Payments and billing software maker Bill.com (NYSE: BILL) will be reporting results tomorrow afternoon. Here’s what to look for.
Bill.com met analysts’ revenue expectations last quarter, reporting revenues of $362.6 million, up 13.9% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Bill.com a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bill.com’s revenue to grow 10% year on year to $355.4 million, slowing from the 18.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bill.com has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Bill.com’s peers in the finance and HR software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 2.9%, and Paychex reported revenues up 4.8%, in line with consensus estimates. Paylocity traded down 3.6% following the results while Paychex was up 5.4%.
Read our full analysis of Paylocity’s results here and Paychex’s results here.
There has been positive sentiment among investors in the finance and HR software segment, with share prices up 17% on average over the last month. Bill.com is up 18.2% during the same time and is heading into earnings with an average analyst price target of $70.64 (compared to the current share price of $44.71).
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