Bill.com (BILL) 2 Feb 232023 Q2 Earnings call transcript

Good afternoon. Thank you for attending today's BILL's Fiscal Second Quarter 2023 Earnings Conference Call. My name is Megan, and I'll be your moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to Karen Sansot, Vice President of Investor Relations at Bill.com. ahead. go Please

Welcome conference operator. fiscal quarter second Thank to earnings call. XXXX you, BILL's

our a SEC. We and press website the earnings issued release of section related can found our X-K Investor release Relations furnished investor.bill.com. short Form to press the The at be on the ago time

and today Vice Executive President CFO. the With Lacerte, CEO Rettig, me call on and John Chairman, Rene is Founder of BILL; and

statements please our remember many we that during the from of results course future call, prove expressed forward-looking uncertainties. assumptions, If involve begin, implied the may any risks this statements. of make materially if or those or incorrect, of the we develop forward-looking any about and that assumptions and results operations actual these differ by Before BILL uncertainties of or risks could

of For risk including recent company's to report statements, statements. the with filed with please on update section any forward-looking annual in our release to our with to associated on our issued available forward-looking factors the website. Form and Investor the of today most and text reports the obligation quarterly press a XX-K SEC refer discussion periodic our the and filed We the any XX-Q disclaim on Form report SEC, Relations

will regarding today's unless of and additional to that refer performance stated the On for and these non-GAAP a both are non-GAAP, number. to figures measures. release we to Please GAAP today's financial call, financial financial the GAAP measure refer today disclosures measures. The non-GAAP discussed nonrevenue press GAAP reconciliation is

table revenue posted on for quarterly contains and appendix metrics deck, our a note is website, that which please the Additionally, information. Investor Relations of supplemental investor

financial this BILL's spend solutions. which we planning call, our Finmark accounts to-go standalone At Divvy results, receivable discuss and during times management, invoice exclude will

the Rene. I'll Now call Rene? over to turn

executed on you profitable Thank and our operations results for financial BILL we us the be quarter growth achieved strong of another you, to everyone. Good today. joining essential afternoon, second as Karen. platform for Thank delivered quarter SMBs. strategy

and year-over-year, made $XX non-GAAP million income, Revenue net which quarter. the we growing progress exceptional in XX% QX was grew for

income QX, and quarter XX% net we flow. of non-GAAP also another free positive margin cash Our delivered in was

commitment profitable The rigor to demonstrate power technology execution higher of scale, we growth. to float in have model and enabled investing interest for revenue environment. the this our and results rate Our create significant tailwinds us business

leveraging profitability. our non-GAAP are in strategic revenue while We float invest also to long-term opportunities, delivering

a in prospects our Board the compromising our Given announced strength conviction will our share minimize and today, buyback further program, we proven which we position, authorization financial $XXX for and our in invest without growth future shareholder growth. to dilution million execute, of ability to value enhance ability believe

cash about are are to a our again, to SMBs of economy we're and and includes better and I'd with and flow. their adjust business, current interest inflation rising the agile, comment our the empowered that Before faced With Businesses proved on be health seeing like talking today conditions. Time to SMBs. to them rates. solutions, challenging manage SMBs and business time resilient

energized to are opportunity We our the by succeed. customers help

and expenses. QX to action are on are they discussed calls, we and As taking conditions QX businesses, small moderate our impacting macro

total trends and experienced fiscal continued prior these we lower compared in anticipated, we in to As QX, growth volume periods. payment

economy in serve of dollars of position and capture millions aspirations while execution to Our businesses pursuing record us proven of track well to our and model this business long-term revenue. navigate billions

run solutions of to XXX,XXX SMBs we're better use proud more our As champions that businesses. their than SMBs,

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with strategy, banks in XX another U.S. the partnered and institutions top important Financial six represent of our component of the distribution we

that have within last we On a white cash giving for recently offer our bank payment digitizes flow. customers, to them selected range with variety capabilities solution to BMO, our solution the BMO’s happy discussed broad of launched payment we including a earnings solution automates new virtual a I’m call, will being help and SMB-focused provide Today, label to share partner. bill of solutions, pay that one cards manage to invoicing an

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future our and product, for and instant suppliers our among Instant has map this good us shape road enables of usage An example in faster to transfer network. repeat seen pay is help innovation. smaller which strong our demand Transfer suppliers

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there With well uniquely strong here. like management to our excited potential the this positioned solutions the relationships customers to we provide to are enable supplier today, and capabilities, data payment capital for We network transaction customer history advances. large is significant existing and and in existing asset as members demand risk marketplace of about working we solutions are as believe and

in the with operations goal SMBs. essential significant revenue while we making for In financial growth strong progress platform high another delivered quarter our and being closing, of toward improvement profitability

