- Q4 Core Revenue Increased 100% Year-Over-Year
- Q4 Organic Core Revenue Increased 73% Year-Over-Year
- Q4 Transaction Fees Increased 204% Year-Over-Year
- Q4 Organic Transaction Fees Increased 137% Year-Over-Year
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 fourth quarter
and fiscal year ended June 30, 2021.
“We delivered record growth in fiscal 2021 as we helped SMBs
across the country automate their financial operations and make
billions of dollars in payments,” said René Lacerte, Bill.com CEO
and Founder. “Our strategic initiatives drove strong adoption of
our platform and set us up well for future opportunities. We
expanded our e-payment offerings to make it easy for businesses to
get paid faster, extended our reach with new strategic partners,
and entered the spend management space with our acquisition of
Divvy. We are building the one-stop shop platform for SMBs to
manage all their financial operations and B2B spend.”
“Our organic core revenue increased 73% year-over-year driven by
the strength of our platform and excellent execution against our
strategic initiatives,” said John Rettig, Bill.com CFO. “We are
pursuing a large, global opportunity to help millions of small
businesses digitally transform their financial operations. With the
strength of our organic business and the acquisition of Divvy, we
believe we are on a path to extend our leadership position in
serving the large SMB market.”
Bill.com completed the acquisition of DivvyPay, Inc. (“Divvy”),
a leader in spend management for SMBs, on June 1, 2021. Bill.com’s
reported financial results for the fourth quarter and full fiscal
year 2021 include the results of Divvy from that date, while prior
periods presented do not. Organic results exclude the impact of
Divvy during the month of June 2021.
Financial Highlights for the Fourth Quarter of Fiscal 2021, as
reported, including Divvy unless otherwise indicated:
- Total revenue was $78.3 million, an increase of 86% from the
fourth quarter of fiscal 2020.
- Core revenue, which represents subscription and transaction
fees, including Divvy interchange revenue, was $77.5 million, with
$10.3 million from Divvy, an increase of 100% year-over-year.
Excluding Divvy, core revenue was $67.2 million, up 73%
year-over-year.
- Subscription fees were $31.2 million, including $0.1 million
from Divvy, up 32% year-over-year.
- Transaction fees were $46.3 million, including $10.2 million
from Divvy, up 204% year-over year. Excluding Divvy, transaction
fees were $36.1 million, up 137% year-over-year.
- Gross profit was $58.0 million, representing a 74.1% gross
margin, compared to $32.0 million, or a 76.0% gross margin, in the
fourth quarter of fiscal 2020. Non-GAAP gross profit was $62.4
million, representing a 79.7% non-GAAP gross margin, compared to
$33.0 million, or a 78.5% non-GAAP gross margin in the fourth
quarter of fiscal 2020.
- Loss from operations was $70.7 million, compared to a loss from
operations of $10.3 million in the fourth quarter of fiscal 2020.
Non-GAAP loss from operations was $6.2 million, compared to a
non-GAAP loss from operations of $0.5 million in the fourth quarter
of fiscal 2020.
- Net loss was $41.9 million, or ($0.48) per share, basic and
diluted, compared to net loss of $9.5 million, or ($0.13) per
share, basic and diluted, in the fourth quarter of fiscal 2020.
Non-GAAP net loss was $5.8 million, or ($0.07) per share, basic and
diluted, compared to non-GAAP net income of $0.3 million, or $0.00
per share, basic and diluted, in the fourth quarter of fiscal
2020.
Financial Highlights for Fiscal Year 2021, as reported,
including Divvy:
- Total revenue was $238.3 million, an increase of 51% from the
prior fiscal year.
- Core revenue was $232.3 million, an increase of 70% from the
prior fiscal year. Subscription fees were $111.6 million, up 33%
year-over-year, and transaction fees were $120.7 million, up 129%
year-over-year.
