 |
|
|
— |
|
||||
| Stock-based compensation expense |
|
0.48 |
|
|
0.13 |
|
|
0.88 |
|
|
0.25 |
|
||||
| Payroll taxes related to stock-based compensation expense |
|
0.03 |
|
|
0.01 |
|
|
0.05 |
|
|
0.03 |
|
||||
| Depreciation expense |
|
0.03 |
|
|
0.01 |
|
|
0.05 |
|
|
0.01 |
|
||||
| Acquisition and integration-related expenses |
|
0.04 |
|
|
— |
|
|
0.11 |
|
|
— |
|
||||
| Amortization of debt discount (accretion of debt premium) and issuance costs |
|
0.01 |
|
|
0.05 |
|
|
0.02 |
|
|
0.05 |
|
||||
| Income tax effect associated with acquisition and non-GAAP adjustments |
|
— |
|
|
— |
|
|
(0.04 |
) |
|
— |
|
||||
| Non-GAAP net loss per share attributable to common stockholders, basic and diluted | $ |
— |
|
$ |
(0.01 |
) |
$ |
(0.12 |
) |
$ |
(0.03 |
) |
||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 (2) |
2021 (1) |
2020 (2) |
|||||||||||||
| Shares used to compute GAAP and non-GAAP net loss per share attributable to common stockholders, basic and diluted |
|
102,910 |
|
|
81,519 |
|
|
99,401 |
|
|
80,868 |
|
||||
| _______________________ | ||||||||||||||||
| (1) We adopted ASU 2021-08, Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which resulted in adjustments to increase revenue by |
||||||||||||||||
| (2) During the quarter ended |
||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
As reported |
Adjustment | As restated |
As reported |
Adjustment | As restated |
|||||||||||||||||||
| Reconciliation of gross profit: | ||||||||||||||||||||||||
| GAAP gross profit | $ |
40,072 |
|
$ |
— |
|
$ |
40,072 |
|
$ |
74,175 |
|
$ |
— |
|
$ |
74,175 |
|
||||||
| Add (less): | ||||||||||||||||||||||||
| Stock-based compensation expense |
|
642 |
|
|
— |
|
|
642 |
|
|
1,243 |
|
|
— |
|
|
1,243 |
|
||||||
| Payroll taxes related to stock-based compensation expense |
|
98 |
|
|
— |
|
|
98 |
|
|
143 |
|
|
— |
|
|
143 |
|
||||||
| Depreciation expense |
|
589 |
|
|
— |
|
|
589 |
|
|
1,069 |
|
|
— |
|
|
1,069 |
|
||||||
| Amortization of capitalized service costs |
|
154 |
|
|
(154 |
) |
|
— |
|
|
285 |
|
|
(285 |
) |
|
— |
|
||||||
| Amortization of capitalized internal-use software costs |
|
244 |
|
|
(244 |
) |
|
— |
|
|
488 |
|
|
(488 |
) |
|
— |
|
||||||
| Non-GAAP gross profit | $ |
41,799 |
|
$ |
(398 |
) |
$ |
41,401 |
|
$ |
77,403 |
|
$ |
(773 |
) |
$ |
76,630 |
|
||||||
| GAAP gross margin |
|
74.1 |
% |
|
74.1 |
% |
|
74.0 |
% |
|
74.0 |
% |
||||||||||||
| Non-GAAP gross margin |
|
77.3 |
% |
|
-0.7 |
% |
|
76.6 |
% |
|
77.2 |
% |
|
-0.8 |
% |
|
76.4 |
% |
||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
As reported |
Adjustment | As restated |
As reported |
Adjustment | As restated |
|||||||||||||||||||
| Reconciliation of operating expenses: | ||||||||||||||||||||||||
| GAAP research and development expenses | $ |
20,486 |
|
$ |
— |
|
$ |
20,486 |
|
$ |
38,272 |
|
$ |
— |
|
$ |
38,272 |
|
||||||
| Add (less): |
|
|
|
|
||||||||||||||||||||
| Stock-based compensation expense |
|
(3,246 |
) |
|
— |
|
|
(3,246 |
) |
|
(6,315 |
) |
|
— |
|
|
(6,315 |
) |
||||||
| Payroll taxes related to stock-based compensation expense |
|
(303 |
) |
|
— |
|
|
(303 |
) |
|
(574 |
) |
|
— |
|
|
(574 |
) |
||||||
| Depreciation expense |
|
(40 |
) |
|
— |
|
|
(40 |
) |
|
(99 |
) |
|
— |
|
|
(99 |
) |
||||||
| Capitalized service costs |
|
346 |
|
|
(346 |
) |
|
— |
|
|
661 |
|
|
(661 |
) |
|
— |
|
||||||
| Capitalized internal-use software costs |
|
605 |
|
|
(605 |
) |
|
— |
|
|
1,387 |
|
|
(1,387 |
) |
|
— |
|
||||||
| Non-GAAP research and development expenses | $ |
17,848 |
|
$ |
(951 |
) |
$ |
16,897 |
|
$ |
33,332 |
|
$ |
(2,048 |
) |
$ |
31,284 |
|
