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Bill.com Stock Rises as Sales Beat Estimates and Analysts Boost Price Targets

Shares of Bill.com trade higher on better-than-expected sales for the June quarter and after the company raises its fiscal 2022 outlook.

Shares of Bill.com  (BILL) - Get BILL.com Holdings Inc. Report traded 25% higher Friday after the software company reported fiscal fourth-quarter sales that exceeded expectations even as its losses widened.

Shares of the Palo Alto, Calif., company rose 26.49% to $277.09.

For the quarter ended June 30, Bill.com's net loss more than quadrupled to $41.8 million, or 48 cents a share, from $9.4 million, or 13 cents a share.

Revenue rose 85% to $78.2 million from $42.1 million. Subscription revenue and transaction fee for the June quarter nearly doubled to $77.5 million from $38.8 million.

“We delivered record growth in fiscal 2021 as we helped SMBs across the country automate their financial operations and make billions of dollars in payments,” said Bill.com CEO and founder Rene Lacerte in a statement.

“Our strategic initiatives drove strong adoption of our platform and set-us up well for future opportunities. We expanded our e-payment offerings ... extended our reach with new strategic partners, and entered the spend management space with our acquisition of Divvy," the CEO added.

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"We are building the one-stop shop platform for SMBs [small and medium businesses] to manage all their financial operations and B2B spend.”

Bill.com clocked 3.2 million network members, an increase of 28% year over year at the end of June.

The company processed 8.2 million transactions for its customers in the fiscal fourth quarter, an increase of 46%.

Analysts at Susquehanna and KeyBanc raised their price targets on the stock.

Analyst at Susquehanna raised the price target on Bill.com to $225 from $176. And KeyBanc analyst raised Bill.com's price target to $275 from $175.

Bill.com expects revenue of between $103.2 million and $104.2 million in the September quarter. For fiscal 2022, the company estimates revenue between $476 and $480 million.