Summary
Bill.com closed fiscal 2022 with fourth quarter revenue of $200.2 million, up 155.8% from the prior-year quarter. Revenue for the full fiscal year was $642.0 million, up 169.4% year over year. Organic core revenue rose 71% in the quarter, with organic transaction fees up 90% and organic subscription fees up 49%, both excluding the impact of Divvy and Invoice2go. Gross profit was $156.8 million for the quarter, up 170.4%, and gross margin was 78.3%, up 4.2 percentage points from a year earlier. Full-year gross profit was $497.0 million, up 181.6%, and the full-year gross margin was 77.4%, up 3.4 percentage points.
Profitability moved further into the red even as revenue scaled. Operating loss for the quarter was $83.4 million, down 17.9% and widened from the prior-year quarter. Net loss was $84.9 million, down 102.9% and also widened. For the fiscal year, operating loss was $316.8 million, down 178.0%, and net loss was $326.4 million, down 230.6%. Diluted loss per share for the fiscal year was $3.21, down 169.7%. Operating margin was negative 41.6% in the quarter, an improvement of 48.7 percentage points from the prior-year quarter, while the full-year operating margin was negative 49.4%, down 1.5 percentage points.
Non-GAAP figures show a much smaller shortfall. Non-GAAP loss from operations was $3.2 million in the quarter, compared with $6.2 million a year earlier. Non-GAAP net loss was $3.3 million, or $0.03 per share, compared with $5.8 million, or $0.07 per share. Non-GAAP gross margin was 84.2% for the quarter, against 79.7% in the prior-year quarter. The adjustments strip out stock-based compensation and related payroll taxes, depreciation, amortization, and acquisition and integration costs. Cash flow was weaker. Operating cash flow was negative $10.5 million in the quarter, down 158.9%, and negative $18.1 million for the fiscal year, down 491.4%. Capital expenditures were $1.6 million in the quarter, down 12.0%, and $5.4 million for the fiscal year, down 71.6%. Free cash flow, a separate non-GAAP measure, was negative $14.9 million for the quarter and negative $33.7 million for the fiscal year.
Operational metrics kept expanding. Bill.com served 157,800 Bill.com customers at June 30, 2022, plus 20,700 Divvy spending businesses and 221,600 Invoice2go subscribers. The company processed $60.7 billion in total payment volume for Bill.com customers in the quarter, up 46% year over year, along with 10.5 million transactions through the Bill.com platform, up 28%, and 7.3 million Divvy card transactions. Network members reached 4.7 million as of June 30, 2022, up 47% from 3.2 million a year earlier. For fiscal 2022, total payment volume was $219,080 million, up 56%, and transactions processed were 38,560,000, up 32%. Net dollar-based retention for Bill.com customers increased to 131% during fiscal 2022 from 124% during fiscal 2021 and 121% during fiscal 2020. Deferred revenue stood at $31.9 million, up 148.0%, and remaining performance obligations were $150.3 million, up 3.0%.
Guidance points to slower but still rapid expansion. For the fiscal first quarter ending September 30, 2022, management guided to year-over-year total revenue growth of 76% to 78%. For the full fiscal year ending June 30, 2023, total revenue growth guidance is 49% to 52%. On the profit side, the company guided to non-GAAP net income of $5.5 million to $8.0 million for the next quarter, with non-GAAP net income per share of $0.05 to $0.07. For the full fiscal year, non-GAAP net income guidance is $27.5 million to $45.5 million, with non-GAAP net income per share of $0.23 to $0.38. Management said it expects to become a non-GAAP profitable company in fiscal 2023.
