Bill

[Robear1020]

Bill.com Reports Third Quarter Fiscal 2022 Financial Results

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Q3 Core Revenue Increased 182% Year-Over-Year
•
Q3 Organic Core Revenue Increased 74% Year-Over-Year
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Q3 Transaction Fees Increased 286% Year-Over-Year
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Q3 Organic Transaction Fees Increased 101% Year-Over-Year
SAN JOSE, Calif. – May 5, 2022 – Bill.com (NYSE: BILL), a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), today announced financial results for the third fiscal quarter ended March 31, 2022.

“We delivered a great quarter driven by robust demand for our solutions,” said René Lacerte, Bill.com CEO and Founder. “We are executing against our strategy to drive organic momentum across our solutions while building a unified platform experience incorporating the strengths of Divvy and Invoice2go. We are excited about the opportunities ahead as we build the de facto solution to serve small businesses’ financial operations needs.”

"We delivered strong revenue growth and a bottom line significantly better than expectations in the third quarter,” said John Rettig, Bill.com CFO. “Organic core revenue increased 74% year-over-year and Divvy spend management revenue increased 155% year-over-year. Our revenue outperformance and disciplined execution led to a better-than-expected non-GAAP net loss.”

Bill.com’s reported financial results for the third quarter fiscal 2022 include the results of Divvy and Invoice2go. Organic results exclude the impact of Divvy and Invoice2go.

Financial highlights for the third quarter of fiscal 2022:

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Total revenue was $166.9 million, an increase of 179% from the third quarter of fiscal 2021.
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Core revenue, which consists of subscription and transaction fees, was $165.5 million, an increase of 182% year-over-year. Organic core revenue was $102.1 million, up 74% year-over-year, and excluded Divvy and Invoice2go revenue of $63.4 million.
o
Subscription fees were $52.2 million, up 78% year-over-year. Organic subscription fees were $43.2 million, up 48% year-over-year, and excluded Divvy and Invoice2go fees of approximately $9.0 million.
o
Transaction fees were $113.3 million, up 286% year-over year. Organic transaction fees were $58.9 million, up 101% year-over-year, and excluded Divvy and Invoice2go fees of $54.4 million.
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Gross profit was $129.6 million, representing a 77.6% gross margin, compared to $44.3 million, or a 74.2% gross margin, in the third quarter of fiscal 2021. Non-GAAP gross profit was $141.1 million, representing a 84.6% non-GAAP gross margin, compared to $46.0 million, or a 76.9% non-GAAP gross margin in the third quarter of fiscal 2021.

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Loss from operations was $83.2 million, compared to a loss from operations of $15.3 million in the third quarter of fiscal 2021. Non-GAAP loss from operations was $5.7 million, compared to a non-GAAP loss from operations of $2.1 million in the third quarter of fiscal 2021.
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Net loss was $86.7 million, or ($0.84) per share, basic and diluted, compared to net loss of $26.7 million, or ($0.32) per share, basic and diluted, in the third quarter of fiscal 2021. Non-GAAP net loss was $8.7 million, or ($0.08) per share, basic and diluted, compared to non-GAAP net loss of $1.7 million, or ($0.02) per share, basic and diluted, in the third quarter of fiscal 2021.
Business Highlights and Recent Developments

The metrics listed below identified as Bill.com metrics exclude the results of Divvy and Invoice2go.

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Served 146,600 Bill.com customers as of the end of the third quarter. Also served 18,100 spending businesses that used Divvy and 221,400 subscribers that used Invoice2go.
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Processed $55.1 billion in total payment volume (TPV) for Bill.com customers in the third quarter, an increase of 57% year-over-year. Also processed $2.1 billion in card payment volume for Divvy.
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Processed 9.5 million transactions during the third quarter through the Bill.com platform, representing an increase of 32% year-over-year. In addition, processed 5.9 million Divvy card transactions.
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Expanded a long-standing partnership with CPA.com by adding Divvy as its new exclusive partner for expense management, corporate card, and spend management.
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Added businesswoman, journalist, and former U.S. Small Business Administration cabinet member, Aida Álvarez, to our board of directors.
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Welcomed human resources and organizational development executive, Michael DeAngelo, as our Chief People Officer.
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Announced Mark Lenhard, the CEO of Invoice2go and Bill.com’s COO, will be leaving the company in September 2022.
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Earned #1 position in G2’s 2022 Top 100 Accounting and Finance Software ranking and recognized on the Top 100 list for the third year in a row.