||||||
| GAAP sales and marketing expenses | $ |
14,174 |
|
$ |
— |
|
$ |
14,174 |
|
$ |
27,082 |
|
$ |
— |
|
$ |
27,082 |
|
||||||
| Add (less): |
|
|
|
|
||||||||||||||||||||
| Stock-based compensation expense |
|
(1,871 |
) |
|
— |
|
|
(1,871 |
) |
|
(3,375 |
) |
|
— |
|
|
(3,375 |
) |
||||||
| Payroll taxes related to stock-based compensation expense |
|
(171 |
) |
|
— |
|
|
(171 |
) |
|
(303 |
) |
|
— |
|
|
(303 |
) |
||||||
| Depreciation expense |
|
(23 |
) |
|
— |
|
|
(23 |
) |
|
(59 |
) |
|
— |
|
|
(59 |
) |
||||||
| Capitalized sales commissions |
|
1,336 |
|
|
(1,336 |
) |
|
— |
|
|
2,803 |
|
|
(2,803 |
) |
|
— |
|
||||||
| Amortization of capitalized sales commissions |
|
(853 |
) |
|
853 |
|
|
— |
|
|
(1,617 |
) |
|
1,617 |
|
|
— |
|
||||||
| Non-GAAP sales and marketing expenses | $ |
12,592 |
|
$ |
(483 |
) |
$ |
12,109 |
|
$ |
24,531 |
|
$ |
(1,186 |
) |
$ |
23,345 |
|
||||||
| GAAP general and administrative expenses | $ |
19,583 |
|
$ |
— |
|
$ |
19,583 |
|
$ |
36,773 |
|
$ |
— |
|
$ |
36,773 |
|
||||||
| Less: |
|
|
|
|
||||||||||||||||||||
| Stock-based compensation expense |
|
(4,930 |
) |
|
— |
|
|
(4,930 |
) |
|
(9,650 |
) |
|
— |
|
|
(9,650 |
) |
||||||
| Payroll taxes related to stock-based compensation expense |
|
(533 |
) |
|
— |
|
|
(533 |
) |
|
(1,038 |
) |
|
— |
|
|
(1,038 |
) |
||||||
| Depreciation expense |
|
(103 |
) |
|
— |
|
|
(103 |
) |
|
(209 |
) |
|
— |
|
|
(209 |
) |
||||||
| Non-GAAP general and administrative expenses | $ |
14,017 |
|
$ |
— |
|
$ |
14,017 |
|
$ |
25,876 |
|
$ |
— |
|
$ |
25,876 |
|
||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
As reported |
Adjustment | As restated |
As reported |
Adjustment | As restated |
|||||||||||||||||||
| Reconciliation of loss from operations: | ||||||||||||||||||||||||
| GAAP loss from operations | $ |
(14,171 |
) |
$ |
— |
|
$ |
(14,171 |
) |
$ |
(27,952 |
) |
$ |
— |
|
$ |
(27,952 |
) |
||||||
| Add (less): | ||||||||||||||||||||||||
| Stock-based compensation expense |
|
10,689 |
|
|
— |
|
|
10,689 |
|
|
20,583 |
|
|
— |
|
|
20,583 |
|
||||||
| Payroll taxes related to stock-based compensation expense |
|
1,105 |
|
|
— |
|
|
1,105 |
|
|
2,058 |
|
|
— |
|
|
2,058 |
|
||||||
| Depreciation expense |
|
755 |
|
|
— |
|
|
755 |
|
|
1,436 |
|
|
— |
|
|
1,436 |
|
||||||
| Amortization of capitalized service costs, net of amount capitalized |
|
(192 |
) |
|
192 |
|
|
— |
|
|
(376 |
) |
|
376 |
|
|
— |
|
||||||
| Amortization of capitalized internal-use software costs, net of amount capitalized |
|
(361 |
) |
|
361 |
|
|
— |
|
|
(899 |
) |
|
899 |
|
|
— |
|
||||||
| Capitalized sales commissions, net of associated amortization expense |
|
(483 |
) |
|
483 |
|
|
— |
|
|
(1,186 |
) |
|
1,186 |
|
|
— |
|
||||||
| Non-GAAP loss from operations | $ |
(2,658 |
) |
$ |
1,036 |
|
$ |
(1,622 |
) |
$ |
(6,336 |
) |
$ |
2,461 |
|
$ |
(3,875 |
) |
||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
As reported |
Adjustment | As restated |
As reported |
Adjustment | As restated |
|||||||||||||||||||
| Reconciliation of net loss: | ||||||||||||||||||||||||
| GAAP net loss | $ |
(17,179 |
) |
$ |
— |
|
$ |
(17,179 |
) |
$ |
(30,130 |
) |
$ |
— |
|
$ |
(30,130 |
) |
||||||
| Add (less): | ||||||||||||||||||||||||
| Stock-based compensation expense |
|
10,689 |
|
|
— |
|
|
10,689 |
|
|
20,583 |
|
|
— |
|
|
20,583 |
|
||||||
| Payroll taxes related to stock-based compensation expense |
|
1,105 |
|
|
— |
|
|
1,105 |
|
|
2,058 |
|
|
— |
|
|
2,058 |
|
||||||
| Depreciation expense |
|
755 |
|
|
— |
|
|
755 |
|
|
1,436 |
|
|
— |
|
|
1,436 |
|
||||||
| Amortization of capitalized service costs, net of amount capitalized |
