Business Wire | May 6, 2021 04:06PM EDT

Bill.com Reports Third Quarter Fiscal 2021 Financial Results

May 06, 2021

SAN JOSE, Calif.--(BUSINESS WIRE)--May 06, 2021--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 third fiscal quarter ended March 31, 2021.

"We delivered record results and further increased core revenue growth, driven by the value of our platform, the scale of our network, and the broad range of our payment offerings," said Ren Lacerte, Bill.com CEO and Founder. "Our platform makes it easy for businesses to simplify their back office, connect with each other, and make payments. We are helping our customers transform their financial operations, and we believe we are at the beginning of a multiyear digital transformation wave."

"We executed well during the quarter and delivered core revenue growth of 62% year-over-year," said John Rettig, Bill.com CFO. "Our innovation in platform, payments, and go-to-market activities drove strong accelerated growth in transaction fees and total payment volume. We are operating at a large scale, with an annualized run rate of approximately $140 billion of payments processed for our customers."

Financial Highlights for the Third Quarter of Fiscal 2021

* Total revenue was $59.7 million, an increase of 45% from the third quarter of fiscal 2020. * Core revenue, which includes subscription and transaction fees, was $58.6 million, an increase of 62% year-over-year. Subscription fees were $29.3 million, an increase of 32% year-over-year. Transaction fees were $29.3 million, an increase of 112% year-over-year. * GAAP gross profit was $44.3 million, representing a 74.2% gross margin, compared to $31.1 million, or a 75.5% gross margin, in the third quarter of fiscal 2020. Non-GAAP gross profit was $46.0 million, representing a 76.9% non-GAAP gross margin, compared to $32.1 million, or a 77.7% non-GAAP gross margin in the third quarter of fiscal 2020. * Loss from operations was $15.3 million, compared to a loss from operations of $9.7 million in the third quarter of fiscal 2020. Non-GAAP loss from operations was $2.1 million, compared to a non-GAAP loss from operations of $3.8 million in the third quarter of fiscal 2020. * Net loss was $26.7 million, or ($0.32) per share, basic and diluted, compared to net loss of $8.3 million, or ($0.11) per share, basic and diluted, in the third quarter of fiscal 2020. Non-GAAP net loss was $1.7 million, or ($0.02) per share, basic and diluted, compared to non-GAAP net loss of $2.4 million, or ($0.03) per share, basic and diluted, in the third quarter of fiscal 2020. * Cash, cash equivalents and short-term investments were $1.7 billion at March 31, 2021.

Business Highlights and Recent Developments

* Served 115,600 customers as of the end of the third quarter of fiscal 2021, representing year-over-year customer growth of 27%. * Processed $35.0 billion in total payment volume on our platform in the third quarter, an increase of 44% year-over-year. * Processed 7.2 million transactions in the third quarter of fiscal 2021, an increase of 19% year-over-year. * Signed a definitive agreement to acquire Divvy, a leading company in spend management for SMBs. * Recognized on G2's 2021 Best Products for Finance list and named a leader in G2's 2021 Accounts Payable Automation Software category for the small and medium business community. * Launched integrations with Microsoft Dynamics 365 Business Central and Microsoft Dynamics GP.

Financial Outlook

Bill.com is providing the following guidance for the fiscal fourth quarter ending June 30, 2021.

Q4 FY21

Guidance

Total revenue (millions) $60.9 - $61.9

Year-over-year total revenue growth 45% - 47%

Core revenue (millions) $60.4 - $61.3

Year-over-year core revenue growth 56% - 58%

Float revenue (millions) $0.5 - $0.6

Non-GAAP net loss (millions) ($4.5) - ($3.5)

Non-GAAP net loss per share ($0.05) - ($0.04)

Weighted-average basic and diluted shares outstanding 83.3(millions)

The financial outlook does not include any potential impact from the proposed acquisition of DivvyPay, Inc. ("Divvy"). These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements..

Bill.com has not provided a reconciliation of non-GAAP net loss or non-GAAP net loss per share guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Conference Call and Webcast Information

In conjunction with this announcement, Bill.com will host a conference call for investors at 1:30 p.m. PT (4:30 p.m. ET) today to discuss fiscal third quarter results and, our outlook for the fiscal fourth quarter ending June 30, 2021, and the pending acquisition of Divvy. The live webcast and a replay of the webcast will be available 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 San Jose, California and Houston, Texas. For more information, visit www.bill.com.

