Summary
Bill.com closed fiscal 2021 with a quarter that paired strong top-line growth with a much wider GAAP loss. Total revenue for the fourth quarter was $78.3 million, up 85.9% from $42.1 million a year earlier. Gross profit was $58.0 million, up 81.1% from $32.0 million, while gross margin slipped to 74.1% from 76.0%. The operating loss widened to $70.7 million from $10.3 million, and the net loss widened to $41.9 million from $9.5 million. For the full fiscal year, revenue reached $238.3 million, up 51.2% from $157.6 million. The full-year operating loss widened to $114.0 million from $34.2 million, the full-year net loss widened to $98.7 million from $31.1 million, and diluted EPS was -$1.19 compared with -$0.70. On a non-GAAP basis, the fourth-quarter loss from operations was $6.2 million versus $0.5 million a year earlier, and the non-GAAP net loss was $5.8 million versus non-GAAP net income of $0.3 million. The company closed the Divvy acquisition on June 1, 2021, so reported results include Divvy for one month while prior periods do not.
Operational metrics showed broad adoption. Bill.com served 121,200 customers at the end of the fourth quarter, up 24% year over year, and 10,700 spending businesses used Divvy for spend management in June 2021. Total payment volume processed for Bill.com customers was $41.7 billion in the fourth quarter, up 64%, and $140.3 billion for the full fiscal year, up 45%. Transactions processed were 8.2 million in the fourth quarter, up 46%, and 29.2 million for the fiscal year, up 22%. The network had 3.2 million members as of June 30, 2021, up 28%. Net dollar-based retention was 124% in fiscal 2021, compared with 121% in fiscal 2020 and 110% in fiscal 2019. Spending businesses on Divvy cards executed $437 million in card payment volume in June 2021. The release also pointed to core revenue growth of 100% and organic core revenue growth of 73%, with transaction fees up 204% and organic transaction fees up 137%.
The cost structure reflected the acquisition and heavier public-company investment. Gross margin was 74.1% for both the fourth quarter and the full fiscal year, down from 76.0% and 75.2%, respectively. Operating margin was -90.3% in the fourth quarter, down from -24.4%, and -47.8% for the full year, down from -21.7%. Management attributed the GAAP swings in part to amortization of acquired developed technology, stock-based compensation, and acquisition-related expenses. Non-GAAP gross profit was $62.4 million in the fourth quarter, a 79.7% non-GAAP gross margin, compared with $33.0 million and 78.5% a year earlier. For the full fiscal year, non-GAAP gross profit was $185.0 million, a 77.6% non-GAAP gross margin, compared with $121.8 million and 77.3%.
Cash flow and backlog told a more mixed story. Operating cash flow was $17.79 million in the fourth quarter, up from a use of $1.10 million a year earlier, and $4.62 million for the full fiscal year, up from a use of $4.43 million. Capital expenditures were $1.84 million in the fourth quarter, down from $5.70 million, and $18.90 million for the full fiscal year, up from $11.44 million. Free cash flow, a non-GAAP measure, was $14.68 million in the fourth quarter versus negative $6.954 million a year earlier, and negative $16.583 million for fiscal 2021 versus negative $16.506 million for fiscal 2020. Deferred revenue was $2.30 million at June 30, 2021, down from $6.30 million a year earlier. Remaining performance obligations were $145.90 million, down from $152.30 million.
