For those watching BILL.com, they issued a press release Monday announcing their offering to Wealth Management and Family Office clients. https://www.bill.com/about-us/press-release/billcom-launches…. Here is a quick update.
BILL’s solutions originally were an A/P (now cloud based) platform for SMBs. They’ve since expanded into A/R and other services. They had four primary channels for subscription revenue: direct SMB clients, and three groups of clients who service SMB clients themselves, namely accounting firms, financial institutions and accounting software clients (e.g., Intuit/Quick Books).
As stated, they now are marketing to firms that service high net worth clients which provide “concierge” of “family office” services. This includes the RIAs out there as well as dedicated single and multi-family offices. These WM Firms pay the wealthy individuals’ bills on their behalf (e.g., landscaper, maid, etc.). This work is burdensome and a pain. (WM Firms do this to get the investment management business.) So, this is a no-brainer for these WM firms to reduce and simply this function. They haven’t alluded to this on the conference calls. So, no idea how much revenue is here, but there are LOTS of RIAs and WM offices out there vying for wealth individual clients. Offering concierge bill pay services is a nice box to check to be competitive.
Keep in mind, in addition to the SAAS revenues, BILL.com also makes a fee off payment volume, supplies taking VCARD payments or currency conversions etc.
I continue to like how BILL is grabbing what is out there and iterating their products and services along the way.
BILL may not be the high flier of some of our other companies, but I appreciate how easy it is for me to understand their business model and strategy. BILL is off 15% from their high in mid-October, but still up over ~180% YTD.
Mike
Long BILL (#2 position)