- GAAP gross profit was $176.5 million, representing a 74.1%
gross margin, compared to $118.5 million, or a 75.2% gross margin,
from the prior fiscal year. Non-GAAP gross profit was $185.0
million, representing a 77.6% non-GAAP gross margin, compared to
$121.8 million, or a 77.3% non-GAAP gross margin from the prior
fiscal year.
- Loss from operations was $114.0 million, compared to a loss
from operations of $34.2 million in the prior fiscal year. Non-GAAP
loss from operations was $12.2 million, compared to a non-GAAP loss
from operations of $11.5 million in the prior fiscal year.
- Net loss was $98.7 million, or ($1.19) per share, basic and
diluted, compared to net loss of $31.1 million, or ($0.70) per
share, basic and diluted, in the prior fiscal year. Non-GAAP net
loss was $10.0 million, or ($0.12) per share, basic and diluted,
compared to non-GAAP net loss of $7.7 million, or ($0.11) per
share, basic and diluted, in the prior fiscal year.
Business Highlights and Recent Developments
The metrics listed below identified as “Bill.com” metrics
exclude the results of Divvy for the month of June 2021.
- Completed the acquisition of Divvy, a leader in spend
management for SMBs.
- Served 121,200 Bill.com customers as of the end of the fourth
quarter of fiscal 2021, representing year-over-year customer growth
of 24%. Also served 10,700 spending businesses that used Divvy for
spend management in June 2021.
- Processed $41.7 billion in total payment volume for Bill.com
customers in the fourth quarter, an increase of 64% year-over-year.
For the full fiscal year, processed $140.3 billion in total payment
volume, an increase of 45% over last fiscal year. Spending
businesses that used Divvy cards executed $437 million in card
payment volume in June 2021.
- Processed 8.2 million transactions for Bill.com customers in
the fourth quarter of fiscal 2021, an increase of 46%
year-over-year. For the full fiscal year, processed 29.2 million
transactions, an increase of 22% over last fiscal year.
- As of June 30, 2021, Bill.com had 3.2 million network members,
an increase of 28% year-over-year.
- Net dollar-based retention rate for Bill.com customers was 124%
during fiscal 2021 compared to 121% during fiscal 2020 and 110%
during fiscal 2019.
- Signed a definitive agreement to acquire Invoice2go, a leading
mobile-first accounts receivable software provider for small
businesses.
Financial Outlook
We are providing the following guidance for the fiscal first
quarter ending September 30, 2021 and the full fiscal year ending
June 30, 2022.
Q1 FY22
Guidance
FY22
Guidance
Total revenue (millions)
$103.2 - $104.2
$476.0 - $480.0
Year-over-year total revenue growth
123% - 126%
100% - 102%
Non-GAAP net loss (millions)
($20.0) - ($19.0)
($89.0) - ($85.0)
Non-GAAP net loss per share
($0.21) - ($0.20)
($0.92) - ($0.88)
The financial outlook does not include any potential impact from
the proposed acquisition of Invoice2go. 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 fourth quarter and fiscal year 2021 results and
our outlook for the fiscal first quarter ending September 30, 2021
and full fiscal year ending June 30, 2022. 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 is headquartered in San
Jose, California. 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
revenue and net loss for the fiscal first quarter ending September
30, 2021 and our fiscal year 2022, 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 our ability to integrate Divvy and the
pending acquisition of Invoice2go, our accounting for Divvy and
Invoice2go financial results, changes in staffing levels, and other
risks detailed in registration statements and periodic reports we
file with the SEC, including our quarterly and annual reports,
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. 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 expense, amortization of intangible
assets, acquisition-related expenses, amortization of debt discount
(and accretion of debt premium) 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. These changes are
reflected in our non-GAAP financial measures for the quarter ended
June 30, 2021. In addition, our non-GAAP financial measures for the
quarter ended June 30, 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 expense. We exclude depreciation 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 intangible assets. We exclude amortization of
intangible assets from certain of our non-GAAP financial measures
because we believe that excluding this non-cash expense provides
meaningful supplemental information regarding our operational
performance.
