2023-05-05 13:10:05 ET
Shares of BILL ( NYSE: BILL ) rose as much as 25% on Friday after the payments software solutions company reported an easy beat on its top and bottom line metrics for the third quarter.
The company on Thursday after the bell reported Q3 Non-GAAP EPS of $0.50, beating estimates by $0.26. Revenue of $272.56M was +63.3% Y/Y and ahead of consensus by over $25M.
At Q3 end, over 450,000 businesses made use of BILL's services which generated $65 billion in payment volume during the quarter, the company said.
"In Q3, customers were highly engaged with our platform and made a similar number of transactions on a year-over-year basis, yet reduced their expenditures per transaction as belt tightening continued," BILL CEO Rene Lacerte said on the earnings call.
For Q4, BILL expects fewer net customer adds in the FI channel due to Bank of America electing to sunset the BILL-powered legacy ACH and Check bill pay solution used by their commercial customer segment.
Key Q3 metrics: Core revenue $239.5M, Float revenue $33.1M, Gross profit $223.7M, Non-GAAP gross profit $237.2M, Gross margin 77.6%, Non-GAAP gross margin 87%, Transactions processed 21.4M.
Cash, cash equivalents and short-term investments at the end of Q3 were $2.7 billion.
For full-year 2023, the company forecasted $1.0395 billion to $1.0425 billion of revenue, with float revenue expected to be $109 million.
Non-GAAP net income for 2023 is expected around $170.4 million to $173.4 million, or $1.46 to $1.48 per share.
The Seeking Alpha consensus for 2023 revenue is $1.04B and EPS is $1.51.
Stock is down 26.8% so far this year as of Thursday's close.
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BILL stock surges 25% after impressive results beat for Q3