Business payments solution company Bill.com (NYSE:BILL) has been one of the best-performing financial stocks during the COVID-19 pandemic. In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP, take an in-depth look at the company and what investors need to know. Plus, hear Jason and Matt discuss why they're keeping an eye on Goldman Sachs (NYSE:GS) and Intuit (NASDAQ:INTU).
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This video was recorded on May 18, 2020.
Jason Moser: It's Monday, May 18. I'm your host Jason Moser, and on today's Industry Focus: Financials show, we're going to dig into one of the newer kids on the public markets block -- Bill.com. We're going to take a closer look at what the company does, and what investors should know before considering it as a potential addition to their portfolios. As always, we've got a couple of stocks we're watching this coming week.
And joining me, as always, down on Rainbow Row in Charleston, South Carolina, at least virtually, it's Certified Financial Planner Matt Frankel. Matt, how's everything going?
Matt Frankel: Pretty good. We're having some beautiful weather here this week, and not just in the virtual background, but in real life. It's been about 90 degrees, sunny, I took the kids swimming, and things are reopening and it's a good day.
Moser: Yeah, yeah. I hope that we will start seeing that reopening here. Virginia has entered into that phase one, but Northern Virginia felt like it was still not quite time, and so they delayed Northern Virginia I think a couple of weeks, but people are certainly champing at the bit here. And activity is no doubt picking up. I mean, you can see more traffic on the streets and people around. So, I think, hopefully, we're turning a corner here, and we can get onto a little bit more of business as usual but, you know, we just got to, kind of, wait and see.
Anyway, Matt, this week we wanted to jump into taking a look at one particular company, and you know, normally every week we're talking about the news stories and our earnings stories and what not, and earning season is wrapped up and we thought this would be a great opportunity to dig into a particular company, one that is still relatively new to a lot of people, just IPO'd recently, that's Bill.com.
And on Dec. 11, 2019, Bill.com said "hello!" to the public markets. The stock IPO'd under the ticker symbol BILL. Shares priced at $22 apiece, it raised a little bit over $200 million for the company at the time. And today it is a $5.6 billion market cap. The stock has done very, very well in its short time. Like I said, they priced at $22 per share, it was knocking on the $100 door at one point, but trading in that $70 to $78 range now.
It's headquartered in California; it was founded in 2006 by Rene Lacerte. And they've only reported two earnings quarters to-date. And we always like to give these IPOs a little bit more time before we really start looking at them as investable companies. And that's why I think Bill.com is on our radar now.
Matt, let's just start with the basics here in regard to Bill.com. They say their mission is to make it simple to connect and do business. So, what exactly does Bill.com do?
Frankel: So, their job is to make the whole payments and billing processes easier for small and medium-sized businesses. They're kind of like a Square (NYSE:SQ) in the sense that they target the smaller end of the market. They do things like, they'll process accounts payable for companies, they'll invoice customers. It integrates with all the major accounts. The Bill.com's cloud-based offerings integrate with QuickBooks and other accounting software and things like that.
So, the kind of interesting statistic that Bill.com shared when they first IPO'd is that 90% of small and medium-sized businesses in the U.S. still use paper checks either to get paid or to pay other people.
Moser: Just kind of fascinating to think about these days, isn't it?
Frankel: Right, because, I mean, large employers employ a lot of us that are listening right now. And large employers generally use direct deposit to make paychecks, but even so, a lot of large employers send paper checks when they're paying a vendor or paying invoices and things like that. So, this is a massive opportunity that was really not being addressed.
Paper checks, they take a lot of time, they're costly, you know, postage, things like that ...
Moser: ... prone to errors, prone to mistakes.
Frankel: Right. Bill.com, really, just kind of simplifies this process. And like I said, they target the small and medium-sized market. Think of the customers Square would target for payment processing and think, you know, that similar ... and there's 20 million small- and medium-sized businesses in the U.S. So this isn't any tiny market.
Moser: No, not at all. I mean, if you talk about their market, I mean, I've been looking through their S-1 and they estimate their annual addressable market to be globally $30 billion, domestically $9 billion. And when you look at the fact that their trailing 12-month revenue is something like $120 million, that can give you an idea of the market opportunity they see and where they are in it.