Acquisition-related expenses. We exclude acquisition-related
expenses from certain of our non-GAAP financial measures because
these costs would have not otherwise been incurred in the normal
course of our business operations. In addition, we believe that
acquisition-related expenses are non-recurring charges unique to a
specific acquisition. Although we may engage in future
acquisitions, such acquisitions and the associated
acquisition-related expenses are considered unique and not
comparable to other acquisitions.
Amortization of debt discount (accretion of debt premium) and
issuance costs. We exclude amortization of debt discount and
issuance costs associated with our issuance of convertible senior
notes due 2025 and accretion of debt premium associated with our
credit agreement 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 and acquisition.
We exclude the income tax benefit associated with our 2025 Notes
and acquisition 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)
June 30,
2021
2020
ASSETS Current assets: Cash and cash equivalents
$
509,615
$
573,643
Short-term investments
655,314
123,974
Accounts receivable, net
18,222
4,252
Acquired card receivables, net
147,093
—
Unbilled revenue
8,118
6,549
Prepaid expenses and other current assets
59,077
26,781
Funds held for customers
2,208,598
1,644,250
Total current assets
3,606,037
2,379,449
Non-current assets: Operating lease right-of-use assets, net
71,925
—
Property and equipment, net
48,902
13,866
Intangible assets, net
417,341
—
Goodwill
1,772,043
—
Other assets
52,925
10,700
Total assets
$
5,969,173
$
2,404,015
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
11,904
$
3,478
Accrued compensation and benefits
20,287
12,387
Deferred revenue
12,848
5,891
Other accruals and current liabilities
72,022
10,841
Customer fund deposits
2,208,598
1,644,250
Total current liabilities
2,325,659
1,676,847
Non-current liabilities: Deferred revenue
2,926
2,622
Operating lease liabilities
86,639
—
Borrowings from credit facilities, net
79,534
—
Convertible senior notes, net
909,847
—
Deferred income tax liability
9,090
—
Other long-term liabilities
25,888
13,827
Total liabilities
3,439,583
1,693,296
Commitments and contingencies Stockholders' equity: Common stock
2
2
Additional paid-in capital
2,777,155
857,044
Accumulated other comprehensive (loss) income
(100
)
2,420
Accumulated deficit
(247,467
)
(148,747
)
Total stockholders' equity
2,529,590
710,719
Total liabilities and stockholders' equity
$
5,969,173
$
2,404,015
BILL.COM HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands except
per share amounts)
Three months ended June
30,
Year ended June 30,
2021 (2)
2020
2021 (2)
2020
Revenue Subscription and transaction fees
$
77,512
$
38,801
$
232,255
$
136,405
Interest on funds held for customers
761
3,309
6,010
21,195
Total revenue
78,273
42,110
238,265
157,600
Cost of revenue (1)
20,293
10,100
61,806
39,144
Gross profit
57,980
32,010
176,459
118,456
Operating expenses Research and development (1)
29,677
14,929
90,235
53,405
Sales and marketing (1)
29,102
11,796
71,374
45,356
General and administrative (1)
69,920
15,546
128,817
53,893
Total operating expenses
128,699
42,271
290,426
152,654
Loss from operations
(70,719
)
(10,261
)
(113,967
)
(34,198
)
Other (expense) income, net
(11,427
)
764
(25,370
)
3,160
Loss before (benefit from) provision for income taxes
(82,146
)
(9,497
)
(139,337
)
(31,038
)
(Benefit from) provision for income taxes
(40,284
)
1
(40,617
)
53
Net loss
$
(41,862
)
$
(9,498
)
$
(98,720
)
$
(31,091
)
Net loss per share attributable to common stockholders,
basic anddiluted
$
(0.48
)
$
(0.13
)
$
(1.19
)
$
(0.70
)
Weighted-average number of common shares used to computenet loss
per share attributable to common stockholders,basic and diluted
86,965
74,141
82,813
44,106
(1) Includes stock-based compensation expense as follows:
Cost of revenue
$
967
$
476
$
2,938
$
1,257
Research and development
6,138
2,274
16,091
5,495
Sales and marketing
3,461
1,134
8,547
2,777
General and administrative
30,158
3,744
44,411
8,535
$
40,724
$
7,628
$
71,987
$
18,064
(2) Includes the results of Divvy from the date of
acquisition on June 1, 2021.
