Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. has demonstrated robust revenue growth with a FY2Q revenue guidance of $394.5-$404.5 million, representing a 9%-12% increase, driven by a core revenue increase of 12%-15%. Subscription revenue is on the rise, reflecting a 5.2% year-over-year increase to $70.9 million, and Bill AP/AR subscriptions also show healthy growth of 8% to $53.1 million. The overall transaction revenue has surged by 16% year-over-year to $287.1 million, showcasing substantial growth across both Bill AP/AR and Bill Spend and Expense segments.

BILL Holdings Inc has experienced a significant decline in gross margins, which dropped 180 basis points year-over-year to 83.9%, primarily due to a shift in revenue mix away from float revenue. Customer growth in key segments has also weakened, with AP/AR adding 4,000 customers—down from 4,700 last quarter—and Spend & Expense increasing by only 1,400 customers compared to 1,600 previously. Furthermore, the company's cost structure remains concerning, with adjusted operating expenses as a percentage of total revenue appearing inflated, compounding worries about the company's long-term profitability and efficiency.