We have value and customers, to gross margin for also expansion create built our driving our business profitability. while

our macro of pursuing in serve business and billions dollars navigate powerful businesses well to capture Our millions while us of the model to revenue. positions aspirations long-term environment

I’d and like the for trust thank BILL the deliver commitment thank place strong to like partners also customers for serving our team I’d to SMBs, financial they to us in their to us. results. enabled which

I’ll now to over call our detail in John quarter. more the turn about talk to

provide I’ll third overview fiscal fiscal quarter results and Today, an second and Thanks, the fiscal our outlook XXXX year XXXX. for full our discuss of quarter Rene. financial

comparable the release from GAAP in for a Investor non-GAAP financial measures. Please non-GAAP on table supplemental today’s the to measure. most our to metrics directly reminder, earnings in includes also a our We’ve the materials reconciliation of a press included As discussion financial tables Relations website. refer

I to Planning that refer BILL’s Finmark note exclude accounts results, Please Financial also standalone invoice our management, and Divvy spend Solutions. receivable to-go when they

delivered non-GAAP record. was on and revenue highest gross we margin our QX, that year-over-year results strong our In XX% exceeded expectations. grew financial margin Total XX.X%,

$XX XX% free generated cash $XX in non-GAAP addition, In revenue, flow. million million net income or was of we and

which benefited was interest performance driven significant revenue and on was active year-over-year management sequential Float by rates up growth investments. in focused we in core growth QX rising revenue, XX% Our from where and higher-yielding

commitment to model deliver strength of the performance balanced and growth highlights Our business profitability. our and our diversified

a are with key X% no more of months. in partner channels competitive than the diverse advantage Our core XX last distribution generating revenue

from performance trends when The backdrop. In QX levels payment for weakened deviate was Divvy seasonal saw with in environment. in in customer typical and the BILL challenging growth see notably typically across We're spend Spending volume. volume visible our categories. QX this we spike and seasonal patterns pleased spend payment macroeconomic most we lower considering December, a QX, throughout

nature QX. remained mission-critical however, platform, healthy our the Given in customer engagement of

customers For quarter. excluding was consistent of per our number example, with prior the the customer platform standalone XX%, institution average channel on financial transactions BILL

table recent the provide solutions. to platform financial using to macro our Now this X,XXX the investor standalone pushing to adds environment. our to net direct on adds customers moving included and and customer ended retention revenue I'll results the strong. appendix Net businesses net highlights quarters out net a metrics we the ads grew XXX,XXX attribute continue to smaller-sized in institution QX; be deck. from year-over-year. metrics We and of new adds channels. a with our our BILL Customer BILL quarter our from transformation included channel accounting up and We standalone XXX,XXX, compared in on decisions rates few XX,XXX, quarterly this second XX% in since X,XXX lower businesses were

management growth year-over-year. XX% an with X,XXX last from our of For the quarter and ended XX,XXX of solution Divvy increase spending businesses, spend we quarter

billion $XX.X volume, payment included of This last growth processed the quarter of in to BILL from year-over-year $X.X reflecting TPV. card we XX% on QX, standalone QX and representing in XX% volume spending Moving year during billion payment Divvy total growth. from in billion payment $XX.X businesses, volume

This revenue volumes XX XX.X growth $X.XX, on standalone Total X.X transaction per payments of to platform includes million we on Moving in was the million processed million BILL XX% Divvy transactions. card QX. and transaction payments transaction year-over-year.

spend generated For processed payments QX basis card approximately of gross rate XXX our management a we solution, points. take in through

million, our $XX.X a our Now expanding $XXX increase Core for million, and which growth standalone was to BILL fees I'll was was up subscription and in direct our by reflecting revenue XX% $XX.X review customer year revenue, ago. a XX% of XX% representing by year-over-year. increased million, year-over-year price reported subscription million, includes base. increase QX $XXX.X customers our revenue growth of from channel. of effective year-over-year, XX% Total customer small base transaction expanding driven driven revenue results. Subscription an

revenue $XXX.X increased to year-over-year. million, up Transaction XX%

growth reflecting XX% reflecting of transaction magnitude transaction increased volume funds TPV of million, $XX.X Divvy, significantly BILL was exceeding year-over-year. of revenue increases. to $XX.X million, due spend recent totaled adoption. growth standalone card of year-over-year. As totaled revenue And valorem expectations Float $XX.X result million, and XX% on our payment rate a ad revenue the Divvy fed growth

important that period higher basis differentiator proving that this interest with our of scale, to proprietary enables the is demonstrating payment us be was tailwinds during points combined an technology create to rates. in our XXX quarter, yield Our

as gross a QX, non-GAAP to and transaction results was revenue of fee Turning gross XX.X%, increasing our up higher variable margin revenue. margin float XXX points year-over-year operating result and for basis

from an X.X% which our increase due $XX.X operating improvement The XX% with from X.X and points increase $XXX.X of $XX.X are managing were including an to income year. costs, our expenses Non-GAAP X% XX.X% and Divvy operating moderating were expenses, proactive hiring revenue of variable in of sales percentage management, Non-GAAP in QX prior consistent quarters. operating marketing expense pace million million, of was was an last margin spend. included work year-over-year. million, QX of Non-GAAP of

