Core Revenue Increased 62%
Year-over-Year
Total Payment Volume was $35 Billion, up 44%
Year-over-Year
Transaction Fees Increased 112%
Year-over-Year
Signs Definitive Agreement to Acquire
Divvy
Bill.com (NYSE: BILL), a leading provider of cloud-based
software that simplifies, digitizes, and automates complex
back-office financial operations for small and midsize businesses
(SMBs), today announced financial results for the third fiscal
quarter ended March 31, 2021.
“We delivered record results and further increased core revenue
growth, driven by the value of our platform, the scale of our
network, and the broad range of our payment offerings,” said René
Lacerte, Bill.com CEO and Founder. “Our platform makes it easy for
businesses to simplify their back office, connect with each other,
and make payments. We are helping our customers transform their
financial operations, and we believe we are at the beginning of a
multiyear digital transformation wave.”
“We executed well during the quarter and delivered core revenue
growth of 62% year-over-year,” said John Rettig, Bill.com CFO. “Our
innovation in platform, payments, and go-to-market activities drove
strong accelerated growth in transaction fees and total payment
volume. We are operating at a large scale, with an annualized run
rate of approximately $140 billion of payments processed for our
customers.”
Financial Highlights for the Third Quarter of Fiscal 2021
- Total revenue was $59.7 million, an increase of 45% from the
third quarter of fiscal 2020.
- Core revenue, which includes subscription and transaction fees,
was $58.6 million, an increase of 62% year-over-year. Subscription
fees were $29.3 million, an increase of 32% year-over-year.
Transaction fees were $29.3 million, an increase of 112%
year-over-year.
- GAAP gross profit was $44.3 million, representing a 74.2% gross
margin, compared to $31.1 million, or a 75.5% gross margin, in the
third quarter of fiscal 2020. Non-GAAP gross profit was $46.0
million, representing a 76.9% non-GAAP gross margin, compared to
$32.1 million, or a 77.7% non-GAAP gross margin in the third
quarter of fiscal 2020.
- Loss from operations was $15.3 million, compared to a loss from
operations of $9.7 million in the third quarter of fiscal 2020.
Non-GAAP loss from operations was $2.1 million, compared to a
non-GAAP loss from operations of $3.8 million in the third quarter
of fiscal 2020.
- Net loss was $26.7 million, or ($0.32) per share, basic and
diluted, compared to net loss of $8.3 million, or ($0.11) per
share, basic and diluted, in the third quarter of fiscal 2020.
Non-GAAP net loss was $1.7 million, or ($0.02) per share, basic and
diluted, compared to non-GAAP net loss of $2.4 million, or ($0.03)
per share, basic and diluted, in the third quarter of fiscal
2020.
- Cash, cash equivalents and short-term investments were $1.7
billion at March 31, 2021.
Business Highlights and Recent Developments
- Served 115,600 customers as of the end of the third quarter of
fiscal 2021, representing year-over-year customer growth of
27%.
- Processed $35.0 billion in total payment volume on our platform
in the third quarter, an increase of 44% year-over-year.
- Processed 7.2 million transactions in the third quarter of
fiscal 2021, an increase of 19% year-over-year.
- Signed a definitive agreement to acquire Divvy, a leading
company in spend management for SMBs.
- Recognized on G2’s 2021 Best Products for Finance list and
named a leader in G2’s 2021 Accounts Payable Automation Software
category for the small and medium business community.
- Launched integrations with Microsoft Dynamics 365 Business
Central and Microsoft Dynamics GP.
Financial Outlook
Bill.com is providing the following guidance for the fiscal
fourth quarter ending June 30, 2021.
Q4 FY21
Guidance
Total revenue (millions)
$60.9 - $61.9
Year-over-year total revenue growth
45% - 47%
Core revenue (millions)
$60.4 - $61.3
Year-over-year core revenue growth
56% - 58%
Float revenue (millions)
$0.5 - $0.6
Non-GAAP net loss (millions)
($4.5) - ($3.5)
Non-GAAP net loss per share
($0.05) - ($0.04)
Weighted-average basic and diluted shares
outstanding (millions)
83.3
The financial outlook does not include any potential impact from
the proposed acquisition of DivvyPay, Inc. (“Divvy”). These
statements are forward-looking and actual results may differ
materially. Refer to the Forward-Looking Statements safe harbor
below for information on the factors that could cause our actual
results to differ materially from these forward-looking
statements..