BILL.COM HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three months ended June
30,
Year ended June 30,
2021
2020
2021
2020
Cash flows from operating activities: Net loss
$
(41,862
)
$
(9,498
)
$
(98,720
)
$
(31,091
)
Adjustments to reconcile net loss to net cash provided by(used in)
operating activities: Depreciation and amortization
1,901
1,052
5,350
4,257
Stock-based compensation
37,027
7,628
68,290
18,064
Amortization of debt discount (accretion of debt premium)and
issuance costs
11,807
—
27,531
—
Amortization of intangible assets
5,659
—
5,659
—
Amortization of premium (accretion of discount) oninvestments in
marketable debt securities
2,722
(960
)
4,692
(3,815
)
Non-cash operating lease expense
1,178
—
3,813
—
Provision for losses on acquired card receivables
741
—
741
—
Deferred income taxes
(40,284
)
—
(40,617
)
—
Other
—
—
—
717
Changes in assets and liabilities: Accounts receivable
(1,203
)
(2,012
)
(6,535
)
(1,054
)
Unbilled revenue
(253
)
802
(1,569
)
(554
)
Prepaid expenses and other current assets
7,108
409
2,275
(10,434
)
Other assets
(726
)
(3,881
)
(12,525
)
(4,928
)
Accounts payable
6,490
(121
)
7,417
(1,596
)
Other accruals and current liabilities
22,922
2,862
22,980
9,755
Operating lease liabilities
613
—
8,395
—
Other long-term liabilities
16
2,302
592
12,991
Deferred revenue
3,930
314
6,854
3,258
Net cash provided by (used in) operating activities
17,786
(1,103
)
4,623
(4,430
)
Cash flows from investing activities: Cash paid for
acquisition, net of acquired cash
(556,090
)
—
(556,090
)
—
Purchases of corporate and customer fund short-term investments
(584,271
)
(257,917
)
(2,070,296
)
(1,088,611
)
Proceeds from maturities of corporate and customer fundshort-term
investments
273,599
209,689
1,104,532
806,000
Proceeds from sale of corporate and customer fund short-term
investments
23,593
20,822
142,665
46,159
(Increase) decrease in other receivables included in funds held for
customers
(1,720
)
5,642
(10,792
)
(959
)
Increase in acquired card receivables
(15,703
)
—
(15,703
)
—
Purchases of property and equipment
(1,840
)
(5,701
)
(18,902
)
(11,437
)
Capitalization of internal-use software costs
(1,266
)
(150
)
(2,304
)
(639
)
Net cash used in investing activities
(863,698
)
(27,615
)
(1,426,890
)
(249,487
)
Cash flows from financing activities: Proceeds from issuance
of convertible senior notes,net of discounts and issuance costs
—
—
1,129,379
—
Purchase of capped calls
—
—
(87,860
)
—
Proceeds from issuance of common stock upon initial public
offering, net ofunderwriting discounts and commissions and other
offering costs
—
(63
)
—
225,481
Proceeds from issuance of common stock upon follow-on public
offering, net ofunderwriting discounts and commissions and other
offering costs
—
308,176
—
308,176
Increase in customer fund deposits liability
278,758
290,698
564,348
314,944
Proceeds from line of credit borrowings
—
—
—
2,300
Payments on line of credit and bank borrowings
—
—
(2,300
)
—
Proceeds from exercise of stock options
5,175
10,486
28,209
12,232
Proceeds from issuance of common stock under theemployee stock
purchase plan
—
—
8,864
—
Other
(393
)
—
(1,057
)
(7
)
Net cash provided by financing activities
283,540
609,297
1,639,583
863,126
Net (decrease) increase in cash, cash equivalents,restricted
cash, and restricted cash equivalents
(562,372
)
580,579
217,316
609,209
