Press release

Bill.com Reports Fourth Quarter and Fiscal Year 2021 Financial Results

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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 fourth quarter and fiscal year ended June 30, 2021.

“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 René Lacerte, Bill.com CEO and Founder. “Our strategic initiatives drove strong adoption of our platform and set us up well for future opportunities. We expanded our e-payment offerings to make it easy for businesses to get paid faster, extended our reach with new strategic partners, and entered the spend management space with our acquisition of Divvy. We are building the one-stop shop platform for SMBs to manage all their financial operations and B2B spend.”

“Our organic core revenue increased 73% year-over-year driven by the strength of our platform and excellent execution against our strategic initiatives,” said John Rettig, Bill.com CFO. “We are pursuing a large, global opportunity to help millions of small businesses digitally transform their financial operations. With the strength of our organic business and the acquisition of Divvy, we believe we are on a path to extend our leadership position in serving the large SMB market.”

Bill.com completed the acquisition of DivvyPay, Inc. (“Divvy”), a leader in spend management for SMBs, on June 1, 2021. Bill.com’s reported financial results for the fourth quarter and full fiscal year 2021 include the results of Divvy from that date, while prior periods presented do not. Organic results exclude the impact of Divvy during the month of June 2021.

Financial Highlights for the Fourth Quarter of Fiscal 2021, as reported, including Divvy unless otherwise indicated:

  • Total revenue was $78.3 million, an increase of 86% from the fourth quarter of fiscal 2020.
  • Core revenue, which represents subscription and transaction fees, including Divvy interchange revenue, was $77.5 million, with $10.3 million from Divvy, an increase of 100% year-over-year. Excluding Divvy, core revenue was $67.2 million, up 73% year-over-year.

    • Subscription fees were $31.2 million, including $0.1 million from Divvy, up 32% year-over-year.
    • Transaction fees were $46.3 million, including $10.2 million from Divvy, up 204% year-over year. Excluding Divvy, transaction fees were $36.1 million, up 137% year-over-year.
  • Gross profit was $58.0 million, representing a 74.1% gross margin, compared to $32.0 million, or a 76.0% gross margin, in the fourth quarter of fiscal 2020. Non-GAAP gross profit was $62.4 million, representing a 79.7% non-GAAP gross margin, compared to $33.0 million, or a 78.5% non-GAAP gross margin in the fourth quarter of fiscal 2020.
  • Loss from operations was $70.7 million, compared to a loss from operations of $10.3 million in the fourth quarter of fiscal 2020. Non-GAAP loss from operations was $6.2 million, compared to a non-GAAP loss from operations of $0.5 million in the fourth quarter of fiscal 2020.
  • Net loss was $41.9 million, or ($0.48) per share, basic and diluted, compared to net loss of $9.5 million, or ($0.13) per share, basic and diluted, in the fourth quarter of fiscal 2020. Non-GAAP net loss was $5.8 million, or ($0.07) per share, basic and diluted, compared to non-GAAP net income of $0.3 million, or $0.00 per share, basic and diluted, in the fourth quarter of fiscal 2020.

Financial Highlights for Fiscal Year 2021, as reported, including Divvy:

  • Total revenue was $238.3 million, an increase of 51% from the prior fiscal year.
  • Core revenue was $232.3 million, an increase of 70% from the prior fiscal year. Subscription fees were $111.6 million, up 33% year-over-year, and transaction fees were $120.7 million, up 129% year-over-year.
  • GAAP gross profit was $176.5 million, representing a 74.1% gross margin, compared to $118.5 million, or a 75.2% gross margin, from the prior fiscal year. Non-GAAP gross profit was $185.0 million, representing a 77.6% non-GAAP gross margin, compared to $121.8 million, or a 77.3% non-GAAP gross margin from the prior fiscal year.
  • Loss from operations was $114.0 million, compared to a loss from operations of $34.2 million in the prior fiscal year. Non-GAAP loss from operations was $12.2 million, compared to a non-GAAP loss from operations of $11.5 million in the prior fiscal year.
  • Net loss was $98.7 million, or ($1.19) per share, basic and diluted, compared to net loss of $31.1 million, or ($0.70) per share, basic and diluted, in the prior fiscal year. Non-GAAP net loss was $10.0 million, or ($0.12) per share, basic and diluted, compared to non-GAAP net loss of $7.7 million, or ($0.11) per share, basic and diluted, in the prior fiscal year.

Business Highlights and Recent Developments

The metrics listed below identified as “Bill.com” metrics exclude the results of Divvy for the month of June 2021.

