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Introduction & Market Context
BILL (NYSE:BILL), the financial operations platform for small and midsize businesses, presented its Q3 2025 investor deck on May 8, 2025, showcasing continued growth despite a challenging market environment. The company’s stock closed at $46.43, up 2.48% for the day, but remains significantly below its 52-week high of $100.19, reflecting ongoing investor caution despite solid fundamentals.
The presentation highlighted BILL’s mission to "make it simple to connect and do business" for SMBs, positioning itself as an essential platform for automating financial operations, managing payments, and gaining financial visibility.
Quarterly Performance Highlights
BILL reported total revenue of $358 million for Q3 2025, representing 11% year-over-year growth compared to $323 million in Q3 2024. Core revenue, which excludes float revenue, grew at a faster rate of 14% to reach $320 million.
As shown in the following chart of quarterly revenue growth:
The company’s customer base expanded to over 488,000 businesses using BILL’s solutions as of March 31, 2025, a 5% increase from the previous year. Transaction (JO:NTUJ) volume also showed healthy growth, with 30 million transactions processed in Q3 2025 (up 16% year-over-year) and total payment volume reaching $79 billion (up 11%).
This growth in adoption and usage is illustrated in the following metrics:
BILL has maintained strong financial metrics with an 85% non-GAAP gross margin and 92% net dollar retention rate, indicating high customer satisfaction and stickiness. The company also highlighted that 89% of core revenue comes from existing customers, with a payback period of 6 quarters.
The key financial profile presented by BILL shows a solid foundation despite slowing growth rates:
Business Model and Revenue Breakdown
BILL’s business model consists of three primary revenue streams: subscription revenue (19% of Q3’25 revenue), transaction revenue (70%), and float revenue (11%). While core revenue components showed growth, float revenue—the interest earned from customer funds during payment processing—decreased from $42 million in Q3’24 to $38 million in Q3’25.
The following breakdown illustrates BILL’s revenue composition:
The company’s platform serves as a comprehensive financial operations solution for SMBs, integrating accounts payable, accounts receivable, spend management, and financial planning tools into a single ecosystem. This integrated approach is designed to replace legacy paper-based processes with digital workflows.
BILL’s platform capabilities are showcased in this visualization:
Strategic Initiatives and Market Opportunity (SO:FTCE11B)
BILL continues to emphasize the substantial market opportunity in the SMB segment. In the U.S. alone, the company estimates 34 million SMBs and sole proprietors, representing a $75 billion software spend opportunity and $36 trillion in B2B payment volume. Globally, these figures expand to 72 million+ businesses, $344 billion in software spend, and $135 trillion in payment volume.
The market opportunity is quantified in the following data:
The company’s competitive advantages include its purpose-built platform for SMBs, proprietary payment infrastructure, and extensive partner network. BILL has established partnerships with over 9,000 accounting firms and major financial institutions including American Express (NYSE:AXP), Wells Fargo, JPMorgan Chase (NYSE:JPM), and Bank of America.
BILL’s strategic positioning is outlined in these key differentiators:
Forward-Looking Statements
Looking ahead, BILL identified multiple drivers for future growth, including acquiring new customers, increasing adoption among existing customers, growing network members, developing platform capabilities, and expanding internationally. The company’s network effects strategy aims to create a virtuous cycle where more users generate more data, enabling better products and attracting additional customers.
Despite the positive outlook presented in the investor deck, BILL faces challenges reflected in its stock performance. After peaking at $100.19 over the past year, the stock has declined significantly to current levels around $46.71 in after-hours trading. This suggests investors remain cautious about the company’s growth trajectory and competitive positioning in a challenging economic environment.
The slowing revenue growth rate (11% for total revenue compared to previous quarters’ higher growth) may be contributing to investor concerns, despite BILL maintaining strong fundamentals and a clear strategic vision. The company will need to demonstrate accelerating growth and improved monetization to regain investor confidence in upcoming quarters.
Full presentation:
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