Cloud Stocks: Banks On Its Organic Flywheel Amid Economic Turbulence (NYSE: BILL), a cloud-based provider of financial services for SMBs, is preparing itself for the current economic conditions. As recessionary conditions loom over the economy, is convinced that its organic flywheel will continue to prosper.’s Financials recently announced its fourth quarter financials. Revenue for the quarter grew 156% to $200.2 million, significantly ahead of estimates of $183.1 million. Net loss was $84.9 million, compared to net loss of $41.9 million a year ago. Non-GAAP net loss was $3.3 million, or $0.03 per share, compared with analyst estimates of a loss of $0.13 per share.

By segment, subscription and transaction revenues grew 73% to $193.5 million. Among key metrics, number of customer grew to over 157,800. It processed $60.7 billion in total payment volume, up 46%.

For the full year, revenues grew 169% to $642 million and non-GAAP net loss was $24.3 million or $0.12 per share.

It expects to end the first quarter with revenues of $208-$211 million and a net income of $0.05-$0.07 per share. For the fiscal year 2023, expects revenues of $955.5-$973.5 million and non-GAAP net loss of $0.23-$0.38 per share. The market was looking for revenues of $192.36 million and a net loss of $0.10 per share for the first quarter and revenues of $857.62 million and a net loss of $0.35 per share for the fiscal year 2023.’s Product Upgrades believes that even in the current macro environment, its platform will become more valuable for SMBs to do more with less while increasing visibility and control. There are over 30 million small businesses in the U.S. and more than 70 million globally. A majority of these businesses still use manual paper-based processes. With its platform, ecosystem, and scale, it is well positioned to help these businesses transform their financial operations.’s AP and spend management solutions help businesses have more visibility into the cash flow, which gives businesses more confidence as they navigate supply chain constraints.

Additionally, its offerings will also help processes at banks and financial institutions.’s white label solution powers bill payment and invoicing solutions for six of the leading 10 financial institutions in the US. The partnerships they have developed with these financial institutions will enable cost-efficient customer adoption that expands its network at a faster rate and creates opportunities for incremental monetization. This is a part of its organic flywheel. More subscribers will drive more transactions, which will deliver more network members, which, in turn, grows its data asset. The expanding data set will help to evolve its AI and machine learning capabilities, which will in turn drive an improved platform offering, and resultant savings.

In the current year, is focused on three key priorities. First is to develop a unified platform experience, with a consistent look and feel, seamless navigation, and consolidated business insights delivered through a single comprehensive dashboard. Its second priority is to further scale its ecosystem by offering more of its platform solutions to the current partners as well as acquiring new ones. And, its third priority is to continue to drive innovation and adoption of its payment solutions by leveraging its ecosystem, which includes direct sales, accountants, and financial institutions to advance enablement initiatives to drive further adoption of the payment suite.

Meanwhile, its stock is currently trading at $170.10 with a market capitalization of $17.7 billion. It had fallen to a 52-week low of $89.87 in May. It hit a 52-week high of $348.49 in November last year.

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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 research ...

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