Bill Holdings tumbles as core rev outlook disappoints

BILL Holdings

07/02/2025 13:29

** Shares of Bill Holdings  BILL.N  tumble ~30% premarket to
$67.59, a three month low, after financial software platform's
forecast disappoints
** San Jose, California co late Thurs said expects FY25 core
rev, comprising subscription and transaction fees, to grow
16%-17% y/y to $1.297-$1.312 bln
    .** Q2 core rev increased 16% from year ago to $319.6 mln,
while total rev of $362.6 mln, up 14% y/y, topped LSEG estimate
of $360.2 mln
    ** Adj EPS in qtr of 56 cents surpassed consensus by 10
cents
    ** Jefferies, which rates BILL 'buy' ($102 PT), said on
earnings call the co maintained its goal of returning to 20%+
core rev growth over time, but brokerage believes investors had
expected it to reach that level by end of this fiscal year
    ** Reacting to the report, KBW cut its PT to $77 from $95,
Mizuho reduced PT to $70 from $75
    ** Of 25 brokerages covering BILL, recommendation breakdown
is 17 "strong buy" or "buy", 7 "hold" and 1 "sell"; median PT is
$90 - LSEG
    ** Through Thurs close, stock up ~14% YTD and has more than
doubled over the past six months

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))