Financial Outlook

We are providing the following guidance for the fiscal fourth quarter and the full fiscal year ending June 30, 2022.

Q4 FY22
Guidance

FY22
Guidance

Total revenue (millions)

$182.3 – $183.3

$624.0 – $625.0

Year-over-year total revenue growth

133% – 134%

162% – 162%

Non-GAAP net loss (millions)

($14.9) – ($13.9)

($35.9) – ($34.9)

Non-GAAP net loss per share

($0.14) – ($0.13)

($0.35) – ($0.34)

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Bill.com has not provided a reconciliation of non-GAAP net loss or non-GAAP net loss per share guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call and Webcast Information

In conjunction with this announcement, Bill.com will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal third quarter results and our outlook for the fiscal fourth quarter and full fiscal year ending June 30, 2022. The live webcast and a replay of the webcast will be available at the Investor Relations section of Bill.com’s website: https://investor.bill.com/events-and-presentations/default.a….

[MoneySpin]

Investor seem to be overlooking the fact that Q3 is Bill worst quater seasonally.
Organic core revenue 874% YoY); Organic Tx fees (101% YoY); organic sub fees (78,2% YoY) are all still in hypergrowth.
Increase in FY guidance was a bit disappointing (was expecting closer to 650M)
But no. of customers are strong at 145,000 (25% Yoy)
loss from op turing negative again was also a bit disappointing.

I’m not intending to sell any of my position in Bill

[jonwayne235]

My biggest concern with BILL is Divvy. While there are some unexpected positives in this quarter such as very strong customer additions and FCF, the failure of Divvy to grow as fast as I previously expected, was enough to convince me to sell out of BILL at this point.

I’m going to reference from a prior post I made on Divvy’s competitor, Ramp: https://discussion.fool.com/bill-divvy-vs-ramp-35078050.aspx
And will also pull from a May 3, 2022 podcast by Ramp’s founder: https://www.joincolossus.com/episodes/8753343/glyman-reimagi…

So, Divvy’s performance:

             Q4-21  Q1-22  Q2-22  Q3-22
Divvy rev    29     37.9   58.5   63.4
QoQ                 30.7%  **54.4%  8.4%**
YoY                        **188%   155%**

TPV ($billion)      1.5    1.9    2.1
QoQ                        26.7%  10.6%
YoY                        145%   118%

I would like to also compare the number of Divvy transactions but they did not mention it in today’s call, unlike previous Qs

On the surface, we can see Divvy is still posting super fast YoY growth rates of 188 and then 155% in revenue, and 145% with 118% in total payment volumes.
But we also see marked deceleration QoQ. Is it seasonal? We don’t have Divvy quarterly numbers from their founding in 2016, so perhaps some of it is? But on ‘relative’ terms, I’m genuinely concerned that this growth deceleration is too abrupt and Divvy is simply not growing as fast as it should.

We can look at the private competitor, Ramp:

For Divvy, they have an annualized payment volume of $8.4 billion as of March 2022, growing revenue at 155% YoY.
Divvy launched in January 2018. (Divvy was founded in 2016)

For Ramp, they have an annualized payment volume of over $5 billion as of March 2022, growing revenue at 900% YoY. Yes, they grew revenue 10x YoY.
Ramp was launched in February 2020. (Ramp was founded in 2019)

From Ramp’s podcast, we also know they grew revenue 65 times YoY in 2020, and 7.5 times YoY in 2021, and hit over 100,000 cardholders with 5000 businesses, exceeding $100M in revenue in “less than two years from launch” by March 2022.
They’ve crossed the 100M ARR run-rate threshold, while at the same time, doing 10 times the revenue a year ago, so that means they are currently accelerating from the 7.5x growth in 2021.
While Ramp should of course, resume a deceleration trend as it gets bigger, I do think they are going to blast past Divvy in run rate this calendar year.

So why care about all this? Isn’t it fine if Divvy is still posting super fast numbers on an absolute scale? The market is large enough for many players. Yes, likely true, but it tells me that Divvy doesn’t have the best product out there, otherwise they’d be growing equally viral. I don’t feel comfortable blaming its 8% QoQ growth on simple seasonality and a tough comp against last Q, because Ramp is clearly storming through the first 3 months of 2022 without difficulty! Divvy’s drop of 188% to 155% YoY growth in one quarter is quite opposite of an acceleration for Ramp in the same season.

