Bill.com Reports Third Quarter Fiscal 2021 Financial Results

Rhea-AI Summary

Bill.com (NYSE: BILL) reported strong financial results for Q3 FY21, with total revenue of $59.7 million, a 45% increase year-over-year. Core revenue grew 62% to $58.6 million, driven by a 112% surge in transaction fees. The company processed $35 billion in total payment volume, up 44% year-over-year. Despite a net loss of $26.7 million or ($0.32) per share, cash reserves remain strong at $1.7 billion. Looking ahead, guidance for Q4 FY21 predicts revenue between $60.9 million and $61.9 million.

Positive

• Core revenue growth of 62% year-over-year.
• Total revenue increased by 45% to $59.7 million.
• Processed $35 billion in total payment volume, a 44% increase year-over-year.
• Customer growth of 27%, reaching 115,600 customers.
• Expanding offerings including an acquisition of Divvy.

Negative

• Net loss increased to $26.7 million, up from $8.3 million in the previous year.
• Loss from operations grew to $15.3 million from $9.7 million year-over-year.

Bill.com (NYSE: BILL), a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), today announced financial results for the third fiscal quarter ended March 31, 2021.

“We delivered record results and further increased core revenue growth, driven by the value of our platform, the scale of our network, and the broad range of our payment offerings,” said René Lacerte, Bill.com CEO and Founder. “Our platform makes it easy for businesses to simplify their back office, connect with each other, and make payments. We are helping our customers transform their financial operations, and we believe we are at the beginning of a multiyear digital transformation wave.”

“We executed well during the quarter and delivered core revenue growth of 62% year-over-year,” said John Rettig, Bill.com CFO. “Our innovation in platform, payments, and go-to-market activities drove strong accelerated growth in transaction fees and total payment volume. We are operating at a large scale, with an annualized run rate of approximately $140 billion of payments processed for our customers.”

Financial Highlights for the Third Quarter of Fiscal 2021

• Total revenue was $59.7 million, an increase of 45% from the third quarter of fiscal 2020.
• Core revenue, which includes subscription and transaction fees, was $58.6 million, an increase of 62% year-over-year. Subscription fees were $29.3 million, an increase of 32% year-over-year. Transaction fees were $29.3 million, an increase of 112% year-over-year.
• GAAP gross profit was $44.3 million, representing a 74.2% gross margin, compared to $31.1 million, or a 75.5% gross margin, in the third quarter of fiscal 2020. Non-GAAP gross profit was $46.0 million, representing a 76.9% non-GAAP gross margin, compared to $32.1 million, or a 77.7% non-GAAP gross margin in the third quarter of fiscal 2020.
• Loss from operations was $15.3 million, compared to a loss from operations of $9.7 million in the third quarter of fiscal 2020. Non-GAAP loss from operations was $2.1 million, compared to a non-GAAP loss from operations of $3.8 million in the third quarter of fiscal 2020.
• Net loss was $26.7 million, or ($0.32) per share, basic and diluted, compared to net loss of $8.3 million, or ($0.11) per share, basic and diluted, in the third quarter of fiscal 2020. Non-GAAP net loss was $1.7 million, or ($0.02) per share, basic and diluted, compared to non-GAAP net loss of $2.4 million, or ($0.03) per share, basic and diluted, in the third quarter of fiscal 2020.
• Cash, cash equivalents and short-term investments were $1.7 billion at March 31, 2021.

Business Highlights and Recent Developments

• Served 115,600 customers as of the end of the third quarter of fiscal 2021, representing year-over-year customer growth of 27%.
• Processed $35.0 billion in total payment volume on our platform in the third quarter, an increase of 44% year-over-year.
• Processed 7.2 million transactions in the third quarter of fiscal 2021, an increase of 19% year-over-year.
• Signed a definitive agreement to acquire Divvy, a leading company in spend management for SMBs.
• Recognized on G2’s 2021 Best Products for Finance list and named a leader in G2’s 2021 Accounts Payable Automation Software category for the small and medium business community.
• Launched integrations with Microsoft Dynamics 365 Business Central and Microsoft Dynamics GP.

Financial Outlook

Bill.com is providing the following guidance for the fiscal fourth quarter ending June 30, 2021.

		Q4 FY21 Guidance
Total revenue (millions)		$60.9 - $61.9
Year-over-year total revenue growth		45% - 47%

FAQ

What were Bill.com's financial results for the third quarter of FY21?

Bill.com reported total revenue of $59.7 million for Q3 FY21, a 45% increase year-over-year.

How did Bill.com's core revenue perform in Q3 FY21?

Core revenue grew 62% year-over-year, reaching $58.6 million.

What is Bill.com's guidance for the fourth quarter of FY21?

Bill.com forecasts total revenue between $60.9 million and $61.9 million for Q4 FY21.

What was Bill.com's net loss in Q3 FY21?

The company reported a net loss of $26.7 million, or ($0.32) per share.

How many customers does Bill.com have as of Q3 FY21?

Bill.com served 115,600 customers, reflecting a 27% year-over-year growth.