Business Wire | Nov 5, 2020 04:06PM EST

Bill.com Reports First Quarter Fiscal 2021 Financial Results

Nov. 05, 2020

PALO ALTO, Calif.--(BUSINESS WIRE)--Nov. 05, 2020--Bill.com (NYSE: BILL), a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs), today announced financial results for the first fiscal quarter ended September 30, 2020.

"We kicked off the new fiscal year with strong Q1 financial results that exceeded our expectations, as we saw SMB customers getting back to business compared to the prior quarter," said Ren Lacerte, Bill.com CEO. "We experienced strong demand for our platform as customers embraced our broader offering of payment methods. We are excited about the increasing adoption of our platform throughout our diversified go-to-market ecosystem," concluded Mr. Lacerte.

Financial Highlights for the First Quarter of Fiscal 2021

* Total revenue was $46.2 million, an increase of 31% from the first quarter of fiscal 2020. Subscription and transaction revenue was $43.8 million, an increase of 53% from the first quarter of fiscal 2020. * GAAP gross profit was $34.1 million, representing a 73.8% gross margin, compared to $26.0 million, or a 74.0% gross margin, in the first quarter of fiscal 2020. Non-GAAP gross profit was $35.6 million, representing a 77.0% non-GAAP gross margin, compared to $27.2 million, or a 77.2% non-GAAP gross margin in the first quarter of fiscal 2020. * Loss from operations was $13.8 million, compared to a loss from operations of $6.3 million in the first quarter of fiscal 2020. Non-GAAP loss from operations was $3.7 million, compared to a non-GAAP loss from operations of $3.5 million in the first quarter of fiscal 2020. * Net loss was $13.0 million, or ($0.16) per share, basic and diluted, compared to net loss of $5.7 million, or ($0.69) per share, basic and diluted, in the first quarter of fiscal 2020. Non-GAAP net loss was $2.8 million, or ($0.04) per share, basic and diluted, compared to non-GAAP net loss of $2.8 million, or ($0.05) per share, basic and diluted, in the first quarter of fiscal 2020. * Cash, cash equivalents and short-term investments were $700.3 million at September 30, 2020.

Business Highlights and Recent Developments

* Served 103,600 customers as of the end of the first quarter of fiscal 2021, representing year-over-year customer growth of 27%. * Processed $28.8 billion in total payment volume on our platform in the first quarter, an increase of 31% year-over-year. * Processed 6.5 million transactions in the first quarter of fiscal 2021. * Rolled out Instant Transfer in pilot mode which enables businesses to provide real-time payments to their vendors. * Expanded our executive team with the addition of Tom Clayton as our Chief Revenue Officer. * Added seasoned payments executive Colleen Taylor and business, marketing and communications leader Allie Kline to our board of directors.

Conference Call

In conjunction with this announcement, Bill.com will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) today to discuss the first quarter results, as well as our outlook for the second quarter of fiscal 2021. The conference call will be available via live webcast and replay at the Investor Relations section of Bill.com's website: https://investor.bill.com/events-and-presentations/default.aspx .

About Bill.com

Bill.com is a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the Bill.com platform to manage end-to-end financial workflows and to process payments. The Bill.com AI-enabled, financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflow. The company partners with several of the largest U.S. financial institutions, the majority of the top 100 U.S. accounting firms, and popular accounting software providers. Bill.com has offices in Palo Alto, California and Houston, Texas. For more information, visit www.bill.com .

Note on Forward-Looking Statements

This press release and the accompanying conference call include forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on our expectations as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. These statements include, but are not limited to, statements regarding our expectations for future performance, the growth of demand on our platform and the expansion of our customers' utilization of our services. These risks and uncertainties include, but are not limited to, the novel coronavirus pandemic (COVID-19) and its impact on our employees, customers, strategic partners, vendors, results of operations, liquidity and financial condition, our history of operating losses, our recent rapid growth, the large sums of customer funds that we transfer daily, the risk of loss, errors and fraudulent activity, the market, interest rate, foreign exchange and other conditions that the customer funds we hold in trust are subject to, our ability to attract new customers and convert trial customers into paying customers, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in registration statements and periodic reports we file with the SEC, including our annual report on Form 10-K filed with the SEC on August 31, 2020, which may be obtained on the Investor Relations section of Bill.com's website ( https://investor.bill.com/financials/sec-filings/default.aspx) and on the SEC website at www.sec.gov. Additional information will also be set forth in our quarterly report on Form 10-Q for the three months ended September 30, 2020 when filed. Actual results may differ materially from those presently reported. All forward-looking statements in this press release are based on information available to us as of the date hereof. We assume no obligation to update the information contained in this press release or the accompanying conference call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share, basic and diluted. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

We adjust the following items from one or more of our non-GAAP financial measures:

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock- based compensation expenses using a variety of valuation methodologies and subjective assumptions.