Ramp has been able to blow its metrics out of the water without any network moat to work from. I think Ramp’s product is doing something totally right that Divvy organically isn’t.
[In today’s conference call, BILL said about Divvy "We are starting to make progress with cross-sell and introducing the product to the Bill.com customer base, but I wouldn’t say that’s a significant contributor to the growth at this point." So we have to hope that cross-selling takes off later this year to aid growth]

Ever since digging into BILL’s competitors weeks ago plus BILL/Divvy’s mixed product reviews/testimonials***, and then listening to the above podcast from May 3, it was enough to deeply cut my allocation of BILL down to a few percentage points.
And then, the Divvy numbers from today were enough to push my conviction level off balance, and I’ve exited BILL.

I completely understand why others will stay invested, however. Like many other companies out there, its valuation has been hit quite hard already and I have no doubt that they can grow fast for a long time, due to the incredibly massive market, and BILL’s strong network advantage. Buying new shares in BILL today probably will still do very well!

But for me, it doesn’t sit right to have a concentrated portfolio and hold a company that lacks the best go-to-market or product against its competitors, as possibly evidenced by today’s results.
BILL is the company with a gross retention rate of 85%, while DDOG has >95%, CRWD and S have >97%, etc.
I’d rather keep the companies (DDOG, SNOW, ZS, CRWD etc) with a clearly strong product/dominance.
And cloud/security so happens to not have the ills of the fintech world: BILL has 43% of Divvy revenue going towards card rewards, plus greater macro environment risks, and fraud/credit losses are a factor to worry about (last quarter’s 10Q showed credit loss allowances were increasing much faster than receivables, for example - something to track in this Q’s filing).

***I’ve seen many customer reviews hating BILL’s product, but have to pay for it (https://twitter.com/jabbawy/status/1522361373728165891?s=20&…-) I think it’s better to be like Datadog, where people love its product, but dislike its prices. One scenario is easier for a competitor to disrupt than the other.

[ZoroSGInvesting]

A few comments on Divvy:

1. You need to compare Divvy’s CQ1 QoQ revenue growth vs a year ago cause card spending business has strong seasonality. (I think we probably don’t have CQ1 2021 figure for Divvy)

2. To make BILL investment a success, even Divvy (at a larger scale than Ramp) is growing slower than Ramp, at 155% YoY growth it is way more than enough to help BILL accelerate in a combined basis from FY2023 onwards.

3. Card spending sector is a large industry and may have multiple winners - is not winner take all situation.

4. Leverage bill.com’s full AP/AR capabilities and their extensive unique multichannel distribution including direct accountants and FI institutions, I see Divvy will have more and more unique GTM motions that Ramp don’t have.

5. We certainly don’t know if Divvy is the best solution in the market, even if it isn’t (many solutions that CRWD/DDOG/NET etc acquired also might not be the best solution), as long as BILL paid a great price and it fits them really well, I will see BILL will have a very bright future.

Zoro

[jonwayne235]

Agree with some of your points. As I said, the card spend is industry should be big enough to allow BILL to grow further, with its strong network to aid it, and that buying BILL today is probably a good investment like many other fine companies out there already beaten down.
But I remain wary that BILL/Divvy are far from the best product, and plus the earnings numbers today lowers my conviction enough to drop BILL from a concentrated portfolio.

I will reference an article from about 6 months ago:

https://www.cnbc.com/amp/2021/10/26/corporate-cards-ramp-tar…

Ramp says that transaction volumes have jumped 50% in the two months since the company last raised funds at a $3.9 billion valuation.

[Ramp] has set its sights on the clientele of Bill.com, a fintech company that automates the processing and payment of invoices, said Ramp CEO Eric Glyman. Paying invoices is a time consuming, hands-on and error-prone process for most businesses, he said.

“Our software takes what could be multiple minutes to enter and many more to actually make sure you’re doing the right things to a matter of seconds,” Glyman said. “Finance teams are tired of using three or four systems just to make payments and close their books.”

Ramp is giving away its software with the hope it will lead to new clients and deeper relationships with existing ones, Glyman said. About 20% of Ramp customers use Bill.com services, he said.