Management guided for the fiscal first quarter ending September 30, 2021 to year-over-year total revenue growth of 123% to 126%, and for the full fiscal year ending June 30, 2022 to total revenue growth of 100% to 102%. The outlook calls for non-GAAP net loss of $20.0 million to $19.0 million and non-GAAP net loss per share of $0.21 to $0.20 in the September quarter, and non-GAAP net loss of $89.0 million to $85.0 million and non-GAAP net loss per share of $0.92 to $0.88 for the full fiscal year. The guidance excludes any potential impact from the proposed Invoice2go acquisition, which carries aggregate consideration of roughly $625.0 million in cash and stock. Named risks include the COVID-19 pandemic, a history of operating losses, rapid growth, the large sums of customer funds transferred daily, loss, errors and fraudulent activity, market, interest rate, foreign exchange and other conditions affecting customer funds held in trust, the ability to attract new customers and convert trial customers, the ability to develop new products, increased competition or new entrants, the integration of Divvy and the pending Invoice2go acquisition, accounting for those acquisitions, and changes in staffing levels.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2021 | Q3 FY2021 | QoQ | Q4 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $78.3M | $59.7M | +31.0% | $42.1M | +85.9% |
| Gross profit | $58.0M | $44.3M | +30.9% | $32.0M | +81.1% |
| Gross margin | 74.1% | 74.2% | -0.1 pp | 76.0% | -2.0 pp |
| Research & development | $29.7M | $22.3M | +33.2% | $14.9M | +98.8% |
| Sales & marketing | $29.1M | $15.2M | +91.6% | $11.8M | +146.7% |
| General & administrative | $69.9M | $22.1M | +216.0% | $15.5M | +349.8% |
| Total operating expenses | $128.7M | $59.6M | +115.9% | $42.3M | +204.5% |
| Operating income (loss) | -$70.7M | -$15.3M | -362.3% | -$10.3M | -589.2% |
| Operating margin | -90.3% | -25.6% | -64.7 pp | -24.4% | -66.0 pp |
| Net income (loss) | -$41.9M | -$26.7M | -56.6% | -$9.5M | -340.7% |
| Net margin | -53.5% | -44.7% | -8.7 pp | -22.6% | -30.9 pp |
| Net retention rate | 124.0% | — | — | 121.0% | +3.0 pp |
Risks
The company has identified a material weakness in its internal control over financial reporting. If remediation is not effective, its ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired.
The pending acquisition of Invoice2go for approximately $625.0 million in cash and stock presents integration risks, limited post-closing indemnification, and exposure to international operations and regulations in Australia and other markets. Invoice2go also has not maintained public-company internal control infrastructure.
The Divvy card exposes the company to credit risk, and for a substantial majority of extensions of credit it bears the entire credit risk if spending businesses fail to pay card balances. Funding arrangements, including warehouse facilities and purchase arrangements, may not be renewed or available on acceptable terms.
Divvy credit is originated through Cross River Bank and WEX Bank, and the legal structure of bank-nonbank partnership arrangements faces regulatory and litigation challenges. If successfully challenged, the company could be found in violation of state licensing and interest rate laws and need alternative bank relationships.
The company is responsible for verifying customer identities and monitoring transactions for fraud, and has been targeted by fraud techniques such as stolen identities, compromised business email accounts, and account takeover. Risk management efforts may not prevent fraud and could expose it to material financial losses and liability.
Customer funds held in trust are subject to market, interest rate, foreign exchange, and liquidity risks, and the company is required in certain jurisdictions to hold eligible liquid assets equal to at least 100% of customer balances. Loss of or inability to access these funds could require additional liquidity and materially harm results.
Revenue from interest on funds held for customers decreased to $6.0 million during fiscal 2021 from $21.2 million during fiscal 2020, a decrease of $15.2 million or 72%, and the average rate of return was 0.32% during fiscal 2021, a decrease of 123 basis points from fiscal 2020. Faster adoption of electronic payments also shortens the time funds are held and reduces interest revenue.
Accounting firm partners accounted for approximately 51% of total customers as of June 30, 2021 and 46% of total revenue for fiscal 2021. The Intuit agreement terminates on June 26, 2023 unless earlier terminated, and Intuit has integrated another third-party bill pay solution and may develop or acquire a competing solution.
As of June 30, 2021, the company had $1.15 billion aggregate principal amount of 2025 Notes outstanding. It may not have enough available cash or be able to obtain financing to repurchase the 2025 Notes upon a fundamental change or to pay cash upon conversion.
The market for financial back-office solutions is fragmented and competitive, and competitors may introduce new technology, including artificial intelligence-based services, or bundle competing solutions at lower prices. The company must compete on data asset size and ability to leverage AI.
Divvy revenue growth depends on increasing business spending on its cards, and the company offers rewards based on card usage that create significant redemption costs. If it must increase rewards or fails to estimate redemption costs, operating results and financial condition could be harmed.
The company has a history of operating losses, with net loss widened to $98.7 million in fiscal 2021 from $31.1 million in fiscal 2020. Recent rapid growth, including growth in payment volume, may not be indicative of future growth and may be difficult to manage.
SaaS KPIs
All quarters →Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q4 FY2021 (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.