  • Completed the acquisition of Divvy, a leader in spend management for SMBs.
  • Served 121,200 Bill.com customers as of the end of the fourth quarter of fiscal 2021, representing year-over-year customer growth of 24%. Also served 10,700 spending businesses that used Divvy for spend management in June 2021.
  • Processed $41.7 billion in total payment volume for Bill.com customers in the fourth quarter, an increase of 64% year-over-year. For the full fiscal year, processed $140.3 billion in total payment volume, an increase of 45% over last fiscal year. Spending businesses that used Divvy cards executed $437 million in card payment volume in June 2021.
  • Processed 8.2 million transactions for Bill.com customers in the fourth quarter of fiscal 2021, an increase of 46% year-over-year. For the full fiscal year, processed 29.2 million transactions, an increase of 22% over last fiscal year.
  • As of June 30, 2021, Bill.com had 3.2 million network members, an increase of 28% year-over-year.
  • Net dollar-based retention rate for Bill.com customers was 124% during fiscal 2021 compared to 121% during fiscal 2020 and 110% during fiscal 2019.
  • Signed a definitive agreement to acquire Invoice2go, a leading mobile-first accounts receivable software provider for small businesses.

Financial Outlook

We are providing the following guidance for the fiscal first quarter ending September 30, 2021 and the full fiscal year ending June 30, 2022.

 

 

Q1 FY22

Guidance

 

FY22

Guidance

Total revenue (millions)

$103.2 – $104.2

 

$476.0 – $480.0

Year-over-year total revenue growth

123% – 126%

 

100% – 102%

Non-GAAP net loss (millions)

($20.0) – ($19.0)

 

($89.0) – ($85.0)

Non-GAAP net loss per share

($0.21) – ($0.20)

 

($0.92) – ($0.88)

The financial outlook does not include any potential impact from the proposed acquisition of Invoice2go. 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 fourth quarter and fiscal year 2021 results and our outlook for the fiscal first quarter ending September 30, 2021 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.aspx.

About Bill.com

Bill.com is a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the Bill.com platform to manage end-to-end financial workflows and to process payments. The Bill.com AI-enabled, financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflow. The company partners with several of the largest U.S. financial institutions, the majority of the top 100 U.S. accounting firms, and popular accounting software providers. Bill.com is headquartered in San Jose, California. For more information visit www.bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations of future performance, including guidance for our revenue and net loss for the fiscal first quarter ending September 30, 2021 and our fiscal year 2022, our expectations for the growth of demand on our platform and the expansion of our customers’ utilization of our services. These risks and uncertainties include, but are not limited to, the novel coronavirus pandemic (COVID-19) and its impact on our employees, customers, strategic partners, vendors, results of operations, liquidity and financial condition, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, the market, interest rate, foreign exchange and other conditions that the customer funds we hold in trust are subject to, our ability to attract new customers and convert trial customers into paying customers, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impacts of acquisitions and investments, including our ability to integrate Divvy and the pending acquisition of Invoice2go, our accounting for Divvy and Invoice2go financial results, changes in staffing levels, and other risks detailed in registration statements and periodic reports we file with the SEC, including our quarterly and annual reports, which may be obtained on the Investor Relations section of Bill.com’s website (https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share, basic and diluted. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Items excluded from non-GAAP net loss and non-GAAP net loss per share include stock-based compensation expense, employer payroll taxes related to employee stock-based compensation, depreciation expense, amortization of intangible assets, acquisition-related expenses, amortization of debt discount (and accretion of debt premium) and issuance costs, loss on revaluation of warrant liabilities, and income tax benefit associated with 2025 Notes. It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

Beginning the quarter ended March 31, 2021, we changed our method of calculating certain non-GAAP financial measures by removing the adjustments related to the capitalized service costs, capitalized internal-use software, capitalized sales commissions, and the associated amortization expenses. These changes are reflected in our non-GAAP financial measures for the quarter ended June 30, 2021. In addition, our non-GAAP financial measures for the quarter ended June 30, 2020 were also adjusted to conform to the current quarter presentation. These changes are further described in the reconciliation of GAAP to non-GAAP financial measures below.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock- based compensation expenses using a variety of valuation methodologies and subjective assumptions.

Employer payroll taxes related to employee stock-based compensation. We exclude payroll tax expense related to employee stock-based transactions because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business. Employer payroll tax expense related to employee stock-based compensation was not material for all periods prior to June 30, 2020; therefore, it was excluded from those prior periods.

Depreciation expense. We exclude depreciation expenses from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Amortization of intangible assets. We exclude amortization of intangible assets from certain of our non-GAAP financial measures because we believe that excluding this non-cash expense provides meaningful supplemental information regarding our operational performance.

Acquisition-related expenses. We exclude acquisition-related expenses from certain of our non-GAAP financial measures because these costs would have not otherwise been incurred in the normal course of our business operations. In addition, we believe that acquisition-related expenses are non-recurring charges unique to a specific acquisition. Although we may engage in future acquisitions, such acquisitions and the associated acquisition-related expenses are considered unique and not comparable to other acquisitions.

Amortization of debt discount (accretion of debt premium) and issuance costs. We exclude amortization of debt discount and issuance costs associated with our issuance of convertible senior notes due 2025 and accretion of debt premium associated with our credit agreement from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.