To go a little bit into the companies that are customers of Bill.com. I mean, I was looking through their S-1, and at the very beginning, they sort of tell the story and they throw some quotes in there from customers and talk about the value that they offer up to their customers. And I just thought a couple of these quotes, it just kind of, it made a little bit more sense about what they do. And so, you had one customer that said, without Bill.com, we would have had to hire at least one more full-time accounts payable person. That was from a company called Spikeball, an athletic equipment company. And there was another quote that said, Bill.com saved us from having to outsource our accounts payable. By not handing it over to an outside firm, we saved about $150,000 last year. And that's from O&M Restaurant Group, which is a franchise operation that runs Burger Kings and Blaze Pizzas and Taco Bells.
And so, that just, kind of, gives you an idea, like you said, they're essentially helping make these payments happen and just doing it in electronic form as opposed to paper, it sounds like.
Frankel: Yeah, definitely. And to, kind of, to get back to your point about how small the revenue is compared to the market opportunity. You mentioned it's just a little over $120 million a year is the quarterly run-rate right now. Bill.com trades for 34 times sales. Square and PayPal are in the 6 times to 7 times sales range. So, this is an expensive stock that's trading on its future opportunity ...
Moser: ... and not profitable either, right?
Frankel: And it's not profitable. [laughs] Just to kind of give you an idea of how reactive the stock is, it soared, I think, by 60% the day after earnings a couple weeks ago, not because it made money, but because it only lost $0.04 a share.
Moser: [laughs] It's all expectations these days, man, it's all about the expectation.
Frankel: Right. And the expectation is for losses for the foreseeable future. But having said that, the economics of the business really makes sense, especially once it starts to scale. Right now, the gross margin is over 75%. So, as the business scales and things get more efficient and they have to start, you know, invest less money, less percentage of the revenue in growth, it'll scale a little bit and that gross margin should help translate to some nice profits, if they can continue to capture a big share of that addressable market we were talking about.
Moser: Now, those gross margins you talk about. And that really, that is a great feature, that's a nice dynamic of the business, I think. That gets my interest and makes me [laughs] want to learn a little bit more. Let's talk a little bit about how they make money, because this ultimately is another one of those SaaS businesses, right, that Software-as-a-Service business. And so, they make their money mostly by subscriptions.
Frankel: Right. So the bulk of their revenue comes from subscriptions. You know, the companies pay to subscribe to their services. They also make money, it's kind of an insurance model, they make money from the float, money that they're holding for customers. And it's not an insignificant source of revenue, I want to say, it was over $5 million out of their $30 million or so they generated for the past quarter. So it's a significant percentage of their revenue, that they're holding money for customers and until that money is either paid out or paid to the business, paid to their vendors, whatever, they're making interest on that too. And it comes to the tune of $1 million a year. So, it's not just subscription revenue, there's two main revenue streams.
Moser: And as they get bigger, that number inherently grows as well. As that float gets bigger, that means their little portion of that float does increase. I mean, it may not ever be the substantial portion of the business, but it is something that has the potential to contribute more and more as time goes on.
Frankel: Well, keep in mind that right now it was -- so, that would work out to about 20% of the company's revenue right now. And this is at a time when interest rates are historically low. So, right now it's holding money, making interest, but it's barely getting paid anything. What if the fed funds rate spikes up to 3% over the next couple of years? That revenue stream gets magnified. And that's on top of all the actual growth of the business.
So don't think it as just a subscription business -- it's kind of a really neat model where they're getting paid to hold other people's money, kind of like an insurance company.
Moser: Yeah, there's nothing wrong with that. And I think, there's clearly the potential to grow that customer base, talking about the growth numbers there in regard to revenue. Looking at the most recent quarter that they just reported, they had over 91,000 customers, and that represented 28% growth from a year ago.
And then they also talk about the fact that their platform reaches, because of the network, the customers that they use, it reaches a larger network of small- and medium-sized businesses that are in that network for one reason or another. So, you're talking about 1.8 million-plus network members that they refer to. And in the quarter, they processed 6 million payment transactions, that was up 23% from a year ago. So, clearly, they are growing that user base and people are using it, so they're finding value in the platform somewhere.
Frankel: Yes. And 91 million (sic) [91,000] customers out of the 20 million small and medium-sized businesses.
Frankel: 91,000 rather customers out of the 20 million small and medium-sized businesses is [laughs] barely scratching the surface.
Moser: That's it. Yeah. So, you do see the opportunity that exists there. Now, the question I wanted to ask you in regard to this, because you and I both looked into this business. And one of the things we always look for when it comes to these types of companies, the market clearly sees something there and I think you and I both see something with this business as well. But do you feel like this is a business that has a competitive advantage today or do you feel like it's a business that maybe is in the midst of trying to develop a competitive advantage?
