If you’re curious about Bill Com net worth and how this company generates revenue, you’ve come to the right place.
At Ando Money, I provide a detailed look into Bill Com’s financial performance, from core revenue streams to operational strategies.
Let’s dive in to understand how Bill Com is shaping its financial future through strategic choices.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Bill.com |
| Full Name | BILL Holdings, Inc. |
| Industry | Financial Services |
| Traded as | NYSE: BILL |
| ISIN | N/A |
| Founded | N/A |
| Founders | René Lacerte |
| Country/Territory | United States |
| Headquarters | San Jose, California |
| Chief Executive Officer | René Lacerte |
| Number of Employees | 2,187 (2024) |
| Market Cap | $5.62 billion (October 2024) |
| Total Assets | $9.12 billion |
| Total Equity | $4.13 billion (2024) |
| Revenue | $323 million |
| Net Income | $31.8 million |
What is the Net Worth/Market Cap Of Bill Com in 2024?
As of October 2024, Bill Com’s market cap stood at $5.62 billion. This valuation places it among the notable players in the financial services sector, although still quite far from giants like some of the richest companies in the market.
To put this in perspective, here are some other companies related to Bill Com:
- PayPal
- QuickBooks
- FreshBooks
- Xero
- Square
- Zoho
- Divvy
- Intuit
- Stripe
- Plaid
Interested in learning more about the top financial players? Check out our most valuable companies globally and see how Bill Com compares to others in terms of valuation.
Financial Performance Overview
How the Company Generates Revenue
Bill Com generates revenue through a combination of subscription services, transaction fees, and float revenue. These sources together define the company’s income model.
Subscription fees are collected from businesses that use its platform, while transaction fees are earned when customers process payments through its service.
Additionally, Bill Com benefits from float revenue, which comes from holding customer funds and earning interest on them.
Subscription and Transaction Fees as Key Revenue Drivers
Subscription and transaction fees form the core revenue streams of Bill Com. In Q3 2024, subscription fees were $65.6 million, showing a slight decrease of 2% year-over-year.
Conversely, transaction fees surged, reaching $215.7 million, a 25% year-over-year growth.
The growth in transaction fees highlights Bill Com’s success in increasing customer activity on its platform, even as subscription growth remained subdued.
Float Revenue and Interest Income Impact
Another significant revenue stream for Bill Com is float revenue, which includes interest earned on funds held for customers. In Q3 2024, float revenue was $41.7 million, contributing significantly to the company’s overall income.
This revenue is particularly impacted by interest rates, and changes in market conditions can directly affect its magnitude.
Float revenue represents an efficient way for the company to capitalize on holding funds temporarily for customer transactions.
Financial Platform Services for Small and Midsize Businesses
Bill Com primarily targets small and midsize businesses (SMBs), providing services that automate financial operations.
As of Q3 2024, Bill Com served approximately 464,900 businesses, showing the value and reach of its platform in simplifying financial management for SMBs.
By expanding its SMB offerings, the company aims to increase cross-selling opportunities, which could further enhance its core revenue streams.
This focus on SMBs is crucial for creating a stable and loyal customer base that drives consistent revenue growth.
Effect of Convertible Senior Notes on Financial Health
In 2024, Bill Com repurchased $748 million worth of convertible senior notes.
This move improved the company’s financial health by reducing long-term debt, which resulted in a $34 million net benefit to net income.
Convertible notes often carry a significant risk to the balance sheet, but Bill Com’s repurchase reflects prudent debt management that positively influenced its operating income.
Operational Efficiency and Profitability Metrics
Operational efficiency plays a vital role in determining Bill Com’s profitability. During Q3 2024, the company reported a gross profit of $268 million, reflecting a strong 83% gross margin.
On a non-GAAP basis, the operating income was $58.5 million, a substantial improvement from the previous year’s $34.8 million.
These figures indicate Bill Com’s progress in managing operational costs while continuing to generate high revenue margins.
Cash Flow Management and Capital Expenditures
Effective cash flow management is crucial to sustaining growth. In Q3 2024, Bill Com generated $66.8 million from operating activities.
The company also maintained a focus on strategic capital expenditures, using funds for investments that align with long-term goals.
The free cash flow for Q3 2024 was $62.96 million, signaling that Bill Com is not only covering its operational needs but also generating additional liquidity to reinvest in the business.
Geographic Reach and Expansion of Services
Geographic reach has been an important aspect of Bill Com’s revenue growth.
While headquartered in San Jose, California, the company continues to explore opportunities beyond the U.S. Expanding its services geographically will create more opportunities for future growth, particularly in regions with high demand for financial automation solutions.
Each expansion contributes to an increase in the number of businesses served, thereby boosting revenue growth.
Strategic Partnerships and Ecosystem Development
Bill Com has established partnerships with key financial institutions and accounting firms.
These partnerships are crucial to expanding the company’s ecosystem, allowing it to tap into new markets and enhance its customer offerings.
By leveraging these relationships, Bill Com is expanding its influence within the financial services sector, which has a positive impact on both revenue and long-term growth potential.
Future Financial Outlook and Growth Projections
Looking forward, Bill Com has provided a revenue guidance range of $1.267 billion to $1.277 billion for the fiscal year ending June 2024.
Factors influencing future financial performance include expanding its product offerings and maintaining a strong focus on innovation.
By enhancing its service capabilities, Bill Com hopes to create new opportunities for revenue generation and achieve steady growth in the competitive landscape.
FAQs About Bill Com
What Services Does Bill Com Offer to Businesses?
Bill Com offers a comprehensive financial operations platform aimed at small and midsize businesses (SMBs). It provides tools for automating payables, receivables, and expense management.
How Many Businesses Use Bill Com Services?
As of Q3 2024, Bill Com serves approximately 464,900 businesses. This customer base reflects the effectiveness of Bill Com’s services in addressing financial automation needs for SMBs.
What Was Its Revenue in the Most Recent Quarter?
In Q3 2024, Bill Com reported a total revenue of $323 million, which represented a 19% increase year-over-year. Core revenue comprised $281.3 million of this amount.
What Is Its Operational Profitability?
For Q3 2024, Bill Com reported a non-GAAP operating income of $58.5 million, which reflects an improvement over previous quarters and indicates effective cost management strategies.
Where Is Bill Com Headquartered?
Bill Com is headquartered in San Jose, California. This location plays a strategic role in allowing the company to stay close to major tech and financial hubs, facilitating growth and partnerships.
Conclusion
Thank you for exploring Bill Com’s financial insights with me. For more informative content, feel free to share, comment, or explore more articles on Ando Money.