Loss on revaluation of warrant liabilities. We exclude loss on revaluation of warrant liabilities, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Income tax benefit associated with 2025 Notes and acquisition. We exclude the income tax benefit associated with our 2025 Notes and acquisition from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our operational performance.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

Free Cash Flow

Free cash flow is a non-GAAP measure that we calculate as net cash provided by (used in) operating activities, reduced by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after capital expenditures, for operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

 
 

BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

June 30,

 

2021

 

 

2020

 

ASSETS
Current assets:
Cash and cash equivalents

$

509,615

 

$

573,643

 

Short-term investments

 

655,314

 

 

123,974

 

Accounts receivable, net

 

18,222

 

 

4,252

 

Acquired card receivables, net

 

147,093

 

 

 

Unbilled revenue

 

8,118

 

 

6,549

 

Prepaid expenses and other current assets

 

59,077

 

 

26,781

 

Funds held for customers

 

2,208,598

 

 

1,644,250

 

Total current assets

 

3,606,037

 

 

2,379,449

 

Non-current assets:
Operating lease right-of-use assets, net

 

71,925

 

 

 

Property and equipment, net

 

48,902

 

 

13,866

 

Intangible assets, net

 

417,341

 

 

 

Goodwill

 

1,772,043

 

 

 

Other assets

 

52,925

 

 

10,700

 

Total assets

$

5,969,173

 

$

2,404,015

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable

$

11,904

 

$

3,478

 

Accrued compensation and benefits

 

20,287

 

 

12,387

 

Deferred revenue

 

12,848

 

 

5,891

 

Other accruals and current liabilities

 

72,022

 

 

10,841

 

Customer fund deposits

 

2,208,598

 

 

1,644,250

 

Total current liabilities

 

2,325,659

 

 

1,676,847

 

Non-current liabilities:
Deferred revenue

 

2,926

 

 

2,622

 

Operating lease liabilities

 

86,639

 

 

 

Borrowings from credit facilities, net

 

79,534

 

 

 

Convertible senior notes, net

 

909,847

 

 

 

Deferred income tax liability

 

9,090

 

 

 

Other long-term liabilities

 

25,888

 

 

13,827

 

Total liabilities

 

3,439,583

 

 

1,693,296

 

Commitments and contingencies
Stockholders’ equity:
Common stock

 

2

 

 

2

 

Additional paid-in capital

 

2,777,155

 

 

857,044

 

Accumulated other comprehensive (loss) income

 

(100

)

 

2,420

 

Accumulated deficit

 

(247,467

)

 

(148,747

)

Total stockholders’ equity

 

2,529,590

 

 

710,719

 

Total liabilities and stockholders’ equity

$

5,969,173

 

$

2,404,015

 

BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)

 

 

Three months ended

June 30,

 

Year ended

June 30,

 

 

 

2021 (2)

 

 

2020

 

 

 

2021 (2)

 

 

2020

 

Revenue
Subscription and transaction fees

$

77,512

 

$

38,801

 

$

232,255

 

$

136,405

 

Interest on funds held for customers

 

761

 

 

3,309

 

 

6,010

 

 

21,195

 

Total revenue

 

78,273

 

 

42,110

 

 

238,265

 

 

157,600

 

Cost of revenue (1)

 

20,293

 

 

10,100

 

 

61,806

 

 

39,144

 

Gross profit

 

57,980

 

 

32,010

 

 

176,459

 

 

118,456

 

Operating expenses
Research and development (1)

 

29,677

 

 

14,929

 

 

90,235

 

 

53,405

 

Sales and marketing (1)

 

29,102

 

 

11,796

 

 

71,374

 

 

45,356

 

General and administrative (1)

 

69,920

 

 

15,546

 

 

128,817

 

 

53,893

 

Total operating expenses

 

128,699

 

 

42,271

 

 

290,426

 

 

152,654

 

Loss from operations

 

(70,719

)

 

(10,261

)

 

(113,967

)

 

(34,198

)

Other (expense) income, net

 

(11,427

)

 

764

 

 

(25,370

)

 

3,160

 

Loss before (benefit from) provision for income taxes

 

(82,146

)

 

(9,497

)

 

(139,337

)

 

(31,038

)

(Benefit from) provision for income taxes

 

(40,284

)

 

1

 

 

(40,617

)

 

53

 

Net loss

$

(41,862

)

$

(9,498

)

$

(98,720

)

$

(31,091

)

 
Net loss per share attributable to common stockholders, basic and
diluted

$

(0.48

)

$

(0.13

)

$

(1.19

)

$

(0.70

)

Weighted-average number of common shares used to compute
net loss per share attributable to common stockholders,
basic and diluted

 

86,965

 

 

74,141

 

 

82,813

 

 

44,106

 

 
(1) Includes stock-based compensation expense as follows:
Cost of revenue

$

967

 

$

476

 

$

2,938

 

$

1,257

 

Research and development

 

6,138

 

 

2,274

 

 

16,091

 

 

5,495

 

Sales and marketing

 

3,461

 

 

1,134

 

 

8,547

 

 

2,777

 

General and administrative

 

30,158

 

 

3,744

 

 

44,411

 

 

8,535

 

$

40,724

 

$

7,628

 

$

71,987

 

$

18,064

 

 
(2) Includes the results of Divvy from the date of acquisition on June 1, 2021.

BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

 

 

Three months ended June 30,

 

Year ended June 30,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Cash flows from operating activities:
Net loss

$

(41,862

)

$

(9,498

)

$

(98,720

)

$

(31,091

)

Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization

 

1,901

 

 

1,052

 

 

5,350

 

 

4,257

 

Stock-based compensation

 

37,027

 

 

7,628

 

 

68,290

 

 

18,064

 

Amortization of debt discount (accretion of debt premium)
and issuance costs

 

11,807

 

 

 

 

27,531

 

 

 

Amortization of intangible assets

 

5,659

 

 

 

 

5,659

 

 

 

Amortization of premium (accretion of discount) on
investments in marketable debt securities

 

2,722

 

 

(960

)

 

4,692

 

 

(3,815

)

Non-cash operating lease expense

 

1,178

 

 

 

 

3,813

 

 

 

Provision for losses on acquired card receivables

 

741

 

 

 

 

741

 

 

 

Deferred income taxes

 

(40,284

)

 

 

 

(40,617

)

 

 

Other

 

 

 

 

 

 

 

717

 

Changes in assets and liabilities:
Accounts receivable

 

(1,203

)

 

(2,012

)

 

(6,535

)

 

(1,054

)

Unbilled revenue

 

(253

)

 

802

 

 

(1,569

)

 

(554

)

Prepaid expenses and other current assets

 

7,108

 

 

409

 

 

2,275

 

 

(10,434

)

Other assets

 

(726

)

 

(3,881

)

 

(12,525

)

 

(4,928

)

Accounts payable

 

6,490

 

 

(121

)

 

7,417

 

 

(1,596

)

Other accruals and current liabilities

 

22,922

 

 

2,862

 

 

22,980

 

 

9,755

 

Operating lease liabilities

 

613

 

 

 

 

8,395

 

 

 

Other long-term liabilities

 

16

 

 

2,302

 

 

592

 

 

12,991

 

Deferred revenue

 

3,930

 

 

314

 

 

6,854

 

 

3,258

 

Net cash provided by (used in) operating activities

 

17,786

 

 

(1,103

)

 

4,623

 

 

(4,430

)

Cash flows from investing activities:
Cash paid for acquisition, net of acquired cash

 

(556,090

)

 

 

 

(556,090

)

 

 

Purchases of corporate and customer fund short-term investments

 

(584,271

)

 

(257,917

)

 

(2,070,296

)

 

(1,088,611

)

Proceeds from maturities of corporate and customer fund
short-term investments

 

273,599

 

 

209,689

 

 

1,104,532

 

 

806,000

 

Proceeds from sale of corporate and customer fund short-term investments

 

23,593

 

 

20,822

 

 

142,665

 

 

46,159

 

(Increase) decrease in other receivables included in funds held for customers

 

(1,720

)

 

5,642

 

 

(10,792

)

 

(959

)

Increase in acquired card receivables

 

(15,703

)

 

 

 

(15,703

)

 

 

Purchases of property and equipment

 

(1,840

)

 

(5,701

)

 

(18,902

)

 

(11,437

)

Capitalization of internal-use software costs

 

(1,266

)

 

(150

)

 

(2,304

)

 

(639

)

Net cash used in investing activities

 

(863,698

)

 

(27,615

)

 

(1,426,890

)

 

(249,487

)

Cash flows from financing activities:
Proceeds from issuance of convertible senior notes,
net of discounts and issuance costs

 

 

 

 

 

1,129,379

 

 

 

Purchase of capped calls

 

 

 

 

 

(87,860

)

 

 

Proceeds from issuance of common stock upon initial public offering, net of
underwriting discounts and commissions and other offering costs

 

 

 

(63

)

 

 

 

225,481

 

Proceeds from issuance of common stock upon follow-on public offering, net of
underwriting discounts and commissions and other offering costs

 

 

 

308,176

 

 

 

 

308,176

 

Increase in customer fund deposits liability

 

278,758

 

 

290,698

 

 

564,348

 

 

314,944

 

Proceeds from line of credit borrowings

 

 

 

 

 

 

 

2,300

 

Payments on line of credit and bank borrowings

 

 

 

 

 

(2,300

)

 

 

Proceeds from exercise of stock options

 

5,175

 

 

10,486

 

 

28,209

 

 

12,232

 

Proceeds from issuance of common stock under the
employee stock purchase plan

 

 

 

 

 

8,864

 

 

 

Other

 

(393

)

 

 

 

(1,057

)

 

(7

)

Net cash provided by financing activities

 

283,540

 

 

