Bill.com Holdings Inc.’s shares surged in after-hours trading following the release of the company’s strong third-quarter results and upbeat outlook for the fourth quarter and full year, both exceeding Wall Street expectations. Bill.com, a provider of business automation software, saw its shares jump by as much as 10% after market close, building on a 1.6% gain in the regular trading session to finish at $79.91.
For the third quarter, Bill.com reported a net loss of $31.1 million or 29 cents per share, compared with a loss of $86.7 million or 84 cents per share in the same period a year earlier. On an adjusted basis, which excludes stock-based compensation expenses and other items, the company posted earnings of 50 cents per share, swinging from a loss of 8 cents per share a year ago. Revenue for the quarter climbed to $272.6 million from $166.9 million in 2020. Analysts surveyed by FactSet had expected earnings of 24 cents per share on revenue of $247.1 million. Bill.com’s own forecast for the quarter had called for earnings of 22 to 25 cents per share on revenues of $245 to $248 million.
Looking ahead to the fourth quarter, Bill.com expects earnings in the range of 39 to 41 cents per share on revenues of $277 to $280 million. The company also raised its guidance for the full year, now projecting earnings of $1.46 to $1.48 per share on revenues of approximately $1.04 billion. Analysts had forecasted earnings of 23 cents per share on revenues of $267.8 million for the fourth quarter, and earnings of $1.04 per share on revenues of $1 billion for the full year. Previously, Bill.com’s full-year guidance was for earnings of 99 cents to $1.05 per share on revenues of $999 million to $1.01 billion.
The robust third-quarter results and optimistic outlook demonstrate strong demand for Bill.com’s software solutions, which primarily serve small and medium-sized businesses. The company’s software helps businesses automate and streamline their financial processes, including accounts payable and receivable management, expense reporting, and cash flow management. As a result, companies can save time, reduce errors, and gain greater control over their finances.
In today’s increasingly digitized and globalized business environment, automation is becoming a critical component for companies to remain competitive and ensure operational efficiency. This trend has been particularly beneficial for companies like Bill.com, as more businesses recognize the need to adopt automation solutions to better manage their finances.
Additionally, the ongoing COVID-19 pandemic has accelerated the shift towards remote work and digital operations, further driving demand for automation tools. Bill.com’s software enables businesses to effectively manage their financial processes remotely, ensuring minimal disruption during an otherwise challenging time. As a result, the company has experienced strong growth and extensive adoption of its platform by SMBs across various industries.
Moving forward, Bill.com is poised to benefit from continued strong demand for its software solutions, as businesses continue to prioritize automation to improve efficiency and operational performance. The company’s positive fourth-quarter and full-year outlook, as well as its recent better-than-expected financial results, reflect its growing success and the growing importance of business process automation software in the market.
In conclusion, Bill.com’s Q3 results and optimistic guidance for Q4 and full year showcase the company’s robust performance, driven by strong demand for its automation software. As more companies look to adopt automation tools to streamline and enhance their financial processes, Bill.com is well-positioned to capitalize on this trend and continue on its growth trajectory.
