BILL Holdings (BILL) Autonomous 9th Annual Future of Commerce summary

Business performance and market environment

• Adapted to economic changes, including lower B2B spend and increased cost sensitivity among suppliers, while improving net adds and take rate in the second half of fiscal 2024.

• Maintains strong market leadership and demand, with confidence in accelerating revenue growth and changing trajectory in the coming year.

• TPV per customer is expected to remain flat in fiscal 2025, with growth sensitive to economic conditions, especially interest rates and labor access.

• Product improvements and direct supplier engagement are driving momentum and customer acquisition.

• SMBs are waiting for more economic certainty and lower interest rates before expanding spend.

Product strategy and monetization

• Focused on automation and straight-through processing to reduce supplier costs and friction, enhancing value for both buyers and suppliers.

• Expanding payment methods, including virtual cards, international payments, and invoice financing, to increase ad valorem penetration.

• Ad valorem penetration is at 14% with a target floor of 20%, driven by card products and spend & expense solutions.

• Working capital and credit products are being scaled cautiously, with strong demand and validated underwriting, aiming for broader rollout in fiscal 2025.

• Modular pricing and new product features are expected to drive future subscription ARPU growth.

Channel and partnership dynamics

• Financial institution (FI) channel yields remain lower due to wholesale pricing and product mix, but new ad valorem products are being introduced.

• Recent FI contract renewal included added API capabilities but spread revenue over more years, reflecting specific partner needs rather than increased competition.

• Embed strategy with software partners, such as Xero, is expected to deliver yields closer to the direct business.