609,297

 

 

1,639,583

 

 

863,126

 

Net (decrease) increase in cash, cash equivalents,
restricted cash, and restricted cash equivalents

 

(562,372

)

 

580,579

 

 

217,316

 

 

609,209

 

Cash, cash equivalents, restricted cash, and restricted
cash equivalents, beginning of period

 

2,372,065

 

 

1,011,798

 

 

1,592,377

 

 

983,168

 

Cash, cash equivalents, restricted cash, and restricted
cash equivalents, end of period

$

1,809,693

 

$

1,592,377

 

$

1,809,693

 

$

1,592,377

 

 
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash
equivalents within the condensed consolidated balance sheets to the amounts
shown in the consolidated statements of cash flows above:
Cash and cash equivalents

$

509,615

 

$

573,643

 

$

509,615

 

$

573,643

 

Restricted cash included in other current assets

 

10,977

 

 

35

 

 

10,977

 

 

35

 

Restricted cash included in other assets

 

6,875

 

 

 

 

6,875

 

 

 

Restricted cash and restricted cash equivalents
included in funds held for customers

 

1,282,226

 

 

1,018,699

 

 

1,282,226

 

 

1,018,699

 

Total cash, cash equivalents, restricted cash, and
restricted cash equivalents, end of period

$

1,809,693

 

$

1,592,377

 

$

1,809,693

 

$

1,592,377

 

BILL.COM HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands except percentages and per share amounts)

 

 

Three months ended

June 30,

 

Year ended

June 30,

 

 

 

2021

 

 

 

2020 (2)

 

 

 

2021

 

 

 

2020 (2)

 

Reconciliation of gross profit:
GAAP gross profit

$

57,980

 

$

32,010

 

$

176,459

 

$

118,456

 

Add:
Amortization of intangible assets

 

2,653

 

 

 

 

2,653

 

 

 

Stock-based compensation expense (3)

 

967

 

 

476

 

 

2,938

 

 

1,257

 

Payroll taxes related to stock-based compensation expense

 

108

 

 

39

 

 

371

 

 

39

 

Depreciation expense

 

709

 

 

520

 

 

2,577

 

 

2,095

 

Non-GAAP gross profit

$

62,417

 

$

33,045

 

$

184,998

 

$

121,847

 

GAAP gross margin

 

74.1

%

 

76.0

%

 

74.1

%

 

75.2

%

Non-GAAP gross margin

 

79.7

%

 

78.5

%

 

77.6

%

 

77.3

%

 

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020 (2)

 

 

 

2021

 

 

 

2020 (2)

 

Reconciliation of operating expenses:
GAAP research and development expenses

$

29,677

 

$

14,929

 

$

90,235

 

$

53,405

 

Less:
Stock-based compensation expense (3)

 

(6,138

)

 

(2,274

)

 

(16,091

)

 

(5,495

)

Payroll taxes related to stock-based compensation expense

 

(328

)

 

(192

)

 

(1,306

)

 

(192

)

Depreciation expense

 

(419

)

 

(96

)

 

(732

)

 

(408

)

Non-GAAP research and development expenses

$

22,792

 

$

12,367

 

$

72,106

 

$

47,310

 

 
GAAP sales and marketing expenses

$

29,102

 

$

11,796

 

$

71,374

 

$

45,356

 

Less:
Amortization of intangible assets

 

(3,006

)

 

 

 

(3,006

)

 

 

Stock-based compensation expense (3)

 

(3,461

)

 

(1,134

)

 

(8,547

)

 

(2,777

)

Payroll taxes related to stock-based compensation expense

 

(125

)

 

(461

)

 

(632

)

 

(461

)

Depreciation expense

 

(256

)

 

(66

)

 

(433

)

 

(286

)

Non-GAAP sales and marketing expenses

$

22,254

 

$

10,135

 

$

58,756

 

$

41,832

 

 
GAAP general and administrative expenses

$

69,920

 

$

15,546

 

$

128,817

 

$

53,893

 

Less:
Stock-based compensation expense (3)

 

(30,158

)

 

(3,744

)

 

(44,411

)

 

(8,535

)

Payroll taxes related to stock-based compensation expense

 

(412

)

 

(672

)

 

(1,897

)

 

(672

)

Depreciation expense

 

(310

)

 

(117

)

 

(701

)

 

(442

)

Acquisition-related expenses

 

(15,471

)

 

 

 

(15,471

)

 

 

Non-GAAP general and administrative expenses

$

23,569

 

$

11,013

 

$

66,337

 

$

44,244

 

 
 

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020 (2)

 

 

 

2021

 

 

 

2020 (2)

 

Reconciliation of loss from operations:
GAAP loss from operations

$

(70,719

)

$

(10,261

)

$

(113,967

)

$

(34,198

)

Add:
Amortization of intangible assets

 

5,659

 

 

 

 

5,659

 

 

 

Stock-based compensation expense (3)

 

40,724

 

 