Bill.com has not provided a reconciliation of non-GAAP net loss
or non-GAAP net loss per share guidance measures to the most
directly comparable GAAP measures because certain items excluded
from GAAP cannot be reasonably calculated or predicted at this
time. Accordingly, a reconciliation is not available without
unreasonable effort.
Conference Call and Webcast Information
In conjunction with this announcement, Bill.com will host a
conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today
to discuss fiscal third quarter results and, our outlook for the
fiscal fourth quarter ending June 30, 2021, and the pending
acquisition of Divvy. The live webcast and a replay of the webcast
will be available at the Investor Relations section of Bill.com’s
website:
https://investor.bill.com/events-and-presentations/default.aspx.
About Bill.com
Bill.com is a leading provider of cloud-based software that
simplifies, digitizes, and automates complex, back-office financial
operations for small and midsize businesses. Customers use the
Bill.com platform to manage end-to-end financial workflows and to
process payments. The Bill.com AI-enabled, financial software
platform creates connections between businesses and their suppliers
and clients. It helps manage cash inflows and outflow. The company
partners with several of the largest U.S. financial institutions,
the majority of the top 100 U.S. accounting firms, and popular
accounting software providers. Bill.com has offices in San Jose,
California and Houston, Texas. For more information, visit
www.bill.com.
Note on Forward-Looking Statements
This press release and the accompanying conference call contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which are statements
other than statements of historical facts, and statements in the
future tense. Forward-looking statements are based on our
expectations as of the date of this press release and are subject
to a number of risks, uncertainties and assumptions, many of which
involve factors or circumstances that are beyond our control. These
statements include, but are not limited to, statements regarding
our expectations of future performance, including guidance for our
fiscal fourth quarter ending June 30, 2021, our expectations for
the growth of demand on our platform and the expansion of our
customers’ utilization of our services. These risks and
uncertainties include, but are not limited to, the novel
coronavirus pandemic (COVID-19) and its impact on our employees,
customers, strategic partners, vendors, results of operations,
liquidity and financial condition, our history of operating losses,
our recent rapid growth, the large sums of customer funds that we
transfer daily, the risk of loss, errors and fraudulent activity,
the market, interest rate, foreign exchange and other conditions
that the customer funds we hold in trust are subject to, our
ability to attract new customers and convert trial customers into
paying customers, our ability to develop new products and services,
increased competition or new entrants in the marketplace, potential
impacts of acquisitions and investments, including the pending
acquisition of Divvy, changes in staffing levels, and other risks
detailed in registration statements and periodic reports we file
with the SEC, including our annual report on Form 10-K for the year
ended June 30, 2020 filed with the SEC on August 31, 2020, which
may be obtained on the Investor Relations section of Bill.com’s
website
(https://investor.bill.com/financials/sec-filings/default.aspx) and
on the SEC website at www.sec.gov. Additional information will also
be set forth in our quarterly report on Form 10-Q for the three
months ended March 31, 2021 when filed. You should not rely on
these forward-looking statements, as actual results may differ
materially from those contemplated by these forward-looking
statements as a result of such risks and uncertainties. All
forward-looking statements in this press release are based on
information available to us as of the date hereof. We assume no
obligation to update or revise the forward-looking statements
contained in this press release or the accompanying conference call
because of new information, future events, or otherwise.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (“GAAP”), this press
release and the accompanying tables contain, and the conference
call will contain, non-GAAP financial measures, including non-GAAP
loss from operations, non-GAAP net loss and non-GAAP net loss per
share, basic and diluted. The non-GAAP financial information is
presented for supplemental informational purposes only and is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in
accordance with GAAP.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. Items excluded from non-GAAP net loss and non-GAAP
net loss per share include stock-based compensation expense,
employer payroll taxes related to employee stock-based
compensation, depreciation and amortization expense, amortization
of debt discount and issuance costs, loss on revaluation of warrant
liabilities, and income tax benefit associated with 2025 Notes. It
is important to note that the particular items we exclude from, or
include in, our non-GAAP financial measures may differ from the
items excluded from, or included in, similar non-GAAP financial
measures used by other companies in the same industry.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects and
allow for greater transparency with respect to important metrics
used by our management for financial and operational
decision-making. We believe that these measures provide an
additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in
our industry.
