Bill.com (NYSE:BILL)
The shares of Bill.com (NYSE:BILL) have increased by 19% in trading conducted after regular market hours on Thursday. This comes after the financial software company that caters to small and midsize businesses reported fiscal Q4 results that exceeded the expectations of Wall Street and issued revenue guidance for FY2023 and Q1 that exceeded the consensus estimates.
According to John Rettig, BILL’s chief financial officer, “Looking ahead, we anticipate delivering substantial revenue growth and to convert to becoming a non-GAAP profitable company in the fiscal year 2023.” While keeping our strict adherence to operational discipline, we will continue to invest in our tremendous market opportunity.
Bill.com anticipates revenue of $955.5M-$973.5M for FY2023, which is higher than the average analyst estimate of $879.5M, and adjusted EPS of -$0.23 to -$0.38, which is lower than the average analyst estimate of -$0.31 per share.
Bill.com anticipates sales of $208M-$211M for the first quarter of the fiscal year 2023, which is higher than the average estimate of $187.5M, and adjusted EPS of -$0.05 to -$0.07, which is lower than the consensus estimate of -$0.10 per share.
The revenue for the fourth quarter of the fiscal year, which came in at $200.2 million, exceeded the consensus estimate of $183.1 million. Additionally, this figure represents an increase from the previous quarter’s total of $166.9 million and from the previous quarter’s total of $78.3 million.
Adjusted earnings per share for the fourth quarter came in at -$0.03, compared to the average estimate of -$0.14. This represents a significant improvement from the previous quarter’s result of -$0.08 and the prior year’s result of -$0.07.
Net loss of $84.9 million for the quarter that ended on June 30, 2022, compared to a loss of $86.7 million in the previous quarter and a loss of $41.9 million in the same quarter the previous year.
In comparison, the adjusted gross margin for Q4 was 84.2%, but it was 84.6% in Q3, and it was expected to be 79.7% in Q4 2021.
Operating expenses came in at $240.1 million, up from $212.8 million in the previous quarter and up from $128.7 million in the previous quarter of 2021.
The negative free cash flow in Q4 was $14.9 million, compared to $22.8 million in Q3 and $14.7 million in Q4 2021.
Earlier, Bill.com’s non-GAAP earnings per share of -$0.03 surpassed estimates by $0.11, and the company’s revenue of $200.22 million topped estimates by $17.12 million.
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Author Shariq Khan 
