Bill.com Holdings, Inc. (NYSE:BILL) Q3 2024 Earnings Call Transcript

Q – Taylor McGinnis: Yes. Hi. Thanks so much for taking the question. So it looks like the 4Q core growth guide assumes a bit of a deceleration compared to how you guided last quarter. So when we think about where slower growth might be occurring, anything you would flag as we think through our model? So for instance, I don’t believe you guided to TPV, but is it fair to assume the old guide of 7% to 8% TPV growth this year still holds? It sounds like earlier you were messaging maybe the potential for take rate to be down sequentially. So maybe that is the area. But just any additional color from a modeling perspective you could help us with? Thanks.

John Rettig: Yes. Thanks, Taylor. Yes, our core revenue guidance implies about 10% year-over-year growth at the midpoint, which is ahead of what we, I guess, implied last quarter. There’s a number of variables: customers and price plans drive subscriptions and transactions, it’s TPV and monetization rate. So it’s a pretty simple model that we have. And our main expectation is — the big picture is that we’re going to see muted growth across especially the TPV and take rate variables in the very short term, and that’s certainly embedded in our assumptions for the fourth quarter. On Spend & Expense, we are expecting full year revenue growth to be slightly higher than the high end of our previous expectations, which was 20% to 25%. So we are seeing a little bit more strength in. That’s just a volume play there. Our interchange is relatively stable. So those are some of the moving parts.

Q – Taylor McGinnis: Great. Thank you so much.

John Rettig: Thank you.

Operator: Thank you. This concludes the Q&A session. So I’ll turn the call back to Rene Lacerte for any closing comments.

Rene Lacerte: Thank you. Thanks, everyone, for joining us today. As we celebrate BILL’s 18th anniversary, we are all proud of the incredible transformational value that our platform provides SMBs. And I’d especially, like to call out and thank all of our employees who stepped it up this quarter and continue to drive innovation that empowers our customers to thrive. Thank you.

Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.