|
(192 |
) |
|
192 |
|
|
— |
|
|
(376 |
) |
|
376 |
|
|
— |
|
||||||
| Amortization of capitalized internal-use software costs, net of amount capitalized |
|
(361 |
) |
|
361 |
|
|
— |
|
|
(899 |
) |
|
899 |
|
|
— |
|
||||||
| Capitalized sales commissions, net of associated amortization expense |
|
(483 |
) |
|
483 |
|
|
— |
|
|
(1,186 |
) |
|
1,186 |
|
|
— |
|
||||||
| Amortization of debt discount (accretion of debt premium) and issuance costs |
|
3,905 |
|
|
— |
|
|
3,905 |
|
|
3,905 |
|
|
— |
|
|
3,905 |
|
||||||
| Income tax effect associated with acquisition and non-GAAP adjustments |
|
(333 |
) |
|
— |
|
|
(333 |
) |
|
(333 |
) |
|
— |
|
|
(333 |
) |
||||||
| Non-GAAP net loss | $ |
(2,094 |
) |
$ |
1,036 |
|
$ |
(1,058 |
) |
$ |
(4,942 |
) |
$ |
2,461 |
|
$ |
(2,481 |
) |
||||||
Three months ended
|
Six months ended
|
|||||||||||||||||||||||
As reported |
Adjustment | As restated |
As reported |
Adjustment | As restated |
|||||||||||||||||||
| 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 | $ |
(0.21 |
) |
$ |
— |
|
$ |
(0.21 |
) |
$ |
(0.37 |
) |
$ |
— |
|
$ |
(0.37 |
) |
||||||
| Add (less): | ||||||||||||||||||||||||
| Stock-based compensation expense |
|
0.13 |
|
|
— |
|
|
0.13 |
|
|
0.25 |
|
|
— |
|
|
0.25 |
|
||||||
| Payroll taxes related to stock-based compensation expense |
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
0.03 |
|
|
— |
|
|
0.03 |
|
||||||
| Depreciation expense |
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
0.01 |
|
|
— |
|
|
0.01 |
|
||||||
| Amortization of capitalized service costs, net of amount capitalized |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||
| Amortization of capitalized internal-use software costs, net of amount capitalized |
|
(0.01 |
) |
|
0.01 |
|
|
— |
|
|
(0.02 |
) |
|
0.02 |
|
|
— |
|
||||||
| Capitalized sales commissions, net of associated amortization expense |
|
(0.01 |
) |
|
0.01 |
|
|
— |
|
|
(0.01 |
) |
|
0.01 |
|
|
— |
|
||||||
| Amortization of debt discount (accretion of debt premium) and issuance costs |
|
0.05 |
|
|
— |
|
|
0.05 |
|
|
0.05 |
|
|
— |
|
|
0.05 |
|
||||||
| Income tax effect associated with acquisition and non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||
| Non-GAAP net loss | $ |
(0.03 |
) |
$ |
0.02 |
|
$ |
(0.01 |
) |
$ |
(0.06 |
) |
$ |
0.03 |
|
$ |
(0.03 |
) |
||||||
| FREE CASH FLOW | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
Three months ended
|
Six months ended
|
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
| Net cash used in operating activities | $ |
(12,930 |
) |
$ |
(9,227 |
) |
$ |
(34,064 |
) |
$ |
(11,583 |
) |
||||
| Purchases of property and equipment |
|
(1,063 |
) |
|
(7,742 |
) |
|
(2,467 |
) |
|
(13,636 |
) |
||||
| Capitalization of internal-use software costs |
|
(2,081 |
) |
|
(346 |
) |
|
(5,023 |
) |
|
(660 |
) |
||||
| Free cash flow | $ |
(16,074 |
) |
$ |
(17,315 |
) |
$ |
(41,554 |
) |
$ |
(25,879 |
) |
||||
| REMAINING PERFORMANCE OBLIGATIONS | ||||||||
| (Unaudited, in thousands) | ||||||||
|
|
|||||||
2021 |
2021 |
|||||||
| Remaining performance obligations to be recognized as revenue: | ||||||||
| Within 2 years | $ |
91,448 |
$ |
64,811 |
||||
| Thereafter |
|
63,395 |
|
|
81,024 |
|
||
| Total | $ |
154,843 |
|
$ |
145,835 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005836/en/
IR Contact:
ksansot@hq.bill.com
Press Contact:
obranon@hq.bill.com
619-997-0299
Source:
FAQ
What were Bill.com's Q2 FY22 financial results?
How did Bill.com's transaction fees perform in Q2 FY22?
What is the guidance for Bill.com for Q3 FY22?
What was Bill.com's non-GAAP net loss for Q2 FY22?
