BILL

Bill.com Holdings Inc

TMT, Finance/Real Estate


Presented:01/19/2023
Price:$99.72
Cap:$10.54B
Current Price:$55.76
Cap:$5.95B

Presented

Date01/19/2023
Price$99.72
Market Cap$10.54B
Ent Value$13.05B
P/E RatioN/A
Book Value$38.32
Div Yield0%
Shares O/S105.67M
Ave Daily Vol1,930,195
Short Int9.98%

Current

Price$55.76
Market Cap$5.95B
Bill.com Holdings, Inc. engages in the provision of cloud-based software solutions. The firm simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses. Its software helps customers generate and process invoices, streamline approvals, send and receive payments, sync with their accounting systems and manage their cash. The company was founded by Rene Lacertea in April 2006 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Bank of America Corp (BAC), Bill.com Holdings Inc (BILL), Intuit Inc (INTU)

Highlights

The presenter is short shares of Bill.com Holdings Inc (BILL), the leading provider of bill pay for small and medium sized businesses. Many bulls are betting on a higher take rate on the $219B TPV as the overall take rate was just 11.3bps as of June. His outlook is less positive based on macroeconomic headwinds starting to emerge across TPV, net customer adds, increased competition, and a partnership that seems positive for net adds but is dilutive to the model and long-term take rate. Given these headwinds, BILL could decelerate slightly faster than the Street expects in the back half of CY2023. Combined with weak profitability, that could force the multiple to contract, creating downside in the stock from $100 per share to $65 – $70. 

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Idea Discussion

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