Frankel: I think it's still really trying to be developed. I know you have some thoughts on this, so I don't want to steal what you're about to say, because we discussed this before the show.
Moser: I think you and I both are going to see it the same way.
Frankel: Yeah, no, I definitely think they have a big competitive advantage as far as they're building a network. The network effect is huge in a business like this. It's kind of where I was going to go with that. I mean, look at CashApp or Venmo and we talked about Square and PayPal. I mean, the real value in Venmo right now is that everyone else uses it -- that's the biggest motivation for a guy like me to get Venmo. I mean, when it comes to new technologies, I'm an old guy. I'm still in my 30s, but I'm, like, 65 in technology years. So, the big motivation for me is the network effect, because so many of my friends have it and it makes it a lot more convenient if I have to send them money.
So a similar thing will happen here, like you said, they only have 91,000 customers, but you said, 1.8 million people that they're reaching.
Moser: Yeah, exactly.
Frankel: So the network effect over time can be a big competitive advantage, so that's what I feel like they're still building.
Moser: Yeah. And I think that's -- with a business like this, I mean, that's why you're going to see a business like this remain unprofitable for the foreseeable future, because they're investing that money into the growth of the business. They know that the only real way to make this work over the long haul is to get bigger, to grow the customers and to grow that network, and to do that, it just costs money.
I mean, this is obviously a very competitive industry and this is a smaller company. So I think you're right, they're investing a lot in that network effect, into that network, to benefit from that network effect. But then think about some of the results from a network effect. I think that a company that invests wisely in that over time, you know, companies and customers then start to see more value in being a part of that network and being a customer of Bill.com. And when you see more value in being that customer, you're willing maybe to pay a little bit more over time to do that, to maintain that relationship. So, they have a little bit of pricing power there.
Frankel: Right. That's kind of what's my next point. The network effect, kind of, is what would transform them from losing money to making money. Right now, their acquisition cost is very high, because like you said, they're growing, they're trying to build the business and they're willing to take a loss to do that. As it gets bigger and bigger and the network effect takes over, their acquisition costs will slow down to the point where they can be profitable, and that's the ultimate goal here.
And then it, kind of, increases the cost of switching, both, in terms of convenience and money for their customers. Right now, you can't get rid of Venmo if you have a built-up network with it. [laughs]
So, I think the network effect is going to be their big competitive advantage. I think right now the big competitive advantage is they're well-funded and willing to take a loss. It's one of their big advantages right now.
Moser: Exactly. And they're at a point in time, at least it feels like in the market, where the market is more than happy to embrace these types of businesses. The market seems really excited to give a lot of these businesses the opportunity, at least, to prove themselves. And so, they let that price-to-sales multiple that we talked about, you know, they let those multiples get stretched, because they feel like there's that opportunity.
They see a big market opportunity; they see technology that's working. And I think that's something that we didn't really mention here, but something that drives Bill.com's platform. I mean, they certainly are using AI, they're using artificial intelligence to their advantage. I mean, this is a business that was built with technology it's not an old-school business that's having to pivot to a new way of doing things, I mean, this is a business that was really built on this idea of things, like, AI and the cloud and being able to serve customers in a different way that they weren't used to being served.
Frankel: Right. And that's a good point. Bill.com is not the only company that does what it does, that's not at all what we're saying here. But they don't have, kind of, a legacy infrastructure or technology that they're working with, this was, like you said, developed from scratch for this purpose and to do it in a modern and efficient way.
I was reading on their site that they claim that invoicing can be done in half the time as with traditional methods, because of their AI technology. I know AI is your favorite and I wish I would have listened to you more about it, incorporating it a little bit more into my portfolio.
Moser: Yep, it's powerful stuff.
Frankel: You're right.
Moser: Seeing a lot of businesses are taking these tools that technology has given us today, and it's creating a lot of opportunity there in ways to do things faster and for less cost in most cases. But you mentioned the competition there, and I think that's something worth talking about, because, again, when you look at this business, it's market cap is $5.6 billion, something like that; trailing 12-month sales, $120 million.
Let's dismiss the market cap for a second, this is a small, small business. And when you look at the competitive space, I mean, I was just looking through CapIQ, for example, and they list companies like Fiserv and the big banks. I mean, JPMorgan and Wells Fargo were listed there. And this even made me think of another company that I've been digging more and more into lately called Coupa Software, which is focused on business management services processes. They have a payments dynamic to the business as well.
