Bill.com (BILL) Stock Plunges 28% on Disappointing Guidance

Bill.com (BILL) stock took a nosedive today, falling 28% after the company reported second-quarter results and provided guidance for the next quarter. The stock price plummeted to $69.30 immediately after reporting, reflecting investors' disappointment with the company's outlook.



The company reported revenue of $362.55 million, beating estimates of $360.23 million, and adjusted EPS of 56 cents, surpassing the consensus of 46 cents. However, Bill.com's management expects third-quarter revenue of $352.5 million - $357.5 million, which is below estimates of $360.36 million, and adjusted earnings of 35 cents to 38 cents per share, compared to estimates of 34 cents per share. This guidance disappointed investors, leading to the stock's significant decline.



KeyBanc analyst Alex Markgraff cut the price forecast from $115 to $85 while retaining an Overweight rating, stating that his expectations were off, and the stock deserves to decline after the second-quarter results. Meanwhile, Wells Fargo analyst Andrew Bauch maintained an Underweight rating and lowered the price target from $65 to $57. Needham analyst Scott Berg maintained a Buy rating and the $100 price target, despite the stock falling ~30% after hours due to an unexpected AR/AP take rate decline from FX headwinds and an unfavorable seasonal payment mix shift.

Bill.com's dependence on small and midsize businesses (SMBs) could put it at risk of a recession, as these businesses tend to get hit harder during economic downturns. The long-term opportunity for the company remains promising, but given its above 10, investors should expect the share-price volatility to continue.



In conclusion, Bill.com's stock price plummeted today due to disappointing guidance for the next quarter. Investors should closely monitor the company's performance and the broader market conditions to make informed decisions about their investments.