Beginning the quarter ended March 31, 2021, we changed our
method of calculating certain non-GAAP financial measures by
removing the adjustments related to the capitalized service costs,
capitalized internal-use software, capitalized sales commissions,
and the associated amortization expenses. Our non-GAAP financial
measures for the quarter ended March 31, 2020 were also adjusted to
conform to the current quarter presentation. These changes are
further described in the reconciliation of GAAP to non-GAAP
financial measures below.
We adjust the following items from one or more of our non-GAAP
financial measures:
Stock-based compensation expense. We exclude stock-based
compensation expense, which is a non-cash expense, from certain of
our non-GAAP financial measures because we believe that excluding
this item provides meaningful supplemental information regarding
operational performance. In particular, companies calculate stock-
based compensation expenses using a variety of valuation
methodologies and subjective assumptions.
Employer payroll taxes related to employee stock-based
compensation. We exclude payroll tax expense related to employee
stock-based transactions because we believe that excluding this
item provides meaningful supplemental information regarding
operational performance. In particular, this expense is dependent
on the price of our common stock and other factors that are beyond
our control and do not correlate to the operation of our business.
Employer payroll tax expense related to employee stock-based
compensation was not material for all periods prior to June 30,
2020; therefore, it was excluded from those prior periods.
Depreciation and amortization expense. We exclude depreciation
and amortization expenses from certain of our non-GAAP financial
measures because we believe that excluding this item provides
meaningful supplemental information regarding operational
performance.
Amortization of debt discount and issuance costs. We exclude the
amortization of debt discount and issuance costs associated with
our issuance of convertible senior notes due 2025 from certain of
our non-GAAP financial measures because we believe that excluding
this non-cash interest expense provides meaningful supplemental
information regarding our operational performance.
Loss on revaluation of warrant liabilities. We exclude loss on
revaluation of warrant liabilities, which is a non-cash expense,
from certain of our non-GAAP financial measures because we believe
that excluding this item provides meaningful supplemental
information regarding operational performance.
Income tax benefit associated with 2025 Notes. We exclude the
income tax benefit associated with 2025 Notes from certain of our
non-GAAP financial measures because we believe that excluding this
provides meaningful supplemental information regarding our
operational performance.
There are material limitations associated with the use of
non-GAAP financial measures since they exclude significant expenses
and income that are required by GAAP to be recorded in our
financial statements. Please see the reconciliation tables at the
end of this release for the reconciliation of GAAP and non-GAAP
results.
Free Cash Flow
Free cash flow is a non-GAAP measure that we calculate as net
cash provided by (used in) operating activities, reduced by
purchases of property and equipment and capitalization of
internal-use software costs. We believe free cash flow is an
important liquidity measure of the cash (if any) that is available,
after capital expenditures, for operational expenses and investment
in our business. Free cash flow is useful to investors as a
liquidity measure because it measures our ability to generate or
use cash. One limitation of free cash flow is that it does not
reflect our future contractual commitments. Additionally, free cash
flow does not represent the total increase or decrease in our cash
balance for a given period. Once our business needs and obligations
are met, cash can be used to maintain a strong balance sheet and
invest in future growth.
