BILL Reports Fourth Quarter and Fiscal Year 2023 Financial Results
- Total revenue exceeded $1 billion in FY23.
- Q4 core revenue increased by 33% YoY.
- Q4 total revenue increased by 48% YoY.
- BILL served 461,000 businesses.
- Processed $69.1 billion in payment volume in Q4.
- Processed 23.4 million transactions in Q4.
- None.
-
FY23 Total Revenue Exceeded
$1 Billion -
Q4 Core Revenue Increased
33% Year-Over-Year -
Q4 Total Revenue Increased
48% Year-Over-Year
“Fiscal 2023 was a defining year for BILL. We exceeded
“In Q4, we delivered strong financial results, including revenue growth of
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 48% year-over-year. -
Core revenue, which consists of subscription and transaction fees, was
$259.5 million 33% year-over-year.-
Subscription fees were
$66.9 million 21% year-over-year. This includes$57.8 million 25% year-over-year. -
Transaction fees were
$192.6 million 38% year-over-year. This includes$91.5 million 33% year-over-year, and$99.9 million 44% year-over-year.
-
Subscription fees were
-
Float revenue, which consists of interest on funds held for customers, was
$36.5 million -
Gross profit was
$243.4 million 82.2% gross margin, compared to$156.8 million 78.3% gross margin, in the fourth quarter of fiscal 2022. Non-GAAP gross profit was$257.2 million 86.9% non-GAAP gross margin, compared to$168.5 million 84.2% non-GAAP gross margin, in the fourth quarter of fiscal 2022. -
Loss from operations was
$41.4 million $83.4 million $42.3 million $3.2 million -
Net loss was
$15.9 million $0.15 $84.9 million $0.81 $69.4 million $0.59 $3.3 million $0.03
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 65% from the prior fiscal year. -
Core revenue, which consists of subscription and transaction fees, was
$944.7 million 49% from the prior fiscal year.-
Subscription fees were
$253.3 million 31% year-over-year. This includes$217.4 million 33% year-over-year. -
Transaction fees were
$691.4 million 57% year-over-year. This includes$331.4 million 45% year-over-year, and$353.1 million 69% year-over-year.
-
Subscription fees were
-
Float revenue, which consists of interest on funds held for customers, was
$113.8 million -
Gross profit was
$864.5 million 81.7% gross margin, compared to$497.0 million 77.4% gross margin, in the prior fiscal year. Non-GAAP gross profit was$916.9 million 86.6% non-GAAP gross margin, compared to$542.1 million 84.4% non-GAAP gross margin in the prior fiscal year. -
Loss from operations was
$295.8 million $316.8 million $117.1 million $14.7 million -
Net loss was
$223.7 million $2.11 $326.4 million $3.21 $194.4 million $1.65 $24.3 million $0.24
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 9% year-over-year. This included$65.1 billion 7% year-over-year, and$3.8 billion 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 of11% year-over-year, and 11.4 million Divvy card transactions, an increase of56% 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
|
|
FY24
|
Total revenue (millions) |
|
|
|
Year-over-year total revenue growth |
|
|
|
Non-GAAP net income (millions) |
|
|
|
Non-GAAP net income per diluted share |
|
|
|
_________________________
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
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
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 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
|
|
Year Ended
|
||||||||||||
|
|
|
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
|
|||||
|
|
|
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
|
|
Year Ended
|
||||||||||||
|
|
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
|
|
Year Ended
|
||||||||||||
|
|
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
|
|
Year Ended
|
||||||||||||
|
|
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
|
|
Year Ended
|
||||||||||||
|
|
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
|
|
Year Ended
|
||||||||||||
|
|
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
|
|
|
|
Year Ended
|
||||||||||
|
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
|
|
Year ended
|
||||||||||||
|
|
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,
|
|
June 30,
|
||
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230817999964/en/
IR Contact:
Karen Sansot
ksansot@hq.bill.com
Press Contact:
John Welton
john.welton@hq.bill.com
Source: BILL
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