1 Spectacular Growth Stock Down 84% You Might Regret Not Buying on the Dip

Core Viewpoint - Bill.com has shifted its strategy from prioritizing growth to focusing on profitability, leading to a significant decline in stock value despite a large addressable market opportunity [3][11]. Company Overview - Bill.com provides software products aimed at helping small and mid-sized businesses manage accounts payable, accounts receivable, and expense management workflows more efficiently [1]. - The company went public in December 2019 and initially experienced rapid revenue growth, with stock prices soaring from $22 to$334, a gain of over 1,400% [2]. Business Strategy - The company has transitioned to a profitability-focused strategy, resulting in an 84% decline in stock price from its peak [3]. - Bill.com has a substantial addressable market, with over 72 million small and medium-sized businesses globally, processing transactions worth over $136 trillion annually [13]. Product Offerings - Bill.com's flagship product is a cloud-based digital inbox that streamlines invoice management, reducing bookkeeping time by 70$362.6 million, exceeding forecasts and prompting an increase in full-year revenue guidance, but representing only 14% year-over-year growth, the slowest since going public [8]. - The company has reduced operating expenses by 3.1% year-over-year, contributing to a net income of $33.5 million in Q4, a significant improvement from a net loss of$40.4 million in the previous year [9][10]. Valuation Metrics - Bill.com stock currently trades at a price-to-sales (P/S) ratio of 4.1, close to its lowest level since going public and an 85% discount to its long-term average of 28.8 [12][13]. - The current valuation suggests that Bill.com could be an attractive investment for those willing to hold for the next three to five years, as the company is expected to continue growing within its addressable market [14].