The risk list is long. Bill.com cites its history of operating losses, its recent rapid growth, the large sums of customer funds it transfers daily, and the risk of loss, errors, and fraudulent activity. It also flags market, interest rate, foreign exchange, and other conditions that affect the customer funds it holds in trust. Other risks include attracting new customers and converting trial users into paying customers, developing new products, and facing increased competition or new entrants. Integrating Divvy and Invoice2go, accounting for and maintaining internal controls over their results, and managing changes in staffing levels are additional concerns. Macroeconomic factors include interest rate, inflationary and recessionary environments, fluctuations in foreign exchange rates, the ongoing war in Ukraine, and the COVID-19 pandemic. The MD&A also points to credit losses on acquired card receivables and the estimates behind customer rewards as sensitive areas.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $200.2M | $166.9M | +20.0% | $78.3M | +155.8% |
| Gross profit | $156.8M | $129.6M | +21.0% | $58.0M | +170.4% |
| Gross margin | 78.3% | 77.6% | +0.7 pp | 74.1% | +4.2 pp |
| Research & development | $65.2M | $60.2M | +8.2% | $29.7M | +119.6% |
| Sales & marketing | $72.0M | $92.1M | -21.8% | $29.1M | +147.3% |
| General & administrative | $57.4M | $60.5M | -5.1% | $69.9M | -17.9% |
| Total operating expenses | $240.1M | $212.8M | +12.9% | $128.7M | +86.6% |
| Operating income (loss) | -$83.4M | -$83.2M | -0.2% | -$70.7M | -17.9% |
| Operating margin | -41.6% | -49.8% | +8.2 pp | -90.3% | +48.7 pp |
| Net income (loss) | -$84.9M | -$86.7M | +2.1% | -$41.9M | -102.9% |
| Net margin | -42.4% | -52.0% | +9.5 pp | -53.5% | +11.1 pp |
| Diluted EPS | -$0.83 | — | — | — | — |
Risks
Divvy card participation interests expose BILL to entire credit risk if spending businesses fail to pay card balances. Provision for card and fraud losses increased $24.3 million in fiscal 2022 versus fiscal 2021, mainly due to full-year Divvy losses.
Divvy depends on warehouse facilities and purchase arrangements with financing partners. If those partners terminate or interrupt financing, BILL may need to use corporate cash to purchase participation interests, which could stress liquidity and limit card extensions.
BILL is responsible for verifying customer identities, monitoring transactions, and generally bearing fraud and unauthorized use losses on Divvy cards. Evolving fraud techniques could cause material financial losses, and provision for card and fraud losses increased $24.3 million in fiscal 2022.
Payments and financial services regulations are material to BILL, requiring money transmitter licenses and compliance with federal and state oversight. Failure to comply could lead to penalties, loss of licenses, or business interruption.
Divvy cards are originated through Cross River Bank and WEX Bank, and the legal structure may face true lender challenges. If one or both banks suspend, limit, or terminate their relationships, BILL would need alternative compliant bank relationships.
As of June 30, 2022, BILL had $1.15 billion of 2025 Notes and $575.0 million of 2027 Notes outstanding. Debt service obligations may adversely affect financial condition, and future cash flow may be insufficient to service or refinance the debt.
If the conversion condition for the Notes is triggered, holders may convert and BILL may be required to settle through cash payments, adversely affecting liquidity. Even without conversion, accounting rules could reclassify principal as a current liability and reduce net working capital.
A significant portion of revenue comes from small and medium-sized businesses, which may have fewer financial resources to weather an economic downturn, recession, inflation, or supply chain shortages. This could disproportionately reduce demand for BILL's products.
The market for cloud-based financial automation is fragmented and competitive, with competitors such as Intuit, accounting software providers, and financial institutions that may bundle competing solutions at lower prices. BILL must differentiate on product features, AI/data asset size, integrations, and pricing.
BILL markets an AI-enabled financial software platform, and risk factors note competitors may introduce new platforms or services that are easier to use or more advanced, especially related to artificial intelligence-based services. Failure to keep pace could reduce demand.
Accounting firm partners account for approximately 48% of total customers and approximately 27% of consolidated revenue during fiscal 2022. If BILL cannot maintain or grow these relationships, its growth prospects could weaken.
High inflation, high interest rates, and recessionary environments may pressure SMB customers and increase BILL's costs. MD&A states COVID-19 could result in inflation, recession, and prolonged economic downturn.
BILL completed the Divvy and Invoice2go acquisitions, and future acquisitions or strategic investments could divert management attention, disrupt operations, dilute stockholders, and adversely affect operating results.
BILL's recent rapid growth, including growth in payment volume, may not be indicative of future growth. If BILL cannot manage growth effectively, including risk management and internal controls, its business and operating results could be harmed.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Total Payment Volume
Transactions Processed
Invoice2go subscribers
Divvy Spending Businesses
Divvy Card Payment Volume
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q4 FY2022 (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.