BILL.COM HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited, in thousands)
March 31,
June 30,
2021
2020
ASSETS Current assets: Cash and cash equivalents
$
1,223,724
$
573,643
Short-term investments
512,520
123,974
Accounts receivable, net
9,584
4,252
Unbilled revenue
7,865
6,549
Prepaid expenses and other current assets
18,268
26,781
Funds held for customers
1,929,840
1,644,250
Total current assets
3,701,801
2,379,449
Non-current assets: Operating lease right-of-use assets
44,125
—
Property and equipment, net
31,740
13,866
Other assets
22,499
10,700
Total assets
$
3,800,165
$
2,404,015
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
4,320
$
3,478
Accrued compensation and benefits
11,632
12,387
Other accrued and current liabilities
9,281
8,541
Deferred revenue
8,371
5,891
Line of credit borrowings
—
2,300
Operating lease liabilities
6,388
—
Customer fund deposits
1,929,840
1,644,250
Total current liabilities
1,969,832
1,676,847
Non-current liabilities: Deferred revenue
3,066
2,622
Operating lease liabilities
53,644
—
Convertible senior notes, net
897,871
—
Deferred income tax liability
1,832
—
Other long-term liabilities
3,459
13,827
Total liabilities
2,929,704
1,693,296
Commitments and contingencies Stockholders' equity: Common stock
2
2
Additional paid-in capital
1,076,255
857,044
Accumulated other comprehensive (loss) income
(191
)
2,420
Accumulated deficit
(205,605
)
(148,747
)
Total stockholders' equity
870,461
710,719
Total liabilities and stockholders' equity
$
3,800,165
$
2,404,015
BILL.COM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited, in thousands except per share
amounts)
Three months ended March
31,
Nine months ended March
31,
2021
2020
2021
2020
Revenue Subscription and transaction fees
$
58,622
$
36,092
$
154,743
$
97,604
Interest on funds held for customers
1,116
5,138
5,249
17,886
Total revenue
59,738
41,230
159,992
115,490
Cost of revenue (1)
15,434
10,110
41,513
29,044
Gross profit
44,304
31,120
118,479
86,446
Operating expenses Research and development (1)
22,286
13,969
60,558
38,476
Sales and marketing (1)
15,190
11,802
42,272
33,560
General and administrative (1)
22,124
15,064
58,897
38,347
Total operating expenses
59,600
40,835
161,727
110,383
Loss from operations
(15,296
)
(9,715
)
(43,248
)
(23,937
)
Other (expense) income, net
(11,432
)
1,397
(13,943
)
2,396
Loss before (benefit from) provision for income taxes
(26,728
)
(8,318
)
(57,191
)
(21,541
)
(Benefit from) provision for income taxes
—
1
(333
)
52
Net loss
$
(26,728
)
$
(8,319
)
$
(56,858
)
$
(21,593
)
Net loss per share attributable tocommon stockholders, basic
and diluted
$
(0.32
)
$
(0.11
)
$
(0.70
)
$
(0.63
)
Weighted-average number of common sharesused to compute net loss
per shareattributable to common stockholders,basic and diluted
82,627
72,379
81,446
34,167
(1) Includes stock-based compensation expense as follows:
Cost of revenue
$
728
$
422
$
1,971
$
781
Research and development
3,638
1,466
9,953
3,221
Sales and marketing
1,711
767
5,086
1,643
General and administrative
4,603
2,430
14,253
4,791
$
10,680
$
5,085
$
31,263
$
10,436
BILL.COM HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited, in thousands)
Three months ended March
31,
Nine months ended March
31,
2021
2020 (1)
2021
2020 (1)
Cash flows from operating activities: Net loss
$
(26,728
)
$
(8,319
)
$
(56,858
)
$
(21,593
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
1,526
1,100
3,449
3,205
Stock-based compensation
10,680
5,085
31,263
10,436
Amortization of debt discount and issuance costs
11,819
—
15,724
—
Amortization of premium (accretion of discount) on investment in
marketable debt securities
1,247
(509
)
1,970
(2,855
)