Note on Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 of future performance, including guidance for our fiscal fourth quarter ending June 30, 2021, our expectations for 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 impacts of acquisitions and investments, including the pending acquisition of Divvy, 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 for the year ended June 30, 2020 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 March 31, 2021 when filed. You should not rely on these forward-looking statements, as actual results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. 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 or revise the forward-looking statements contained in this press release or the accompanying conference call because of new information, future events, or otherwise.

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.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Items excluded from non-GAAP net loss and non-GAAP net loss per share include stock-based compensation expense, employer payroll taxes related to employee stock-based compensation, depreciation and amortization expense, amortization of debt discount and issuance costs, loss on revaluation of warrant liabilities, and income tax benefit associated with 2025 Notes. 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 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.

Beginning the quarter ended March 31, 2021, we changed our method of calculating certain non-GAAP financial measures by removing the adjustments related to the capitalized service costs, capitalized internal-use software, capitalized sales commissions, and the associated amortization expenses. Our non-GAAP financial measures for the quarter ended March 31, 2020 were also adjusted to conform to the current quarter presentation. These changes are further described in the reconciliation of GAAP to non-GAAP financial measures below.

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.

Amortization of debt discount and issuance costs. We exclude the amortization of debt discount and issuance costs associated with our issuance of convertible senior notes due 2025 from certain of our non-GAAP financial measures because we believe that excluding this non-cash interest expense provides meaningful supplemental information regarding our operational performance.

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.

Income tax benefit associated with 2025 Notes. We exclude the income tax benefit associated with 2025 Notes from certain of our non-GAAP financial measures because we believe that excluding this provides meaningful supplemental information regarding our 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.

Free Cash Flow

Free cash flow is a non-GAAP measure that we calculate as net cash provided by (used in) operating activities, reduced by purchases of property and equipment and capitalization of internal-use software costs. We believe free cash flow is an important liquidity measure of the cash (if any) that is available, after capital expenditures, for operational expenses and investment in our business. Free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. One limitation of free cash flow is that it does not reflect our future contractual commitments. Additionally, free cash flow does not represent the total increase or decrease in our cash balance for a given period. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth.

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited, in thousands) March 31, June 30,

2021 2020

ASSETSCurrent assets:Cash and cash equivalents $ 1,223,724 $ 573,643

Short-term investments 512,520 123,974

Accounts receivable, net 9,584 4,252

Unbilled revenue 7,865 6,549

Prepaid expenses and other current assets 18,268 26,781

Funds held for customers 1,929,840 1,644,250

Total current assets 3,701,801 2,379,449

Non-current assets:Operating lease right-of-use assets 44,125 -

Property and equipment, net 31,740 13,866

Other assets 22,499 10,700

Total assets $ 3,800,165 $ 2,404,015

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 4,320 $ 3,478

Accrued compensation and benefits 11,632 12,387

Other accrued and current liabilities 9,281 8,541

Deferred revenue 8,371 5,891

Line of credit borrowings - 2,300

Operating lease liabilities 6,388 -

Customer fund deposits 1,929,840 1,644,250

Total current liabilities 1,969,832 1,676,847

Non-current liabilities:Deferred revenue 3,066 2,622

Operating lease liabilities 53,644 -

Convertible senior notes, net 897,871 -

Deferred income tax liability 1,832 -

Other long-term liabilities 3,459 13,827

Total liabilities 2,929,704 1,693,296

Commitments and contingenciesStockholders' equity:Common stock 2 2

Additional paid-in capital 1,076,255 857,044

Accumulated other comprehensive (loss) income (191 ) 2,420

Accumulated deficit (205,605 ) (148,747 )

Total stockholders' equity 870,461 710,719

Total liabilities and stockholders' equity $ 3,800,165 $ 2,404,015

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands except per share amounts)Three months ended March 31,

Nine months ended March 31,

2021

2020

2021

2020

RevenueSubscription and transaction fees$

58,622

$

36,092

$

154,743

$

97,604

Interest on funds held for customers1,116

5,138

5,249

17,886

Total revenue59,738

41,230

159,992

115,490

Cost of revenue (1)15,434

10,110

41,513

29,044

Gross profit44,304

31,120

118,479

86,446

Operating expensesResearch and development (1)22,286

13,969

60,558

38,476

Sales and marketing (1)15,190

11,802

42,272

33,560

General and administrative (1)22,124

15,064

58,897

38,347

Total operating expenses59,600

40,835

161,727

110,383

Loss from operations(15,296

)

(9,715

)

(43,248

)

(23,937

)

Other (expense) income, net(11,432

)

1,397

(13,943

)

2,396

Loss before (benefit from) provision for income taxes(26,728

)

(8,318

)

(57,191

)

(21,541

)