$XX.X benefited net corporate cash from expenses, Non-GAAP higher million was other of balances. on other income, yields and

or in weighted Our $XXX.X shares based resulting non-GAAP of per million $X.XX revenue of income XX% net income share was average $XX.X non-GAAP million diluted outstanding. on net diluted

expectations Our our with non-GAAP than better net as we due managing approach expenses disciplined income to to our our outperformance was combined significantly revenue grow.

to the investments were at of billion. and short-term sheet. end cash on QX, equivalents Moving $X.X balance Cash, the

position important Our flexibility capital invest for business. in is provides scaling and an us our advantage to

this opportunities Our continues the enhance and dilution is program. creation. priority of free To we a end, cash flow number Rene our Directors has allocation believe to business, investing of in a inorganic confidence use Board one organic will $XXX our we capital. million durable buyback positive results that in long-term share we authorized as for offset growth strength a mentioned, capital in to investing repurchase have With of be the also value great and share program our believe

quarters macro We trends business. our we’ve to to business, will our payment experienced will half growth. quarter about expect impact second fiscal provide shifting will outlook insight XXXX, This the the notably continue in have we environment the near-term the for Before SMBs in XXXX. year the volume on full financial recent most and impact I on anticipate fiscal fiscal and our third

typical continuation softer that payment BILL’s December flat compared quarter. macro our year-over-year on and in will seasonally growth the We basis, both reflecting be expectations trends for TPV quarter the the estimate volume March approximately a QX in to standalone of

For spend, fiscal a in XX% on approximately Divvy anticipate card we of growth year-over-year basis QX.

through leadership market also cycle, but about economic position that We’re trends near-term excited conservative our opportunity a we ability outlook. our financial and extend to warrant this believe

to that spending core account result, their estimates continue the to levels. risks SMBs As we’ve a revenue adjusted our adjust for

plan We operating in going hiring. disciplined will our reduced be managing forward and expenses have proactively

the in also are and focus initiatives increased customers. investing to over for approach investing continuing term addressing balanced Thus, while longer impact to taking delivering challenges on we are We the short-term growth highest profitability. a for

our to outlook. turning Now

million, year-over-year QX, in $XXX For $XXX million total expect range to to which our of XX% the XX% fiscal revenue be growth. reflects we to

XXX We to revenue points. expect yield approximately FBO basis which on QX, float be assumes in million be our $XX will approximately funds

to weighted we share QX, of diluted range the of income per report non-GAAP million in bottom range On $XX.X net to shares based the and to outstanding. million non-GAAP of for the count share income net line, expect diluted in $X.XX $XX.X average million $X.XX a on $XXX

expect For OIE $XX.X million. be other QX, we to income net of other expenses, or

compensation QX. expect $X approximately We to expenditures approximately QX, of and we $XX in expect million million were expenses stock-based capital $XX million in

revenue to range million on to full the for Moving $X.XXX expect XXXX, in guidance total be fiscal of year we $XXX billion. to

assumes points year. a be to XXX revenue the XXXX, float FBO approximately which of funds fiscal basis expect million We yield approximately for $XXX in on

revenue our our the increased prior composition total for the adjusted economic total through external top significantly expense of guidance. also our time, we’ve our the At estimates diligent profitability are core at revenue reflect outlook holding same of summary, In low of increasing the while conditions. end our we end to revenue We’ve and management. range float

range We $XXX.X net to non-GAAP fiscal expect million. of year report income XXXX the in $XXX.X million to for

to $X.XX average million share on $XXX outstanding. income expect share for based shares count of a net diluted be weighted a We non-GAAP $X.XX to diluted

In of addition be expenses. million, other we XXXX, expect to for fiscal $XX OIE net

capital $XX of year. compensation $XXX For for fiscal million expenditures million we expect approximately XXXX, were expense and total stock-based the

uncertain successfully are navigate prevailing we positioned environment. we the closing, to confident economic well that are In

customers creation growth, for revenue and our leverage, committed driving delivering while investors. for innovation to are profitability non-GAAP operating and our value We

Operator, we’re to take now ready questions.

