Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. demonstrated a robust performance in the most recent fiscal quarter, guiding revenue to between $352.5 and $357.5 million, reflecting a year-over-year increase of 9% to 11%. The company maintained strong customer acquisition, adding 4,500 customers in Accounts Payable/Accounts Receivable and 1,400 in Spend & Expense segments, which contributed to a total revenue growth of 13.8% year-over-year. Core revenue, driven by subscription and transaction fees, was reported at $319.7 million, marking a 16.2% increase year-over-year, further underscoring the firm’s solid financial health and growth trajectory.

BILL Holdings Inc experienced a slowdown in customer growth, with accounts payable/accounts receivable (AP/AR) additions falling from 4,900 to 4,500 and spend and expense additions declining from 1,600 to 1,400 customers quarter-over-quarter. The company's AP/AR take rate decreased to 15.6 basis points, influenced by foreign exchange headwinds and a shift in payment mix, raising concerns about future revenue stability. Additionally, gross margins fell to 85.2%, representing a year-over-year decline of 70 basis points, which, combined with macroeconomic challenges impacting small and medium-sized business spending, contributes to a negative outlook on the stock.