Bill Holdings faces inflation, consumer uncertainty
Shares of Bill Holdings Inc. tanked more than 30% after hours on Thursday after the financial software firm cut its full-year sales outlook, saying inflation and consumer uncertainty pose a bigger threat to its smaller-business customers.
The company BILL, +1.37%, whose cloud-based platform Bill.com helps small businesses handle payments, invoices and expenses, said it expected full-year revenue of $1.205 billion to $1.245 billion and adjusted per-share profit of $1.64 to $1.97.
That compares to a forecast given in August for around $1.29 billion to $1.31 billion in sales and adjusted earnings per share of $1.82 to $1.97.
The macroeconomic climate is “challenging,” Chief Financial Officer John Rettig said in a statement. “We are carefully navigating the current environment while continuing to invest behind the long-term opportunity to serve millions of [small and mid-sized businesses].”
The company also forecast fiscal second-quarter sales of $293 million to $303 million, and adjusted earnings per share of 35 cents to 44 cents, below expectations.
Bill reported fiscal first-quarter adjusted earnings per share of 54 cents, above FactSet estimates for 50 cents, on revenue of $305 million, topping expectations for $298.7 million.
Shares of Bill Holdings have lost nearly 18% so far this year, contrasting with an advance of 12% for the S&P 500 index SPX.