Cash, cash equivalents, restricted cash, and restrictedcash
equivalents, beginning of period
2,372,065
1,011,798
1,592,377
983,168
Cash, cash equivalents, restricted cash, and restrictedcash
equivalents, end of period
$
1,809,693
$
1,592,377
$
1,809,693
$
1,592,377
Reconciliation of cash, cash equivalents, restricted
cash, and restricted cashequivalents within the condensed
consolidated balance sheets to the amountsshown in the consolidated
statements of cash flows above: Cash and cash equivalents
$
509,615
$
573,643
$
509,615
$
573,643
Restricted cash included in other current assets
10,977
35
10,977
35
Restricted cash included in other assets
6,875
—
6,875
—
Restricted cash and restricted cash equivalentsincluded in funds
held for customers
1,282,226
1,018,699
1,282,226
1,018,699
Total cash, cash equivalents, restricted cash, andrestricted
cash equivalents, end of period
$
1,809,693
$
1,592,377
$
1,809,693
$
1,592,377
BILL.COM HOLDINGS,
INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands except
percentages and per share amounts)
Three months ended June
30,
Year ended June 30,
2021
2020 (2)
2021
2020 (2)
Reconciliation of gross profit: GAAP gross profit
$
57,980
$
32,010
$
176,459
$
118,456
Add: Amortization of intangible assets
2,653
—
2,653
—
Stock-based compensation expense (3)
967
476
2,938
1,257
Payroll taxes related to stock-based compensation expense
108
39
371
39
Depreciation expense
709
520
2,577
2,095
Non-GAAP gross profit
$
62,417
$
33,045
$
184,998
$
121,847
GAAP gross margin
74.1
%
76.0
%
74.1
%
75.2
%
Non-GAAP gross margin
79.7
%
78.5
%
77.6
%
77.3
%
Three months ended June
30,
Year ended June 30,
2021
2020 (2)
2021
2020 (2)
Reconciliation of operating expenses: GAAP research and
development expenses
$
29,677
$
14,929
$
90,235
$
53,405
Less: Stock-based compensation expense (3)
(6,138
)
(2,274
)
(16,091
)
(5,495
)
Payroll taxes related to stock-based compensation expense
(328
)
(192
)
(1,306
)
(192
)
Depreciation expense
(419
)
(96
)
(732
)
(408
)
Non-GAAP research and development expenses
$
22,792
$
12,367
$
72,106
$
47,310
GAAP sales and marketing expenses
$
29,102
$
11,796
$
71,374
$
45,356
Less: Amortization of intangible assets
(3,006
)
—
(3,006
)
—
Stock-based compensation expense (3)
(3,461
)
(1,134
)
(8,547
)
(2,777
)
Payroll taxes related to stock-based compensation expense
(125
)
(461
)
(632
)
(461
)
Depreciation expense
(256
)
(66
)
(433
)
(286
)
Non-GAAP sales and marketing expenses
$
22,254
$
10,135
$
58,756
$
41,832
GAAP general and administrative expenses
$
69,920
$
15,546
$
128,817
$
53,893
Less: Stock-based compensation expense (3)
(30,158
)
(3,744
)
(44,411
)
(8,535
)
Payroll taxes related to stock-based compensation expense
(412
)
(672
)
(1,897
)
(672
)
Depreciation expense
(310
)
(117
)
(701
)
(442
)
Acquisition-related expenses
(15,471
)
—
(15,471
)
—
Non-GAAP general and administrative expenses
$
23,569
$
11,013
$
66,337
$
44,244
Three months ended June
30,
Year ended June 30,
2021
2020 (2)
2021
2020 (2)
Reconciliation of loss from operations: GAAP loss from
operations
$
(70,719
)
$
(10,261
)
$
(113,967
)
$
(34,198
)
Add: Amortization of intangible assets
5,659
—
5,659
—
Stock-based compensation expense (3)
40,724
7,628
71,987
18,064
Payroll taxes related to stock-based compensation expense
973
1,364
4,206
1,364
Depreciation expense
1,694
799
4,443
3,231
Acquisition-related expenses
15,471
