Bill.com (NYSE: BILL), a leading cloud-based provider of financial services for SMBs, recently announced its first-quarter results. Despite the current economic conditions, Bill.com had a very rosy outlook for the second quarter, exceeding the market’s expectations.

Bill.com’s Financials

Bill.com’s first-quarter revenues grew 94% to $229.9 million. Net loss was $81.6 million, compared to net loss of $74.3 million a year ago. Non-GAAP net income was $16.9 million, or an EPS of $0.14, compared with a net loss of $12.1 million or a loss of $0.13 per share last year. Analysts estimated revenues of $210.3 million and an EPS of $0.06 per share.

By segment, Core revenue, which consists of subscription and transaction fees, grew 83% to $214.6 million. Within the segment, Subscription revenue grew 57% to $58.1 million. Transaction fees grew 94% to $156.5 million.

Among key metrics, it reported a net customer base of 419,800 businesses at the end of the first quarter. During the quarter, its solutions helped process $64.9 billion in total payment volume, an increase of 34%.

It expects to end the current quarter with revenues of $241.5-$244.5 million with a net income of $0.12-$0.14 per share and revenues of $994-$1,007 million for the year with an adjusted net income of $0.48-$0.59 per share. The market was looking for revenues of $234.28 million for the quarter with an EPS of $0.07 and revenues of $965.69 million for the year.

Bill.com’s Finmark Acquisition

Bill.com recently announced the acquisition of Finmark, a leading financial planning software provider that simplifies financial planning and cash flow insights for SMBs. Raleigh-based Finmark provides a powerful financial modeling tool that makes it easy for startups to build models and forecast their finances without the need for complex spreadsheets. It provides an easy-to-use solution that can prepare simple operating plans for businesses and highlight key trends and metrics visually. Its software provides businesses with access to automated tools to build financial forecasts based on integrated data.

The acquisition will help Bill.com expand its offerings to the SMB segment by adding a planning and cash flow analytics tool. Prior to the acquisition, Finmark was privately held with $11.6 million in funding from investors including AmEx and Idea Fund Partners. The terms of the acquisition and Finmark’s financial details are not disclosed.

Meanwhile, its stock is currently trading at $123.11 with a market capitalization of $13 billion. It had fallen to a 52-week low of $89.87 in June and was trading at a 52-week high of $345.55 a year ago.

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