Stockideas

Bill.com Holdings, Inc
(NYSE:BILL)
Bill.com Holdings, Inc

Bill.com Holdings, Inc. provides cloud-based software that digitizes and automates back-office financial operations for small and midsize businesses worldwide. It offers artificial-intelligence (AI)-enabled financial software platform. The company provides software-as-a-service, cloud-based payments products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their supplier...
Founded: 2006
IPO date: 2019-12-12
IPO price: $22
Full Time Employees: 618
CEO / Founder: René Lacerte 
CFO: John Rettig 
CTO: Vinay Pai 
Sector: Technology
Industry: Software-Application
Next Earnings Date: 2023-02-02
Stock price: $121.64 (-1.61%)
bill
By: barbapapa lazy guy   💬 25   
   on Nov 18, 2022

this company continues to grow really fast. they have something sticky that when accounting teams it you cannot switch away. $bill


Reply
Bill.com stock jumps 19% after strong fiscal Q4 results, robust guidance
By: ssmlee04 Community Lead :))   💬 98   
   on Aug 19, 2022

https://seekingalpha.com/news/3874842-billcom-stock-jumps-19-after-strong-fiscal-q4-results-robust-guidance

Solid quarter. beats all metrics and growth is phenomenal. They raised guidance again to a guidance qoq 14% so they're on track of beating this number again next quarter.

$bill


Reply
2020 SaaS review
By: ssmlee04 Community Lead :))   💬 98   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020. https://i.imgur.com/xL1w2F2.jpg

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

https://i.imgur.com/KWx3Ea2.png

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.

$ZS $DBX $ZUO $AYX $DOCU $SMAR $DOMO $SVMK $AVLR $TTD $PCOM $NOW $WDAY $PD $WORK $ZEN $TEAM $VEEV $CLDR $SHOP $FSLY $TWLO $ADBE $AAXN $CRM $OKTA $GOOG $DT $ZM $SPLK $WIX $COUP $MDLA $LPSN $APPN $EPAY $AKAM $APPS $FIVN $BL $PANW $PFPT $CRWD $DDOG $NET $HUBS $NEWR $APPF $RNG $ESTC $BILL $GDDY $DCT $ECOM $PLAN $SNOW $SUMO $FROG $ASAN $JAMF $ADSK


Reply
bill.com
By: ssmlee04 Community Lead :))   💬 98   
   on Feb 10, 2020

https://seekingalpha.com/news/3539793?source=ansh

For those of you who have bill.com congrats. The earnings are great. Now it's time to figure out whether or not it's a good long term investment after +18% today.

long $bill


Reply
bill.com S-1
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 25, 2019

This is some information taken from their IPO:

https://i.imgur.com/Uj4thzl.jpg

So, in a nutshell, they help you do your invoices and save you some money.

Customers who adopt our platform benefit from streamlined back-office processes, as evidenced by our customers’ electronically exchanging more than 8,000 messages per day, approving more than 2.4 million bills per month, and storing almost 45 million documents per year, collectively, as of June 30, 2019.

Financial services are seen to me as sticky. You wouldn't change your payment processors very easily. And this is a good thing for bill.com because the more you store your data on their website the more you're reliant on their service and they can analyze the data more accurately.

We have grown and scaled our business operations rapidly in recent periods. Our total revenue was $64.9 million and $108.4 million for fiscal 2018 and 2019, respectively, an increase of 67%. For the three months ended September 30, 2018 and 2019, our total revenue was $22.4 million and $35.2 million, respectively, an increase of 57%. We incurred net losses of $7.2 million and $7.3 million for fiscal 2018 and 2019, respectively. For the three months ended September 30, 2018 and 2019, we incurred net losses of $0.9 million and $5.7 million, respectively.

So the growth is around 50-70% area. Net losses is around 7m a year. Also they have around 81,000 customers as of IPO date.

We estimate the annual addressable market for the services we offer today to be $30 billion globally and $9 billion domestically. We derive these estimates by multiplying our average fiscal 2019 revenue per customer of $1,500 by each of the 20 million SMEs globally and 6 million domestic employer firms.

So their domestic TAM according to them is 9b and globally 30b. And as of today they already have a market cap of 3b. So they're definitely not trading cheaply. Maybe there are some opportunities in this one for the long term but I'm not sure I want to buy this in the short term. One potential good thing is they see a 20b TAM for global markets. So maybe that means they would be expanding to markets overseas aggressively.

Also this is their Go-to-Market Strategy in the S-1:

* partner with more than 70 of the top 100 accounting firms, and over 4,000 accounting firms nationwide.

* They are integrated with Intuit QuickBooks, making our features available to millions of SMBs. In addition, we have referral relationships with several other popular accounting software providers, including Oracle NetSuite and Sage Intacct.

Financials:

https://i.imgur.com/5VswCAp.png

$BILL


Reply
BILL opinion and observations
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 19, 2019

https://www.youtube.com/watch?v=pkwoFJb9XEM

https://www.youtube.com/watch?v=pkwoFJb9XEM

It integrates with Quickbook and can handle your payments easily. Looking interesting. $BILL


Reply