(Benefit from) provision for income taxes-

1

(333

)

52

Net loss$

(26,728

)

$

(8,319

)

$

(56,858

)

$

(21,593

)

Net loss per share attributable tocommon stockholders, basic and diluted$

(0.32

)

$

(0.11

)

$

(0.70

)

$

(0.63

)

Weighted-average number of common sharesused to compute net loss per shareattributable to common stockholders,basic and diluted82,627

72,379

81,446

34,167

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

728

$

422

$

1,971

$

781

Research and development3,638

1,466

9,953

3,221

Sales and marketing1,711

767

5,086

1,643

General and administrative4,603

2,430

14,253

4,791

$

10,680

$

5,085

$

31,263

$

10,436

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands except per share amounts) Three months ended Nine months ended March 31, March 31,

2021 2020 2021 2020

RevenueSubscription and $ 58,622 $ 36,092 $ 154,743 $ 97,604 transaction feesInterest on funds held 1,116 5,138 5,249 17,886 for customersTotal revenue 59,738 41,230 159,992 115,490

Cost of revenue ^(1) 15,434 10,110 41,513 29,044

Gross profit 44,304 31,120 118,479 86,446

Operating expensesResearch and 22,286 13,969 60,558 38,476 development ^(1)Sales and marketing ^ 15,190 11,802 42,272 33,560 (1)General and 22,124 15,064 58,897 38,347 administrative ^(1)Total operating 59,600 40,835 161,727 110,383 expensesLoss from operations (15,296 ) (9,715 ) (43,248 ) (23,937 )

Other (expense) income, (11,432 ) 1,397 (13,943 ) 2,396 netLoss before (benefit (26,728 ) (8,318 ) (57,191 ) (21,541 )from) provision forincome taxes(Benefit from) - 1 (333 ) 52 provision for incometaxesNet loss $ (26,728 ) $ (8,319 ) $ (56,858 ) $ (21,593 )

Net loss per shareattributable to $ (0.32 ) $ (0.11 ) $ (0.70 ) $ (0.63 )common stockholders,basic and dilutedWeighted-average numberof common sharesused to compute net 82,627 72,379 81,446 34,167 loss per shareattributable to commonstockholders,basic and diluted ^(1) Includes stock-basedcompensation expense as follows:Cost of revenue $ 728 $ 422 $ 1,971 $ 781

Research and 3,638 1,466 9,953 3,221 developmentSales and marketing 1,711 767 5,086 1,643

General and 4,603 2,430 14,253 4,791 administrative $ 10,680 $ 5,085 $ 31,263 $ 10,436

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands)Three months ended March 31,

Nine months ended March 31,

2021

2020 (1)

2021

2020 (1)

Cash flows from operating activities:Net loss$

(26,728

)

$

(8,319

)

$

(56,858

)

$

(21,593

)

Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization1,526

1,100

3,449

3,205

Stock-based compensation10,680

5,085

31,263

10,436

Amortization of debt discount and issuance costs11,819

-

15,724

-

Amortization of premium (accretion of discount) on investment in marketable debt securities1,247

(509

)

1,970

(2,855

)

Non-cash operating lease expense958

-

2,635

-

Revaluation of warrant liabilities-

-

-

717

Deferred income tax-

-

(333

)

-

Changes in assets and liabilities:Accounts receivable(2,547

)

1,351

(5,332

)

958

Unbilled revenue(495

)

(242

)

(1,316

)

(1,356

)

Prepaid expenses and other current assets(886

)

(9,235

)

(4,833

)

(10,843

)

Other assets(532

)

(466

)

(11,799

)

(1,047

)

Accounts payable(439

)

(2,621

)

927

(1,475

)

Accrued and other current liabilities70

2,342

58

6,893

Operating lease liabilities852

-

7,782

-

Other long-term liabilities3

10,502

576

10,689

Deferred revenue2,892

1,834

2,924

2,944

Net cash (used in) provided by operating activities(1,580

)

822

(13,163

)

(3,327

)

Cash flows from investing activities:Purchases of corporate and customer fund short-term investments(784,583

)

(416,046

)

(1,486,025

)

(830,694

)

Proceeds from maturities of corporate and customer fund short-term investments329,774

189,075

830,933

596,311

Proceeds from sale of corporate and customer fund short-term investments83,786

2,612

119,072

25,337

Increase in other receivables included in funds held for customers(9,091

)

(1,901

)

(9,072

)

(6,601

)

Purchases of property and equipment(3,426

)

(2,764

)

(17,062

)

(5,736

)

Capitalization of internal-use software costs(378

)

(149

)

