12 Best Small Cap Tech Stocks to Buy

8. BILL Holdings Inc. (NYSE:BILL)

Market Capitalization as of September 11: $5.69 billion

Number of Hedge Fund Holders: 45

BILL Holdings Inc. (NYSE:BILL) provides financial automation software for small and midsize businesses worldwide, offering a cloud-based platform that helps businesses streamline their financial operations, including invoicing, payments, expense management, and more, helping businesses save time and money.

In the fiscal full year 2024, the network members increased to 7.1 million, up 21% year-over-year as the company further built platform capabilities for its suppliers. It served nearly half a million businesses this year.

2024 featured the launch of a new platform that combines billing and expense management solutions. It has data and analytics tools to help businesses understand their cash flow and uses AI to make the process user-friendly. It also partnered with Xero to offer onboarding and bill payment solutions to its customers.

At the end of fiscal 2024, the company was held by 45 hedge funds. The highest stake amounts to $181,792,786 by Abdiel Capital Advisors. While concluding this fiscal year, the management announced that the board authorized a new $300 million share repurchase program.

The company’s total revenue for the fiscal full year 2024 was $1.3 billion, up 22% year-over-year and core revenue exceeded $1 billion for the first time, serving nearly half a million businesses. In FQ4 2024 alone, it generated $343.67 million in revenue, recording an improvement of 16.11% year-over-year.

This is a leading financial automation platform that’s helping businesses streamline their operations. It’s a valuable tool for accounting firms and is driving growth in client advisory practices. With BILL Holdings Inc. (NYSE:BILL), company clients can stay ahead of the competition, all while positioning the company itself for strong growth.

Parnassus Mid Cap Fund stated the following regarding BILL Holdings, Inc. (NYSE:BILL) in its Q2 2024 investor letter:

“During the quarter, we increased our overweight allocation to the Information Technology sector. In the Software industry, we initiated a new position in BILL Holdings, Inc. (NYSE:BILL), which runs leading payments platform Bill.com. BILL presented an opportunity to own a category-leading SMB-focused payments automation platform (Bill.com) at a historically attractive valuation. We believe the market overextrapolated near-term cyclical growth headwinds and underestimated the company’s long-term secular growth opportunity.”