Cloud Stocks: Analysis Of Bill.Com’s Invoice2Go Acquisition

Bill.com (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.

Bill.com’s Financials

Bill.com 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. Bill.com 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.

Bill.com’s Invoice2go Acquisition

Recently, Bill.com 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.

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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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