(1,038

)

(489

)

Net cash used in investing activities(383,918

)

(229,173

)

(563,192

)

(221,872

)

Cash flows from financing activities:Proceeds from issuance of convertible senior notes, net of discounts and issuance costs(224

)

-

1,129,379

-

Purchase of capped calls-

-

(87,860

)

-

Proceeds from issuance of common stock upon initial public offering, net of underwritingdiscounts and commissions and other offering costs-

(1,021

)

-

225,544

(Decrease) increase in customer fund deposits liability(287,840

)

(138,211

)

285,590

24,246

Payments on line of credit borrowings(2,300

)

(2,300

)

-

Proceeds from line of credit borrowings-

2,300

-

2,300

Proceeds from exercise of stock options5,592

845

23,034

1,746

Proceeds from issuance of common stock under the employee stock purchase plan4,537

-

8,864

-

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

-

(664

)

-

Proceeds from exercise of stock warrants-

-

-

144

Payments of deferred debt issuance costs-

-

-

(151

)

Net cash (used in) provided by financing activities(280,235

)

(136,087

)

1,356,043

253,829

Net (decrease) increase in cash, cash equivalents, restricted cash, and restrictedcash equivalents(665,733

)

(364,438

)

779,688

28,630

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period3,037,798

1,376,236

1,592,377

983,168

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

2,372,065

$

1,011,798

$

2,372,065

$

1,011,798

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

1,223,724

$

228,585

$

1,223,724

$

228,585

Restricted cash included in other current assets35

256

35

256

Restricted cash and restricted cash equivalents included in funds held for customers1,148,306

782,957

1,148,306

782,957

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

2,372,065

$

1,011,798

$

2,372,065

$

1,011,798

______________________(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 and nine months ended March 31, 2020 (in thousands).Three months ended March 31, 2020AsreportedASU No.2016-18adjustmentsAsadjustedNet cash provided by operating activities$

822

$

-

$

822

Net cash provided by (used in) investing activities48,956

(278,129

)

(229,173

)

Net cash used in financing activities(136,087

)

-

(136,087

)

Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents(86,309

)

(278,129

)

(364,438

)

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period314,894

1,061,342

1,376,236

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

228,585

$

783,213

$

1,011,798

Nine months ended March 31, 2020AsreportedASU No.2016-18adjustmentsAsadjustedNet cash used in operating activities$

(3,327

)

$

-

$

(3,327

)

Net cash used in investing activities(112,223

)

(109,649

)

(221,872

)

Net cash provided by financing activities253,829

-

253,829

Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents138,279

(109,649

)

28,630

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period90,306

892,862

983,168

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

228,585

$

783,213

$

1,011,798

BILL.COM HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited, in thousands) Three months ended Nine months ended March 31, March 31,

2021 2020 ^(1) 2021 2020 ^(1)

Cash flows fromoperatingactivities:Net loss $ (26,728 ) $ (8,319 ) $ (56,858 ) $ (21,593 )

Adjustments toreconcile netloss to netcash used inoperatingactivities:Depreciation 1,526 1,100 3,449 3,205 andamortizationStock-based 10,680 5,085 31,263 10,436 compensationAmortization ofdebt discount 11,819 - 15,724 - and issuancecostsAmortization ofpremium(accretion of 1,247 (509 ) 1,970 (2,855 )discount) oninvestment inmarketable debtsecuritiesNon-cash 958 - 2,635 - operating leaseexpenseRevaluation of - - - 717 warrantliabilitiesDeferred income - - (333 ) - taxChanges inassets andliabilities:Accounts (2,547 ) 1,351 (5,332 ) 958 receivableUnbilled (495 ) (242 ) (1,316 ) (1,356 )revenuePrepaidexpenses and (886 ) (9,235 ) (4,833 ) (10,843 )other currentassetsOther assets (532 ) (466 ) (11,799 ) (1,047 )

