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Bill.com Announces Q4 Financials; Reports 86% Revenue Increase

Bill.com, a provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), has announced financial results for the fourth quarter and fiscal year ended ...

Aug. 26, 2021

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Bill.com, a provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), has announced financial results for the fourth quarter and fiscal year ended June 30, 2021.

“We delivered record growth in fiscal 2021 as we helped SMBs across the country automate their financial operations and make billions of dollars in payments,” said René Lacerte, Bill.com CEO and Founder. “Our strategic initiatives drove strong adoption of our platform and set us up well for future opportunities. We expanded our e-payment offerings to make it easy for businesses to get paid faster, extended our reach with new strategic partners, and entered the spend management space with our acquisition of Divvy. We are building the one-stop shop platform for SMBs to manage all their financial operations and B2B spend.”

“Our organic core revenue increased 73% year-over-year driven by the strength of our platform and excellent execution against our strategic initiatives,” said John Rettig, Bill.com CFO. “We are pursuing a large, global opportunity to help millions of small businesses digitally transform their financial operations. With the strength of our organic business and the acquisition of Divvy, we believe we are on a path to extend our leadership position in serving the large SMB market.”

Bill.com completed the acquisition of DivvyPay, Inc. (“Divvy”), a leader in spend management for SMBs, on June 1, 2021. Bill.com’s reported financial results for the fourth quarter and full fiscal year 2021 include the results of Divvy from that date, while prior periods presented do not. Organic results exclude the impact of Divvy during the month of June 2021.

Financial Highlights for the Fourth Quarter of Fiscal 2021, as reported, including Divvy unless otherwise indicated:

  • Total revenue was $78.3 million, an increase of 86% from the fourth quarter of fiscal 2020.

  • Core revenue, which represents subscription and transaction fees, including Divvy interchange revenue, was $77.5 million, with $10.3 million from Divvy, an increase of 100% year-over-year. Excluding Divvy, core revenue was $67.2 million, up 73% year-over-year.

    • Subscription fees were $31.2 million, including $0.1 million from Divvy, up 32% year-over-year.

    • Transaction fees were $46.3 million, including $10.2 million from Divvy, up 204% year-over year. Excluding Divvy, transaction fees were $36.1 million, up 137% year-over-year.

  • Gross profit was $58.0 million, representing a 74.1% gross margin, compared to $32.0 million, or a 76.0% gross margin, in the fourth quarter of fiscal 2020. Non-GAAP gross profit was $62.4 million, representing a 79.7% non-GAAP gross margin, compared to $33.0 million, or a 78.5% non-GAAP gross margin in the fourth quarter of fiscal 2020.

  • Loss from operations was $70.7 million, compared to a loss from operations of $10.3 million in the fourth quarter of fiscal 2020. Non-GAAP loss from operations was $6.2 million, compared to a non-GAAP loss from operations of $0.5 million in the fourth quarter of fiscal 2020.

  • Net loss was $41.9 million, or ($0.48) per share, basic and diluted, compared to net loss of $9.5 million, or ($0.13) per share, basic and diluted, in the fourth quarter of fiscal 2020. Non-GAAP net loss was $5.8 million, or ($0.07) per share, basic and diluted, compared to non-GAAP net income of $0.3 million, or $0.00 per share, basic and diluted, in the fourth quarter of fiscal 2020.

Financial Highlights for Fiscal Year 2021, as reported, including Divvy:

  • Total revenue was $238.3 million, an increase of 51% from the prior fiscal year.

  • Core revenue was $232.3 million, an increase of 70% from the prior fiscal year. Subscription fees were $111.6 million, up 33% year-over-year, and transaction fees were $120.7 million, up 129% year-over-year.

  • GAAP gross profit was $176.5 million, representing a 74.1% gross margin, compared to $118.5 million, or a 75.2% gross margin, from the prior fiscal year. Non-GAAP gross profit was $185.0 million, representing a 77.6% non-GAAP gross margin, compared to $121.8 million, or a 77.3% non-GAAP gross margin from the prior fiscal year.

  • Loss from operations was $114.0 million, compared to a loss from operations of $34.2 million in the prior fiscal year. Non-GAAP loss from operations was $12.2 million, compared to a non-GAAP loss from operations of $11.5 million in the prior fiscal year.

  • Net loss was $98.7 million, or ($1.19) per share, basic and diluted, compared to net loss of $31.1 million, or ($0.70) per share, basic and diluted, in the prior fiscal year. Non-GAAP net loss was $10.0 million, or ($0.12) per share, basic and diluted, compared to non-GAAP net loss of $7.7 million, or ($0.11) per share, basic and diluted, in the prior fiscal year.

Business Highlights and Recent Developments

The metrics listed below identified as “Bill.com” metrics exclude the results of Divvy for the month of June 2021.

  • Completed the acquisition of Divvy, a leader in spend management for SMBs.

  • Served 121,200 Bill.com customers as of the end of the fourth quarter of fiscal 2021, representing year-over-year customer growth of 24%. Also served 10,700 spending businesses that used Divvy for spend management in June 2021.

  • Processed $41.7 billion in total payment volume for Bill.com customers in the fourth quarter, an increase of 64% year-over-year. For the full fiscal year, processed $140.3 billion in total payment volume, an increase of 45% over last fiscal year. Spending businesses that used Divvy cards executed $437 million in card payment volume in June 2021.

  • Processed 8.2 million transactions for Bill.com customers in the fourth quarter of fiscal 2021, an increase of 46% year-over-year. For the full fiscal year, processed 29.2 million transactions, an increase of 22% over last fiscal year.

  • As of June 30, 2021, Bill.com had 3.2 million network members, an increase of 28% year-over-year.

  • Net dollar-based retention rate for Bill.com customers was 124% during fiscal 2021 compared to 121% during fiscal 2020 and 110% during fiscal 2019.

  • Signed a definitive agreement to acquire Invoice2go, a leading mobile-first accounts receivable software provider for small businesses.

Financial Outlook

We are providing the following guidance for the fiscal first quarter ending September 30, 2021 and the full fiscal year ending June 30, 2022.

The financial outlook does not include any potential impact from the proposed acquisition of Invoice2go. These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Bill.com has not provided a reconciliation of non-GAAP net loss or non-GAAP net loss per share guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call and Webcast Information

In conjunction with this announcement, Bill.com will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal fourth quarter and fiscal year 2021 results and our outlook for the fiscal first quarter ending September 30, 2021 and full fiscal year ending June 30, 2022. The live webcast and a replay of the webcast will be available at the Investor Relations section of Bill.com’s website: https://investor.bill.com/events-and-presentations/default.aspx.