Delaware | 001-39149 | 83-2661725 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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6220 America Center Drive, Suite 100
San Jose, California
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95002 | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered | ||||||||||||
Common Stock, $0.00001 par value | BILL | The New York Stock Exchange |
Exhibit
Number
|
Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
BILL.COM HOLDINGS, INC. | |||||||||||
Date: | February 2, 2023 | By: | /s/ John Rettig | ||||||||
John Rettig Chief Financial Officer and Executive Vice President, Finance and Operations |
Q3 FY23 Guidance |
FY23 Guidance |
||||||||||
Total revenue (millions) | $245 – $248 | $999 – $1,007 | |||||||||
Year-over-year total revenue growth | 47% – 49% | 56% – 57% | |||||||||
Non-GAAP net income (millions) | $26.5 – $29.5 | $117.5 – $125.5 | |||||||||
Non-GAAP net income per share | $0.22 – $0.25 | $0.99 – $1.05 |
December 31, 2022 |
June 30, 2022 |
|||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 1,616,758 | $ | 1,596,542 | ||||||||||
Short-term investments | 1,066,538 | 1,108,493 | ||||||||||||
Accounts receivable, net | 31,261 | 24,045 | ||||||||||||
Acquired card receivables, net | 380,895 | 256,392 | ||||||||||||
Prepaid expenses and other current assets | 178,688 | 151,258 | ||||||||||||
Funds held for customers | 3,474,048 | 3,142,660 | ||||||||||||
Total current assets | 6,748,188 | 6,279,390 | ||||||||||||
Non-current assets: | ||||||||||||||
Operating lease right-of-use assets, net | 72,725 | 76,445 | ||||||||||||
Property and equipment, net | 69,383 | 56,985 | ||||||||||||
Intangible assets, net | 401,869 | 432,583 | ||||||||||||
Goodwill | 2,396,509 | 2,362,893 | ||||||||||||
Other assets | 49,600 | 47,730 | ||||||||||||
Total assets | $ | 9,738,274 | $ | 9,256,026 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 14,262 | $ | 9,948 | ||||||||||
Accrued compensation and benefits | 31,021 | 29,004 | ||||||||||||
Deferred revenue | 30,358 | 31,868 | ||||||||||||
Other accruals and current liabilities | 181,551 | 120,080 | ||||||||||||
Borrowings from revolving credit facility, net | — | 75,097 | ||||||||||||
Customer fund deposits | 3,474,048 | 3,142,660 | ||||||||||||
Total current liabilities | 3,731,240 | 3,408,657 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Deferred revenue | 2,013 | 2,159 | ||||||||||||
Operating lease liabilities | 78,207 | 82,728 | ||||||||||||
Borrowings from revolving credit facility, net | 112,570 | — | ||||||||||||
Convertible senior notes, net | 1,701,397 | 1,697,985 | ||||||||||||
Other long-term liabilities | 28,970 | 20,803 | ||||||||||||
Total liabilities | 5,654,397 | 5,212,332 | ||||||||||||
Commitments and contingencies (Note 12) | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Common stock | 2 | 2 | ||||||||||||
Additional paid-in capital | 4,811,780 | 4,598,737 | ||||||||||||
Accumulated other comprehensive loss | (6,361) | (10,217) | ||||||||||||
Accumulated deficit | (721,544) | (544,828) | ||||||||||||
Total stockholders' equity | 4,083,877 | 4,043,694 | ||||||||||||
Total liabilities and stockholders' equity | $ | 9,738,274 | $ | 9,256,026 |
Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Revenue | $ | 260,006 | $ | 156,478 | $ | 489,930 | $ | 274,827 | ||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||||
Service costs (1) |
36,965 | 24,338 | 71,786 | 45,051 | ||||||||||||||||||||||
Depreciation and amortization of intangible assets (2) |
10,502 | 10,048 | 20,789 | 19,170 | ||||||||||||||||||||||
Total cost of revenue | 47,467 | 34,386 | 92,575 | 64,221 | ||||||||||||||||||||||
Gross profit | 212,539 | 122,092 | 397,355 | 210,606 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Research and development (1) |
78,910 | 51,377 | 154,030 | 93,261 | ||||||||||||||||||||||
Sales and marketing (1) |
164,683 | 69,896 | 283,308 | 123,525 | ||||||||||||||||||||||
General and administrative (1) |
69,381 | 64,965 | 136,119 | 122,480 | ||||||||||||||||||||||
Depreciation and amortization of intangible assets (2) |
12,028 | 11,929 | 24,055 | 21,620 | ||||||||||||||||||||||
Total operating expenses | 325,002 | 198,167 | 597,512 | 360,886 | ||||||||||||||||||||||
Loss from operations | (112,463) | (76,075) | (200,157) | (150,280) | ||||||||||||||||||||||
Other income (expenses), net | 17,022 | (5,000) | 22,970 | (8,475) | ||||||||||||||||||||||