Non-cash operating lease expense
958
—
2,635
—
Revaluation of warrant liabilities
—
—
—
717
Deferred income tax
—
—
(333
)
—
Changes in assets and liabilities: Accounts receivable
(2,547
)
1,351
(5,332
)
958
Unbilled revenue
(495
)
(242
)
(1,316
)
(1,356
)
Prepaid expenses and other current assets
(886
)
(9,235
)
(4,833
)
(10,843
)
Other assets
(532
)
(466
)
(11,799
)
(1,047
)
Accounts payable
(439
)
(2,621
)
927
(1,475
)
Accrued and other current liabilities
70
2,342
58
6,893
Operating lease liabilities
852
—
7,782
—
Other long-term liabilities
3
10,502
576
10,689
Deferred revenue
2,892
1,834
2,924
2,944
Net cash (used in) provided by operating activities
(1,580
)
822
(13,163
)
(3,327
)
Cash flows from investing activities: Purchases of corporate
and customer fund short-term investments
(784,583
)
(416,046
)
(1,486,025
)
(830,694
)
Proceeds from maturities of corporate and customer fund short-term
investments
329,774
189,075
830,933
596,311
Proceeds from sale of corporate and customer fund short-term
investments
83,786
2,612
119,072
25,337
Increase in other receivables included in funds held for customers
(9,091
)
(1,901
)
(9,072
)
(6,601
)
Purchases of property and equipment
(3,426
)
(2,764
)
(17,062
)
(5,736
)
Capitalization of internal-use software costs
(378
)
(149
)
(1,038
)
(489
)
Net cash used in investing activities
(383,918
)
(229,173
)
(563,192
)
(221,872
)
Cash flows from financing activities: Proceeds from issuance
of convertible senior notes, net of discounts and issuance costs
(224
)
—
1,129,379
—
Purchase of capped calls
—
—
(87,860
)
—
Proceeds from issuance of common stock upon initial public
offering, net of underwritingdiscounts and commissions and other
offering costs
—
(1,021
)
—
225,544
(Decrease) increase in customer fund deposits liability
(287,840
)
(138,211
)
285,590
24,246
Payments on line of credit borrowings
(2,300
)
(2,300
)
—
Proceeds from line of credit borrowings
—
2,300
—
2,300
Proceeds from exercise of stock options
5,592
845
23,034
1,746
Proceeds from issuance of common stock under the employee stock
purchase plan
4,537
—
8,864
—
Payments of offering costs related to the follow-on public offering
—
—
(664
)
—
Proceeds from exercise of stock warrants
—
—
—
144
Payments of deferred debt issuance costs
—
—
—
(151
)
Net cash (used in) provided by financing activities
(280,235
)
(136,087
)
1,356,043
253,829
Net (decrease) increase in cash, cash equivalents, restricted
cash, and restrictedcash equivalents
(665,733
)
(364,438
)
779,688
28,630
Cash, cash equivalents, restricted cash, and restricted cash
equivalents, beginning of period
3,037,798
1,376,236
1,592,377
983,168
Cash, cash equivalents, restricted cash, and restricted cash
equivalents, end of period
$
2,372,065
$
1,011,798
$
2,372,065
$
1,011,798
Reconciliation of cash, cash equivalents, restricted
cash, and restrictedcash equivalents within the condensed
consolidated balance sheets to theamounts shown in the condensed
consolidated statements of cash flows above: Cash and cash
equivalents
$
1,223,724
$
228,585
$
1,223,724
$
228,585
Restricted cash included in other current assets
35
256
35
256
Restricted cash and restricted cash equivalents included in funds
held for customers
1,148,306
782,957
1,148,306
782,957
Total cash, cash equivalents, restricted cash, and restricted
cash equivalents, end of period
$
2,372,065
$
1,011,798
$
2,372,065
$
1,011,798
______________________ (1) Amounts have been adjusted to
reflect the adoption of Accounting Standards Update No. 2016-18,
Statement of Cash Flows(Topic 230): Restricted Cash. Shown below is
a summary of the adjustments during the three and nine months ended
March 31, 2020 (in thousands).