I think there are a lot of companies out there that see a big market opportunity out there. And I think this is going to be a very competitive space, which is really going to -- that's going to cost Bill.com in the near-term at least. They're going to have to really pay up to keep this business growing.
Frankel: And remember they're focusing on the lower end of the market too, which a lot of the competitors you named are more focused on larger businesses. Especially the small-business realm, a lot of the big players aren't willing to take a loss to recruit small-business companies into their platform.
Moser: I wonder why that is? I guess, I understand to a degree, but, you know, then all of a sudden it makes a lot more sense why a company like Square came to exist. They saw this void. They saw this small to medium-sized business. I mean, I look back to when I worked at the bank; I worked at one of the big banks for a few years back in the early 2000s, and I remember the merchant services side of that business where essentially banks were representing small businesses in the area.
So if you're a small business and you wanted to be able to accept credit cards, you know, you go to the local bank and you'd ask them for the merchant services package and speak to merchant services rep, and they would give you the clunky hardware and the ability to swipe and to take Visa and MasterCard and whatnot. And then you were paying an arm and a leg to be able to do that.
And so, you see a company like Square, they see that opportunity and they decided to go ahead and pursue it. And that certainly feels like something to Bill.com is doing as well.
I've always just, kind of, wondered why so many are more than willing to, sort of, overlook that space?
Frankel: Well, you know, the small-business market is hard to serve in a profitable way. I mean, look at Square. They target small and medium-sized businesses, and think of how big Square has gotten, and they've just become profitable. So Bill.com is willing to take the hit. And a lot of the big companies -- you know, I think Bill.com's subscription fees start at, I think, it was $36 or $39, I'm not exactly sure which one, but it's a pretty low revenue at first, a low revenue model. You know, this is building up subscription revenue over time, and it's, you know, compared to landing giant clients that are going to spend $100,000 a year on your platform, which is what a lot of these AI software companies are really going after. It's a difficult way to make money until you really scale.
Bill.com has almost $400 million in cash on its balance sheet, so when I say it's losing, what is, $2.9 million in the last quarter, it could afford to do that for quite some time with $400 million on its balance sheet.
Moser: Yeah. And you'd figure, there's probably an enthusiastic investor base out there that's going to be willing to give them a little bit of time, and they'd be able to raise more money in the near term, if they really needed to.
Frankel: Right. So, at the current loss rate, that's you know, what, over a 100 quarters that it could keep this up? And that's assuming the losses don't narrow any over that time. So that's a lot of growth runway where they really don't have to care about being profitable.
Moser: You figure so. And I mean, to your point about the small and medium-sized businesses, look at what's going on today. I mean, today is a very good example of, there is a higher risk involved with serving those smaller to medium-sized businesses, in that, they don't have the same stability. They are at higher risk for, like, what we're going through right now. I mean, you got to figure that probably some of Bill.com's customer base is probably feeling a little bit of pinch right now and they probably lose a little bit of that customer base in the near-term based on what we've been going through over these past few months.
Frankel: Yeah, well, they gave an update in their earnings call a couple of weeks ago, and said that when the pandemic started, they definitely started to see some churn in their platform. They're doing a great job of working with customers. And I saw that they waived the subscription fees for three months for any struggling customer.
Moser: Yeah, I saw that.
Frankel: And they're also seeing an inflow of business from businesses who, kind of, want to simplify their payment processes. If you could do something more efficiently and save money over time, at a time when your business is hurting, is a good time to look into those kinds of options. So, Bill is getting a nice little tailwind there from businesses who are maybe hurting but still keeping their heads above water. So they have seen some churn. They did say that the pandemic will affect their revenue, but it doesn't look like it's going to be that big of a hit.
And I mean, the fintech companies have been performing fantastically well in the pandemic. Bill.com has doubled since the end of March. And the reason is, because it looks like these companies are not going to be hit as much as you might think. For every negative, for every headwind they're facing, there's a positive tailwind to bring your business back up. We saw that in PayPal's numbers, we saw that in Square's numbers, and we saw that in Bill's numbers, which is why the stock has shot up so much.
Moser: Yeah. Generally speaking, the government has more or less shown that they're going to try to keep the money spigot open and flowing to the people and the businesses that need it the most. Now, how quickly that gets to them is another story entirely, but it does sound like our government is not going to just leave everybody hanging here. So, that's certainly something to keep in mind for the longer term.
