‘We know that in inflationary times, businesses increasingly seek cost-effective solutions that provide cash-management control,’ CEO says
Shares of Bill.com Holdings Inc. were getting crunched in after-hours trading Thursday, building on a steep slide experienced in the regular session, even as the software company topped expectations with its latest results and outlook.
The company, which makes software that helps companies automate financial tasks, logged a fiscal third-quarter net loss of $86.7 million, or 84 cents a share, whereas it posted a loss of $26.7 million, or 32 cents a share, in the year-earlier quarter.
On an adjusted basis, Bill.com BILL, -20.52% lost 8 cents a share, compared with 2 cents a share a year before, while analysts surveyed by FactSet had been modeling a 16-cent loss per share.
Revenue rose to $166.9 million from $59.7 million a year before, whereas the FactSet consensus was for $157.9 million.
“Our growth this quarter demonstrates that demand for our solution continues to be robust,” Chief Executive René Lacerte shared on the company’s earnings call. “We know that in inflationary times, businesses increasingly seek cost-effective solutions that provide cash-management control and increase visibility.”
Chief Financial Officer John Rettig later added that, thus far, inflation seemed to be having “a positive impact on our total payment volume growth,” though the company’s view is that such an impact is “immaterial.”
Though both executives addressed the impacts of inflation in their prepared remarks, several analysts pressed the management team to further discuss the threats from inflation and the macroeconomic landscape during the question-and-answer portion of the call, hinting at the impact of macro sentiment on Bill.com’s narrative.
“As you can tell from this call, all of the inbound engagement with investors is really trying to understand the macro and how you’re navigating it,” Piper Sandler analyst Brent Bracelin said on the call.
Bill.com’s shares were off more than 16% in extended trading Thursday, after falling 13% in the day’s regular session.
For the fiscal fourth quarter, Bill.com anticipates revenue of $182.3 million to $183.3 million, along with a 13-cent to 14-cent adjusted loss per share. The FactSet consensus was for $168.7 million in revenue and a 15-cent adjusted loss per share.
The company’s outlook for the remainder of the fiscal year “assumes that macro factors do not have a material negative impact on our business,” Rettig said on the call.