Our you. of from with first Thank [Operator Brent Instructions] Piper question Bracelin Sandler. comes the line

Your line is now open.

was to certainly you, Good afternoon. is the diversity the are Divvy the depress slowdown that I I businesses were healthy. a TPV so for little really we continues Rene out on surprised growing still a there the plus, growth, there of of growth first I teeth to said, here particularly that guess recession, model. guess with card off, few of XX% pace relative That guess in in

are core TPV there, on challenges are compare Some the but what just that’s much maybe slowing? you as side like looks having challenges of So contrast, SMBs on having growth the the side. they’re seeing Divvy card it not

compare Just to you what would quarter markets helpful. Thanks. be in contrast and and those super two saw the linearity

then start and thank Brent. perspectives. Great, his add I’ll you, John let

of time a environment a So mode is led distracted the TPV over business, on in and pursuing we that in other the opportunity of that they them macro the to of for their mode the them managing front standby decades decade, be are foremost, more us. putting seen. has and growth to, in to for their point and this standby, that are and in next spend kind First where the right? SMBs We we’ve that things massive means by growth see aggressively, impacts is opportunity the

said, I Like we point are time there’s a the in for year. growing

over of grow on for the doubling the are company, non-GAAP that the at as profitability net while doing will and we a all income We and year. same basis balancing profitability XX% our goals time, a

add? any John, you’d comments like So, other to

small of And other mid last in a I’d now businesses, lighter. with of are been hard look some that evolution suggest businesses a of spend of an that, starting at all discretionary seen trends we’ve patterns add we’ve bit on spending. their all focused larger that the year the it’s seen segments some just spending taking most to sizes from businesses being

sensitive smaller right slightly now. relates that in customer the BILL Divvy, to versus and BILL is size it the conditions prevailing more perhaps economic As core to base are that

customer is base slightly customer earlier much growth larger The base newer stage earlier, at than obviously the obviously growth. a where profile Divvy BILL and and an is stronger it’s

SMBs So we SMBs And visibility environment. made operating in some we near term some and of facing feel for account uncertainties to the about are this the the have adjustments, we’re helping the that we’re in that way good to have in how we today. though

Helpful color. Thank you.

Thank you.

you. Thank

Our with question of next Beck comes line the KeyCorp. Josh from

Your open. now line is

taking go this adds, you Yes, I FI tick core that’s did wanted quarter X,XXX if below to I you the exclude the channel. the to think number, Thank for question. net

and success slow you’re on maybe trend motion did talk where go-to-market would there. maybe just So the the be to, things having where curious maybe just

businesses definitely opportunity in pointed large, We like front just are is we their weight, you and if improving as to want out, kind their Josh. us this, say economy from small being are seeing of operational what distracted mode impacting is I especially standby move macro the to by that you, that quickly is businesses, efficiencies. wait-and-see very and the Thank on perspective or ability a of

ecosystem, our us. what So is long-term. drive of that in a we adoption, great to something not the this across we through customer see and is we growth We to value great that decade we, ahead I see like This of point see our continue customers, really said, as business time. is

Thanks, Rene.

Josh. Thanks,

Thank you.

next question Our comes BTIG. of with from the VanVliet line Matt

is Your line now open.

get built trends conservatism here much level given Good versus the guess outlook? come sort along you’re the just the size end or already, question. a an that I through expecting much are TPV of Thank extra seeing and taking next the Thanks that seeing quarters, of are guess counts seeing that those directionality on curious transaction is I with within upon curious you’ve and sort of sort of that, January of that average adding numbers the to how more the lower Yes. the at in to wrapped guidance things December of for both transaction for couple you. to already expecting through and weaken already the both of decline you you that afternoon. looking of how

tried Yes, in a softer of which seeing consideration Matt. quarter. the is the effect environment both quarter than thanks I think the to knows seasonal particular, trends TPV for as We’ve everyone March into the the, question, spend we’re December take

the and seasonality And second of estimates these kind put to macroeconomic we’ve our half things the playing volume there. it as both into relates taken that have into out that we of factors we are estimates So the year. consideration for payment all

standpoint. transaction like from platform And are and counts are a say I’d our measure and value how customers as engaging using a of creating and important monetization revenue

to fees. payment more obviously We’re subscription the actual and volume tethered

all assumed Divvy volume experienced and taken consideration we’ve we’ve the and for we’ve year. that so into that BILL so payment continuing half estimated both of the and And in second trends reflected the far for is lower that this are the growth

All right, great. you. Thank

you. Thank

from Research. question Wolfe of next Peller the comes line Our with Darrin

Your line now is open.