Three months ended March
31, 2020 Asreported ASU No.2016-18adjustments Asadjusted Net
cash provided by operating activities
$
822
$
—
$
822
Net cash provided by (used in) investing activities
48,956
(278,129
)
(229,173
)
Net cash used in financing activities
(136,087
)
—
(136,087
)
Net decrease in cash, cash equivalents, restricted cash, and
restricted cash equivalents
(86,309
)
(278,129
)
(364,438
)
Cash, cash equivalents, restricted cash, and restricted cash
equivalents, beginning of period
314,894
1,061,342
1,376,236
Cash, cash equivalents, restricted cash, and restricted cash
equivalents, end of period
$
228,585
$
783,213
$
1,011,798
Nine months ended March 31, 2020 Asreported ASU
No.2016-18adjustments Asadjusted Net cash used in operating
activities
$
(3,327
)
$
—
$
(3,327
)
Net cash used in investing activities
(112,223
)
(109,649
)
(221,872
)
Net cash provided by financing activities
253,829
—
253,829
Net increase in cash, cash equivalents, restricted cash, and
restricted cash equivalents
138,279
(109,649
)
28,630
Cash, cash equivalents, restricted cash, and restricted cash
equivalents, beginning of period
90,306
892,862
983,168
Cash, cash equivalents, restricted cash, and restricted cash
equivalents, end of period
$
228,585
$
783,213
$
1,011,798
BILL.COM HOLDINGS, INC. RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (Unaudited, in thousands except
percentages and per share amounts)
Three months ended March
31,
Nine months ended March
31,
2021
2020 (2)
2021
2020 (2)
Reconciliation of gross profit: GAAP gross profit
$
44,304
$
31,120
$
118,479
$
86,446
Add: Stock-based compensation expense
728
422
1,971
781
Payroll taxes related to stock-based compensation expense
119
—
263
—
Depreciation and amortization expense
800
514
1,868
1,575
Non-GAAP gross profit
$
45,951
$
32,056
$
122,581
$
88,802
GAAP gross margin
74.2
%
75.5
%
74.1
%
74.9
%
Non-GAAP gross margin
76.9
%
77.7
%
76.6
%
76.9
%
Three months ended March
31,
Nine months ended March
31,
2021
2020 (2)
2021
2020 (2)
Reconciliation of operating expenses: GAAP research and
development expenses
$
22,286
$
13,969
$
60,558
$
38,476
Less: Stock-based compensation expense
(3,638
)
(1,466
)
(9,953
)
(3,221
)
Payroll taxes related to stock-based compensation expense
(404
)
—
(978
)
—
Depreciation and amortization expense
(213
)
(113
)
(313
)
(312
)
Non-GAAP research and development expenses
$
18,031
$
12,390
$
49,314
$
34,943
GAAP sales and marketing expenses
$
15,190
$
11,802
$
42,272
$
33,560
Less: Stock-based compensation expense
(1,711
)
(767
)
(5,086
)
(1,643
)
Payroll taxes related to stock-based compensation expense
(204
)
—
(507
)
—
Depreciation and amortization expense
(119
)
(76
)
(177
)
(220
)
Non-GAAP sales and marketing expenses
$
13,156
$
10,959
$
36,502
$
31,697
GAAP general and administrative expenses
$
22,124
$
15,064
$
58,897
$
38,347
Less: Stock-based compensation expense
(4,603
)
(2,430
)
(14,253
)
(4,791
)
Payroll taxes related to stock-based compensation expense
(445
)
—
(1,485
)
—
Depreciation and amortization expense
(182
)
(133
)
(391
)
(325
)
Non-GAAP general and administrative expenses
$
16,894
$
12,501
$
42,768
$
33,231
Three months ended March
31,
Nine months ended March
31,
2021
2020 (2)
2021
2020 (2)
Reconciliation of loss from operations: GAAP loss from
operations
$
(15,296
)
$
(9,715
)
$
(43,248
)
$
(23,937
)
Add: Stock-based compensation expense
10,680
5,085
31,263
10,436
Payroll taxes related to stock-based compensation expense
1,172
—
3,233
—
Depreciation and amortization expense
1,314
836
2,749
2,432
Non-GAAP loss from operations
$
(2,130
)
$
(3,794
)
$
(6,003
)
$
(11,069
)
Three months ended March
31,
Nine months ended March
31,
2021
2020 (2)
2021
2020 (2)
Reconciliation of net loss: GAAP net loss
$
(26,728
)
$
(8,319
)
$
(56,858
)
$
(21,593
)
Add (less): Stock-based compensation expense
10,680
5,085
31,263
10,436
