Q4 2026 BILL Holdings Inc Earnings Call Transcript
Key Points
- Core revenue grew 16% year-over-year with non-GAAP operating margin exceeding 23%, showing strong financial performance.
- AI adoption is robust, with over 175,000 businesses using AI agents, and significant growth in W9, invoice coding, and touchless transaction agents.
- AI underwriting model improved invoice financing, with volume and revenue up ~30% year-over-year and expected loss rate improved by over 50%.
- Multiproduct adoption grew 35% year-over-year, and customers using both AP and spend/expense solutions showed a net revenue retention of 111%.
- Supplier Payments Plus (SPP) is gaining traction, with committed TPV from early adopters reaching almost $800 million and a case study showing significant operational efficiency gains.
- The company is positioned to exceed Rule of 40 exiting FY27, with a focus on GAAP profitability and expanding margins.
- Net new customer additions in Q4 were below recent trends at approximately 1,800, impacted by organizational restructuring and a deliberate focus on higher-quality customers.
- AP/AR take rate contracted by 0.5 basis points due to strong ACH TPV from larger customers, which may pressure monetization.
- Supplier Payments Plus (SPP) early progress did not meet initial expectations, requiring a new enterprise sales motion that took time to build.
- The company is facing headwinds in spend and expense (S&E) from card acceptance issues with a small number of merchants and proactive commercial actions on higher reward tiers.
- Guidance for FY27 includes a 3-point growth headwind from S&E dynamics and bank channel changes, with Q2 expected to be the trough of growth.
- The company is moving away from custom bank channel solutions, which may result in losing some existing bank relationships.
Hello, everyone. Thank you for joining us, and welcome to BILL's Fourth Quarter and Fiscal Year 2026 Earnings Call. (Operator Instructions)
I will now hand the conference over to Jack Andrews, Vice President, Investor Relations. Jack, please go ahead.
Thank you. Good afternoon, everyone. Welcome to BILL's Fiscal Fourth Quarter 2026 Earnings Conference Call. We issued our earnings press release a short time ago and filed the related Form 8-K with the SEC. The press release can be found on our Investor Relations website at investor.bill.com.
Joining me on the call today are Rene Lacerte, Chairman, CEO and Founder; and Rohini Jain, CFO. Our remarks today include forward-looking statements about our business, products and expectations that involve many assumptions, risks and uncertainties. Actual results could differ materially from those expressed or implied by such statements.
On today's call, we will also refer to both GAAP and non-GAAP financial measures. Please
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