Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. is demonstrating a strong financial performance, with revenue guidance for FY2Q projected between $394.5 million and $404.5 million, reflecting a year-over-year increase of 9% to 12%, and core revenue anticipated to grow by 12% to 15%. The company has reported a total revenue increase of 10.4% year-over-year, with core revenue—which includes both subscription and transaction fees—rising by 13.7% to $358.0 million, indicating robust demand for its software-as-a-service offerings. Additionally, the solid growth in transaction revenue, which increased by 16% year-over-year, highlights the effectiveness of BILL's payment and spend management solutions in bolstering overall business transactions.

BILL Holdings Inc. has experienced a decline in gross margins, decreasing by 180 basis points year-over-year to 83.9%, primarily due to a shift away from float revenue. Although the non-GAAP operating margin improved to 17.2%, this was supported by reduced research and development expenditures, suggesting potential concerns about long-term growth sustainability. Additionally, customer acquisition has slowed, with decreased additions in both Accounts Payable/Receivable and Spend & Expense segments, along with competitive pressures reflected in declining take rates and a stagnating Virtual Card offering.