The market was having a mildly strong day on Friday, with all three major indexes up by 0.5% or less as of 10:30 a.m. EST. But billing software fintech company Bill.com (NYSE:BILL) was a major outperformer, with shares up by more than 23% to a fresh all-time high.
Bill.com reported its latest earnings after the close of Thursday's trading day, and to say the numbers were impressive doesn't do the company justice. Just to run down some of the highlights:
- Subscription and transaction fee revenue (Bill.com's "core" revenue) increased by 59% year over year, and adjusted gross margin was a very strong 77.3%. Both of these figures handily beat expectations.
- Bill.com now has more than 109,000 customers, year-over-year growth of 27%.
- The company processed $34.8 billion in payment volume, 40% more than it did a year ago.
- Bill.com is getting closer to profitability, as its adjusted operating loss narrowed to $2.7 million compared with $4.5 million in the same quarter a year ago. On a per-share basis, Bill.com's adjusted earnings were negative $0.03 per share, half the loss it posted a year ago and better than analysts had been expecting.
- Bill.com raised $1.15 billion in fresh capital by issuing 0% interest convertible notes, and now has $1.7 billion in cash to fuel its continued growth.
Looking beyond the numbers, Bill.com has some exciting developments that could help take its revenue to the next level. For example, the company recently launched Bill Manager, a joint venture with Wells Fargo (NYSE:WFC) designed for the billing needs of mid-sized businesses. And the company recently rolled out a platform that allows wealth management firms to offer bill pay functionality to clients.
The bottom line was that Bill.com is growing impressively and is showing investors a clear path to profitability, which is why we're seeing such a positive reaction in the stock.