BILL - Analysts Tread Cautiously On BILL Holdings Citing Dim Guidance Concerns: Review | Benzinga
Needham analyst Scott Berg reiterated a Buy rating on BILL Holdings, Inc. (NYSE: BILL), lowering the price target to $100 from $200.
Following a street-beating performance in Q1, BILL cut the revenue outlook for FY24 to $1.205 billion-$1.245 billion (from $1.288 billion-$1.306 billion) vs. $1.300 billion street view and revised the adjusted EPS forecast to $1.64-$1.97 (from $1.82-$1.97) vs. consensus of $1.95.
According to the analyst, the lagging outlook was due to the payment mix favoring lower-cost transactions, reducing overall revenue growth from 22.6% to 15.7% despite the upside to 1Q guidance.
The negative payment impact comes from both core Bill TPV and from Divvy card spending, the analyst adds.
Sales commentary remained positive, including another 4K core Bill customer additions expected in 2Q, which is in line with recent trends suggesting the lower revenue growth trajectory is truly macro-driven, ...