7,628

 

 

71,987

 

 

18,064

 

Payroll taxes related to stock-based compensation expense

 

973

 

 

1,364

 

 

4,206

 

 

1,364

 

Depreciation expense

 

1,694

 

 

799

 

 

4,443

 

 

3,231

 

Acquisition-related expenses

 

15,471

 

 

 

 

15,471

 

 

 

Non-GAAP loss from operations

$

(6,198

)

$

(470

)

$

(12,201

)

$

(11,539

)

 
 
 

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020 (2)

 

 

 

2021

 

 

 

2020 (2)

 

Reconciliation of net loss:
GAAP net loss

$

(41,862

)

$

(9,498

)

$

(98,720

)

$

(31,091

)

Add (less):
Amortization of intangible assets

 

5,659

 

 

 

 

5,659

 

 

 

Stock-based compensation expense (3)

 

40,724

 

 

7,628

 

 

71,987

 

 

18,064

 

Payroll taxes related to stock-based compensation expense

 

973

 

 

1,364

 

 

4,206

 

 

1,364

 

Depreciation expense

 

1,694

 

 

799

 

 

4,443

 

 

3,231

 

Acquisition-related expenses

 

15,471

 

 

 

 

15,471

 

 

 

Amortization of debt discount (accretion of debt premium)
and issuance costs

 

11,807

 

 

 

 

27,531

 

 

 

Loss on revaluation of warrant liability

 

 

 

 

 

 

 

717

 

Income tax benefit associated with 2025 Notes and acquisition

 

(40,284

)

 

 

 

(40,617

)

 

 

Non-GAAP net (loss) income

$

(5,818

)

$

293

 

$

(10,040

)

$

(7,715

)

 
 

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020 (2)

 

 

 

2021

 

 

 

2020 (2)

 

Reconciliation of net loss per share attributable to
common stockholders, basic and diluted
GAAP net loss per share attributable to common stockholders,
basic and diluted

$

(0.48

)

$

(0.13

)

$

(1.19

)

$

(0.70

)

Add (less):
Amortization of intangible assets

 

0.07

 

 

 

 

0.07

 

 

 

Stock-based compensation expense (3)

 

0.46

 

 

0.10

 

 

0.87

 

 

0.41

 

Payroll taxes related to stock-based compensation expense

 

0.01

 

 

0.02

 

 

0.05

 

 

0.03

 

Depreciation expense

 

0.01

 

 

0.01

 

 

0.05

 

 

0.07

 

Acquisition-related expenses

 

0.18

 

 

 

 

0.19

 

 

 

Amortization of debt discount (accretion of debt premium)
and issuance costs

 

0.14

 

 

 

 

0.33

 

 

 

Loss on revaluation of warrant liability

 

 

 

 

 

 

 

0.02

 

Income tax benefit associated with 2025 Notes and acquisition

 

(0.46

)

 

 

 

(0.49

)

 

 

Impact of the assumed conversion of redeemable
convertible preferred stock

 

 

 

 

 

 

 

0.06

 

Non-GAAP net (loss) income per share attributable to common
stockholders, basic and diluted

$

(0.07

)

$

 

$

(0.12

)

$

(0.11

)

 
 

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Reconciliation of shares used to compute basic net loss per
share attributable to common stockholders
Shares used to compute GAAP net (loss) income per share
attributable to common stockholders, basic

 

86,965

 

 

74,141

 

 

82,813

 

 

44,106

 

Add: Weighted average effect of the assumed conversion
of redeemable convertible preferred stock from the
date of issuance

 

 

 

 

 

 

 

23,352

 

Shares used to compute non-GAAP net (loss) income per
share attributable to common stockholders, basic

 

86,965

 

 

74,141

 

 

82,813

 

 

67,458

 

 
 

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Reconciliation of shares used to compute diluted net (loss)
income per share attributable to common stockholders
Shares used to compute GAAP net (loss) income per share
attributable to common stockholders, basic

 

86,965

 

 

74,141

 

 

82,813

 

 

44,106

 

Add: Weighted average effect of the assumed conversion
of redeemable convertible preferred stock from the
date of issuance

 

 

 

 

 

 

 

23,352

 

Add: Dilutive effect of incremental shares

 

 

 

8,900

 

 

 

 

 

Shares used to compute non-GAAP net (loss) income per
share attributable to common stockholders, diluted

 

86,965

 

 

83,041

 

 

82,813

 

 

67,458

 

 
(2) During the quarter ended March 31, 2021, we changed our method of calculating certain non-GAAP financial measures by removing the adjustments related to the capitalized service costs, capitalized internal-use software, capitalized sales commissions, and the associated amortization expenses. These changes are reflected in our non-GAAP financial measures for the quarter and year ended June 30, 2021. In addition, our non-GAAP financial measures for the quarter and year ended June 30, 2020 were adjusted to conform to the current period presentation. The tables below show the reconciliation of the non-GAAP financial measures as previously reported and as restated during the quarter and year ended June 30, 2020.