Matt, let's talk about management here for a little bit, because you know we always talk about the types of businesses that we like to find in our Foolish universe. We talk about founder-led businesses and companies that are being led by the founder. And this is a business that it falls into that category here. Rene Lacerte is the founder of Bill.com, he is the CEO of the business, and he still owns a little chunk of the company as well, around 4.5% of the shares outstanding. So, he does have some skin in the game, right? I mean, it's not Jeff Bezos' situation, right? He doesn't own 20% of the business.
And we've seen that work both ways too. Just because the founder is leading the way, that doesn't mean it's a no-brainer either. I mean, I refer you to Under Armour, that has turned out to be, obviously, a tremendous disappointment for a lot of folks. And I think you could place a lot of the blame squarely on Kevin Plank. [laughs]
But in this case, here you've got a founder who is leading the way here, and it does seem like he has a vision for the business, doesn't it?
Frankel: Yeah. To your point, sometimes founders do find themselves over their head when businesses start to scale. That's kind of what we saw with Under Armour. You know, Under Armour did fantastically well in its first few years of business, but then when it got to the point where it was a big national brand, they just needed somebody else. But having said that, Rene Lacerte -- this isn't his first rodeo, it's worth pointing out. He founded a company called PayCycle that was the first big online payroll solution platform, and it ended up being so successful, Intuit bought it out. I'm pretty sure that became some of what QuickBooks is today.
So, he's had success in this before and has shown his ability to scale a business. So, that's a big difference -- I mean, I don't know Kevin Plank's history as well, I don't think he had anything giant before Under Armour.
Moser: No. I think he just basically, he was in college. He found, sort of, a problem in some of the way some of the clothing that athletes were wearing, and then that was just, sort of, where the idea formed. And so, it was really, that was kind of his first rodeo and he just parlayed ...
Frankel: ... yeah, so, he was, kind of, an accidental founder -- whereas Rene Lacerte is, kind of, an intentional founder in this case. He said, I've done this successfully before, I'm going to do it again; not, here's a problem, how do I solve it and then I'll worry about scaling later.
Moser: Well, and there is some big ownership there too. And, you know, we talk about Founders owning a chunk of the business, and that's always worth noting. I mean, it is also worth noting, and oftentimes you'll see, when businesses like this just go public, early on you'll see that there are big venture capital and private equity stakes involved here as well, and certainly Bill.com is no exception.
I mean, VC and PE firms with greater than 5% stakes in the business, you have four different firms that account for close to 30%, a little bit more than 30% of the actual business. So, that's not a bad thing necessarily. I mean, it shows that there are some partners out there that really believe in the business, but by the same token it also means, at some point down the line, those firms are going to want an exit strategy. I mean, they're investing in this business, they're not long-term investors like we are, they're going to want to cash out at some point. Which means that low float today is going to go up, and more shares are going to hit the market. That's just always something worth keeping in mind, I think.
Frankel: Yeah. As you're saying that, I'm looking this way, because I have another screen this way. I was looking at Bill's board, and virtually every board member is a venture capital partner, which you'll see a lot in these new IPOs. So, to your point. I could see Bill.com becoming an acquisition target, if it keeps growing like this. I could see it being bought out by, like, a Square, because it's a great complement to their small and medium-sized payment processing business. Or another one of the big ones, Intuit themselves, they're not that big to the point where they're, you know, prohibitive for companies to acquire, I mean, a $5 billion company is still within the realm of possibilities for most fintech companies that could be potential acquirers. I could see that more so than most of the other companies we talk about. I think Bill could be on someone's radar.
Moser: Yeah. And I like that customer base, and focusing on the small to medium-sized businesses as opposed to just, like, you know, the everyday consumer. I mean, you use Square and PayPal. The neat thing about Square is that it has two sides of that work. Bill.com really does have that focus on the small to medium-sized business, and you know, there's a lot of value there. And so, I do like that.
And I bet you're right, I bet there will be some big firms out there that look at this business and start thinking that maybe it could plug into their network. You know, Coupa Software was one that just stood out to me as one that could see this as being a nice addition to their business model as well. But, Coupa, again, they're 3 times the market cap, but I mean still, trading in a similar-style multiple, not quite as expensive as Bill.com, but you're talking about a $15 billion, $16 billion company that's bringing in, like, I don't know, $400 million in sales or something like that.