than taking the customer Hey to of half in, that want you’re guys. just bit with doing at I strategy, little more for customer over the just profitable distribution the is more guess, your side, discuss thoughts, on guys, revenue have is you of it you should, for bit you little everything I go-to-market us your doing non-Divvy to the it about if just direct now. mix go-to-market Maybe first obviously least you be a could just FI ads. a the given understand emphasize coming looks how think given you like the and much now

up for of profitable, you’re think saying the comp, want that notably. business expenses, to manage know stock the just but not And core interest to trying And kind pretty the comps, expenses, then profitability I core you’re see on investors interest still in note including income. went I and

are, little that. color so how guys the this on And little backdrop think you, you expense plan just more a managing that base maybe if aggressively. on in what environment, a you of And you more about

ecosystem diverse a, customer small Darrin. attract perspective, that you, Thank is businesses. do one model our have acquisition we the reach to and beauties of From a of

director effectively and do correct opportunities obviously that that. continuing does to that’s of we And account more that evolve that have ways FI or And direct our whether the to we the are get through you stronger. do channel monetize or are us. so for lots side The

a, say this in was we macro on I anything, the not would long-term. what a quarter environment, really just of saw again what more And

look as talk Yes. so few the And we impact next let maybe core really expect quarters. about profitability that little over see bit I’ll of we’ll and this to we is a the forward, John kind question. the more And,

Thanks Yes. Darrin.

in at our balance if you XX% our growth capabilities, for And we’re earnings, increased the think look operating our of and non-GAAP estimates really unique in our interest a second and income rates, I actually profitability the profitability north model. of to by excluding flow position given impact without profitable quarter, we've business we're the full year.

we to We'll near-term opportunity half term. are between near are is plans, longer-term as focused our also needed given that a what this operating balance expenses of right the year good because those our investing we our but the are for estimates think big So, the on in a conditions, objectives. market initiatives second driving striking obviously the continue think adjust growth profitability going I growth in between while And and is profitability we we're market the after. balance

Thanks.

you. Thank

Darrin. you, Thank

next The Citigroup. the comes line from question Schmidt Andrew of with

open. now is line Your

Thanks we're at back from there fluctuation a be guys. perspective, there color whether it's lot level margin whether Thanks me factors? to or just pull Hey drivers just on that dimensionalize for if the higher helpful. gross very for second. a dig in Rene. Maybe half, float margin still be in we if wanted there, And I Even will would Hey out you revenue the TPV understanding level a the could John. other healthy. sustainably mix gross having then the into very, some call here. any

achieved Thanks at increases the non-GAAP a for where we're of valorem in seeing our Andrew. I ad quarter. our second type the Sure. high gross question, we, mix, highest function margin that's think, in both And payments ever Yes, margins. payment

costs. transaction optimization around Our efforts

to costs obviously, a as contributor transaction So processing well. SMBs. ability as behalf payments we're revenue, with And our of float on scale, is which increasing mentioned lower our you

gross perspective, ranges operating We're above earlier established year. in we that margin well the the non-GAAP a from

optimization drive to above our current the continue deliver continue in to ranges given that and be to ability strong to we gross to FY’XX, margins. cost have composition the just expect We

So margin potential we feel the really good the from here. business of about

Perfect. Thank much very you John.

Andrew. Thanks,

Thank you.

of comes Weiss Stanley. Keith Morgan question Our next from line the with

line now Your is open.

Keith. my on question. for Jonathan Hey for taking Thanks

Can take First rate help than payment payment standalone around historically. the of the a change factors widely us BILL that adoption at impacted was seen behavior macro there Is around off, in we've you customer expanded quarter? understand pace modality that? what some potentially less and around

I'll that question. Jonathan. take Yes. Thanks,

that I a over expanded times linear think really before talked at been the we monetization couple successful it's years, quarter-to-quarter. we've few about not last of driving perfectly but

we've very primary right finding the And goal the and at to in I repeat buyer and supplier Our is payments transactions. that. electronic transition order method between drive to payment think been successful doing

were was In any ad adoption given associated the there basis monetization points U.S. X.X to slightly other given payments. of December factors with lot expansion valorem quarter, influenced some there of drive because dollar monetization continued roughly moving we X.X parts. the would But had quarter, in foreign In That weakening. headwind quarter, a slight is a that a be to the of currency our lower expansion. Examples we that.

to overall a percentage the higher we're ability electronic electronic XX% much to is and our which payments, of a drive for saw roughly versus payments, also now check ACH testament We good business. payments

for expansion probably enablement can time. below averages. looking network and So monetization slightly the confident term, monetization, similar saw over we longer-term expand quarter, that significantly in historical expectation very our to capabilities we our supplier to network near the large be especially expanding still to opportunity, we're But our is which given what at second is continue

sales the there about follow-up intensity the I the should competitors and how marketing A in color. Divvy? leverage private bit? at think your a seen of funding state and soften that for environment, mean we thanks here, have Hey of sales and given marketing you spend some

the We've been early a space very space working market, still a management spend management earlier. AP the know, is has in create been in and Divvy it's even a leader evolution. the you as automation frankly in helped its which and the time, long for Well, time spend for long

sheer market the way the adopted and as in we new into a customers connect we're doing So company, the expect total offers. of in as approaching competitive billion we're I market awareness, continuing size drive opportunity. pressures, just need invest of leverage to behaviors to create small scale influenced there businesses change the marketing the $X that and given the of type sales included. less of have number operating with is and the do Obviously, we're very to to that segment revenue; completely that prospective a business across that Divvy day-to-day business, say entire growing tapping in solution we by of to And still business. would around

Very guys. helpful, thanks

Yes.

