Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. is projected to achieve FY3Q revenues between $352.5 million and $357.5 million, reflecting a year-over-year increase of 9% to 11%, alongside core revenue growth expected at 13% to 15%. The company has successfully expanded its customer base, adding a total of 4,500 new accounts in accounts payable/accounts receivable and 1,400 in spend and expense management. In addition, total revenues grew by 13.8% year-over-year, with core revenue climbing 16.2% year-over-year, fueled by significant contributions from both subscription and transaction fees.

BILL Holdings Inc. experienced a decline in its customer acquisition rates, with AP/AR adding 4,500 customers and Spend & Expense adding 1,400 customers, both lower than the preceding quarter. The company also reported a decrease in its AP/AR take rate to 15.6 basis points, impacted by foreign exchange headwinds and a shift towards a less favorable seasonal payment mix, contributing to a roughly 30% drop in shares after hours. Furthermore, gross margins contracted by 70 basis points year-over-year to 85.2%, highlighting ongoing macroeconomic challenges that could hinder growth in the small and medium-sized business sector.