Summary
BILL reported $343.7 million of total revenue for the fiscal fourth quarter ended June 30, 2024, up 16.1% from the prior-year quarter, and $1,290.2 million for the full fiscal year, up 21.9%. Gross profit was $278.5 million in the quarter, up 14.4%, while gross margin fell 1.2 percentage points to 81.0%. Full-year gross profit was $1,055.6 million, up 22.1%, and gross margin edged up to 81.8%. The revenue mix kept shifting. Subscription fees fell 2% year over year and transaction fees rose 22%. Core revenue, which is subscription plus transaction fees, grew 16% in the quarter and 19% for the year. Interest on funds held for customers stayed a meaningful piece of the top line because rates remain elevated.
The bottom line improved. The quarter's operating loss narrowed 46.3% to $22.2 million, and the operating margin improved to negative 6.5%. Net income was $7.6 million, a swing to a profit from a net loss a year earlier. For fiscal 2024, the operating loss narrowed 41.1% to $174.2 million and the net loss narrowed to $28.9 million, or $0.27 per diluted share. On a non-GAAP basis, operating income was $60.0 million in the quarter, up 42% year over year, and $196.2 million for the year, up 68%. Non-GAAP net income was $63.9 million, or $0.57 per diluted share, in the quarter, and $244.0 million, or $2.12 per diluted share, for the year. Non-GAAP gross margin was 85.0% in the quarter.
Platform activity kept growing, though slower than revenue. BILL processed $76 billion in total payment volume in the quarter, up 10% year over year, and 28 million transactions, up 19%. Fiscal 2024 total payment volume was $292.4 billion, up 10%, and transactions processed were 103.8 million, up 22%. BILL standalone network members reached 7.1 million, up 22%, and the company served 474,600 businesses using its solutions as of June 30, 2024. The soft spot is spending per customer. Net dollar-based retention was 92% for fiscal 2024, versus 111% for fiscal 2023 and 131% for fiscal 2022. Management tied that decline to changed spending patterns, a soft SMB environment, and the migration or churn of customers at one bank partner.
Cash generation is the strongest part of the story. Operating cash flow was $78.6 million in the quarter, down 2.2%, and $278.8 million for the full year, up 48.5%. Free cash flow, a non-GAAP measure, was $73.1 million for the quarter and $257.9 million for the year. Capital expenditures were just $0.2 million in the quarter, down 81.2%, and $1.0 million for the year, down 87.1%. BILL announced a new $300 million share repurchase program and said it expects to fund it with existing cash. During fiscal 2024 it repurchased 2.9 million shares for $212 million and retired them, completing the earlier authorization. It also bought back an additional $234 million aggregate principal amount of its 2025 convertible notes, a transaction it said produced a net benefit to net income.
Guidance points to slower growth. For the fiscal first quarter ending September 30, 2024, BILL guides to total revenue growth of 13% to 15% and core revenue growth of 15% to 17%. Non-GAAP operating income is guided to $52 million to $57 million and non-GAAP net income to $53 million to $57 million, or $0.48 to $0.51 per diluted share. For the full fiscal year ending June 30, 2025, the company guides to total revenue growth of 10% to 12%, core revenue growth of 13% to 16%, non-GAAP operating income of $160 million to $195 million, and non-GAAP net income of $154 million to $182 million, or $1.36 to $1.61 per diluted share. Management said it plans targeted investments in fiscal 2025 to pursue a large greenfield opportunity.