Loss before benefit from income taxes | (95,441) | (81,075) | (177,187) | (158,755) | ||||||||||||||||||||||
Benefit from income taxes | (365) | (635) | (471) | (4,056) | ||||||||||||||||||||||
Net loss | $ | (95,076) | $ | (80,440) | $ | (176,716) | $ | (154,699) | ||||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted |
$ | (0.90) | $ | (0.78) | $ | (1.68) | $ | (1.56) | ||||||||||||||||||
Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted |
105,906 | 102,910 | 105,494 | 99,401 |
______________________________________
(1) Includes stock-based compensation expense as follows:
|
Three Months Ended December 31, |
Six Months Ended December 31, |
|||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Cost of revenue | $ | 2,298 | $ | 1,285 | $ | 4,299 | $ | 2,412 | ||||||||||||||||||
Research and development | 26,981 | 14,280 | 47,831 | 24,840 | ||||||||||||||||||||||
Sales and marketing | 69,522 | 11,039 | 98,779 | 19,153 | ||||||||||||||||||||||
General and administrative | 20,641 | 23,080 | 41,152 | 41,166 | ||||||||||||||||||||||
$ | 119,442 | $ | 49,684 | $ | 192,061 | $ | 87,571 |
(2) Depreciation expense excludes amortization of capitalized internal-use software costs. |
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net loss | $ | (95,076) | $ | (80,440) | $ | (176,716) | $ | (154,699) | |||||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||||||||
Stock-based compensation | 119,305 | 49,684 | 191,925 | 87,571 | |||||||||||||||||||
Amortization of intangible assets | 19,994 | 19,768 | 39,763 | 36,440 | |||||||||||||||||||
Depreciation of property and equipment | 2,535 | 2,221 | 5,081 | 4,350 | |||||||||||||||||||
Amortization of capitalized internal-use software costs | 977 | 414 | 1,901 | 673 | |||||||||||||||||||
Amortization of debt premium and issuance costs | 1,771 | 1,399 | 3,483 | 1,955 | |||||||||||||||||||
Amortization of premium (accretion of discount) on investments in marketable debt securities | (8,186) | 3,781 | (10,401) | 6,638 | |||||||||||||||||||
Provision for losses on acquired card receivables | 8,431 | 5,486 | 15,042 | 9,535 | |||||||||||||||||||
Non-cash operating lease expense | 2,376 | 2,123 | 4,718 | 4,083 | |||||||||||||||||||
Deferred income taxes | (527) | (399) | (826) | (3,822) | |||||||||||||||||||
Other | (414) | — | 516 | — | |||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (2,278) | (4,618) | (7,052) | (3,420) | |||||||||||||||||||
Prepaid expenses and other current assets | (3,284) | (14,868) | (4,623) | (8,547) | |||||||||||||||||||
Other assets | (742) | 286 | (1,880) | (1,099) | |||||||||||||||||||
Accounts payable | 2,000 | (1,291) | 3,511 | (2,023) | |||||||||||||||||||
Other accruals and current liabilities | 11,161 | 6,500 | 15,408 | (11,430) | |||||||||||||||||||
Operating lease liabilities | (2,408) | (2,160) | (4,794) | (2,952) | |||||||||||||||||||
Other long-term liabilities | 1 | (1,577) | 35 | (1,698) | |||||||||||||||||||
Deferred revenue | (406) | 761 | (1,709) | 4,381 | |||||||||||||||||||
Net cash provided by (used in) operating activities | 55,230 | (12,930) | 73,382 | (34,064) | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Cash paid for acquisition, net of acquired cash and cash equivalents | (28,902) | (89) | (28,902) | (144,541) | |||||||||||||||||||
Purchases of corporate and customer fund short-term investments | (781,282) | (843,867) | (1,641,193) | (1,452,419) | |||||||||||||||||||
Proceeds from maturities of corporate and customer fund short-term investments | 845,314 | 348,947 | 1,683,413 | 667,854 | |||||||||||||||||||
Proceeds from sale of corporate and customer fund short-term investments | 5,088 | 27,510 | 5,088 | 44,744 | |||||||||||||||||||
Increase in acquired card receivables, net and other | 6,090 | (44,796) | (101,353) | (77,459) | |||||||||||||||||||
Purchases of property and equipment | (1,785) | (1,063) | (3,161) | (2,467) | |||||||||||||||||||
Capitalization of internal-use software costs | (5,746) | (2,081) | (10,510) | (5,023) | |||||||||||||||||||
Proceeds from beneficial interest | — | — | 2,080 | — | |||||||||||||||||||
Net cash provided by (used in) investing activities | 38,777 | (515,439) | (94,538) | (969,311) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and other offering costs | — | (445) | — | 1,341,152 | |||||||||||||||||||
Proceeds from issuance of convertible senior notes, net of discounts and issuance costs | — | (2,629) | — | 560,075 | |||||||||||||||||||
Purchase of capped calls | — | — | — | (37,893) | |||||||||||||||||||
