Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. has demonstrated a strong financial performance, with projected FY2Q revenues between $394.5 million and $404.5 million, reflecting a year-over-year increase of 9% to 12%, and core revenue expected to rise by 12% to 15%. Subscription revenue also saw positive growth, increasing 5.2% year-over-year, alongside a notable 8% rise in Bill AP/AR subscriptions, contributing to a total revenue increase of 10.4% year-over-year and core revenue growth of 13.7%. Transaction revenue has been particularly robust, growing 16% year-over-year, supported by impressive increases in both AP/AR and Spend & Expense transaction volumes, suggesting strong market demand for BILL's offerings.

BILL Holdings Inc has exhibited a decline in gross margins, falling 180 basis points year-over-year to 83.9%, primarily due to a shift in revenue mix that adversely impacted float revenue. The number of customers added for both Accounts Payable/Receivable and Spend & Expense products showed a decline, reflecting a slowdown in customer acquisition and potential challenges in market demand. Additionally, the company's operating expenditures as a percentage of total revenue remain elevated compared to peers, while the Virtual Card offering has faced adoption barriers due to high costs, indicating potential constraints on future growth.