So, clearly these businesses are having a moment, and the market is definitely telling us something with Bill.com. So, I guess this is the $10,000 question, Matt, after digging into this company. I go back to how we started the show, this is the type of business, I look at this business and I think, I can make the case for the stock to fall off a cliff just as much as I could make the case for the stock to triple from here. Like, I think, you could flip a coin.
Is this the type of business that you feel like you'd want to own or is this the type of business that you feel like, you'd want to watch this play out a little bit, give it a little bit more time to see how they're able to handle life as a publicly traded company?
Frankel: It's definitely going to be a rollercoaster ride. So, that 91,000 customer figure, that's up 28% year over year. If that growth rate were to rise to, say, 40%, you'll see the stock double or triple overnight, nearly. [laughs] If that were to fall to 15%, you can see this come crashing down so fast, because remember, 34 times sales is a huge valuation.
So, like any IPO stock, I would say, if it's on your radar, don't put any more than 1% or 2% of your money into it. Having said that, this could turn out to be a big winner, if things go right, so.
Moser: Yeah. I think you hit on the head there. I mean, there are a lot of companies that we have said this about valuation; Shopify stands out as one, Zoom certainly stands out. We've seen these valuations that can be a little bit scary, but by the same token, you see some winning qualities that start to make a little bit of sense as to why the valuation is that way, and this is the type of company, I think, for me, I'm interested in these types of businesses, I love the market they're pursuing. To me, I think there are probably more reasons to own a business like this than to not, but it is one where I would probably open up with a very small position just to get my skin in the game, to get my interest up there to follow it, because I feel like this is the type of business I wouldn't mind adding to. And I don't have a problem adding to a winner if it's -- you know, if you see if you see some signs that the business is succeeding and the market continues to reward it, I don't mind adding to winners. So, this might be one of those types of businesses, but definitely one that I think investors out there really ought to keep their eyes on.
And I appreciate you taking the time to dig into it and talk about it with me today.
Before we wrap up this week, Matt, let's just jump into one to watch real quick. What's the stock you got on your radar this coming week and why?
Frankel: I am watching Goldman Sachs. I've talked about that on our show before, the live viewers haven't heard me talk about it, so I wanted to bring it up again for a good reason. I own the stock, I have no plans to sell it, tomorrow you'll see an article by me coming out that says, "Here's why Warren Buffett sold Goldman Sachs and I'm not."
Buffett released Berkshire Hathaway's 13-F filing, which shows his stock portfolio activity, and he dumped 85% of his Goldman Sachs stocks. So that's why Goldman Sachs is kind of underperforming -- I mean, it's still up, because everything is up today -- but it's still underperforming the financial sector quite a bit. I think it has a lot of long-term potential consumer banking-wise. Goldman trades at a 25% discount to its book value right now.
And I think that it might be a little too risky for Warren Buffett, which is why he sold it, but I think the risk/reward makes a lot of sense for investors with a little more risk tolerance than Berkshire Hathaway does.
Moser: I got you there, yeah, I was reading about that. I'm going to keep an eye on Intuit. The earnings are coming out this week on Thursday for Intuit. And I think a lot of people, they think Intuit, they immediately think TurboTax. I mean, this has been a really interesting stretch of time from every angle. And you've seen the tax deadlines extended.
I mean, obviously, Intuit being a company that's participating in the Paycheck Protection Program, it sounds like we're going to be seeing more money coming into the hands of consumers and businesses as we try to buy some time to get through this stretch here. So, it does sound like it's going to be a really busy year for Intuit. And a very established and strong business.
Now, they did guide down earlier in the month, on May 7. But that said, that's something, everybody is in the same boat there, right. I think it's a really fascinating business, so I'm going to be interested to see how earnings work out for them this coming week. And, yeah, definitely want to keep an eye on there.
But I think that's going to do it for us this week, folks. Remember you can always reach out to us on Twitter @MFIndustryFocus or you can drop us an email at IndustryFocus@Fool.com and let us know how everything is going, how you're making it through this tough time, what stocks are you buying, what stocks are you selling and what stocks do you want us to talk about on the show? Let us know, because we always like hearing from you.
And, Matt, always like hearing from you, man; thanks for taking the time to join me this week.
Frankel: Of course. Always good to see you.
Moser: Alrighty. Well, we will see you next week.
And, as always, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
Thanks, as always, to our man, Austin Morgan, for making all of these moving parts work this week with Zoom and Audacity, the live audience and the podcast. This really worked out well. For Matt Frankel, I'm Jason Moser, thanks for listening, and we'll see you next week.