Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. displayed robust financial performance for FY3Q, with total revenues reaching $319.7 million, marking a year-over-year increase of 13.8%, driven by a significant rise in core revenue, which grew by 16.2%. The company exhibited strong customer acquisition, adding a total of 5,900 customers in the AP/AR and Spend & Expense segments, reflecting continued demand for its innovative payment solutions. Additionally, transaction revenue soared by 19.1% year-over-year, further underscoring BILL's expansion and its favorable position in the software-as-a-service market.

BILL Holdings Inc experienced a decline in customer additions for both its accounts payable/accounts receivable (AP/AR) and Spend & Expense segments, with respective drops from 4,900 to 4,500 and from 1,600 to 1,400 customers quarter-over-quarter. The company's gross margins fell by 70 basis points year-over-year to 85.2%, while the AP/AR take rate decreased to 15.6 basis points, impacted by foreign exchange headwinds and an unfavorable seasonal payment mix shift. Despite reporting higher revenue and EPS than expected and modestly raising full year guidance, macroeconomic challenges affecting small and medium-sized business spending create a negative outlook, as there appear to be insufficient catalysts to drive future performance.