Bill.com ER and Transcript reading

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👤 The Tech InvestorCommunity Lead :)) 
💬 627
   Aug 19, 2023

Great ER. Is there really a recession happening at the moment? What I see is a growth story that cannot be stopped easily.

The price action is quite bullish, it has bounced almost 20% from its after-hour dip. Hopefully, that means the market has come back to its senses and the valuation can correctly reflect the fact that companies who grow should be positively rewarded, just like in a normal stock market. Otherwise, a stock market that functions like a casino would benefit no one except maybe hedge funds and algorithms, which defeats the true purpose of the stock market.

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Here is a quick walkthrough of their transcript:

We delivered more than $1 billion in revenue and 65% year-over-year revenue growth while achieving our first year of non-GAAP profitability. 

Good. Nothing unusual here. Apparently companies grows in 2023.

At the end of fiscal 2023, more than 460,000 businesses used BILL as their central hub of financial operations. We expanded our network to 5.8 million members that have originated or received an electronic payment through our platform by making it easy for buyers and suppliers to connect and transact payments, we enabled $266 billion in total B2B payment volume across our platform reflecting approximately 1% of US GDP and a significant milestone.

That's a lot of money they're processing. Imagine if they take a cut of the TPV they're processing. Wait, I think that's already the case isn't it?

There are 30 million small businesses in the US and 70 million globally. The majorities still use manual paper-based processes to manage their financial back office. There is a vast opportunity to help these small businesses automate their financial operations to gain better insight to the company manage their business and cash flow and easily transact trillions of dollars of B2B payments.

So, they have 0.46m customers. So they have 0.65% (0.46/70) of the global businesses using their service already. Maybe the opportunity is truly really big here still.

This creates a valuable data asset that we apply our AI engine too which enables us to develop better user experiences such as auto-matching customers, and suppliers, auto-populating invoices, no matter how they are received, managing risk and providing payment and funding choices for customers and network members.

So, they mentioned AI. Maybe that's still a good thing but hopefully they don't use AI to just sell us false information. Lots of companies do that.

Turning to the accounting channel. We acquired many new partners and now serve approximately 7,000 accounting firms, up from 6,000 a year ago. We continue to enhance the tools we provide accountants to manage their clients.

Payment solutions are not something you change every day, but once you make the switch, you may find yourself stuck with it. Also, accounting firms are run by the smartest people on the planet basically. It's quite an accomplish to be able to grow this section of clients by 15% during a banking crisis and expenditure tightening period.



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Hi, I'm Shih-Min. I am a software engineer that deals with highly-scalable, distributed and fault-tolerant systems.