Employer payroll taxes related to employee stock-based compensation: We exclude payroll tax expense related to employee stock-based transactions because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of our business. Employer payroll tax expense related to employee stock-based compensation was not material for all periods prior to June 30, 2020; therefore, it was excluded from those prior periods.

Depreciation and amortization expense. We exclude depreciation and amortization expenses from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

Capitalized internal-use software and amortization. We include capitalization and exclude the subsequent amortization of internal-use software costs in certain of our non-GAAP financial measures. We capitalize direct costs incurred related to obtaining or developing internal-use software during the application development stage and we amortize those costs over the estimated useful lives of the software. The capitalization and subsequent amortization of those costs can vary every period depending on our business needs and the timing on the software's availability for its intended use. We believe that including or excluding the effect of the capitalized internal-use software in certain of our non-GAAP financial measures provides us useful information in evaluating and comparing the consistency of our operating performance on a period-to-period basis.

Deferred costs and amortization. Deferred costs consist of capitalized sales commissions and capitalized service costs. We include capitalization of sales commission and service costs, and exclude their subsequent amortization in certain of our non-GAAP financial measures. We capitalize sales commissions that are incremental costs in obtaining new customer contracts. We capitalize service costs, which pertain primarily to direct payroll and third-party costs incurred when we provide implementation services to our financial institution customers and certain SMB customers prior to the launching of our product for general use. We amortize the capitalized sales commissions and capitalized service costs over the estimated benefit period. We believe that including or excluding the effect of the capitalization of sales commissions and service costs in certain of our non-GAAP financial measures in a given period provides us useful information in evaluating and comparing the consistency of our performance in acquiring new customer contracts on a period-to-period basis.

Loss on revaluation of warrant liabilities. We exclude loss on revaluation of warrant liabilities, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance.

There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited, in thousands) September 30, June 30, 2020 2020

ASSETSCurrent assets:Cash and cash equivalents $ 564,153 $ 573,643

Short-term investments 136,171 123,974

Accounts receivable, net 5,042 4,252

Unbilled revenue 6,925 6,549

Prepaid expenses and other current assets 15,421 26,781

Funds held for customers 1,668,903 1,644,250

Total current assets 2,396,615 2,379,449

Non-current assets:Operating lease right-of-use assets 43,400 -

Property and equipment, net 21,709 13,866

Other assets 17,484 10,700

Total assets $ 2,479,208 $ 2,404,015

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 6,566 $ 3,478

Accrued compensation and benefits 7,605 12,387

Other accrued and current liabilities 8,335 8,541

Deferred revenue 6,166 5,891

Line of credit borrowings 2,300 2,300

Operating lease liabilities 2,485 -

Customer fund deposits 1,668,903 1,644,250

Total current liabilities 1,702,360 1,676,847

Non-current liabilities:Deferred revenue 2,785 2,622

Operating lease liabilities 52,934 -

Other long-term liabilities 2,361 13,827

Total liabilities 1,760,440 1,693,296

Commitments and contingenciesStockholders' equity:Common stock 2 2

Additional paid-in capital 879,346 857,044

Accumulated other comprehensive income 1,118 2,420

Accumulated deficit (161,698 ) (148,747 )

Total stockholders' equity 718,768 710,719

Total liabilities and stockholders' equity $ 2,479,208 $ 2,404,015

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands except per share amounts)Three months endedSeptember 30,2020

2019

RevenueSubscription and transaction fees$

43,788

$

28,548

Interest on funds held for customers2,421

6,632

Total revenue46,209

35,180

Cost of revenue (1)12,106

9,147

Gross profit34,103

26,033

Operating expensesResearch and development (1)17,786

11,515

Sales and marketing (1)12,908

10,267

General and administrative (1)17,190

10,535

Total operating expenses47,884

32,317

Loss from operations(13,781

)

(6,284

)

Other income, net830

639

Loss before provision for income taxes(12,951

)

(5,645

)

Provision for income taxes-

51

Net loss$

(12,951

)

$

(5,696

)

Net loss per share attributable to common stockholders, basic and diluted$

(0.16

)

$

(0.69

)

Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted80,216

8,231

(1) Includes stock-based compensation expense as follows:Cost of revenue$

601

$

148

Research and development3,069

671

Sales and marketing1,504

382

General and administrative4,720

1,075

$

9,894

$

2,276

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands except per share amounts) Three months ended September 30, 2020 2019

RevenueSubscription and transaction fees $ 43,788 $ 28,548

Interest on funds held for customers 2,421 6,632

Total revenue 46,209 35,180

Cost of revenue ^(1) 12,106 9,147

Gross profit 34,103 26,033

Operating expensesResearch and development ^(1) 17,786 11,515

Sales and marketing ^(1) 12,908 10,267

General and administrative ^(1) 17,190 10,535

Total operating expenses 47,884 32,317

Loss from operations (13,781 ) (6,284 )

Other income, net 830 639

Loss before provision for income taxes (12,951 ) (5,645 )

Provision for income taxes - 51

Net loss $ (12,951 ) $ (5,696 )

Net loss per share attributable to common $ (0.16 ) $ (0.69 )stockholders, basic and dilutedWeighted-average number of common shares used to 80,216 8,231 compute net loss per share attributable to commonstockholders, basic and diluted ^(1) Includes stock-based compensation expense asfollows:Cost of revenue $ 601 $ 148

Research and development 3,069 671

Sales and marketing 1,504 382

General and administrative 4,720 1,075

$ 9,894 $ 2,276

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands)Three months endedSeptember 30,2020

2019 (1)

Cash flows from operating activities:Net loss$

(12,951

)

$

(5,696

)

Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization924

985

Stock-based compensation9,894

2,276

Amortization of premium (accretion of discount) on investment in marketable debt securities46

(730

)

Non-cash operating lease expense765

-

Revaluation of warrant liabilities-

165

Changes in assets and liabilities:Accounts receivable(790

)

707

Unbilled revenue(376

)

(621

)

Prepaid expenses and other current assets2,314

(1,142

)

Other assets(6,784

)

(50

)

Accounts payable1,566

508

Accrued and other current liabilities(4,504

)

1,132

Operating lease liabilities5,764

-

Other long-term liabilities1,338

93

Deferred revenue438

(7

)

Net cash used in operating activities(2,356

)

(2,380

)

Cash flows from investing activities:Purchases of corporate and customer fund short-term investments(343,345

)

(189,204

)

Proceeds from maturities of corporate and customer fund short-term investments244,332

255,171

Proceeds from sale of corporate and customer fund short-term investments33,286

10,761

(Increase) decrease in other receivables included in funds held for customers(1,522

)

2,049

Purchases of property and equipment(5,894

)

(1,946

)

Capitalization of internal-use software costs(314

)

(215

)

Net cash (used in) provided by investing activities(73,457

)

76,616

Cash flows from financing activities:Increase in customer fund deposits liability24,653

137,186

Proceeds from exercise of stock options8,962

294

Proceeds from issuance of common stock under the employee stock purchase plan4,327

-

Payments of offering costs related to the follow-on public offering(664

)

-

Payments of deferred offering costs-

(874

)

Payments of deferred debt issuance costs-

(151

)

Net cash provided by financing activities37,278

136,455

Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents(38,535

)

210,691

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period1,592,377

983,168

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period$

1,553,842

$

1,193,859

Reconciliation of cash, cash equivalents, restricted cash, and restrictedcash equivalents within the consolidated balance sheets to theamounts shown in the consolidated statements of cash flows above:Cash and cash equivalents$

564,153

$

86,249

Restricted cash included in other current assets119

256

Restricted cash and restricted cash equivalents included in funds held for customers989,570

1,107,354

Total cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period$

1,553,842

$

1,193,859

______________________(1) Amounts have been adjusted to reflect the adoption of Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Shown below is a summary of the adjustments during the three months ended September 30, 2019 (in thousands).Aspreviously reportedASU No.2016-18 adjustmentsAsadjustedNet cash used in operating activities$

(2,380

)

$

-

$

(2,380

)

Net cash (used in) provided by investing activities(138,132

)

214,748

76,616

Net cash provided by financing activities136,455

-

136,455

Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents

(4,057

)

214,748

210,691

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

90,306

892,862

983,168

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period$

86,249

$

1,107,610

$

1,193,859

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands) Three months ended September 30, 2020 2019 ^(1)

Cash flows from operatingactivities:Net loss $ (12,951 ) $ (5,696 )

Adjustments to reconcile net lossto net cash used in operatingactivities:Depreciation and amortization 924 985