Payroll taxes related to stock-based compensation expense
1,172
—
3,233
—
Depreciation and amortization expense
1,314
836
2,749
2,432
Amortization of debt discount and issuance cost
11,819
—
15,724
—
Loss on revaluation of warrant liability
—
—
—
717
Income tax benefit associated with 2025 Notes
—
—
(333
)
—
Non-GAAP net loss
$
(1,743
)
$
(2,398
)
$
(4,222
)
$
(8,008
)
Three months ended March
31,
Nine months ended March
31,
2021
2020 (2)
2021
2020 (2)
Reconciliation of net loss per share attributable tocommon
stockholders, basic and diluted GAAP net loss per share
attributable to common stockholders,basic and diluted
$
(0.32
)
$
(0.11
)
$
(0.70
)
$
(0.63
)
Add (less): Stock-based compensation expense
0.13
0.07
0.38
0.31
Payroll taxes related to stock-based compensation expense
0.01
—
0.04
—
Depreciation and amortization expense
0.02
0.01
0.04
0.07
Amortization of debt discount and issuance cost
0.14
—
0.19
—
Loss on revaluation of warrant liability
—
—
—
0.02
Income tax benefit associated with 2025 Notes
—
—
—
—
Impact of the assumed conversion of redeemableconvertible preferred
stock
—
—
—
0.11
Non-GAAP net loss
$
(0.02
)
$
(0.03
)
$
(0.05
)
$
(0.12
)
Three months ended March
31,
Nine months ended March
31,
2021
2020
2021
2020
Reconciliation of shares used to compute net loss pershare
attributable to common stockholders Shares used to compute GAAP
net loss per share attributableto common stockholders, basic and
diluted
82,627
72,379
81,446
34,167
Add: Weighted average effect of the assumed conversionof redeemable
convertible preferred stock from thedate of issuance
—
—
—
31,079
Shares used to compute non-GAAP net loss per shareattributable to
common stockholders, basic and diluted
82,627
72,379
81,446
65,246
(2) Beginning the quarter ended March 31, 2021, we changed our
method of calculating certain non-GAAP financial measures by
removing the adjustments related to the capitalized service costs,
capitalized internal-use software, capitalized sales commissions,
and the associated amortization expenses. Our non-GAAP financial
measures for the quarter ended March 31, 2020 were also adjusted to
conform to the current quarter presentation. The tables below show
the reconciliation of the non-GAAP financial measures as previously
reported and as restated during the three and nine months ended
March 31, 2020.
Three months endedMarch 31, 2020 Nine
months endedMarch 31, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of gross profit: GAAP gross
profit
$
31,120
$
—
$
31,120
$
86,446
$
—
$
86,446
Add (less): Stock-based compensation expense
422
—
422
781
—
781
Depreciation and amortization expense
514
—
514
1,575
—
1,575
Amortization of capitalized service costs
178
(178
)
—
577
(577
)
—
Amortization of capitalized internal-usesoftware costs
264
(264
)
—
774
(774
)
—
Non-GAAP gross profit
$
32,498
$
(442
)
$
32,056
$
90,153
$
(1,351
)
$
88,802
GAAP gross margin
75.5
%
75.5
%
74.9
%
74.9
%
Non-GAAP gross margin
78.8
%
-1.1
%
77.7
%
78.1
%
-1.2
%
76.9
%
Three months endedMarch 31, 2020 Nine
months endedMarch 31, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of operating expenses: GAAP
research and development expenses
$
13,969
$
—
$
13,969
$
38,476
$
—
$
38,476
Add (less): Stock-based compensation expense
(1,466
)
—
(1,466
)
(3,221
)
—
(3,221
)
Depreciation and amortization expense
(113
)
—
(113
)
(312
)
—
(312
)
Capitalized service costs
150
(150
)
—
444
(444
)
—
Capitalized internal-use software costs
243
(243
)
—
320
(320
)
—
Non-GAAP research and development expenses
$
12,783
$
(393
)
$
12,390
$
35,707
$
(764
)
$
34,943
GAAP sales and marketing expenses
$
11,802
$
—
$
11,802
$
33,560
$
—
$
33,560
Add (less): Stock-based compensation expense
(767
)
—
(767
)
(1,643
)
—
(1,643
)
Depreciation and amortization expense
(76
)
—
(76
)
(220
)
—
(220
)
Capitalized sales commissions
1,163
(1,163
)
—
3,454
(3,454
)
—
Amortization of capitalized sales commissions
