Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc is anticipated to achieve a revenue increase of 9%-12% for FY2Q, guided at $394.5-$404.5 million, with core revenue projected to rise by 12%-15%, reflecting strong demand for its software-as-a-service products. The company's total revenues showcased a significant year-over-year growth of 10.4%, with core revenue rising by 13.7%, underpinned by a notable increase in subscription revenue, which grew 5.2% year-over-year. Furthermore, growth in transaction revenue and strong performance in spend and expense management solutions highlight robust operational momentum, positioning BILL Holdings favorably for continued expansion in the financial technology sector.

BILL Holdings Inc has experienced a decline in gross margins by 180 basis points year-over-year, decreasing to 83.9%, attributed to a shift away from float revenue, which may undermine profitability. Customer growth has also shown signs of weakness, with Accounts Payable/Accounts Receivable (AP/AR) adding 4,000 customers and Spend & Expense adding 1,400 customers, both lower than the previous quarter. Additionally, the company's cost structure appears bloated compared to its peers, and the Virtual Card offering's high transaction costs may limit further adoption, raising concerns about long-term revenue growth capabilities.