No. of Recommendations: 39
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
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.