Bill.com stock soars 30% after ‘great’ earnings report
Shares of Bill.com Holdings Inc. soared more than 30% in after-hours trading Thursday after the maker of financial software tools for small businesses beat expectations for its latest quarter and gave a optimistic forecast.
The company posted a second-quarter net loss of $80.4 million, or 78 cents per share, compared with a loss of $17.2 million, or 21 cents per share, in the prior quarter.
After adjusting for stock-based compensation and other expenses, Bill.com BILL,
posted a net loss of $220,000, which translates to roughly balanced performance per share. A year earlier, the company reported an adjusted net loss per share of 1 cent.
The FactSet consensus was for an adjusted net loss of 18 cents per share.
Bill.com revenue rose to $156.5 million from $54.0 million a year earlier, while analysts tracked by FactSet expected $131.1 million.
The company processed total payments volume of $56.4 billion in the quarter, ahead of the $50.6 billion that analysts tracked by FactSet had expected. Bill.com increased TPV 20% sequentially, above the sequential growth rate of about 13% that Bill.com saw in its September quarter.
“This was arguably the biggest question for investors heading into print given concerns over the health of SMEs. [small and medium-sized businesses]certain industry data points, and given that management had guided a smaller seasonal peak than the same quarter a year ago,” wrote Wolfe Research analyst Darrin Peller, who described the report as “excellent”.
For the March quarter, Bill.com forecasts revenue of $157 million to $158 million and an adjusted loss of 15 to 16 cents per share. Analysts had expected revenue of $141.0 million and an adjusted loss of 22 cents per share.
The earnings come amid a recent tough time for shares of Bill.com and other fast-growing fintech names. Through Thursday’s close, Bill.com’s stock price had been roughly halved from November’s closing high of $342.26. The stock fell nearly 8% in Thursday’s regular session.
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