“The current plan is that at launch we want to make this fully free for anyone who signs up,” Glyman said. “I do think this is quite disruptive, but it’s great for customers.”

Keep also in mind that Ramp was valued privately at $3.9B in August 2021, then in March 2022, more than doubled that to $8.1B in spite of public tech valuations crashing. I want to be careful about a landscape like this where BILL is directly fighting venture capitalists willing to fund much faster growing competitors with better and free products…so when a quarterly result from BILL isn’t what I want, I won’t give it much slack especially when I consider other fintech sector specific worries.

[HaikiliKona1]

jonwayne235, I do agree with some of your reasoning, but please keep in mind, that John Rettig (CFO Bill.com) pointed out during the last Q2 Earnings Call back in February, that QoQ revenue growth will be lighter. Here is the part out of the transcript:

For fiscal Q3, we expect our total revenue to be in the range of $157 million to $158 million. Note that sequential revenue growth in Q3 will be influenced by seasonality as well as the step-up in revenue recognized in Q2 that I referenced earlier for Invoice2go and Bank of America subscription fees

I think, that markets forgot that statement in this volatile times.

[Endoscopist]

A good article on Bill.com’s competitor Ramp (although the author admitted that he once shorted Bill.com’s stock), https://www.notboring.co/p/ramping-up?s=r&utm_source=Rea…

Some highlights:
-Ramp just broke Slack’s record by hitting a $100 million revenue run rate in two years from the product’s launch
-At the $100 million+ ARR scale, Ramp outperforms the Top Quartile numbers in each category, even when compared to the <$10M bucket. In 2021, here’s what that looked like:

ARR Growth: 734%

Net Dollar Retention: ~200%

Rule of 40: 734% - FCF Margin (worst case = 634%)
-Ramp grew a lot in 2021… (post-COVID19 tailwind???)
-Ramp is servicing larger businesses
-Ramp uses interchange revenue to build new software products
-Ramp earns interchange fee so perhaps more inflation resistant
-Emphasizes on saving companies and customers time and money
-Ramp Reimbursements, an Expensify killer that Ramp customers get for free just for using the card
-It could build the bill.com killer for its customers, bringing AP and credit cards into the same place.
-In October, Ramp publicly launched Bill Pay. That day, BILL dropped 4.7% on no other news and a relatively calm market day, because Ramp would essentially be giving away Bill’s product as a free add-on.

[jonwayne235]

A good article on Bill.com’s competitor Ramp (although the author admitted that he once shorted Bill.com’s stock),

Endoscopist,

I agree NotBoring’s writeup is a good read. Yes, he is quite biased as he has used BILL’s product for his business before and he absolutely hated using it, and he now uses Ramp as well as is invested in Ramp.

But I do agree with him that Ramp’s products are “objectively” better than Divvy and Bill.com in almost all aspects by a country mile.

I am going to paste below what I wrote to some elsewhere about Ramp vs BILL:

When I held BILL at 30% allocation sometime in early April, I did huge amount of digging to compare BILL / divvy with its competitors.
From what I can tell Ramp has the best product, best product innovation, and best product pace. There is just no question about it.

After realizing BILL is far from being the best out there and Ramp was catching up very quickly to Divvy’s run rate, increasing recession risk (and the increased perception of it by the market) I quickly decided to trim BILL down to 6%. And now after (in my view) the disappointing earnings I am totally out.

BILL has the (current) biggest scale and huge network effect like you say. The market is also very massive.
That will no doubt allow BILL to grow for a very long time. But the disrupting nature of Ramp could slow its growth down in the future.

Not the best compare of all of BILL directly with Ramp right now. Maybe in the future as Ramp takes on more share in the Bill Pay category, but right now BILL’s divvy is directly comparable to Ramp, because both of them focus the most on card spending.

Divvy’s run rate as of March 2022 is 253M. Divvy launched in Jan 2018.
Ramp launched in February 2020, right before COVID started…and they just hit 100M revenue run rate in early March 2022.
There is no question that Ramp’s growth has been the most explosive ever. I think they are doing everything right in the card spend space: https://cdn.substack.com/image/fetch/f_auto,q_auto:good,fl_p…

Also Ramp is clearly landing the bigger card spenders; either by inducing them to spend more via the Ramp card, and/or just bigger enterprises overall (Ramp has 5000 businesses, so at 25M in the past quarter they take $5000 in revenue per customer, meanwhile Divvy did 63.4M in the past quarter with 18100 businesses, that’s $3502 in revenue per customer.)

