BILL.COM

I haven’t posted here before, but have followed the board a year or so. Thought I might try to contribute something rather than just absorbing all the useful info. I don’t own this company, and don’t know if it’s been discussed on other services. Pretty sure I haven’t seen it here. But it caught my attention b/c it IPO’ed on Wed, priced @ $22, and closed Friday at $39 (up 77%). So just curious if anyone else has looked at it.

NOTES
market cap - 2.7 bil
founder lead - https://www.bill.com/about-us/leadership/rene-lacerte/

NUMBERS
(sorry if the tables screw up)


Revenue
          Q1       Q2       Q3       Q4
2018  17,098   19,502   22,424   25,999
2019  28,244   31,684   35,180     -

Revenue growth
          Q1     Q2     Q3     Q4
2018  
YOY       ?      ?      ?       ?
SEQ       ?      14%    15%    16%

2019
YOY       65%    62%    56%     - 
SEQ       8%     12%    11%     -

The only adj number I found in their S1 was:


Adj gross margin
          Q1     Q2     Q3     Q4
2018      ?      ?     75%     ?  
2019      ?      ?     77%     - 

And similar for FCF:


          Q1     Q2     Q3       Q4
2018      ?      ?     (3510)     ?  
Margin    ?      ?      (16%)     ?

2019      ?      ?     (4541)     - 
Margin    ?      ?      (13%)     ?

I might have missed numbers in their S1 in order to calculate past quarter adj margins (other than last year’s Q3 listed above). But you can get their GAAP Income Sheet numbers going back 8 quarters if you like by scrolling to page 82 on the S1 for the table of past results

Here’s an overview of the GAAP margins based on that page


GAAP gross margin
          Q1     Q2     Q3     Q4
2018     71%    72%    72%    72%
2019     72%    73%    74%     -

GAAP op margin
          Q1     Q2     Q3     Q4
2018     (9%)   (9%)   (5%)   (2%)
2019     (10%)  (16%)  (18%)    -

GAAP net margin
          Q1     Q2     Q3     Q4
2018     (7%)   (7%)   (4%)   (0%)
2019     (7%)   (14%)  (16%)    -

And the Dollar-based retention rate
      Q1  Q2    Q3   Q4
2018  ?   ?   106%    ? 
2019  ?   ?   110%    ? 

Metrics
my calculations give it a P/S of 22

OVERVIEW FROM S1
Our mission is to make it simple to connect and do business.

We are champions of small and midsize businesses (SMBs). We are a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for SMBs. By transforming how SMBs manage their cash inflows and outflows, we create efficiencies and free our customers to run their businesses.

Our purpose-built, artificial-intelligence (AI)-enabled financial software platform creates seamless connections between our customers, their suppliers, and their clients. Customers use our platform to generate and process invoices, streamline approvals, send and receive payments, sync with their accounting system, and manage their cash. We have built sophisticated integrations with popular
accounting software solutions, banks, and payment processors, enabling our customers to access these mission-critical services through a single connection. As a result, we are central to an SMB’s accounts payable and accounts receivable operations.

THE S1
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001786352/08ad627…

  • Scroll to page 82 on the S1 for the table of past GAAP results
  • Scroll to page 147 on the S1 for insider ownership

THE IPO
https://investor.bill.com/news/news-details/2019/Billcom-Pri…

MY PERSONAL TAKE FOR NOW
Not now but will watch for re-accelerating revenue and improving cash flow, and it probably doesn’t have enough total revenue for me yet

39 Likes

Not now but will watch for re-accelerating revenue and improving cash flow, and it probably doesn’t have enough total revenue for me yet

Thanks for bringing this to the board. I agree with your conclusion…worth watching, but with decelerating revenue growth percentages, it’s a little hard to get excited about it with a PS ratio over 20. You’d like to get some discount for the fact that it’s less established. But please keep an eye on it for us!

Bear

6 Likes