Cloud Stocks: Bill.com Focuses On Mobile And AI

The continuing pandemic conditions are driving up demand for services such as those offered by Bill.com (NYSE: BILL). Bill.com listed last December and despite uncertain times, it continues to see its stock soar.

Bill.com’s Financials

Bill.com recently announced its first-quarter financials. Revenue for the quarter grew 31% to $46.2 million, significantly ahead of estimates of $36.83 million. Net loss was $13 million, compared to net loss of $5.7 million a year ago. On an adjusted basis, net loss was $2.8 million, or $0.04 per share, compared with a net loss of $2.8 million or $0.05 per share last year. The market was looking for a loss of $0.10 per share for the quarter.

By segment, subscription and transaction revenues grew 53% to $43.8 million.

Among key metrics, it reported a customer growth of 27% to over 103,600. It processed $28.8 billion in total payment volume, growing 31% from 6.5 million transactions a year ago.

Bill.com’s Product Upgrades

During the quarter, Bill.com continued to expand its AI capabilities. It recently brought its supplier enablement completely in-house, by employing its own AI matching logic for vendor matching, thus automating the function. By controlling the entire process, Bill.com is now able to improve its ability to identify card-accepting suppliers, allowing them to get paid quicker. The employees are also better equipped than third parties when promoting virtual card payments to suppliers.

It has also announced a partnership with KeyBank and has made Key CashFlow available to all its customers. Key CashFlow was originally made available for banking customers in October. Key CashFlow is a part of Bill.com’s go-to-market initiatives where it is partnering with financial institutions to expand market share.

Earlier last quarter, Bill.com rolled out a new feature called Instant Transfer that allows its network partners to get paid 24/7, and their funds are available for use immediately. It currently charges the recipient an ad valorem fee for the service. The service is currently in pilot mode, and Bill.com is pleased with early engagement data that the services is getting.

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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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