Key Financial Metrics and Indicators for Bill.com Q3 Earnings 2024

Key Financial Metrics and Indicators for Bill.com Q3 Earnings 2024

When analyzing the Q3 earnings report of Bill.com for 2024, several key financial metrics and indicators are crucial to focus on:

1. Revenue Growth

  • Total Revenue: Bill.com reported a total revenue of $323.0 million for Q3 2024, which represents a 19% increase year-over-year.
    Preview
  • Core Revenue: This includes subscription and transaction fees, which grew by 17% year-over-year.
  • Transaction Fees: These fees increased by 25% year-over-year, highlighting strong growth in transaction-related activities.

2. Profit Margins

  • Gross Margin: The gross margin improved to 83.0% from 82.1% in the previous year. The non-GAAP gross margin slightly increased to 87.1% from 87.0%.
  • Operating Margin: Non-GAAP operating income was $60 million, reflecting a strong performance in managing operating costs.
  • Profit Margin: Net income increased to $31.8 million, up from a $31.1 million loss in Q3 2023. The profit margin improved to 9.8% from a net loss in the previous year.

3. Customer Acquisition Costs

  • Customer Base: Bill.com served 473,500 businesses using their solutions as of the end of the second quarter. This growth in customer base is a key indicator of the company's ability to attract and retain customers.
  • Utilization of Services: The company processed $75 billion in total payment volume and 26 million transactions during the second quarter, both showing significant year-over-year increases.

4. Other Financial Highlights

  • Float Revenue: This revenue, which consists of interest on funds held for customers, was $43.5 million.
  • Earnings Per Share (EPS): The reported EPS was $0.30, up from $0.29 in the previous year.

5. Forward-Looking Guidance

  • Q4 2024 Revenue Expectations: Bill.com expects revenues between $320 million and $330 million for Q4 2024, suggesting year-over-year growth of 8-11%.
These metrics provide a comprehensive view of Bill.com's financial health and growth trajectory, highlighting strong revenue growth, improved profit margins, and effective customer acquisition strategies.