Bill.com (BILL) Stock Forecast & Price Target

BILL Holdings Inc. is projected to achieve revenue of $352.5-$357.5 million for FY3Q, reflecting a year-over-year growth of 9%-11%, alongside a core revenue increase of 13%-15%. The company has demonstrated robust customer growth, adding 4,500 customers in accounts payable/accounts receivable and 1,400 in spend and expense management, underscoring the demand for its software solutions. Additionally, total revenues rose by 13.8% year-over-year, with core revenue and transaction revenue showing notable increases of 16.2% and 19.1% respectively, highlighting the company's strong position in the SaaS market.

BILL Holdings experienced a decline in customer growth for both its AP/AR and Spend & Expense segments, with customer additions dropping from the previous quarter. The company's AP/AR take rate decreased by 0.5 basis points sequentially, partly due to foreign exchange headwinds and a shift towards less favorable payment types, leading to a notable reduction in gross margins. Despite beating revenue and EPS expectations and slightly raising annual guidance, these underlying issues, along with broader macroeconomic challenges affecting small and medium-sized business spending, contribute to a negative outlook on the stock.