Summary
BILL reported total revenue of $323.0 million for its fiscal third quarter ended March 31, 2024, up 18.5% year over year. Year-to-date revenue reached $946.5 million, up 24.1% from the prior-year period. Gross profit was $268.0 million, up 19.8%, and gross margin improved to 83.0%. The operating loss narrowed 49.1% to $27.6 million, with operating margin rising to negative 8.6%. Net income was $31.8 million, swinging to a profit. Diluted EPS was $0.00, up $0.29 from a year earlier. On a non-GAAP basis, operating income was $58.5 million, up 68% year over year, and non-GAAP net income was $68.6 million, or $0.60 per diluted share. The company also reported non-GAAP gross profit of $281.5 million and a non-GAAP gross margin of 87.1%.
Operational metrics kept growing. BILL served 464,900 businesses using its solutions as of March 31, 2024, up 2% from a year earlier. Total payment volume processed in the quarter was $71.4 billion, up 10% year over year. Transactions processed rose 20% to 25.7 million. The company said more than 450,000 small businesses used its solutions to automate financial operations. Within the total, BILL standalone customers were approximately 210,700, spending businesses using BILL Spend and Expense were approximately 33,500, and Invoice2go subscribers were approximately 220,700. BILL standalone TPV was about $66.8 billion, card payment volume through BILL Divvy Corporate Cards was about $4.4 billion, and Invoice2go TPV was about $239.1 million. Management tied the growth to customer adoption and higher transaction volume, though it noted that macroeconomic pressure has caused some SMBs to moderate spending and shift to lower-cost payment methods.
Cash generation improved sharply. Operating cash flow was $66.8 million in the quarter, up 96.3% year over year. For the nine months, operating cash flow was $200.2 million, up 86.3%. Capital expenditures were just $0.02 million in the quarter, down 99.5%, and $0.77 million for the nine months, down 88.1%. Free cash flow, a non-GAAP measure, was $63.0 million in the quarter and $184.8 million for the nine months. Deferred revenue was $17.5 million, down 37.5%, and remaining performance obligations were $98.1 million, down 14.7%. In March 2024, BILL repurchased $748.2 million aggregate principal amount of its 2025 convertible notes for about $711.0 million, leaving $401.8 million outstanding. The company said its cash, cash equivalents, and short-term investments will be sufficient to meet working capital requirements for at least the next 12 months.
Guidance for the fiscal fourth quarter calls for year-over-year total revenue growth of 8% to 11%. The company guides non-GAAP operating income of $40 million to $50 million, non-GAAP net income of $46.4 million to $54.4 million, and non-GAAP net income per diluted share of $0.41 to $0.49. For the full fiscal year, BILL expects total revenue growth of 20% to 21%, non-GAAP operating income of $176 million to $186 million, non-GAAP net income of $227 million to $235 million, and non-GAAP net income per diluted share of $1.96 to $2.03. The outlook includes a non-GAAP provision for income taxes of 20%. Risks include macroeconomic factors, interest rates, inflation, volatile markets, and foreign exchange fluctuations. BILL also cites its history of operating losses, the large sums of customer funds it transfers daily, fraud and credit risk on BILL Divvy Corporate Cards, competition and new entrants, the impact of its recent reduction-in-force, and integration risk from acquisitions. The reduction-in-force, announced in December 2023, affected approximately 15% of the global workforce and included the closure of the Sydney office, with completion expected by June 30, 2024. The company also flagged banking sector instability after the Silicon Valley Bank closure, though it said all company and customer funds were preserved. Management noted that SMBs have moderated expenditures and shifted to lower-cost payment methods, which has led to lower payment volume growth and lower transaction fee growth than historical trends. Deferred revenue and RPO both declined year over year, which may signal softer near-term contracted backlog.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $323.0M | $318.5M | +1.4% | $272.6M | +18.5% |
| Gross profit | $268.0M | $260.1M | +3.0% | $223.7M | +19.8% |
| Gross margin | 83.0% | 81.7% | +1.3 pp | 82.1% | +0.9 pp |
| Research & development | $81.6M | $86.5M | -5.7% | $78.8M | +3.6% |
| Sales & marketing | $118.1M | $118.3M | -0.2% | $115.3M | +2.4% |
| General & administrative | $81.6M | $85.6M | -4.7% | $71.7M | +13.7% |
| Total operating expenses | $295.6M | $327.8M | -9.8% | $277.9M | +6.4% |
| Operating income (loss) | -$27.6M | -$67.7M | +59.2% | -$54.2M | +49.1% |
| Operating margin | -8.6% | -21.3% | +12.7 pp | -19.9% | +11.3 pp |
| Net income (loss) | $31.8M | -$40.4M | +178.7% | -$31.1M | +202.2% |
| Net margin | 9.8% | -12.7% | +22.5 pp | -11.4% | +21.3 pp |
| Diluted EPS | $0.00 | -$0.38 | +$0.38 | -$0.29 | +$0.29 |
Risks
SMBs are tightening budgets and selecting lower-cost payment methods, resulting in lower payment volume growth and lower transaction fee growth than historical trends. MD&A states these impacts accelerated in recent periods and are anticipated to persist in the near term.
BILL bears the entire credit risk on BILL Divvy Corporate Card receivables through participation interests purchased from Issuing Banks. General and administrative expenses increased by $9.9 million and $44.6 million in the three and nine months ended March 31, 2024, respectively, mainly due to an increase in provision for expected credit losses and fraud losses.
Risk management efforts may not prevent fraudulent activities by customers, spending businesses, or counterparties, exposing BILL to material financial losses and liability. The filing notes fraud techniques continually evolve and G&A expenses increased partly due to fraud losses.
Interest on funds held for customers was $41.7 million, approximately 13% of total revenue, in the three months ended March 31, 2024, and $125.1 million, 13% of total revenue, in the nine months ended March 31, 2024. The filing notes interest rate increases have ceased and may decline, which could decrease this revenue.
BILL depends on Cross River Bank and WEX Bank as Issuing Banks for its spend and expense products. Legal challenges to bank-nonbank partnership structures under the true lender doctrine and increased regulatory scrutiny could suspend or limit card offerings or impose tighter controls.
The December 2023 reduction in force impacted approximately 15% of global workforce and closed the Sydney office, with restructuring expenses of $2.1 million and $27.2 million in the three and nine months ended March 31, 2024. Risks include employee attrition, damage to corporate culture, loss of institutional knowledge, and failure to meet growth targets.
Intuit launched a native bill payment solution with integration to its QuickBooks accounting software in October 2023. There is no assurance QuickBooks customers will not change providers for certain accounts payable services.
As of March 31, 2024, $401.8 million aggregate principal amount of 2025 Notes remains outstanding after repurchasing $748.2 million, $575.0 million of 2027 Notes is outstanding, and $180.0 million was drawn under the Revolving Credit Facility. Debt service obligations and potential cash settlement on conversion may adversely affect financial condition and liquidity.
The March 2023 closure of Silicon Valley Bank, where BILL held significant company and customer funds, highlighted risks from instability in the U.S. banking system. Continued actual or perceived instability could impair access to corporate cash, customer funds, or payment processing.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Businesses using our solutions
Non-GAAP Operating Income
Remaining performance obligations (Total)
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q3 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.