—
15,471
—
Non-GAAP loss from operations
$
(6,198
)
$
(470
)
$
(12,201
)
$
(11,539
)
Three months ended June
30,
Year ended June 30,
2021
2020 (2)
2021
2020 (2)
Reconciliation of net loss: GAAP net loss
$
(41,862
)
$
(9,498
)
$
(98,720
)
$
(31,091
)
Add (less): Amortization of intangible assets
5,659
—
5,659
—
Stock-based compensation expense (3)
40,724
7,628
71,987
18,064
Payroll taxes related to stock-based compensation expense
973
1,364
4,206
1,364
Depreciation expense
1,694
799
4,443
3,231
Acquisition-related expenses
15,471
—
15,471
—
Amortization of debt discount (accretion of debt premium)and
issuance costs
11,807
—
27,531
—
Loss on revaluation of warrant liability
—
—
—
717
Income tax benefit associated with 2025 Notes and acquisition
(40,284
)
—
(40,617
)
—
Non-GAAP net (loss) income
$
(5,818
)
$
293
$
(10,040
)
$
(7,715
)
Three months ended June
30,
Year ended June 30,
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
$
(0.48
)
$
(0.13
)
$
(1.19
)
$
(0.70
)
Add (less): Amortization of intangible assets
0.07
—
0.07
—
Stock-based compensation expense (3)
0.46
0.10
0.87
0.41
Payroll taxes related to stock-based compensation expense
0.01
0.02
0.05
0.03
Depreciation expense
0.01
0.01
0.05
0.07
Acquisition-related expenses
0.18
—
0.19
—
Amortization of debt discount (accretion of debt premium)and
issuance costs
0.14
—
0.33
—
Loss on revaluation of warrant liability
—
—
—
0.02
Income tax benefit associated with 2025 Notes and acquisition
(0.46
)
—
(0.49
)
—
Impact of the assumed conversion of redeemableconvertible preferred
stock
—
—
—
0.06
Non-GAAP net (loss) income per share attributable to
commonstockholders, basic and diluted
$
(0.07
)
$
—
$
(0.12
)
$
(0.11
)
Three months ended June
30,
Year ended June 30,
2021
2020
2021
2020
Reconciliation of shares used to compute basic net loss pershare
attributable to common stockholders Shares used to compute GAAP
net (loss) income per shareattributable to common stockholders,
basic
86,965
74,141
82,813
44,106
Add: Weighted average effect of the assumed conversionof redeemable
convertible preferred stock from thedate of issuance
—
—
—
23,352
Shares used to compute non-GAAP net (loss) income pershare
attributable to common stockholders, basic
86,965
74,141
82,813
67,458
Three months ended June
30,
Year ended June 30,
2021
2020
2021
2020
Reconciliation of shares used to compute diluted net
(loss)income per share attributable to common stockholders
Shares used to compute GAAP net (loss) income per shareattributable
to common stockholders, basic
86,965
74,141
82,813
44,106
Add: Weighted average effect of the assumed conversionof redeemable
convertible preferred stock from thedate of issuance
—
—
—
23,352
Add: Dilutive effect of incremental shares
—
8,900
—
—
Shares used to compute non-GAAP net (loss) income pershare
attributable to common stockholders, diluted
86,965
83,041
82,813
67,458
(2) During 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. These changes are
reflected in our non-GAAP financial measures for the quarter and
year ended June 30, 2021. In addition, our non-GAAP financial
measures for the quarter and year ended June 30, 2020 were adjusted
to conform to the current period presentation. The tables below
show the reconciliation of the non-GAAP financial measures as
previously reported and as restated during the quarter and year
ended June 30, 2020.
