News

Bill Holdings Stock Drops After Disappointing Revenue Forecast

1 2 3 4 5

4.7

Andrew R. Michaud

• November 02, 2023

Stock in Bill Holdings took a hit following a lackluster forecast for its quarterly revenue. Despite reporting adjusted earnings per share of 54 cents for the September quarter, surpassing analysts' expectations, Bill's disappointing guidance for the December quarter caused its shares to plummet.

Strong Q3 Performance

In the third quarter, Bill (ticker: BILL) exceeded expectations with adjusted earnings per share of 54 cents, compared to the consensus estimate of 50 cents. Moreover, the company reported revenue of $305 million, surpassing analysts' projections of $299 million.

Disappointing Future Outlook

However, it was the guidance for the December quarter that delivered a blow to Bill's stock value. The company anticipates revenue ranging from $293 million to $303 million, with earnings per share in the range of 35 cents to 44 cents. This forecast fell short of Wall Street's estimates, which were $319 million in revenue and earnings per share of 48 cents.

Challenging Economic Environment

In response to these results, Bill's CFO, John Rettig, acknowledged the current economic environment as "challenging." Despite this setback, Bill remains determined by maintaining its platform's focus on helping small and midsize businesses improve financial management and streamline bill payments.