Increase (decrease) in customer fund deposits liability and other | 347,210 | 947,805 | 332,661 | 1,171,446 | |||||||||||||||||||
Proceeds from line of credit borrowings | 37,500 | — | 37,500 | — | |||||||||||||||||||
Proceeds from exercise of stock options | 4,316 | 14,448 | 8,217 | 22,784 | |||||||||||||||||||
Proceeds from issuance of common stock under the employee stock purchase plan | — | — | 8,494 | 5,726 | |||||||||||||||||||
Net cash provided by financing activities | 389,026 | 959,179 | 386,872 | 3,063,290 | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | 459 | 97 | 182 | (75) | |||||||||||||||||||
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 483,492 | 430,907 | 365,898 | 2,059,840 | |||||||||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 3,425,121 | 3,438,625 | 3,542,715 | 1,809,692 | |||||||||||||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 3,908,613 | $ | 3,869,532 | $ | 3,908,613 | $ | 3,869,532 | |||||||||||||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,616,758 | $ | 1,672,166 | $ | 1,616,758 | $ | 1,672,166 | |||||||||||||||
Restricted cash included in other current assets | 103,809 | 16,364 | 103,809 | 16,364 | |||||||||||||||||||
Restricted cash included in other assets | 6,724 | 6,724 | 6,724 | 6,724 | |||||||||||||||||||
Restricted cash and restricted cash equivalents included in funds held for customers | 2,181,322 | 2,174,278 | 2,181,322 | 2,174,278 | |||||||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ | 3,908,613 | $ | 3,869,532 | $ | 3,908,613 | $ | 3,869,532 |
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of gross profit: | |||||||||||||||||||||||
GAAP gross profit | $ | 212,539 | $ | 122,092 | $ | 397,355 | $ | 210,606 | |||||||||||||||
Add: | |||||||||||||||||||||||
Depreciation and amortization of intangible assets (1) |
10,502 | 10,048 | 20,789 | 19,170 | |||||||||||||||||||
Stock-based compensation and related payroll taxes | 2,353 | 1,374 | 4,419 | 2,664 | |||||||||||||||||||
Non-GAAP gross profit | $ | 225,394 | $ | 133,514 | $ | 422,563 | $ | 232,440 | |||||||||||||||
GAAP gross margin | 81.7 | % | 78.0 | % | 81.1 | % | 76.6 | % | |||||||||||||||
Non-GAAP gross margin | 86.7 | % | 85.3 | % | 86.2 | % | 84.6 | % | |||||||||||||||
___________________
(1) Consists of depreciation of property and equipment and amortization of developed technology, excluding amortization of capitalized
internal-use software costs.
|
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of operating expenses: | |||||||||||||||||||||||
GAAP research and development expenses | $ | 78,910 | $ | 51,377 | $ | 154,030 | $ | 93,261 | |||||||||||||||
Less - stock-based compensation and related payroll taxes | (27,310) | (14,939) | (48,667) | (26,081) | |||||||||||||||||||
Non-GAAP research and development expenses | $ | 51,600 | $ | 36,438 | $ | 105,363 | $ | 67,180 | |||||||||||||||
GAAP sales and marketing expenses | $ | 164,683 | $ | 69,896 | $ | 283,308 | $ | 123,525 | |||||||||||||||
Less - stock-based compensation and related payroll taxes | (69,818) | (11,327) | (100,010) | (19,636) | |||||||||||||||||||
Non-GAAP sales and marketing expenses | $ | 94,865 | $ | 58,569 | $ | 183,298 | $ | 103,889 | |||||||||||||||
GAAP general and administrative expenses | $ | 69,381 | $ | 64,965 | $ | 136,119 | $ | 122,480 | |||||||||||||||
Less: | |||||||||||||||||||||||
Stock-based compensation and related payroll taxes | (20,989) | (25,423) | (41,907) | (44,551) | |||||||||||||||||||
Acquisition and integration-related expenses | (215) | (4,417) | (215) | (10,742) | |||||||||||||||||||
Non-GAAP general and administrative expenses | $ | 48,177 | $ | 35,125 | $ | 93,997 | $ | 67,187 |
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of loss from operations: | |||||||||||||||||||||||
GAAP loss from operations | $ | (112,463) | $ | (76,075) | $ | (200,157) | $ | (150,280) | |||||||||||||||
Add: | |||||||||||||||||||||||
Depreciation and amortization of intangible assets (1) |
22,530 | 21,977 | 44,844 | 40,790 | |||||||||||||||||||
Stock-based compensation and related payroll taxes | 120,470 | 53,063 | 195,003 | 92,932 | |||||||||||||||||||
Acquisition and integration-related expenses | 215 | 4,417 | 215 | 10,742 | |||||||||||||||||||
Non-GAAP income (loss) from operations | $ | 30,752 | $ | 3,382 | $ | 39,905 | $ | (5,816) | |||||||||||||||
___________________
(1) Excludes amortization of capitalized internal-use software costs.
