BILL (US:BILL)2023-11-02 16:00Financial Performance - Total revenue for the quarter ended September 30, 2023, was $304,985,000, representing an increase of 32.6% compared to $229,924,000 for the same period in 2022[92]. - Subscription and transaction fees contributed $265,142,000 to total revenue, up from $214,611,000 year-over-year, indicating a growth of 23.5%[92]. - Interest on funds held for customers increased significantly to $39,843,000 from $15,313,000, reflecting a growth of 160.1%[92]. - Gross profit for the quarter was $248,959,000, compared to $184,817,000 in the prior year, marking a gross margin improvement[92]. - The net loss for the quarter was $27,861,000, a significant improvement from a net loss of $81,640,000 in the same quarter last year[92]. - The company reported a basic and diluted net loss per share of $0.26, compared to $0.78 in the prior year[92]. - Cash provided by operating activities for the three months ended September 30, 2023, was $53.661 million, compared to $18.152 million in the same period of 2022, indicating a significant increase of 195.5%[100]. - Total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period was $4.468 billion, up from $3.425 billion year-over-year, reflecting a growth of 30.5%[100]. Assets and Liabilities - Total assets as of September 30, 2023, were $9,620,383,000, slightly down from $9,636,018,000 as of June 30, 2023[90]. - Total liabilities decreased to $5,502,270,000 from $5,550,049,000, indicating a reduction in financial obligations[90]. - Stockholders' equity increased to $4,118,113,000 from $4,085,969,000, reflecting a positive trend in equity position[90]. - The total liabilities as of September 30, 2023, were $1.841 billion, slightly up from $1.839 billion as of June 30, 2023[161]. - The allowance for potential credit losses related to accounts receivable and acquired card receivables totaled approximately $18.8 million as of September 30, 2023, compared to $15.9 million as of June 30, 2023[167]. - The allowance for credit losses increased to $18.5 million as of September 30, 2023, compared to $15.5 million as of June 30, 2023[189]. Investments and Cash Flow - The company reported a significant increase in cash flows from investing activities, with net cash provided of $301.774 million for the three months ended September 30, 2023, compared to a cash outflow of $133.315 million in the same period of 2022[100]. - Approximately 90% of the total funds held for customers, amounting to $382.4 million, are invested in marketable debt securities maturing within one year as of September 30, 2023[184]. - The Company’s investments with unrealized losses in a continuous loss position for less than 12 months totaled $585.1 million as of September 30, 2023, compared to $506.5 million as of June 30, 2023[181]. Revenue Recognition and Customer Base - The company’s subscription revenue is primarily based on a fixed monthly or annual rate per user, while transaction revenue consists of transaction fees and interchange fees, contributing significantly to recurring revenue[267]. - The Company recognized $10.2 million of revenue from deferred revenue during the three months ended September 30, 2023[170]. - The Company had no customers exceeding 10% of total revenue during the three months ended September 30, 2023[136]. Future Outlook and Strategy - The company plans to continue its international expansion, with approximately 3% of total revenue generated from external customers outside the U.S. for both the three months ended September 30, 2023, and 2022[103]. - The company expects to manage its growth effectively and maintain profitability in the future, focusing on its business plan and market opportunities[114]. - The company anticipates continued development of new products and services to enhance its market position and customer base[114]. Regulatory and Operational Risks - The company is expanding its cross-border payments offering, which involves various operational risks and regulatory challenges[249]. - The company may face increased regulatory scrutiny as it expands its operations into new jurisdictions, impacting its compliance costs[247]. - The company’s performance metrics are internally calculated and may be subject to inaccuracies, which could affect strategic decisions[245]. Miscellaneous - The Company reported a gross amount of acquired card receivables of $571.3 million as of September 30, 2023, up from $474.1 million as of June 30, 2023[186]. - The Company incurred no material losses related to card transactions disputed by spending businesses during the three months ended September 30, 2023[211]. - The majority of cards on the company's platform are issued by FDIC-insured banks, with the company responsible for fraud and unauthorized use of cards[269]. - The company is automating financial processes for hundreds of thousands of SMBs, enhancing their control over payables, receivables, and expense management[261]. - The company’s network connects millions of members, facilitating faster payments and transactions[261].