Thank question with of you. Kenneth Autonomous. from next line [Operator Instructions] Our the comes Suchoski

Your line open. is now

and Rene TPV you're recession growth seems in John. It a taking for like afternoon good the outlook. factoring your Thanks question Hey here. in

the just the I'm heard in side I So talk seem to customer volumes growth you pull transaction the And you the And channel. the your TPV curious TBV I contribution the to coming then maybe side get side, different just FI pull, even it's environment? those over macro as subscription per quarters. on the or quarter be to XDFI appetite think the and levers that support don't levers the Divvy coming can some of pressure can under whether about from might revenue growth,

would great. be color there so Thanks much. any So

already Ken. things. how what impacting Thanks, with this standby is think first off, businesses think, we've about seen I Yes, that is mode they

front some probably economy. in say in the of would I broader are So that ways, businesses

XX%. in is the think XX% is I business spend consumer

really of may the that been continue drive the there. doing be we've that it levers innovation first do our to seeing we all have we So payment products. across And

capability working in payment known and So our obviously, suppliers products for the invoice and ability acceleration number the instant referenced network. informing a we've that's launched do we transfer to capital of how

So business make near making the we to to few these done and and that and the they are quarters, for transaction them ready diverse a last are going the difference expect decisions. monetization to as work that we've when customers continue adoption to we levers customer know make are over see on in we on ecosystem continue And the system different term we some the the areas all the the across diversity that in to to to well. of have and that continue drive work we sure there have

that just me of add you And Ken, couple asked about. a let points

at the XXX,XXX TPV per for in at TPV as customers, quarter-over-quarter is the is consistent, I a think, look quarter, financial in flat $X.X institution billion. BILL standalone And which the customer business, FI customers Our we pretty about is basis. the our quarter on excluding

Great. Thank you much. so

Thanks, Ken.

Thank you.

you. Thank

Our next Goldman with Nance William Sachs. the from of line question comes

Your open. line is now

your ahead and And The the I on a mix customer Hey of is that appreciate quarterly your kind appreciate asking super FI half a adds think adds or part say I guys, you disclosures to net contributing Darrin was of earlier. net channel follow-up just of the wanted and presentations, taking to all over now questions. backup ask question, basis. want the I about helpful. the go obviously enhanced significant also I a

near I this to think you going guys the revenue. have that been the in a impact clear on very isn't incremental term, have significant

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to and you, that. John, do few anything Thank a have points then you Ram, if

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kind to continue the work on monetization the that We to drive for of FI channel. capability

the is bill note would and ecosystem. customer add the members really solution able to that other into I one But that suppliers joins and that uses every add network their just Bill.com is

also for us. does provide FI the so that And channel capability

us enable new John? network the channel. scale capabilities and allow us more So as will across these time to monetization ads over grow that allow to increase the and we

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revenue business. to the term, contributes the overall We’re institution higher we’re what of X% of percentage expecting to that much today, is our X% a longer and be over financial

it’s So, we’re in long-term a that we keep and channel, – investment. that’s the we investing understand why

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near term. So we’re continue expecting that in to of kind the

be thinking the to of experienced Over new we’re similar will couple in next that quarter. what our December quarters, we the net ads

taking Got it. Appreciate to my questions.

Thank you.

Thank you.

line Needham next of Company. Berg with Our from comes question the Scott &

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influenced my year? you January month for for to trends Hey how does recent the guys, the taking December seeing the question. some on Thank here on for guidance updated we Scott. activity Thanks color of And more were in is you. quarter? this Can get Josh relative the

Thanks, Josh.

consideration points earlier, think include our So And of those as mentioned most the we and adjusting environment. and well that reflects we with BILL to macro facing environment as think the the lower we’re monetization expansion. Divvy that, softer the spend into – I estimates And all as the reacting across took for SMBs second updated growth TPV fully notably, we data year. that half slightly I lower the as

or So some other we all of for of of there’s the our new to conditions. macro we part month what than on the to numbers, in incremental adjust appropriately it’s think, nothing considered updating January report a

you. Thank

JPMorgan Our comes next Huang question of Chase. Tien-Tsin line with the from

now Your is open. line

thank you so Hi, much.

