BILL Holdings (BILL) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 18% year-over-year to $358.5 million, with core revenue up 19% to $314.9 million, driven by increased transaction and subscription fees and higher interest on customer funds.

• Net income reached $8.9 million, reversing a net loss of $27.9 million in Q1 FY24, and non-GAAP net income was $69 million, up 33% year-over-year.

• The platform served 476,200 businesses, processed $80 billion in payment volume (+14% YoY) and 29 million transactions (+16% YoY).

• Repurchased $200 million of common stock (3.7 million shares) during the quarter as part of a $300 million program.

• Continued innovation with new payment capabilities, AI-powered Sync Assist, and key executive hires.

Financial highlights

• Subscription fees were $67.4 million (+8% YoY); transaction fees $247.5 million (+22% YoY); float revenue $44 million.

• Gross profit was $293.8 million (82.0% margin), up from $249.0 million (81.6%) YoY; non-GAAP gross profit was $307 million (85.7% margin).

• Operating loss narrowed to $7.7 million from $56.6 million YoY; non-GAAP operating income was $60 million.

• Free cash flow was $81.5 million, up from $47.6 million YoY; free cash flow margin expanded to 23%.

• Cash and cash equivalents stood at $853.5 million, with $619.6 million in short-term investments.

Outlook and guidance

• Q2 FY25 revenue guidance: $355.5–$360.5 million; core revenue $316.0–$321.0 million (15–17% YoY growth).

• Q2 FY25 non-GAAP net income: $48.0–$52.0 million ($0.44–$0.48/share).

• FY25 revenue guidance: $1.439–$1.464 billion; core revenue $1.291–$1.316 billion (15–17% YoY growth).

• FY25 non-GAAP net income: $181.5–$201.5 million ($1.65–$1.83/share).

• Guidance reflects planned investments, share repurchases, and a 20% non-GAAP tax provision.