Bill.com Surges 20% on 'Perfect' Results, Analysts Bulled-up

© Reuters. Bill.com (BILL) Surges 20% on 'Perfect' Results, Analysts Bulled-up

By Senad Karaahmetovic

Shares of Bill Com (NYSE:BILL) are up over 20% in premarket Friday after the company reported very strong results.

Bill reported an FQ4 adjusted loss of 3c, which is much better than the consensus of 14c. Revenue came in at 200.2 million, again easily beating the $183.6 million estimate.

“We delivered strong Q4 financial results, with revenue, non-GAAP gross margin, and non-GAAP net loss per share all well ahead of our expectations,” said John Rettig, Bill.com CFO.

For this quarter, Bill.com said it expects to record an adjusted EPS in the range of 5c to 7c while analysts were looking for a loss of 10c. Revenue is seen between $208.0 million to $211.0 million, topping the consensus of $190.8 million.

“Looking ahead, we expect to deliver high revenue growth and to transition to being a non-GAAP profitable company in fiscal year 2023. We will continue to invest in our large market opportunity, while maintaining our rigorous operational discipline,” Rettig added.

On a full-year basis, BILL’s guidance for an adjusted EPS comes in at 30.5c at the midpoint, somewhere in line with the consensus of 30c. Revenue is seen between $955.5 million to $973.5 million, easily ahead of the $892.6 million estimate.

A Goldman Sachs analyst said results were “strong.”

“While we believe some of the stock reaction will likely depend on BILL's commentary on how to think about macro risk to its SMB customer base, we believe the initial guidance for 2023 as well as a solid beat on the quarter should be well received by investors,” the analyst said in a client note.

A Jefferies analyst added that the software company delivered a “perfect print” that “answered any doubts” about the company’s momentum. He added that BILL’s outlook “blew away” estimates.