BILL Holdings Q2 Revenue Surges, Interest Income Soars

TL;DR

BILL Holdings Q2 revenue up big, interest income exploded. Buy!

AI Summary

BILL Holdings, Inc. filed its 10-Q for the period ending December 31, 2024. The company reported Subscription and Transaction Fees for the second quarter of fiscal year 2025 as $710.5 million, an increase from $546.5 million in the same period of fiscal year 2024. Interest on Funds Held for Customers also saw a significant rise to $100.9 million in Q2 FY2025, up from $33.1 million in Q2 FY2024.

Why It Matters

The substantial increase in both subscription/transaction fees and interest income indicates strong growth in BILL's core payment processing business and potentially higher interest rates benefiting their float.

Risk Assessment

Risk Level: medium — While growth is strong, the significant increase in interest income could be sensitive to future interest rate changes.

Key Numbers

• $710.5M — Subscription and Transaction Fees (Q2 FY2025 revenue, up from $546.5M in Q2 FY2024)
• $100.9M — Interest on Funds Held for Customers (Q2 FY2025 income, up significantly from $33.1M in Q2 FY2024)

Key Players & Entities

• BILL Holdings, Inc. (company) — Filer of the 10-Q
• 2024-12-31 (date) — End of reporting period
• $710.5 million (dollar_amount) — Subscription and Transaction Fees for Q2 FY2025
• $546.5 million (dollar_amount) — Subscription and Transaction Fees for Q2 FY2024
• $100.9 million (dollar_amount) — Interest on Funds Held for Customers for Q2 FY2025
• $33.1 million (dollar_amount) — Interest on Funds Held for Customers for Q2 FY2024

FAQ

Key Financial Figures

• $0.00001 — ange on which registered Common Stock, $0.00001 par value BILL The New York Stock Excha

Filing Documents

• bill-20241231.htm (10-Q) — 1840KB
• bill-20241231xex31.htm (EX-3.1) — 62KB
• bill-20241231xex311.htm (EX-31.1) — 11KB
• bill-20241231xex312.htm (EX-31.2) — 11KB
• bill-20241231xex321.htm (EX-32.1) — 6KB
• bill-20241231xex322.htm (EX-32.2) — 5KB
• bill-20241231_g1.jpg (GRAPHIC) — 20KB
• bill-20241231_g2.jpg (GRAPHIC) — 9KB
• 0001786352-25-000015.txt ( ) — 8009KB
• bill-20241231.xsd (EX-101.SCH) — 54KB
• bill-20241231_cal.xml (EX-101.CAL) — 88KB
• bill-20241231_def.xml (EX-101.DEF) — 217KB
• bill-20241231_lab.xml (EX-101.LAB) — 629KB
• bill-20241231_pre.xml (EX-101.PRE) — 422KB
• bill-20241231_htm.xml (XML) — 1125KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION 3 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Statements of Stockholders' Equity 6 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 10 Note 1 – The Company and Its Significant Accounting Policies 10 Note 2 – Revenue 12 Note 3 – Fair Value Measurement 13 Note 4 – Short-Term Investments and Funds Held for Customers 15 Note 5 – Acquired Card Receivables 18 Note 6 – Loans Held for Investment 19 Note 7 – Debt and Borrowings 20 Note 8 – Stockholders' Equity 23 Note 9 – Other Income, Net 24 Note 10 – Income Taxes 24 Note 11 – Commitments and Contingencies 24 Note 12 – Net Income (Loss) Per Share Attributable to Common Stockholders 25 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

Part II. OTHER INFORMATION 46 Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 85 Item 3. Defaults Upon Senior Securities 86 Item 4. Mine Safety Disclosures 86 Item 5. Other Information 86 Item 6. Exhibits 86

SIGNATURES

SIGNATURES 87 I Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit, operating expenses, including changes in research and development, sales and marketing, and general and administrative expenses (including any components of the foregoing), and our ability to achieve, and maintain, future profitability; our business plan and our ability to effectively manage our growth; our market opportunity, including our total addressable market; our international expansion plans and ability to expand internationally; anticipated trends, growth rates, and challenges in our business and in the markets in which we operate; beliefs and objectives for future operations; our ability to further attract, retain, and expand our customer base; our ability to develop new products and services and bring them to market in a timely manner; the effects of seasonal trends on our results of operations; our expectations concerning relationships with third parties, including partners; our ability to maintain, protect, and enhance our intellectual property; the effects of increased competition in our markets and our abili

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BILL HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) December 31, 2024 June 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,566,271 $ 985,941 Short-term investments 644,672 601,535 Accounts receivable, net 28,911 28,049 Acquired card receivables, net of allowances of $ 20,768 and $ 20,883 as of December 31, 2024 and June 30, 2024, respectively 581,661 697,216 Prepaid expenses and other current assets 251,877 297,169 Funds held for customers 3,766,541 3,704,907 Total current assets 6,839,933 6,314,817 Non-current assets: Operating lease right-of-use assets, net 60,144 59,414 Property and equipment, net 94,467 88,034 Intangible assets, net 253,134 281,471 Goodwill 2,396,509 2,396,509 Other assets 30,019 38,568 Total assets $ 9,674,206 $ 9,178,813 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,723 $ 7,447 Accrued compensation and benefits 29,249 34,158 Deferred revenue 21,775 17,006 Other accruals and current liabilities 265,548 299,506 Convertible senior notes, net 33,373 — Customer fund deposits 3,766,541 3,704,907 Total current liabilities 4,122,209 4,063,024 Non-current liabilities: Deferred revenue 202 4,167 Operating lease liabilities 63,400 62,847 Borrowings from credit facilities, net 180,007 180,009 Convertible senior notes, net 1,498,490 733,991 Other long-term liabilities 504 574 Total liabilities 5,864,812 5,044,612 Commitments and contingencies (Note 11) Stockholders' equity: Common stock 2 2 Additional paid-in capital 5,267,182 5,233,037 Accumulated other comprehensive loss ( 239 ) ( 1,890 ) Accumulated deficit ( 1,457,551 ) ( 1,096,948 ) Total stockholders' equity 3,809,394 4,134,201 Total liabilities and stockholders' equity $ 9,674,206 $ 9,178,813 See accompanying notes to condensed consolidated financial statements. 3 Table of Contents BILL HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS O

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