Bill.com and its shares
Shares of Bill.com Holdings (NYSE: BILL) have suffered badly over the past year. The leader in financial automation software has lost more than 60% of its value, even as it is growing rapidly.
The company believes it has a bright future because of its huge opportunity to help small and medium-sized businesses automate their financial transactions using artificial intelligence. This recently led to it sanctioning a $300 million share buy-back programme.
Bill.com's share price and revenues have gone in opposite directions. Despite the fall in shares, the financial automation software company's total revenue rose 66% in the second financial quarter to $260 million, while core revenue (subscription and transaction fees) jumped 49% to $231.1 million.
Although the company reported a loss on a generally accepted accounting basis it generated $49.4 million, or $0.42 per share, in non-GAAP net income. This was a significant improvement from the non-GAAP net loss of $0.2 million recorded in the previous quarter.
The company expects continued rapid growth this financial year. It recommends that the company's total revenue will be around $1 billion, up 56% to 57% from last year. At the same time, the company is expected to be consistently profitable without GAAP.
However, despite all these positives, the stock continues to fall. This is because growth is slowing down slightly compared to its rapid pace, partly due to the weakening macroeconomic environment.
Bill.com believes that the company has a bright future. This has led to the company authorising a $300 million share buy-back programme, a significant amount of about 3% of its current market capitalisation.
Chief Financial Officer John Rettig said the share buyback programme demonstrates the company's confidence in the strength of its business and its ability to take advantage of the big market opportunities Bill.com has to offer.