Stock-based compensation 9,894 2,276

Amortization of premium(accretion of discount) on 46 (730 )investment in marketable debtsecuritiesNon-cash operating lease expense 765 -

Revaluation of warrant - 165 liabilitiesChanges in assets andliabilities:Accounts receivable (790 ) 707

Unbilled revenue (376 ) (621 )

Prepaid expenses and other 2,314 (1,142 )current assetsOther assets (6,784 ) (50 )

Accounts payable 1,566 508

Accrued and other current (4,504 ) 1,132 liabilitiesOperating lease liabilities 5,764 -

Other long-term liabilities 1,338 93

Deferred revenue 438 (7 )

Net cash used in operating (2,356 ) (2,380 )activitiesCash flows from investingactivities:Purchases of corporate and (343,345 ) (189,204 )customer fund short-terminvestmentsProceeds from maturities of 244,332 255,171 corporate and customer fundshort-term investmentsProceeds from sale of corporate 33,286 10,761 and customer fund short-terminvestments(Increase) decrease in other (1,522 ) 2,049 receivables included in fundsheld for customersPurchases of property and (5,894 ) (1,946 )equipmentCapitalization of internal-use (314 ) (215 )software costsNet cash (used in) provided by (73,457 ) 76,616 investing activitiesCash flows from financingactivities:Increase in customer fund 24,653 137,186 deposits liabilityProceeds from exercise of stock 8,962 294 optionsProceeds from issuance of common 4,327 - stock under the employee stockpurchase planPayments of offering costs (664 ) - related to the follow-on publicofferingPayments of deferred offering - (874 )costsPayments of deferred debt - (151 )issuance costsNet cash provided by financing 37,278 136,455 activitiesNet (decrease) increase in cash,cash equivalents, restricted (38,535 ) 210,691 cash, and restricted cashequivalentsCash, cash equivalents,restricted cash, and restricted 1,592,377 983,168 cash equivalents, beginning ofperiodCash, cash equivalents, $ 1,553,842 $ 1,193,859 restricted cash, and restrictedcash equivalents, end of period Reconciliation of cash, cashequivalents, restricted cash, andrestrictedcash equivalents within theconsolidated balance sheets totheamounts shown in the consolidatedstatements of cash flows above:Cash and cash equivalents $ 564,153 $ 86,249

Restricted cash included in other 119 256 current assetsRestricted cash and restricted 989,570 1,107,354 cash equivalents included infunds held for customersTotal cash, cash equivalents, $ 1,553,842 $ 1,193,859 restricted cash, and restrictedcash equivalents, end of period ______________________^(1) Amounts have been adjusted to reflect the adoption of Accounting StandardsUpdate No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Shownbelow is a summary of the adjustments during the three months ended September30, 2019 (in thousands). As ASU No. As previously 2016-18 adjusted reported adjustmentsNet cash used in operating $ (2,380 ) $ - $ (2,380 )activitiesNet cash (used in) provided by (138,132 ) 214,748 76,616 investing activitiesNet cash provided by financing 136,455 - 136,455 activitiesNet (decrease) increase in cash,cash equivalents, restricted (4,057 ) 214,748 210,691 cash, and restricted cashequivalents

Cash, cash equivalents,restricted cash, and restricted 90,306 892,862 983,168 cash equivalents, beginning ofperiod

Cash, cash equivalents, $ 86,249 $ 1,107,610 $ 1,193,859 restricted cash, and restrictedcash equivalents, end of period BILL.COM HOLDINGS, INC.RECONCILIATION OF GAAP TO NON-GAAP DATATHREE MONTHS ENDED SEPTEMBER 30, 2020(Unaudited, in thousands except percentages and per share amounts)GAAPStock-basedcompensationexpenseEmployerpayroll taxesrelated to stock-basedcompensationexpenseDeferredcosts(amortizationof deferredcosts)DepreciationandamortizationexpenseNon-GAAPTotal revenue$

46,209

$

-

$

-

$

-

$

-

$

46,209

Cost of revenue12,106

(601

)

(46

)

(129

)

(725

)

10,605

Gross profit34,103

601

46

129

725

35,604

Gross margin73.8

%

1.3

%

0.1

%

0.3

%

1.6

%

77.0

%

Operating expensesResearch and development17,786

(3,069

)

(271

)

1,097

(59

)

15,484

Sales and marketing12,908

(1,504

)

(132

)

703

(35

)

11,940

General and administrative17,190

(4,720

)

(507

)

-

(106

)

11,857

Loss from operations(13,781

)