Ramp is the undisputed technology and product leader. Remember, Divvy has been around since 2016 (founded 2016, beta testing 2017, launch Jan 2018) Ramp launched in Feb 2020 (founded 2019)…yet Ramp has HUNDREDS of integrations with other software, while Divvy only has THREE!!! integrations: quickbooks, oracle netsuite, sage intact. Divvy STILL doesn’t even have integration with Xero!!
Ramp had Xero/netsuite/quickbooks within launch year, and Divvy couldn’t even get their 3 integrations until 2021, 5 years after founding.

Link to Ramp integrations: https://ramp.com/integrations
vs divvy’s: https://getdivvy.com/integrations/

Note also when you go to their websites, that you have to ‘request a demo’ and wait for Divvy to reach out to you, while with Ramp you sign up by clicking a button and you’ve literally started as a full blown customer within minutes.

Other difference to note: Ramp has 1.5% cashback, Divvy is generally 1% overall based on their point system, and Divvy’s rewards are locked up for 1 year

You can also see the viral nature of Ramp on G2 reviews. Ramp has a lot more reviews, 460, 4.8 stars, since 2020
While Divvy has 272 reviews, 4.6 stars on G2 reviews, existed since 2018!

There are also other slick advances that make Ramp a smoother product and other value features:

“By far the best business product I use every day is @tryramp”
https://twitter.com/iamjakestream/status/1499086876866609152…

“ This is such a nice touch from @tryramp.

Noticed that I forwarded a receipt from personal to work email to forward to Ramp, automatically reached out to let me know I didn’t have to do that, and linked me to the exact place to add my personal email in one-click.”
https://twitter.com/packyM/status/1419085275482017799

“ I mean, @tryramp is just insane”
https://twitter.com/ShaneMac/status/1479948037183180806

Finally we know Ramp is targeting BILL in the bill pay space. Of course BILL should not be too affected much, for now, as the market is huge and they have strong FI/accountant network. But…Ramp is offering their bill pay product as completely FREE. Will that eventually put pricing pressure onto BILL?
Not only that, Ramp’s bill pay was launched in late Oct of 2021, and has better reviews than BILL’s product…despite it being 6 months old. While BILL has been around since 2006 and many people still dislike it…

And the tech features Ramp has, taken directly from NotBoring’s writeup:

Ramp Reimbursements, an Expensify killer that Ramp customers get for free just for using the card. We also previewed other things Ramp might be able to do, like “automate negotiations with vendors.”

Ramp recently launched Ramp for Travel, a cool but seemingly minor new solution that lets companies manage Travel spend automatically, in a decentralized way. I think it’s huge. I think it’s the first example of transactions as mini-apps.

Another of Ramp’s mini-apps is Buyer, which Ramp acquired in August. Buyer by Ramp has begun negotiating software contracts on its customers’ behalf. It’s not a big leap to make to imagine a world in which customers hand over software buying decisions to Ramp. The product’s landing page already says, “Eliminate the headache of buying software—let Ramp do it for you.”

HRIS Integration. Easily give new employees cards with the right access during onboarding.

Already this year, it’s launched integrations with Gmail, Amazon, Lyft and others to automatically verify receipts and the ability to request repayments for out–of-policy spend from employees.

The launch of Bill Pay means that Ramp has visibility into spend that doesn’t touch the card, too. With this data, it should have the ability to tell who’s paying too much on a line-item basis, and one day, to redirect customer spend to better-priced vendors… I’ve used the product and it’s so much better and faster than Bill. It reads and itemizes invoices with 99.9% accuracy. And it’s growing. Without marketing the product beyond current customers, it’s grown 70% MoM since launching publicly, and it’s already starting to show synergistic effects with the card. Card customers are much less likely to churn, for example, if they’re using Bill Pay.

BILL/Divvy are completely outclassed in tech/innovation by Ramp. This is kind of like a Fastly vs Cloudflare comparison in this manner. And it is showing up in Ramp’s explosive growth. Not hard to see why VEnture capitalists readily raised funds for Ramp at 8.1B valuation in March 2022 (they were 3.9B in Aug 2021)…despite the ongoing tech stock crash.
The major advantages BILL has is its currently larger scale, distribution network. And a big market for all to grow (for now - remember there are many other private startups competing, like Brex -it’s not just Ramp)

[DiamondHands21]

Jon, it’d be extremely helpful if we saw what you wrote below prior to BILL earnings. Would you please share where’s this “elsewhere” so in the future we can learn from your valuable insights? Thanks.

