Cloud Stocks: Analysis Of Bill.Com’s Invoice2Go Acquisition (BILL), a cloud-based provider of financial services for SMBs, continues to expand its presence through acquisitions. After completing the acquisition of Divvy earlier this year, the company recently announced another acquisition.’s Financials recently announced its fourth quarter financials. Revenue for the fourth quarter grew 86% to $78.27 million, significantly ahead of estimates of $61.36 million. Net loss was $41.9 million, compared to net loss of $9.5 million a year ago. Non GAAP net loss was $5.8 million, or $0.07 per share, compared with a net loss of $0.3 million or a breakeven quarter last year. The market was looking for a loss of $0.05 per share for the quarter.

By segment, subscription and transaction revenues grew 99.77% to $77.5 million. Among key metrics, it reported a customer growth of 24% to over 121,200. It processed $41.7 billion in total payment volume, growing 64% from 8.2 million transactions. ended the year with revenues growing 51% to $238.3 million and an adjusted net loss of $10 million or $0.12 per share.

It expects to end the first quarter with revenues of $103.2-$104.2 million and a net loss of $0.21-$0.20 per share. For the Fiscal year 2022, it expects revenues of $476-$480 million and non GAAP net loss of $0.92-$0.88 per share. The market was looking for revenues of $103 million for the quarter with a net loss of $0.21 per share and revenues of $464.25 million for the year with a net loss of $0.85 per share.’s Invoice2go Acquisition

Recently, announced the acquisition of California-based Invoice2go for an estimated $625 million. Founded in 2002 by Chris Strode, Invoice2go helps freelancers and small businesses by giving users the tools necessary to deliver estimates, invoices, manage appointments, track jobs, and offer clients the ability to pay any way. The acquisition will allow both companies to rapidly advance its accounts receivable offering and accelerate the innovation agenda for small businesses. plans to create a 'payables and receivables' solution on a single platform that will enable customers to have visibility into payments coming and going and provide them with more control in managing their cash. It plans to leverage Invoice2go’s expertise within the accounts receivable space along with its international footprint to accelerate its vision to be the one-stop solution for financial operations. Prior to the acquisition, Invoice2go raised $60 million in four rounds of funding from OCV, Accel, Ribbit Capital, and Greg Waldorf.’s earlier acquisitions are also helping it expand its market presence. Earlier this year, it had announced the acquisition of Utah-based Divvy, another financial services platform that allows businesses to manage payments and subscriptions, build budgets, and eliminate the need for expense reports. It recently leveraged that acquisition to enter into a partnership with TravelPerk, the largest global business travel management platform.

Through the collaboration, TravelPerk has now become Divvy’s primary travel partner. It will be providing employees of small and midsize businesses with a simpler way to book, manage, and pay for what they need when traveling for work, while allowing finance teams a central place to control, manage, and track spend.

Even though the pandemic has impacted travel, businesses are hopeful that with the economies opening up, business travel will resume. However, once the travel resumes, SMBs will want to maintain stronger control on the expenses while ensuring they offer an efficient travel booking and expense recording process. The partnership is aimed at helping these businesses attain this objective.

Meanwhile, its stock has been recently trading at $294.4 with a market capitalization of $27.9 billion. It had fallen to a 52-week low of $82.19 in September last year. It hit a 52-week high of $299.15 earlier this month.

Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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