9,894

956

(1,671

)

925

(3,677

)

Other income, net830

-

-

-

-

830

Loss before benefit from income taxes(12,951

)

9,894

956

(1,671

)

925

(2,847

)

Provision for income taxes-

-

-

-

-

-

Net loss$

(12,951

)

$

9,894

$

956

$

(1,671

)

$

925

$

(2,847

)

Net loss per share attributable to common stockholders, basic and diluted (1)$

(0.16

)

$

(0.04

)

Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted80,216

80,216

(1) GAAP net loss per share attributable to common stockholders, basic and diluted$

(0.16

)

Stock-based compensation expense0.12

Employer payroll taxes related to stock-based compensation expense0.01

Deferred costs (amortization of deferred costs)(0.02

)

Depreciation and amortization expense0.01

Non-GAAP net loss per share attributable to common stockholders, basic and diluted$

(0.04

)

BILL.COM HOLDINGS, INC.RECONCILIATION OF GAAP TO NON-GAAP DATATHREE MONTHS ENDED SEPTEMBER 30, 2020(Unaudited, in thousands except percentages and per share amounts) Employer payroll Deferred Stock-based taxes costs Depreciation GAAP compensation related to (amortization and Non-GAAP expense stock- of deferred amortization based costs) expense compensation expenseTotal revenue $ 46,209 $ - $ - $ - $ - $ 46,209

Cost of revenue 12,106 (601 ) (46 ) (129 ) (725 ) 10,605

Gross profit 34,103 601 46 129 725 35,604

Gross margin 73.8 % 1.3 % 0.1 % 0.3 % 1.6 % 77.0 %

OperatingexpensesResearch and 17,786 (3,069 ) (271 ) 1,097 (59 ) 15,484 developmentSales and 12,908 (1,504 ) (132 ) 703 (35 ) 11,940 marketingGeneral and 17,190 (4,720 ) (507 ) - (106 ) 11,857 administrativeLoss from (13,781 ) 9,894 956 (1,671 ) 925 (3,677 )operationsOther income, 830 - - - - 830 netLoss before (12,951 ) 9,894 956 (1,671 ) 925 (2,847 )benefit fromincome taxesProvision for - - - - - - income taxesNet loss $ (12,951 ) $ 9,894 $ 956 $ (1,671 ) $ 925 $ (2,847 )

Net loss pershareattributable to $ (0.16 ) $ (0.04 )commonstockholders,basic anddiluted ^(1) Weighted-averagenumber of commonshares used tocompute net lossper share 80,216 80,216 attributable tocommonstockholders,basic anddiluted ^(1) GAAP net loss per share attributable to common $ (0.16 )stockholders, basic and dilutedStock-based compensation expense 0.12

Employer payroll taxes related to stock-based 0.01 compensation expenseDeferred costs (amortization of deferred costs) (0.02 )

Depreciation and amortization expense 0.01

Non-GAAP net loss per share attributable to common $ (0.04 )stockholders, basic and diluted BILL.COM HOLDINGS, INC.RECONCILIATION OF GAAP TO NON-GAAP DATATHREE MONTHS ENDED SEPTEMBER 30, 2019(Unaudited, in thousands except percentages and per share amounts)GAAPStock-basedcompensationexpenseDeferred costs(amortizationof deferredcosts)DepreciationandamortizationexpenseLoss onrevaluation ofwarrantliabilityNon-GAAPTotal revenue$

35,180

$

-

$

-

$

-

$

-

$

35,180

Cost of revenue9,147

(148

)

(216

)

(773

)

-

8,010

Gross profit26,033

148

216

773

-

27,170

Gross margin74.0

%

0.4

%

0.6

%

2.2

%

0.0

%

77.2

%

Operating expensesResearch and development11,515

(671

)

186

(87

)

-

10,943

Sales and marketing10,267

(382

)

519

(59

)

-

10,345

General and administrative10,535

(1,075

)

-

(65

)

-

9,395

Loss from operations(6,284

)

2,276

(489

)

984

-

(3,513

)

Other income, net639

-

-

-

165

804

Loss before provision for income taxes(5,645

)

2,276

(489

)

984

165

(2,709

)

Benefit from income taxes51

-

-

-

-

51

Net loss$

(5,696

)

$

2,276

$

(489

)

$

984

$

165

$

(2,760

)

Net loss per share attributable to common stockholders, basic and diluted (1)$

(0.69

)

$

(0.05

)

Weighted-average number of common shares used to compute net loss per share attributable to common stockholders, basic and diluted (2)8,231

