BILL Earnings Surpass Estimates in Q3, Revenues Increase Y/Y

BILL Holdings BILL reported earnings of 50 cents per share in the third quarter of fiscal 2025, beating the Zacks Consensus Estimate by 35.14%. However, the reported figure decreased 16.7% year over year.

Revenues of $358.2 million increased 10.9% year over year and surpassed the consensus mark by 0.97%.

Shares fell 2.49% in the pre-market trading following the results. BILL shares have plunged 43.9% year to date, underperforming the Zacks Computer & Technology sector’s 9.1% drop.

BILL Holdings’ Quarter in Detail

In the third quarter of fiscal 2025, core revenues, consisting of subscription and transaction fees, were $320.3 million, increasing 14% year over year.

BILL Holdings, Inc. Price, Consensus and EPS Surprise

 

BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote

Subscription fees (21.3% of core revenues) of $68.2 million rose 4% year over year. Transaction fees (78.7% of core revenues) were $252.1 million, up 17% from the year-ago period.

Revenues from Integrated Platform, comprising the BILL AP/AR, and the BILL Spend and Expense sub-segments, were $301.7 million, growing 14.5% year over year. This contributed 94.2% to core revenues and 84.2% to total revenues.

Revenues from Embedded and Other Solutions were $18.6 million, which increased 3.9% year over year. This contributed 5.8% to core revenues and 5.2% to total revenues.

Float revenues, which consist of interest on funds held for customers, were $37.9 million in the reported quarter, down 9.1% year over year.

The company processed $79.4 billion in total payment volume (TPV) in the reported quarter, which rallied 11.2% year over year. This included $72.3 billion in TPV in its Integrated Platform (up 10.9%) and $7.1 billion in Embedded and Other Solutions (up 14.5%).

BILL’s solutions served 488.6 thousand businesses at the end of the fiscal third quarter, increasing from 464.9 thousand in the prior year. This included 204.3 thousand customers in its Integrated Platform (up 13.4%) and 284.2 thousand in Embedded and Other Solutions (down 0.2%).

BILL Holdings processed 29.7 million transactions in the fiscal third quarter, a 15.6% year-over-year increase.

Operating Details for Bill Holdings

In the quarter under review, non-GAAP gross profit was $304 million, up 8% year over year. The gross margin of 84.9% contracted 230 basis points (bps) year over year.    

In the third quarter of fiscal 2025, non-GAAP research and development expenses totaled $58 million, up 4.4% year over year. Non-GAAP sales and marketing expenses rose 18.9% to $126.9 million, and non-GAAP general and administrative expenses increased 18.4% to $50.9 million.

BILL Holdings reported a non-GAAP operating income of $53.3 million, down 8.9% year over year. The operating margin contracted 320 bps on a year-over-year basis to 14.9%.

BILL’s Balance Sheet & Cash Flow Statement

As of March 31, 2025, cash, cash equivalents and short-term investments were $2.17 billion compared with $2.21 billion as of Dec. 31, 2024.

The cash flow from operations was $99.5 million in the third quarter of fiscal 2025 compared with $78.7 million in the second quarter of fiscal 2025.

BILL generated a free cash flow of $90.5 million in the reported quarter, up from $71.6 million in the prior quarter.

BILL Holdings Provides Q4 & FY25 Guidance

For the fourth quarter of fiscal 2025, BILL expects revenues between $370.5 million and $380.5 million, suggesting year-over-year growth of 8-11%. Non-GAAP earnings are projected between 39 cents and 43 cents per share.

For fiscal 2025, BILL Holdings expects revenues between $1.45 billion and $1.46 billion, implying 12-13% year-over-year growth. Non-GAAP earnings are expected between $2.06 per share and $2.09 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Zacks Rank & Stocks to Consider

Currently, BILL carries a Zacks Rank #3 (Hold).

UiPath PATH, Magnachip Semiconductor MX and Stardust Power Inc. SDST are some better-ranked stocks in the broader Zacks Computer and Technology sector.

UiPath sports a Zacks Rank #1 (Strong Buy) at present, and Magnachip Semiconductor and Stardust Power carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

UiPath is scheduled to report first-quarter fiscal 2026 results on May 29, whereas Magnachip Semiconductor and Stardust Power are set to release first-quarter 2025 results on May 12 and May 14, respectively.

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This article originally published on Zacks Investment Research (zacks.com).

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