The risk list is familiar. The company cites macroeconomic conditions, changes in interest rates, inflation and volatile markets, and it notes that the SMBs it serves are sensitive to credit availability. High rates have lifted revenue on customer funds, so lower rates would work against the top line. Credit quality on BILL Divvy Corporate Card receivables, fraud losses, and a history of operating losses remain exposures. Current deferred revenue was $17.0 million, down 35.4%, and remaining performance obligations were $86.8 million, down 33.8%. A restructuring announced in December 2023 cut roughly 15% of the global workforce and was substantially complete by June 30, 2024.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $343.7M | $323.0M | +6.4% | $296.0M | +16.1% |
| Gross profit | $278.5M | $268.0M | +3.9% | $243.4M | +14.4% |
| Gross margin | 81.0% | 83.0% | -1.9 pp | 82.2% | -1.2 pp |
| Research & development | $79.6M | $81.6M | -2.4% | $81.8M | -2.7% |
| Sales & marketing | $123.7M | $118.1M | +4.8% | $117.2M | +5.6% |
| General & administrative | $25.2M | $81.6M | -69.1% | $73.4M | -65.7% |
| Total operating expenses | $300.7M | $295.6M | +1.7% | $284.8M | +5.6% |
| Operating income (loss) | -$22.2M | -$27.6M | +19.5% | -$41.4M | +46.3% |
| Operating margin | -6.5% | -8.6% | +2.1 pp | -14.0% | +7.5 pp |
| Net income (loss) | $7.6M | $31.8M | -76.1% | -$15.9M | +147.9% |
| Net margin | 2.2% | 9.8% | -7.6 pp | -5.4% | +7.6 pp |
| Diluted EPS | $0.07 | $0.00 | +$0.07 | -$0.15 | +$0.22 |
Risks
A significant portion of revenue comes from SMBs, which have limited financial resources and are more susceptible to economic downturns. MD&A states that the macroeconomic environment caused BILL standalone customers and BILL Spend and Expense spending businesses to moderate expenditures and shift to lower-cost payment methods, resulting in lower payment volume growth and lower transaction fee growth than historical trends.
Revenue from interest on funds held for customers was $167.4 million, or 13% of total revenue, in fiscal 2024, up from 11% in fiscal 2023 and 1% in fiscal 2022. MD&A notes interest rate increases have ceased and rates may decline, which would reduce this revenue and adversely affect operating results.
The BILL Divvy Corporate Card offering exposes the company to the entire credit risk on participation interests in card receivables. Provision for expected credit losses increased by $27.9 million, or 87%, in fiscal 2024 compared to fiscal 2023, primarily due to an increase in balances of acquired card receivables and loans held for investment.
The card program depends on Issuing Banks Cross River Bank and WEX Bank and on funding arrangements including warehouse facilities and purchase arrangements. If existing funding arrangements are not renewed or replaced, or if Issuing Banks terminate or limit operations, the company may need to fund purchases with corporate cash, which it has limited ability to do.
Competition risk is expanded by specific new entrants: Intuit launched a native bill payment solution integrated with QuickBooks in October 2023, and Brex and Ramp introduced bill payment products in recent periods. These offerings may challenge the company's ability to win, retain, and expand accounts payable and BILL Divvy Corporate Card customers.
Net dollar-based retention rate decreased to 92% in fiscal 2024 from 111% in fiscal 2023, primarily due to changes in spending patterns per customer, continued softness in the SMB economic environment limiting payment monetization, and migration or churn of certain customers of a bank partner.
The company is responsible for verifying customer identities and monitoring transactions for fraud, and fraud techniques continually evolve. General and administrative expenses included a $7.7 million increase in provision for fraud losses in fiscal 2024, driven by higher transaction volume processed.
The company is licensed as a money transmitter in required U.S. states and registered as a Money Services Business with FinCEN, and in certain jurisdictions must hold eligible liquid assets equal to at least 100% of aggregate customer balances. Failure to maintain controls or comply with liquid asset requirements could result in reputational harm, penalties, and loss of state money transmitter licenses.
The company relies on risk-free trials and digital marketing to generate sales opportunities, but converting trial customers to paid customers often requires extensive follow-up and many prospective customers never convert. MD&A also reports that businesses using our solutions grew 3% as of June 30, 2024 compared to 15% as of June 30, 2023.
In December 2023, the company announced a reduction-in-force impacting approximately 15% of its global workforce and including closure of the Sydney office. The restructuring was substantially completed by June 30, 2024, but it may divert management attention and impair retention of key employees.
As of June 30, 2024, the company had $167.3 million aggregate principal amount of 2025 Notes, $575.0 million aggregate principal amount of 2027 Notes, and $180.0 million drawn under its Revolving Credit Facility. Debt service, conversion, and repurchase obligations could strain liquidity and limit financial flexibility.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Businesses using our solutions
Total Payment Volume
Transactions Processed
Invoice2go subscribers
Core Revenue
Non-GAAP Operating Income
Remaining performance obligations (Total)
BILL standalone customers
Spending businesses using BILL Spend and Expense
Summary, forecast, risks and KPIs are extracted from BILL Holdings, Inc.'s SEC filings for Q4 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.