60,665

(1) GAAP net loss per share attributable to common stockholders, basic and diluted$

(0.69

)

Stock-based compensation expense0.28

Deferred costs (amortization of deferred costs)(0.06

)

Depreciation and amortization expense0.11

Loss on revaluation of warrant liability0.02

Impact of the assumed conversion of redeemable convertible preferred stock0.29

Non-GAAP net loss per share attributable to common stockholders, basic and diluted$

(0.05

)

(2) Shares used to compute GAAP net loss per share attributable to common stockholders, basic and diluted8,231

Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the date of issuance52,434

Shares used to compute non-GAAP net loss per share attributable to common stockholders, basic and diluted60,665

BILL.COM HOLDINGS, INC.RECONCILIATION OF GAAP TO NON-GAAP DATATHREE MONTHS ENDED SEPTEMBER 30, 2019(Unaudited, in thousands except percentages and per share amounts) Deferred Depreciation Loss on Stock-based costs and revaluation GAAP compensation (amortization amortization of Non-GAAP expense of deferred expense warrant costs) liabilityTotal revenue $ 35,180 $ - $ - $ - $ - $ 35,180

Cost of revenue 9,147 (148 ) (216 ) (773 ) - 8,010

Gross profit 26,033 148 216 773 - 27,170

Gross margin 74.0 % 0.4 % 0.6 % 2.2 % 0.0 % 77.2 %

OperatingexpensesResearch and 11,515 (671 ) 186 (87 ) - 10,943 developmentSales and 10,267 (382 ) 519 (59 ) - 10,345 marketingGeneral and 10,535 (1,075 ) - (65 ) - 9,395 administrativeLoss from (6,284 ) 2,276 (489 ) 984 - (3,513 )operationsOther income, 639 - - - 165 804 netLoss before (5,645 ) 2,276 (489 ) 984 165 (2,709 )provision forincome taxesBenefit from 51 - - - - 51 income taxesNet loss $ (5,696 ) $ 2,276 $ (489 ) $ 984 $ 165 $ (2,760 )

Net loss pershareattributable to $ (0.69 ) $ (0.05 )commonstockholders,basic anddiluted ^(1) Weighted-averagenumber of commonshares used tocompute net lossper share 8,231 60,665 attributable tocommonstockholders,basic anddiluted ^(2) ^(1) GAAP net loss per share attributable to common $ (0.69 )stockholders, basic and dilutedStock-based compensation expense 0.28

Deferred costs (amortization of deferred costs) (0.06 )

Depreciation and amortization expense 0.11

Loss on revaluation of warrant liability 0.02

Impact of the assumed conversion of redeemable 0.29 convertible preferred stockNon-GAAP net loss per share attributable to common $ (0.05 )stockholders, basic and diluted ^(2) Shares used to compute GAAP net loss per share attributable to 8,231 common stockholders, basic and dilutedWeighted average effect of the assumed conversion of redeemable 52,434 convertible preferred stock from the date of issuanceShares used to compute non-GAAP net loss per share attributable to 60,665 common stockholders, basic and diluted BILL.COM HOLDINGS, INC.FREE CASH FLOW(Unaudited, in thousands)Three months endedSeptember 30,2020

2019

Net cash used in operating activities$

(2,356

)

$

(2,380

)

Purchases of property and equipment(5,894

)

(1,946

)

Capitalization of internal-use software costs(314

)

(215

)

Free cash flow$

(8,564

)

$

(4,541

)

BILL.COM HOLDINGS, INC.FREE CASH FLOW(Unaudited, in thousands) Three months ended September 30, 2020 2019

Net cash used in operating activities $ (2,356 ) $ (2,380 )

Purchases of property and equipment (5,894 ) (1,946 )

Capitalization of internal-use software costs (314 ) (215 )

Free cash flow $ (8,564 ) $ (4,541 )

BILL.COM HOLDINGS, INC.REMAINING PERFORMANCE OBLIGATIONS WITH FINANCIAL INSTITUTIONS(Unaudited, in thousands)September 30,June 30,2020

2020

Remaining performance obligations with financial institutions to be recognized as revenue:Within 1 year$

17,888

$

13,001

Thereafter133,321

139,334

Total$

151,209

$

152,335

View source version on businesswire.com: https://www.businesswire.com/news/home/20201105006112/en/

CONTACT: IR Contact: Carolyn Bass cbass@hq.bill.com Press Contact: Oriana Branon obrannon@hq.bill.com 619-997-0299