 

(3) The stock-based compensation expense, which totaled $40.7 million and $72.0, during the three months and year ended June 30, 2021, respectively, includes $3.7 million paid in cash in connection with the acquisition of Divvy
Three months ended
June 30, 2020
Year ended
June 30, 2020
As
reported
Adjustment As
restated
As
reported
Adjustment As
restated
Reconciliation of gross profit:
GAAP gross profit

$

32,010

 

$

 

$

32,010

 

$

118,456

 

$

 

$

118,456

 

Add (less):
Stock-based compensation expense

 

476

 

 

 

 

476

 

 

1,257

 

 

 

 

1,257

 

Payroll taxes related to stock-based
compensation expense

 

39

 

 

 

 

39

 

 

39

 

 

 

 

39

 

Depreciation expense

 

520

 

 

 

 

520

 

 

2,095

 

 

 

 

2,095

 

Amortization of capitalized service costs

 

(206

)

 

206

 

 

 

 

374

 

 

(374

)

 

 

Amortization of capitalized internal-use
software costs

 

255

 

 

(255

)

 

 

 

1,027

 

 

(1,027

)

 

 

Non-GAAP gross profit

$

33,094

 

$

(49

)

$

33,045

 

$

123,248

 

$

(1,401

)

$

121,847

 

GAAP gross margin

 

76.0

%

 

76.0

%

 

75.2

%

 

75.2

%

Non-GAAP gross margin

 

78.6

%

 

-0.1

%

 

78.5

%

 

78.2

%

 

-0.9

%

 

77.3

%

 
Three months ended
June 30, 2020
Year ended
June 30, 2020
As
reported
Adjustment As
restated
As
reported
Adjustment As
restated
Reconciliation of operating expenses:
GAAP research and development expenses

$

14,929

 

$

 

$

14,929

 

$

53,405

 

$

 

$

53,405

 

Add (less):
Stock-based compensation expense

 

(2,274

)

 

 

 

(2,274

)

 

(5,495

)

 

 

 

(5,495

)

Payroll taxes related to stock-based
compensation expense

 

(192

)

 

 

 

(192

)

 

(192

)

 

 

 

(192

)

Depreciation expense

 

(96

)

 

 

 

(96

)

 

(408

)

 

 

 

(408

)

Capitalized service costs

 

206

 

 

(206

)

 

 

 

526

 

 

(526

)

 

 

Capitalized internal-use software costs

 

149

 

 

(149

)

 

 

 

594

 

 

(594

)

 

 

Non-GAAP research and development
expenses

$

12,722

 

$

(355

)

$

12,367

 

$

48,430

 

$

(1,120

)

$

47,310

 

 
GAAP sales and marketing expenses

$

11,796

 

$

 

$

11,796

 

$

45,356

 

$

 

$

45,356

 

Add (less):
Stock-based compensation expense

 

(1,134

)

 

 

 

(1,134

)

 

(2,777

)

 

 

 

(2,777

)

Payroll taxes related to stock-based
compensation expense

 

(461

)

 

 

 

(461

)

 

(461

)

 

 

 

(461

)

Depreciation expense

 

(66

)

 

 

 

(66

)

 

(286

)

 

 

 

(286

)

Capitalized sales commissions

 

2,501

 

 

(2,501

)

 

 

 

5,955

 

 

(5,955

)

 

 

Amortization of capitalized sales
commissions

 

(668

)

 

668

 

 

 

 

(2,255

)

 

2,255

 

 

 

Non-GAAP sales and marketing expenses

$

11,968

 

$

(1,833

)

$

10,135

 

$

45,532

 

$

(3,700

)

$

41,832

 

 
GAAP general and administrative expenses

$

15,546

 

$

 

$

15,546

 

$

53,893

 

$

 

$

53,893

 

Less:
Stock-based compensation expense

 

(3,744

)

 

 

 

(3,744

)

 

(8,535

)

 

 

 

(8,535

)

Payroll taxes related to stock-based
compensation expense

 

(672

)

 

 

 

(672

)

 

(672

)

 

 

 

(672

)

Depreciation expense

 

(117

)

 

 

 

(117

)

 

(442

)

 

 

 

(442

)

Non-GAAP general and administrative expenses

$

11,013

 

$

 

$

11,013

 

$

44,244

 

$

 

$

44,244

 

 
 
Three months ended
June 30, 2020
Year ended
June 30, 2020
As
reported
Adjustment As
restated
As
reported
Adjustment As
restated
Reconciliation of loss from operations:
GAAP loss from operations

$

(10,261

)

$

 

$

(10,261

)

$

(34,198

)

$

 

$

(34,198

)

Add (less):
Stock-based compensation expense

 

7,628

 

 

 

 

7,628

 

 

18,064

 

 

 

 

18,064

 

Payroll taxes related to stock-based compensation
expense

 

1,364

 

 

 

 

1,364

 

 