(581
)
581
—
(1,587
)
1,587
—
Non-GAAP sales and marketing expenses
$
11,541
$
(582
)
$
10,959
$
33,564
$
(1,867
)
$
31,697
GAAP general and administrative expenses
$
15,064
$
—
$
15,064
$
38,347
$
—
$
38,347
Less: Stock-based compensation expense
(2,430
)
—
(2,430
)
(4,791
)
—
(4,791
)
Depreciation and amortization expense
(133
)
—
(133
)
(325
)
—
(325
)
Non-GAAP general and administrative expenses
$
12,501
$
—
$
12,501
$
33,231
$
—
$
33,231
Three months endedMarch 31, 2020 Nine
months endedMarch 31, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of loss from operations:
GAAP loss from operations
$
(9,715
)
$
—
$
(9,715
)
$
(23,937
)
$
—
$
(23,937
)
Add (less): Stock-based compensation expense
5,085
—
5,085
10,436
—
10,436
Depreciation and amortization expense
836
—
836
2,432
—
2,432
Amortization of capitalized service costs, net ofamount capitalized
28
(28
)
—
133
(133
)
—
Amortization of capitalized internal-usesoftware costs, net of
amount capitalized
21
(21
)
—
454
(454
)
—
Capitalized sales commissions, netof associated amortization
expense
(582
)
582
—
(1,867
)
1,867
—
Non-GAAP loss from operations
$
(4,327
)
$
533
$
(3,794
)
$
(12,349
)
$
1,280
$
(11,069
)
Three months endedMarch 31, 2020 Nine
months endedMarch 31, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of net loss: GAAP net loss
$
(8,319
)
$
—
$
(8,319
)
$
(21,593
)
$
—
$
(21,593
)
Add (less): Stock-based compensation expense
5,085
—
5,085
10,436
—
10,436
Depreciation and amortization expense
836
—
836
2,432
—
2,432
Amortization of capitalized service costs, net ofamount capitalized
28
(28
)
—
133
(133
)
—
Amortization of capitalized internal-usesoftware costs, net of
amount capitalized
21
(21
)
—
454
(454
)
—
Capitalized sales commissions, netof associated amortization
expense
(582
)
582
—
(1,867
)
1,867
—
Loss on revaluation of warrant liability
—
—
—
717
—
717
Non-GAAP net loss
$
(2,931
)
$
533
$
(2,398
)
$
(9,288
)
$
1,280
$
(8,008
)
Three months endedMarch 31, 2020 Nine
months endedMarch 31, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of net loss per share
attributableto common stockholders,basic and diluted GAAP net
loss per share attributable to commonstockholders, basic and
diluted
$
(0.11
)
$
—
$
(0.11
)
$
(0.63
)
$
—
$
(0.63
)
Add (less): Stock-based compensation expense
0.07
—
0.07
0.31
—
0.31
Depreciation and amortization expense
0.01
—
0.01
0.07
—
0.07
Amortization of capitalized service costs, net ofamount capitalized
—
—
—
0.01
(0.01
)
—
Amortization of capitalized internal-usesoftware costs, net of
amount capitalized
—
—
—
0.01
(0.01
)
—
Capitalized sales commissions, netof associated amortization
expense
(0.01
)
0.01
—
(0.06
)
0.06
—
Loss on revaluation of warrant liability
—
—
—
0.02
—
0.02
Impact of assumed conversion of redeemableconvertible preferred
stock
—
—
—
0.13
(0.02
)
0.11
Non-GAAP net loss
$
(0.04
)
$
0.01
$
(0.03
)
$
(0.14
)
$
0.02
$
(0.12
)
BILL.COM HOLDINGS, INC. FREE CASH FLOW (Unaudited, in
thousands)
Three months ended March
31,
Nine months ended March
31,
2021
2020
2021
2020
Net cash (used in) provided by operatingactivities
$
(1,580
)
$
822
$
(13,163
)
$
(3,327
)
Purchases of property and equipment
(3,426
)
(2,764
)
(17,062
)
(5,736
)
Capitalization of internal-use software costs
(378
)
(149
)
(1,038
)
(489
)
Free cash flow
$
(5,384
)
$
(2,091
)
$
(31,263
)
$
(9,552
)
BILL.COM HOLDINGS, INC. REMAINING PERFORMANCE
OBLIGATIONS WITH FINANCIAL INSTITUTIONS (Unaudited, in
thousands)
March 31,
June 30,
2021
2020
Remaining performance obligations with financial institutionsto be
recognized as revenue: Within 1 year
$
26,177
$
13,001
Thereafter
121,283
139,334
Total
$
147,460
$
152,335
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506006167/en/
IR Contact: Karen Sansot ksansot@hq.bill.com
Press Contact: Oriana Branon obranon@hq.bill.com
619-997-0299
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