BILL Q1 revenue misses estimates despite transaction-fee growth

Overview

• U.S. finance platform's fiscal Q1 revenue rose 13% yr/yr but missed analyst expectations

• Adjusted net income and adjusted operating income for Q1 beat analyst expectations

• Company repurchased about 7 mln shares for $305 mln during the quarter

Outlook

• Bill sees Q2 total revenue at $353 mln to $363 mln

• Company expects Q2 core revenue of $315.5 mln to $325.5 mln

• Bill forecasts FY27 total revenue of $1.4335 bln to $1.4635 bln

Result Drivers

• PAYMENT VOLUME GROWTH - Co processed $102 bln in total payment volume in Q1, up 14% yr/yr

• TRANSACTION FEES - Transaction fees rose 16% yr/yr to $239.1 mln, contributing to core revenue growth

• PRODUCT LAUNCHES - Co highlighted five new product launches and a Visa pilot built in four weeks as signs of increased product development

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for BILL Holdings, Inc. is $55.00, about 6% above its November 4 closing price of $51.87

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)