Cloud Stocks: Bill.com Expanding Payment Offerings For Small Businesses

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The current pandemic conditions have helped accelerate the adoption and usage of digital transformation tools even across the SMB segment. Smaller businesses are leveraging services such as those provided by Bill.com (NYSE: BILL) to automate their financial operations. Bill.com’s platform is helping facilitate over $10 billion of B2B payments each month and is becoming a mission-critical tool for these businesses.

Bill.com’s Financials

Bill.com recently announced its second-quarter financials. Revenue grew 38% to $54.05 million, significantly ahead of estimates of $47.12 million. Net loss was $17.2 million, compared to net loss of $7.6 million a year ago. Non-GAAP net loss was $2.1 million or $0.03 per share, compared with a net loss of $3.6 million or $0.03 per share last year. The market was looking for a loss of $0.07 per share.

By segment, subscription and transaction revenues grew 53% to $52.33 million. Among key metrics, it reported a customer growth of 27% over the year to over 109,200. It processed $34.8 billion in total payment volume, growing 40% over the year from 7.2 million transactions.

Bill.com’s Product Upgrades

To continue to help the SMBs, Bill.com is investing in expanding its payment offerings. Over the last few years, it has added capabilities such as virtual card payments, cross-border payments, and Instant Transfer, which is their real-time payment product. It recently added Citibank’s WorldLink as a second partner for processing transactions to help provide a more resilient service, faster delivery speeds, and competitive pricing for larger transactions.

Within the real-time payment segment, it is expanding its capabilities through additional partnerships. Its recent initiatives bring supplier enablement in-house and have driven increased adoption of electronic payments.

In the past, Bill.com had seen significant success in driving virtual card adoption and cross-border payments through AI, sales, marketing, and customer support initiatives. It is now leveraging these capabilities to promote real-time payments to network members. It is also continuing to expand its market reach to mid-market customers by adding new integrations with mid-market accounting software. It currently caters to this market with integrations to Sage Intacct, Oracle NetSuite, and Intuit’s QuickBooks Enterprise.

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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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