(3) The stock-based compensation expense, which totaled $40.7
million and $72.0, during the three months and year ended June 30,
2021, respectively, includes $3.7 million paid in cash in
connection with the acquisition of Divvy
Three months endedJune
30, 2020 Year endedJune 30, 2020 Asreported
Adjustment Asrestated Asreported
Adjustment Asrestated Reconciliation of gross
profit: GAAP gross profit
$
32,010
$
—
$
32,010
$
118,456
$
—
$
118,456
Add (less): Stock-based compensation expense
476
—
476
1,257
—
1,257
Payroll taxes related to stock-basedcompensation expense
39
—
39
39
—
39
Depreciation expense
520
—
520
2,095
—
2,095
Amortization of capitalized service costs
(206
)
206
—
374
(374
)
—
Amortization of capitalized internal-usesoftware costs
255
(255
)
—
1,027
(1,027
)
—
Non-GAAP gross profit
$
33,094
$
(49
)
$
33,045
$
123,248
$
(1,401
)
$
121,847
GAAP gross margin
76.0
%
76.0
%
75.2
%
75.2
%
Non-GAAP gross margin
78.6
%
-0.1
%
78.5
%
78.2
%
-0.9
%
77.3
%
Three months endedJune 30, 2020 Year endedJune 30,
2020 Asreported Adjustment Asrestated
Asreported Adjustment Asrestated
Reconciliation of operating expenses: GAAP research and
development expenses
$
14,929
$
—
$
14,929
$
53,405
$
—
$
53,405
Add (less): Stock-based compensation expense
(2,274
)
—
(2,274
)
(5,495
)
—
(5,495
)
Payroll taxes related to stock-basedcompensation expense
(192
)
—
(192
)
(192
)
—
(192
)
Depreciation expense
(96
)
—
(96
)
(408
)
—
(408
)
Capitalized service costs
206
(206
)
—
526
(526
)
—
Capitalized internal-use software costs
149
(149
)
—
594
(594
)
—
Non-GAAP research and developmentexpenses
$
12,722
$
(355
)
$
12,367
$
48,430
$
(1,120
)
$
47,310
GAAP sales and marketing expenses
$
11,796
$
—
$
11,796
$
45,356
$
—
$
45,356
Add (less): Stock-based compensation expense
(1,134
)
—
(1,134
)
(2,777
)
—
(2,777
)
Payroll taxes related to stock-basedcompensation expense
(461
)
—
(461
)
(461
)
—
(461
)
Depreciation expense
(66
)
—
(66
)
(286
)
—
(286
)
Capitalized sales commissions
2,501
(2,501
)
—
5,955
(5,955
)
—
Amortization of capitalized salescommissions
(668
)
668
—
(2,255
)
2,255
—
Non-GAAP sales and marketing expenses
$
11,968
$
(1,833
)
$
10,135
$
45,532
$
(3,700
)
$
41,832
GAAP general and administrative expenses
$
15,546
$
—
$
15,546
$
53,893
$
—
$
53,893
Less: Stock-based compensation expense
(3,744
)
—
(3,744
)
(8,535
)
—
(8,535
)
Payroll taxes related to stock-basedcompensation expense
(672
)
—
(672
)
(672
)
—
(672
)
Depreciation expense
(117
)
—
(117
)
(442
)
—
(442
)
Non-GAAP general and administrative expenses
$
11,013
$
—
$
11,013
$
44,244
$
—
$
44,244
Three months endedJune 30, 2020 Year
endedJune 30, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of loss from operations:
GAAP loss from operations
$
(10,261
)
$
—
$
(10,261
)
$
(34,198
)
$
—
$
(34,198
)
Add (less): Stock-based compensation expense
7,628
—
7,628
18,064
—
18,064
Payroll taxes related to stock-based compensationexpense
1,364
—
1,364
1,364
—
1,364
Depreciation expense
799
—
799
3,231
—
3,231
Amortization of capitalized service costs,net of amount capitalized
