2023-11-03 09:47:09 ET
Shares of BILL Holdings ( NYSE: BILL ) dropped more than 30% on Friday after the cloud-based software provider lowered its annual revenue and adjusted profit outlook, citing challenging economic environment.
The company’s new revenue guidance between $1.21 billion and $1.25 billion and adjusted profit outlook in the range of $1.64 per share to $1.97 per share overshadowed its third-quarter results, which beat Wall Street estimates.
Its previous revenue guidance was $1.29 billion and $1.31 billion, while profit guidance stood at $1.82 per share and $1.97 per share respectively.
“We are operating in an environment of increasing economic choppiness and small businesses are under increasing pressure to adjust to the current realities,” said CFO John Rettig during the company’s earnings call.
Brokerage William Blair, which downgraded the California-based company to Market perform from Outperform, said customers have pulled back spending and became more selective with which payment option they choose
“It is hard to call where the bottom is and whether numbers have been sufficiently lowered to account for additional macro pressure,” said William Blair analyst Matthew Pfau.
KeyBanc also downgraded Bill.com to Sector Weight from Overweight as it believes macro headwinds/sentiment will continue to challenge the NT performance of shares.
Seeking Alpha analysts, Wall Street and Seeking Alpha’s Quant ratings consider the stock a “buy”. The stock has lost 18% so far this year.
The company, which has a market valuation of over $9 billion, helps small and mid-size businesses to digitize and automate back-office financial operations including receiving payments and generating and processing invoices.
More on Bill.com
- BILL Holdings: A Speedy Transformation To Profitability, Undervalued By The Market
- BILL announces the promotion of John Rettig to company president
- Bill.com Non-GAAP EPS of $0.54 beats by $0.04, revenue of $304.99M beats by $6.17M
For further details see:
BILL sinks after lowering annual guidance