But the SMB market has been underserved by financial software that doesn’t integrate well and is either too simple or too complex. Companies with a good handle on cash flow will get bills paid on time and invoices out in a timely manner. Bill customers can cut their payment processing times in half.īack-office financial workflows are essential to small businesses. Bill’s dashboard gives a comprehensive view of cash coming in and bills coming due. It streamlines the entire payables process. While most SMBs today are still dependent on manual AP/AR processes (mailing paper invoices and printing paper checks), they see the time and cost savings of automation. As Bill weaves software and payments together, it becomes a more central part of a customer’s AP/AR operations.Īutomation is a major attraction when it comes to back-office financials. There are integrations with popular accounting software, banks and payment processors. The platform is used to generate invoices, process invoices, streamline approvals, send/receive payments and manage cash. The firm expects to see more guidance boosts down the road, saying the path is looking clearer for Bill to reach $1 billion in annual revenue in calendar 2024.Ĭustomers deploy Bill’s AI-enabled platform to connect with their clients and suppliers. In FQ3 (March), Bill’s TPV rose 44% to $35 billion. The firm sees Bill’s leadership position across a large total addressable market supporting years of healthy customer acquisition and total payment volume (TPV) growth. At the time of the deal announcement, Piper Sandler said it saw 10x expansion potential for Divvy, representing $1 billion+ of ARR in four to six years.įor FY’22 (June), Jefferies thinks Bill could provide revenue guidance of at least $425 million, well above the latest consensus estimate of $308.3 million. Management said many of its customers had previously requested a solution for managing card spend.Īs of May, Divvy was on a $100-million annual recurring revenue (ARR) run rate across 7,500 active SMB customers, with GMV of $4 billion. This is a significant and strategically smart purchase for Bill, which can now begin to power a big Divvy cross-sell initiative across its installed customer base. This deal expanded Bill’s platform, enabling the company to provide more automation and real-time information to its 115,000+ customers and network of more than 2.5 million members. With Divvy, Bill will enable businesses to automatically manage accounts payable (AP), accounts receivable (AR) and corporate card spend all in one place, saving time and money. Since announcing the Divvy acquisition on May 6, Bill shares have advanced 58%. Bill went public in December 2019 at $22 a share, with an opening price of $37.25.Īhead of next week’s FQ4 (June) earnings report, Jefferies said it expects bullish guidance in what will be the company’s first outlook since completing its $2.5-billion acquisition of privately held Divvy, a leading vendor in spend management. The stock this morning traded to an intraday high of $211.68, just below the all-time high of $211.85 reached at the end of July. Shares of (BILL, $207), a provider of cloud-based software that simplifies and automates back-office financial operations for SMBs, are showing strength today following an upgrade to ‘Buy’ with a price target of $250 (up from $155) at Jefferies.
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