I am going to paste below what I wrote to some elsewhere about Ramp vs BILL:

When I held BILL at 30% allocation sometime in early April, I did huge amount of digging to compare BILL / divvy with its competitors.
From what I can tell Ramp has the best product, best product innovation, and best product pace. There is just no question about it.

After realizing BILL is far from being the best out there and Ramp was catching up very quickly to Divvy’s run rate, increasing recession risk (and the increased perception of it by the market) I quickly decided to trim BILL down to 6%. And now after (in my view) the disappointing earnings I am totally out.

[jonwayne235]

https://techcrunch.com/2022/07/19/fintech-isnt-dead-as-ramp-…

Published today on TechCrunch, some REALLY impressive figures on Ramp:

Ramp reports accelerating revenue growth

Ramp reports that it has more than doubled its revenue run rate since the start of the year…

…notable for a startup – in an increasingly competitive space – to more than double revenue in a matter of months amid worsening market conditions…

In June in particular…Ramp closed overall 38% more business – anticipated revenue from new customer sign-ups – than it did in May.

June’s growth figure is more than double, or about 221% higher than, December 2021’s figures, the company said. While Glyman did not reveal hard revenue figures, he did point out that the company had crossed $100 million in annualized revenue before its third birthday in March.
This is, he added, while keeping over 80% of its equity capital raised on the balance sheet.

What does this all mean?
I think if Ramp continues its blistering and accelerating pace of growth despite the challenging SMB macro environment, they may quickly catch up with or surpass BILL’s Divvy revenue in a couple of quarters.

Ramp had $100M rev run rate in March 2022. They have doubled their rev run rate from the start of 2022. So, they may have close to $200M run rate as of June 2022 (but we don’t know their exact run rate in January 2022).
(Recall that Ramp’s revenue ONLY comes from interchange fees, so we will compare this to Divvy’s transaction revenue)
Meanwhile, Divvy had $217M in transaction revenue run rate by March 2022.
If Divvy doesn’t accelerate their growth, Ramp can definitely surge past very soon.

This tells me that BILL has zero excuse for Divvy. If they don’t explode growth further, it confirms that they have an order of magnitude inferior product and go-to-market to Ramp, and that they lack a decisive moat to their business that will continue to keep me away from reinvesting into BILL.

Tweet thread today from Ramp’s CEO/founder: https://twitter.com/eglyman/status/1549454914887327747?s=21&…

He posted a timeline snapshot of Ramp’s pace of innovation:
https://twitter.com/eglyman/status/1549455842935816193?s=21&…
This is unrivaled and it’s kind of like Cloudflare’s pace, but on massive steroids.
Is it realistic to expect Divvy to ever catch up in innovation pace?
Well let’s see.
I wrote this in May: https://discussion.fool.com/a-good-article-on-billcom-39s-compet…
Divvy has been around since 2016…Ramp launched in Feb 2020 (founded 2019)…yet Ramp has HUNDREDS of integrations with other software, while Divvy only has THREE!!! integrations: quickbooks, oracle netsuite, sage intact. Divvy STILL doesn’t even have integration with Xero!!
Ramp had Xero/netsuite/quickbooks within launch year, and Divvy couldn’t even get their 3 integrations until 2021, 5 years after founding.

Two months later since that post, has Divvy integrated Xero yet? Looking at their website (https://getdivvy.com/integrations/), that’s a big fat nope.
(Xero accounting software has over 3 million subscribers, a rival to Quickbooks which has over 8 million, so this lack of integration by Divvy is a pretty big deal)

The way I see it, if Ramp can add 38% more new business, month over month in June, Divvy has a lot to prove to meet this standard. Remember that Ramp is growing crazily with no preexisting network like BILL had created with its entrenchment in the accounting world.

As I said before (https://discussion.fool.com/my-biggest-concern-with-bill-is-divv…), last earnings report was a total disappointment to me when Divvy transaction revenue grew a measly 10% QoQ.
Seasonality is not an excuse if Ramp is able to blow it out of the water.