BILL Holdings (BILL) UBS Global Technology and AI Conference summary

Market environment and business trends

• SMB market has stabilized, with spending patterns and demand for new solutions showing healthy signs.

• Recent quarters showed improvement in TPV per customer, reversing previous declines.

• Investments in payment automation and product experience are beginning to yield positive results.

• Focus on larger, more financially stable customers is driving higher spend and better monetization.

• Net customer additions have increased for three consecutive quarters, with improved customer quality.

Product innovation and monetization

• Ongoing enhancements to virtual cards, international payments, and new products like automated mass payouts and Instant Transfer.

• Ad valorem payment volume penetration stands at 14%, with a long-term target of 20%.

• Invoice Financing and enhanced ACH will contribute to FY25 revenue, with scaling expected in FY26 and beyond.

• Multi-product adoption is a key strategy, increasing revenue per customer and retention.

• Spend and expense management is in early growth stages, with significant cross-sell potential.

Financial outlook and growth drivers

• FY26 outlook targets 20%+ revenue growth, driven by net adds, larger customer focus, and multi-product adoption.

• No reliance on TPV per customer expansion in base assumptions, but it could be an upside driver.

• $45 million in incremental investments are backloaded, supporting both near-term and multi-year growth.

• Operating income margin ex float improved by 10 percentage points year-over-year, with further margin expansion expected.

• Automation and AI are enhancing gross margins and operating efficiency.