Scott Berg: Got it. Very helpful. And then, John, from a follow-up perspective, you mentioned you’ve embedded some lower assumptions around yield on your float here going forward to the back half of the year. I think that’s probably the right view. I’m sure we’re all in agreement on that. But how do you think about the opportunity in the types of investments that you’re making right now? Are you able to stretch duration through maybe investing in some different, I don’t know, securities, et cetera, that can hold yield up for a longer period of time? Or will this always continue to be something more on a quick overnight basis? Thank you.
John Rettig: Yes. Thanks, Scott, for the question. It’s a good point. It’s clear that at some point, we’re likely to see lower interest rates than higher. And this is the moment at which those types of opportunities present themselves to extend our maturities and lock in a little bit higher for longer rates. We obviously haven’t had the need to do that over the last 18 months or so as short-term rates have been very high. But our portfolio mix will evolve as we get further into this macro environment, and we should have an opportunity to do plenty of yield optimization as rates begin to fall a little bit later in the cycle.
Operator: Our next question today comes from Kenneth Suchoski with Autonomous. Please proceed.
Kenneth Suchoski: Hi, good afternoon. Thanks for taking the question. I wanted to ask about Bank of America. I think I heard you say that they’re evolving their payment strategy and thinking about the solutions to offer to their customers. It sounded like there was a bit of a change of tone there. So can you just provide some more detail on what happened with BofA? And can you talk about how some of those conversations evolved over the last few quarters? And I guess, what do you think the probability is that BILL can service the back book of customers?
Rene Lacerte: The opportunity that we have with the bank started with serving their new small businesses on their digital platform. And we, like I said in the last the August call that we had done a very strong job and so that the opportunity to serve their existing customers presented itself. And so we had an agreement and a plan that we are working on with the bank, and we are executing across that over the last six months. And then just last month, things changed. The bank shared their recent decision to broaden their firm-wide strategy around payments. And so we are now together working through how this will impact the serving of those existing customers. So we are in the early days. And I would say what I would just maybe focus on is the bank serves millions of customers and the opportunity to serve those millions of customers is super important.
We are always going to lean on our strong partnership capabilities to support our bank partners or any partner for that matter, on how we support their strategies and their go to market. So we are in the early days on that, and we’ll have more to share in the future.
Kenneth Suchoski: Okay, thanks, Rene. And then I wanted to ask about the recently announced partnership with Adyen. Could you just provide some more detail on this partnership? Is this initiative simply to diversify back-end providers of virtual card issuance? Or is there something more to this meeting? Are you trying to get closer to straight through processing where you can onboard suppliers they have sub accounts and you could do more of a straight-through processing type of transaction?
Rene Lacerte: Thanks for that follow-up question, Ken. The partnership with Adyen is super important to the business. They have amazing strong capabilities across their platform. What we look forward to them, first and foremost, has been supporting our accounts receivable customers with the ability to collect via card. And so that’s across the entire AR platform and ecosystem that we have. In addition, like you referenced, they have strong virtual card capabilities. And so having them as a second source, if you will, third party to be able to support our virtual card payments is important. When you move 1% of GDP, you do need to make sure that you have redundancy across the platform, and there will always be opportunities to continue to leverage their capabilities as we extend our offering into the market.
Kenneth Suchoski: Okay, thank you.
Rene Lacerte: Thanks, Ken.
Operator: Our next question comes from Bryan Keane with Deutsche Bank. Please proceed.
Bryan Keane: Hi, guys. Just a couple of clarifications. Rene, on BofA, has the rollout stopped? Or has that continued? And then what about the existing clients you’re working with BofA has there been any change there? And then I’m just kind of wondering about the whole minimums. Is that off the table now until we figure out where we’re going with the relationships?
Rene Lacerte: Thanks, Brian, for the question. So the initial relationship here with the small business team at the bank was to serve the new small businesses. And if you look at the overall total adds for Bill for the quarter. We were over 10,000 customer adds, net new adds in the quarter, of which financial institution partners were 6,200. So Bank of America was definitely a part of that, and they are definitely an important part of — we are an important part of serving their new small business customers. So the nuance here is the existing installed base that BofA has, the millions of customers they have across their platform that are not yet on this new digital platform, how are we going to go support them? And so we had an agreed-upon approach with the bank.
We were executing across that. And then as they evolve their payment strategy last month, things changed and they let us know that they were expanding their payment strategy firm wide. And so we’re now working on what that means. And so this will impact that expansion opportunity, and we are working now to understand how it will. When it comes to kind of the overall contract terms, we have a contract, and we are going to continue to work against that contract until we have something different.
Bryan Keane: Got it. No, that’s helpful. And then, John, just following up on the organic take rate. I think it was a little better than your expectations, it was down sequentially. Should we model it flattish to up this quarter and then the fourth quarter was going to be similar to the first quarter? I don’t know if you can just help us for modelling purposes, exactly how to model that organic take rate going forward. Thanks so much.
John Rettig: Thanks for the question, Brian. The second half of the year, if you just take a look at our revenue estimates and the TPV estimates that we provided, you’ll get to a slightly increasing monetization rate. We’re still in a range, though, that’s not far from where we are today and where we started the year, and we think that’s appropriate given the visibility we have and some of the headwinds on the higher monetizing products. We are working hard to improve the product experience across a couple of our important revenue growth drivers, and we think that will provide probably more monetization upside as we look at FY ’25 and beyond.
Bryan Keane: That’s helpful. Thanks, guys.
John Rettig: Thank you.
Operator: Our next question comes from Taylor McGinnis with UBS. Please proceed.
Taylor McGinnis: Yeah, hi. Thanks so much for taking my question. So you talked about some restructuring that you did in the go-to-market motion that led to softer net adds. So can you provide just some color on how we should think about the trajectory of net adds from here? So could this metric gets worse over the next couple of quarters, maybe before it gets better? And then as a second part to the question, how could it focus on businesses with a higher propensity to spend sort of as an offset in higher TPV per customer, for instance?
John Rettig: Thanks for the question, Taylor. So in terms of net adds, I’d first start with BILL, where we’re pretty close to our initial estimate for the quarter even with some challenges and additional friction associated with some of the changes that we’ve made to the platform and the branding and our approach. And I’d say we’re going to be kind of in that range for the rest of the year, maybe in the 3% to 4% versus 4%. But nevertheless, it’s more of an impact on the Spend and Expense side of the business. BILL’s Spend and Expense where not only did all the moving parts are moving into one platform consolidating our brands, one organization. We’ve also had a heightened level of scrutiny on the credit side of smaller businesses.