|
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of net loss: | |||||||||||||||||||||||
GAAP net loss | $ | (95,076) | $ | (80,440) | $ | (176,716) | $ | (154,699) | |||||||||||||||
Add (less): | |||||||||||||||||||||||
Depreciation and amortization of intangible assets (1) |
22,530 | 21,977 | 44,844 | 40,790 | |||||||||||||||||||
Stock-based compensation and related payroll taxes | 120,470 | 53,063 | 195,003 | 92,932 | |||||||||||||||||||
Acquisition and integration-related expenses | 215 | 4,417 | 215 | 10,742 | |||||||||||||||||||
Amortization of debt premium and issuance costs | 1,771 | 1,399 | 3,483 | 1,955 | |||||||||||||||||||
Income tax effect associated with acquisitions | (526) | (636) | (526) | (4,059) | |||||||||||||||||||
Non-GAAP net income (loss) | $ | 49,384 | $ | (220) | $ | 66,303 | $ | (12,339) | |||||||||||||||
___________________
(1) Excludes amortization of capitalized internal-use software costs.
|
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of net income (loss) per share attributable to common stockholders, basic and diluted
|
|||||||||||||||||||||||
GAAP net loss per share attributable to common stockholders, basic and diluted |
$ | (0.90) | $ | (0.78) | $ | (1.68) | $ | (1.56) | |||||||||||||||
Add (less): | |||||||||||||||||||||||
Depreciation and amortization of intangible assets (1) |
0.21 | 0.22 | 0.43 | 0.42 | |||||||||||||||||||
Stock-based compensation and related payroll taxes | 1.14 | 0.51 | 1.85 | 0.93 | |||||||||||||||||||
Acquisition and integration-related expenses | — | 0.04 | — | 0.11 | |||||||||||||||||||
Amortization of debt premium and issuance costs | 0.02 | 0.01 | 0.03 | 0.02 | |||||||||||||||||||
Income tax effect associated with acquisitions | — | — | — | (0.04) | |||||||||||||||||||
Non-GAAP net income (loss) per share attributable to common stockholders, basic |
$ | 0.47 | $ | — | $ | 0.63 | $ | (0.12) | |||||||||||||||
Non-GAAP net income (loss) per share attributable to common stockholders, diluted |
$ | 0.42 | $ | — | $ | 0.56 | $ | (0.12) | |||||||||||||||
___________________
(1) Excludes amortization of capitalized internal-use software costs.
|
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Shares used to compute GAAP and non-GAAP net income (loss) per share attributable to common stockholders, basic
|
105,906 | 102,910 | 105,494 | 99,401 | |||||||||||||||||||
Shares used to compute GAAP and non-GAAP net income (loss)
per share attributable to common stockholders, diluted (1)
|
117,258 | 102,910 | 118,039 | 99,401 | |||||||||||||||||||
___________________
(1) GAAP net loss per share attributable to common stockholders, diluted was computed using weighted-average number of common shares, basic for the three and six months ended December 31, 2022.
|
Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 55,230 | $ | (12,930) | $ | 73,382 | $ | (34,064) | |||||||||||||||
Purchases of property and equipment | (1,785) | (1,063) | (3,161) | (2,467) | |||||||||||||||||||
Capitalization of internal-use software costs | (5,746) | (2,081) | (10,510) | (5,023) | |||||||||||||||||||
Free cash flow | $ | 47,699 | $ | (16,074) | $ | 59,711 | $ | (41,554) |
December 31, 2022 |
June 30, 2022 |
||||||||||
Remaining performance obligations to be recognized as revenue: | |||||||||||
Within 2 years | $ | 100,220 | $ | 98,723 | |||||||
Thereafter | 33,324 | 51,567 | |||||||||
Total | $ | 133,544 | $ | 150,290 |