1,364

 

 

 

 

1,364

 

Depreciation expense

 

799

 

 

 

 

799

 

 

3,231

 

 

 

 

3,231

 

Amortization of capitalized service costs,
net of amount capitalized

 

(412

)

 

412

 

 

 

 

(152

)

 

152

 

 

 

Amortization of capitalized internal-use
software costs, net of amount capitalized

 

106

 

 

(106

)

 

 

 

433

 

 

(433

)

 

 

Capitalized sales commissions, net
of associated amortization expense

 

(1,833

)

 

1,833

 

 

 

 

(3,700

)

 

3,700

 

 

 

Non-GAAP loss from operations

$

(2,609

)

$

2,139

 

$

(470

)

$

(14,958

)

$

3,419

 

$

(11,539

)

 
 
Three months ended
June 30, 2020
Year ended
June 30, 2020
As
reported
Adjustment As
restated
As
reported
Adjustment As
restated
Reconciliation of net loss:
GAAP net loss

$

(9,498

)

$

 

$

(9,498

)

$

(31,091

)

$

 

$

(31,091

)

Add (less):
Stock-based compensation expense

 

7,628

 

 

 

 

7,628

 

 

18,064

 

 

 

 

18,064

 

Payroll taxes related to stock-based
compensation expense

 

1,364

 

 

1,364

 

 

1,364

 

 

 

 

1,364

 

Depreciation expense

 

799

 

 

 

 

799

 

 

3,231

 

 

 

 

3,231

 

Amortization of capitalized service costs,
net of amount capitalized

 

(412

)

 

412

 

 

 

 

(152

)

 

152

 

 

 

Amortization of capitalized internal-use
software costs, net of amount capitalized

 

106

 

 

(106

)

 

 

 

433

 

 

(433

)

 

 

Capitalized sales commissions, net
of associated amortization expense

 

(1,833

)

 

1,833

 

 

 

 

(3,700

)

 

3,700

 

 

 

Loss on revaluation of warrant liability

 

 

 

 

 

717

 

 

 

 

717

 

Non-GAAP net (loss) income

$

(1,846

)

$

2,139

 

$

293

 

$

(11,134

)

$

3,419

 

$

(7,715

)

 
 
Three months ended
June 30, 2020
Year ended
June 30, 2020
As
reported
Adjustment As
restated
As
reported
Adjustment As
restated
Reconciliation of net loss per share
attributable to common stockholders,
basic and diluted
GAAP net loss per share attributable to common
stockholders, basic and diluted

$

(0.13

)

$

0.13

 

$

(0.13

)

$

(0.70

)

$

 

$

(0.70

)

Add (less):

 

 

Stock-based compensation expense

 

0.10

 

 

 

 

0.10

 

 

0.41

 

 

 

 

0.41

 

Payroll taxes related to stock-based
compensation expense

 

0.02

 

 

 

 

0.02

 

 

0.03

 

 

 

 

0.03

 

Depreciation expense

 

0.01

 

 

 

 

0.01

 

 

0.07

 

 

 

 

0.07

 

Amortization of capitalized service costs,
net of amount capitalized

 

(0.01

)

 

0.01

 

 

 

 

 

 

 

 

 

Amortization of capitalized internal-use
software costs, net of amount capitalized

 

 

 

 

 

 

 

0.01

 

 

(0.01

)

 

 

Capitalized sales commissions, net
of associated amortization expense

 

(0.02

)

 

0.02

 

 

 

 

(0.09

)

 

0.09

 

 

 

Loss on revaluation of warrant liability

 

 

 

 

 

 

 

0.02

 

 

 

 

0.02

 

Impact of assumed conversion of
redeemable convertible preferred stock

 

(0.02

)

 

0.02

 

 

 

 

0.08

 

 

(0.02

)

 

0.06

 

Non-GAAP net (loss) income

$

(0.05

)

$

0.05

 

$

0.00

 

$

(0.17

)

$

0.06

 

$

(0.11

)

 
 

BILL.COM HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)

Three months ended

June 30,

 

Year ended

June 30,

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net cash provided by (used in) operating activities

$

17,786

 

$

(1,103

)

$

4,623

 

$

(4,430

)

Purchases of property and equipment

 

(1,840

)

 

(5,701

)

 

(18,902

)

 

(11,437

)

Capitalization of internal-use software costs

 

(1,266

)

 

(150

)

 

(2,304

)

 

(639

)

Free cash flow

$

14,680

 

$

(6,954

)

$

(16,583

)

$

(16,506

)

 

BILL.COM HOLDINGS, INC.

REMAINING PERFORMANCE OBLIGATIONS WITH FINANCIAL INSTITUTIONS

(Unaudited, in thousands)

June 30,

 

2021

 

 

2020

Remaining performance obligations with financial institutions to be recognized as revenue:
Within 1 year

$

28,075

$

13,001

Thereafter

 

117,760

 

139,334

Total

$

145,835

$

152,335