(412
)
412
—
(152
)
152
—
Amortization of capitalized internal-usesoftware costs, net of
amount capitalized
106
(106
)
—
433
(433
)
—
Capitalized sales commissions, netof associated amortization
expense
(1,833
)
1,833
—
(3,700
)
3,700
—
Non-GAAP loss from operations
$
(2,609
)
$
2,139
$
(470
)
$
(14,958
)
$
3,419
$
(11,539
)
Three months endedJune 30, 2020 Year
endedJune 30, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of net loss: GAAP net loss
$
(9,498
)
$
—
$
(9,498
)
$
(31,091
)
$
—
$
(31,091
)
Add (less): Stock-based compensation expense
7,628
—
7,628
18,064
—
18,064
Payroll taxes related to stock-basedcompensation expense
1,364
1,364
1,364
—
1,364
Depreciation expense
799
—
799
3,231
—
3,231
Amortization of capitalized service costs,net of amount capitalized
(412
)
412
—
(152
)
152
—
Amortization of capitalized internal-usesoftware costs, net of
amount capitalized
106
(106
)
—
433
(433
)
—
Capitalized sales commissions, netof associated amortization
expense
(1,833
)
1,833
—
(3,700
)
3,700
—
Loss on revaluation of warrant liability
—
—
717
—
717
Non-GAAP net (loss) income
$
(1,846
)
$
2,139
$
293
$
(11,134
)
$
3,419
$
(7,715
)
Three months endedJune 30, 2020 Year
endedJune 30, 2020 Asreported Adjustment
Asrestated Asreported Adjustment
Asrestated Reconciliation of net loss per
shareattributable to common stockholders,basic and diluted GAAP
net loss per share attributable to commonstockholders, basic and
diluted
$
(0.13
)
$
0.13
$
(0.13
)
$
(0.70
)
$
—
$
(0.70
)
Add (less):
—
Stock-based compensation expense
0.10
—
0.10
0.41
—
0.41
Payroll taxes related to stock-basedcompensation expense
0.02
—
0.02
0.03
—
0.03
Depreciation expense
0.01
—
0.01
0.07
—
0.07
Amortization of capitalized service costs,net of amount 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
(0.02
)
0.02
—
(0.09
)
0.09
—
Loss on revaluation of warrant liability
—
—
—
0.02
—
0.02
Impact of assumed conversion ofredeemable convertible preferred
stock
(0.02
)
0.02
—
0.08
(0.02
)
0.06
Non-GAAP net (loss) income
$
(0.05
)
$
0.05
$
0.00
$
(0.17
)
$
0.06
$
(0.11
)
BILL.COM HOLDINGS,
INC.
FREE CASH FLOW
(Unaudited, in thousands)
Three months ended June
30,
Year ended June 30,
2021
2020
2021
2020
Net cash provided by (used in) operating activities
$
17,786
$
(1,103
)
$
4,623
$
(4,430
)
Purchases of property and equipment
(1,840
)
(5,701
)
(18,902
)
(11,437
)
Capitalization of internal-use software costs
(1,266
)
(150
)
(2,304
)
(639
)
Free cash flow
$
14,680
$
(6,954
)
$
(16,583
)
$
(16,506
)
BILL.COM HOLDINGS,
INC.
REMAINING PERFORMANCE
OBLIGATIONS WITH FINANCIAL INSTITUTIONS
(Unaudited, in thousands)
June 30,
2021
2020
Remaining performance obligations with financial institutions to be
recognized as revenue: Within 1 year
$
28,075
$
13,001
Thereafter
117,760
139,334
Total
$
145,835
$
152,335
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210826005741/en/
IR Contact: Karen Sansot ksansot@hq.bill.com
Press Contact: Oriana Branon obranon@hq.bill.com
619-997-0299
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