for Just a question clarification John. you, and a

way your Thank I’m cut risk execution if – to against the slower does sure share that sure for you putting on of growing, or that? you Just not Just on want that make and that. What the opportunistic that, Divvy, commented outlook spend are systematic? in appetite then you. I in is changed any place just on repurchase the

Yes. Thanks question. for the

program obviously First, Divvy, at obviously, around we’re a improving payment and – cycle not It’s card card average over very with an a of Divvy cycle. repayment the around revolving has very time, capabilities on growth card, a we’ve management short proactive the been there, which our managing and XX charge risk credit days.

conditions decisions. we in do overall customer what proactive managing making stability we’re And very take that. financial with part the the as health, of of the obviously And we some the making macro of we’re And that improving we’re into base progress that about doing we’re good So feel sort associated those there. of card. is their account charge

at not the authorized. purchase programmatic an It’s accelerated effort was that This On program. or repurchase moment. opportunistic is the share an

for you clarifying. Thank Great.

Thank you.

question comes Samad from Our of the line Jefferies. Samana with next

open. now is line Your

maybe forward equivalent apart more existing your Rene imply assuming new Hi, it the I’m guidance same-store be I customers I if for then thanks. would customer would also expectations think just for TPV maybe asked, just that would year-over-year? for guidance way. break maybe be could you think you’ve And just that helpful. and wondered Maybe subscription are that guidance curious I or the down flat XQ John, the TPV. drilling BILL, that are a question sales And about on still TPV John. being I been retention Hey, the year-over-year that know adding whatever if specifically, – little in bit

Thanks, the Yes. TPV basis. or still the last, we’ve a base, less absolute there’s getting year-over-year the so are customers And on in year acquired Yes, platform. call existing to estimated flat obviously new from installed it, the speed Samad. the up in growth on changes coming

the on so a those associated there look if obviously, December into to embedded some is That it’s quarter, with March. seasonality in the basis. factors decline And and And translate a at there. from growth numbers year-over-year also quarter-to-quarter transition the March you actually

So there. the just conditions it’s macro not

we part I retention with an And of important about there. our we’re subscription monetization and pricing packaging, expecting number don’t any associated think our revenues, expecting a specific and aren’t significant so talked but we’ve – and is changes it

history. retention comments, consistent continues the be and earlier very I to think on recent mentioned of with we engagement as customers strong,

you, Thank Great. John.

Thanks, Samad.

you. Thank

with the Deutsche Bank. Our Keane comes question from next Bryan of line

Your open. line is now

well. some whenever afternoon the of Hi, gotten a We’ve by my guys. John, good us especially build custom as growth. of around to in any are kind raising guide question was adjustments surprise the there’s all guidance, core taken

just add-ons originally Thanks. adding had you is figure Or SMBs to pricing impacted that TPV just anything fact revenue of other or you thought? either surprised that, down. things the kind core just the So from impact, the kind guide it what or surprised have frozen? you’ve channel kind what it the – is you trying to out there that of of sales in like adjust also Was the that’s

few now of changes It’s from beginnings I to a discretionary the not Bryan. talked We quarters not patterns across board. say behavior, across mid-market their and starting Thanks, surprises. items, we’re in for, SMBs businesses customers, I’d all but just about spend with spend, all think, no now kind seeing in then we’re of categories, shifting seeing And some true adjust. sizes. but extending the

as the And from the assumed lower in so monetization of We’ve We spend expansion the is patterns half year. SMBs. second also temporary slightly we’ve taken is consideration. that that think into

cycle point in to for need taken We all businesses, now particular as into be well. where are consideration a obviously economic this time through but conditions at grow we’ll

throughout to fiscal something versus for tried So recently. have account happened, this continued that's we've the trends year really new that say,

you. Thank

Thanks Bryan.

Thank you.

of from Friedman question James SIG. comes the next line with Our

line is open. now Your

Any commentary encouraged or well? the was was comments FI could I pricing take the as subscription you. you there the that on Is Rene, hoping side. an would direct? I pricing on rather little. to price your on opportunity be Is to helpful? Thank about set channel price unpack John, only that a hear

direct and Yes, we're XXXX, impacts in increase a accounting we've that price clients, fiscal basically. announced BILL our

price institution in in So a the it's QX, some the increase, price time I And it financial year since effect It's later all and than fiscal think, done channel. increases two our in channel of the accounting of direct and approach. the more we've it's been before be customers. so not will a phased years, across

really relative from a positioned can invest considering standpoint the we other we businesses they software our help well to accomplish we So still value low and of think small that are points what proposition in. price some

proposition still about small the price we're notwithstanding that value So we businesses. delivering increase, feel good for really the

you. Thank

Thank you.

