Citi has adjusted its price target for Bill.com (BILL, Financial), lowering it from $88 to $67. Despite the decrease, the firm maintains a Buy rating on the stock. This revision follows an assessment of the company's performance during the March quarter. The analyst has revised future estimates downward, taking into account expected reductions in small business spending due to a slight macroeconomic slowdown.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for BILL Holdings Inc (BILL, Financial) is $65.75 with a high estimate of $120.00 and a low estimate of $40.00. The average target implies an upside of 47.28% from the current price of $44.65. More detailed estimate data can be found on the BILL Holdings Inc (BILL) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, BILL Holdings Inc's (BILL, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BILL Holdings Inc (BILL, Financial) in one year is $123.33, suggesting a upside of 176.25% from the current price of $44.645. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BILL Holdings Inc (BILL) Summary page.
BILL Key Business Developments
Release Date: May 08, 2025
- Total Revenue: $358 million in Q3, up 11% year-over-year.
- Core Revenue: $320 million, up 14% year-over-year.
- Non-GAAP Operating Income Margin: 15%.
- Free Cash Flow: $91 million, representing a 25% margin.
- Float Revenue: $38 million with a yield on FBO funds of 423 basis points.
- Integrated Platform Revenue: $302 million, up 15% year-over-year.
- BILL AP/AR Solution Revenue: $164 million, up 10% year-over-year.
- Total Payment Volume (TPV): Grew 10% year-over-year.
- Spend and Expense Solution Revenue: $138 million, up 21% year-over-year.
- Card Payment Volume Growth: 22% year-over-year.
- Non-GAAP Gross Profit: $304 million, with a non-GAAP gross margin of 85%.
- Non-GAAP Net Income: $59 million, representing a 16% margin.
- Cash, Cash Equivalents, and Short-term Investments: $2.2 billion.
- Guidance for Q4 Total Revenue: $370.5 million to $380.5 million.
- Guidance for Fiscal 2025 Total Revenue: $1.45 billion to $1.46 billion.
- Guidance for Fiscal 2025 Non-GAAP Net Income: $236.7 million to $240.7 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Core revenue grew 14% year-over-year, demonstrating strong financial performance.
- Free cash flow increased by 44% year-over-year, representing a 25% margin.
- BILL Holdings Inc (BILL, Financial) expanded its capabilities for larger businesses and enhanced its payment portfolio.
- The company is accelerating its AI growth strategy, aiming to transform financial operations for SMBs.
- BILL Holdings Inc (BILL) added 4,200 net new BILL AP/AR customers, driven by strength in the accounting channel.
Negative Points
- Total payment volume grew 10% year-over-year, slightly below expectations.
- Customers scaled back their spend on some purchases, resulting in lower TPV per customer.
- SMBs are managing their spend more closely due to a dynamic macro environment, impacting transaction volumes.
- There is uncertainty in the cross-border payments market due to potential shifts in fiscal and trade policies.
- The company expects constrained near-term TPV per customer growth and monetization expansion due to economic conditions.
