Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. demonstrated strong financial performance with total revenue increasing by 10.4% year-over-year, reaching $358.0 million, alongside core revenue (subscription and transaction fees) rising by 13.7% year-over-year. The company's subscription revenue grew by 5.2% year-over-year to $70.9 million, with Bill AP/AR subscriptions up by 8% to $53.1 million, indicating robust customer adoption and retention. Additionally, significant transaction revenue of $287.1 million showed a notable 16.0% year-over-year growth, fueled by a 25% increase in revenue from Bill Spend and Expense, underscoring the company's effective market position and growth trajectory.

BILL Holdings Inc. has experienced a concerning decline in gross margins, which fell 180 basis points year-over-year to 83.9%, primarily due to a shift away from float revenue. Additionally, the company reported a decrease in customer additions for both its AP/AR and Spend & Expense segments, with only 4,000 and 1,400 new customers added respectively, signaling potential challenges in customer acquisition. Furthermore, the high adjusted operating expenses as a percentage of total revenue in comparison to peers and the stagnation of the Virtual Card offering, impacted by its high transaction costs, further contribute to a negative outlook on the company's financial health.