BILL Holdings BILL reported earnings of 63 cents per share in the first quarter of fiscal 2025, beating the Zacks Consensus Estimate by 28.57% and increasing 43.2% year over year.

Revenues of $358.5 million increased 17.5% year over year and surpassed the consensus mark by 3.01%. The top line was driven by 18.8% growth in BILL’s core revenues.

The company processed $79.9 billion in total payment volume (TPV) in the reported quarter, increasing 13.8% year over year. This included $72.8 billion in TPV in its Integrated Platform (up 12.7%) and $7.1 billion in Embedded & Other Solutions (up 26.8%).

BILLHoldings’ solutions served 476.2K businesses at the end of the fiscal first quarter, increasing from 471.2K in the prior year. This included 192.5K customers in its Integrated Platform (up 10.8%) and 283.7K in Embedded & Other Solutions (down 4.6%).

BILL Holdings, Inc. Price, Consensus and EPS Surprise

BILL Holdings, Inc. price-consensus-eps-surprise-chart | BILL Holdings, Inc. Quote

BILL Holdings processed 29 million transactions in the fiscal first quarter, a 16% year-over-year increase.

BILL shares have declined 6.4% year to date, underperforming the Zacks Computer & Technology sector’s return of 28.5%. However, shares rose 1.82% in the pre-market trading, driven by accelerated core revenue growth and optimistic guidance.

BILL Holdings’ Quarter in Detail

In the first quarter of fiscal 2025, core revenues, consisting of subscription and transaction fees, were $314.9 million.

Subscription fees (21.4% of core revenues) of $67.4 million increased 8% year over year. Transaction fees (78.6% of core revenues) were $247.5 million, up 22.1% from the year-ago period.

Revenues from Integrated Platform — comprising the BILL AP/AR, and BILL Spend and Expense sub-segments — were $294.9 million, increasing 18.2% year over year. This contributed 93.6% to core revenues and 82.3% to total revenues.

Revenues from Embedded & Other Solutions were $20.1 million, which increased 28% year over year. This contributed 6.4% to core revenues and 5.6% to total revenues.

Float revenues, which consist of interest on funds held for customers, were $43.5 million in the reported quarter, up 9.2% year over year.

Operating Details for Bill Holdings

In the quarter under review, non-GAAP gross profit was $307 million, up 16.9% year over year. The gross margin of 85.6% contracted 50 basis points (bps) year over year.

In the first quarter of fiscal 2025, adjusted research and development expenses totaled $54.7 million, down 10.6% year over year. Adjusted sales and marketing expenses rose 10.6% to $115.4 million. However, adjusted general and administrative expenses decreased 5.2% to $49.1 million.

BILL Holdings reported a non-GAAP operating income of $67.1 million, marking a 100.9% year-over-year surge. The operating margin expanded 780 bps on a year-over-year basis to 18.7%.