Thank you.

line of next comes the Bank America. of Brad from question with Sills Our

open. now is line Your

on I lighter I Thanks impact but to there that, guys. Great. a little core wanted mentioned ask a the an bit John, even think question monetization. in business. FX transaction you ex

macro, Services? And So take seeing back could in do uptake cross-border the of impact any or kind the you get saw of you we that the level transaction business to rate? on the you virtual exiting not uptick core might same comment quarter-to-quarter Ad Valorem in the from you whether macro the on card, been had think

or expand expectations SMBs operating But be temporary, given the in say expansion. rates I Certainly, some seen indirectly I some conditions for we haven't monetization on expansion those that market. to continue think point that beyond influence. payments really we've we're the is expansion. than optimize see at short-term, our Brad. confident as I now at in We're the historical conditions monetization in Yes. uncertain transactions Thanks to more think it I'd linear we hard mentioned there from in operating we're better. particular are that in repeat ability and the to are impact is tempered be working And But macro. not the question, direct monetization could any going for this normally before, very to period

Thanks John.

you. Thank

Thank you.

line with the Bauch from Andrew comes of question next SMBC. Our

Your line is open. now

taking for thanks Hey question. my

Just something lot slowdown ad it of other guys it out guide. down in guys American out that with business in get macro trends. to that trying Express if half the beyond you back I just the slowdown be that square need on for market, out the maybe just are of any me Are that hitting really to here. guide the the here a on seems of not its guys announcement impacts we're Or else facing? there's here; you're just to maybe a are or that double data going sense there's that Facebook a calling you understand It to relatively stable calling I'm missing to in the build BXB? the are necessarily bottoming there doesn't the calling spend on seeing seeing we're magnitude we're into you something points trying from that just you mean,

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able to we competitive impact not and anybody drive any create like competitive the this what created we're see category, from to from the a and is that continue And we've environment ultimately and So seen on market. across in defined category. have we we the define perspective what do

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Thank you.

Thank you.

the William from question next with Blair. Stotler Our Matt line of is

open. now is line Your

Thank my for taking question. there. you Hi

think you I guys get about something have it's like some it the mentioned working you think that's coming that talked capital on like sounds fruition. offering more for; I to management the there. IPO, Obviously, I'd since to color

provide So what then anything be loans revenue the on would helpful? whether you balance keep thoughts can those maybe sheet? not your model around there, And would be or on just you timing

and that we having bill each make timing that how that on of hard something payments, or broad we they you, paid choose platform get that we so businesses to and the of of the electronic. have offerings Ultimately, of develop. of Thank that Sure. pride get at, all impacts paid. can of is something do one BXB right? we We that pay the one learn XX% is we that north of drive across ourselves things it payments the And we a of now electronification get payment Matt. from the And we've that worked payment that's

the paid. from in be were had when known paid they're to able so the we was to was launched they And demand or happen last repeat there from ACH faster chance Instant suppliers that the our year, mechanism that network through Transfer check in a demand what wanted to either that that we than getting see

us, were And understanding and us be would to engaging what so led helpful. from that to suppliers that known

and out opportunity so reality network. for there's a on pay is in to that position to to monetize. what they to we actually about roll have capability accelerate X.X for willing invoices a members And excited be customer us an what us we that, drive be it in now start they will BILL broadly happen, the our an we're impact learning million are to across And the that is that exactly going to for can the make the if are the ability are how willing to pay? they with And to

Got it. Thank you.

Matt. you, Thank

Thank you.

KBW. Our of with last the question comes from line Sanjay Sakhrani

open. Your line is now

just backdrop, fluid question the model is fairly I big to gauge a model. Thanks. predictable trying of not just how could a we given us you've more questions macro some the of newer the assumptions forecast just that give it's I'm backdrop think consensus maybe a Maybe do weakness? macro summarize you were for calling before. you. factors that it's should asked those it's about made? think it's affect given Thank macro macro but – a for picture maybe a know – the how how you a sense to And

Thank you, Sanjay.

lot we the and do the trends of we're a of informs use across customers, able segments that have customers, see modeling different size at We what all our is of and that data and look the provide. that to guidance that customers. different we And

guidance form to able like insights really that's So how provide businesses understand we is that happening with at we create what have the time, today. and to the be the feel and we we

Okay. Thank you.

Okay. Thank you. Appreciate that.

in of call call. I'd think thanks to opportunity everyone look the to we for And our I joining tremendous pursue We just today. forward communicating say like us. again, for front as joining the the progress thank you,

concludes conference of Thank fiscal participation. quarter day. XXXX your That your Have call. rest earnings Bill's second wonderful a for you