Accounts (439 ) (2,621 ) 927 (1,475 )payableAccrued and 70 2,342 58 6,893 other currentliabilitiesOperating lease 852 - 7,782 - liabilitiesOther long-term 3 10,502 576 10,689 liabilitiesDeferred 2,892 1,834 2,924 2,944 revenueNet cash (usedin) provided by (1,580 ) 822 (13,163 ) (3,327 )operatingactivitiesCash flows frominvestingactivities:Purchases ofcorporate and (784,583 ) (416,046 ) (1,486,025 ) (830,694 )customer fundshort-terminvestmentsProceeds frommaturities ofcorporate and 329,774 189,075 830,933 596,311 customer fundshort-terminvestmentsProceeds fromsale ofcorporate and 83,786 2,612 119,072 25,337 customer fundshort-terminvestmentsIncrease inotherreceivables (9,091 ) (1,901 ) (9,072 ) (6,601 )included infunds held forcustomersPurchases of (3,426 ) (2,764 ) (17,062 ) (5,736 )property andequipmentCapitalization (378 ) (149 ) (1,038 ) (489 )of internal-usesoftware costsNet cash used (383,918 ) (229,173 ) (563,192 ) (221,872 )in investingactivitiesCash flows fromfinancingactivities:Proceeds fromissuance ofconvertible (224 ) - 1,129,379 - senior notes,net ofdiscounts andissuance costsPurchase of - - (87,860 ) - capped callsProceeds fromissuance ofcommon stockupon initialpublic - (1,021 ) - 225,544 offering, netof underwritingdiscounts andcommissions andother offeringcosts(Decrease)increase in (287,840 ) (138,211 ) 285,590 24,246 customer funddepositsliabilityPayments on (2,300 ) (2,300 ) - line of creditborrowingsProceeds from - 2,300 - 2,300 line of creditborrowingsProceeds from 5,592 845 23,034 1,746 exercise ofstock optionsProceeds fromissuance ofcommon stock 4,537 - 8,864 - under theemployee stockpurchase planPayments ofoffering costs - - (664 ) - related to thefollow-onpublic offeringProceeds from - - - 144 exercise ofstock warrantsPayments of - - - (151 )deferred debtissuance costsNet cash (usedin) provided by (280,235 ) (136,087 ) 1,356,043 253,829 financingactivitiesNet (decrease)increase incash, cashequivalents, (665,733 ) (364,438 ) 779,688 28,630 restrictedcash, andrestrictedcashequivalentsCash, cashequivalents,restrictedcash, and 3,037,798 1,376,236 1,592,377 983,168 restricted cashequivalents,beginning ofperiodCash, cashequivalents,restricted $ 2,372,065 $ 1,011,798 $ 2,372,065 $ 1,011,798 cash, andrestricted cashequivalents,end of period Reconciliationof cash, cashequivalents,restrictedcash, andrestrictedcashequivalentswithin thecondensedconsolidatedbalance sheetsto theamounts shownin thecondensedconsolidatedstatements ofcash flowsabove:Cash and cash $ 1,223,724 $ 228,585 $ 1,223,724 $ 228,585 equivalentsRestricted cashincluded in 35 256 35 256 other currentassetsRestricted cashand restrictedcash 1,148,306 782,957 1,148,306 782,957 equivalentsincluded infunds held forcustomersTotal cash,cashequivalents,restricted $ 2,372,065 $ 1,011,798 $ 2,372,065 $ 1,011,798 cash, andrestricted cashequivalents,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. Shown below is a summary of the adjustmentsduring the three and nine months ended March 31, 2020 (in thousands). Three months ended March 31, 2020 As ASU No. As reported 2016-18 adjusted adjustmentsNet cashprovided by $ 822 $ - $ 822 operatingactivitiesNet cashprovided by 48,956 (278,129 ) (229,173 )(used in)investingactivitiesNet cash used (136,087 ) - (136,087 )in financingactivitiesNet decrease incash, cashequivalents, (86,309 ) (278,129 ) (364,438 )restrictedcash, andrestricted cashequivalentsCash, cashequivalents,restrictedcash, and 314,894 1,061,342 1,376,236 restricted cashequivalents,beginning ofperiodCash, cashequivalents,restricted $ 228,585 $ 783,213 $ 1,011,798 cash, andrestricted cashequivalents,end of period Nine months ended March 31, 2020 As ASU No. As reported 2016-18 adjusted adjustmentsNet cash used $ (3,327 ) $ - $ (3,327 )in operatingactivitiesNet cash used (112,223 ) (109,649 ) (221,872 )in investingactivitiesNet cashprovided by 253,829 - 253,829 financingactivitiesNet increase incash, cashequivalents, 138,279 (109,649 ) 28,630 restrictedcash, andrestricted cashequivalentsCash, cashequivalents,restrictedcash, and 90,306 892,862 983,168 restricted cashequivalents,beginning ofperiodCash, cashequivalents,restricted $ 228,585 $ 783,213 $ 1,011,798 cash, andrestricted cashequivalents,end of periodBILL.COM HOLDINGS, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited, in thousands except percentages and per share amounts)Three months ended March 31,

Nine months ended March 31,

2021

2020 (2)

2021

2020 (2)

Reconciliation of gross profit:GAAP gross profit$

44,304

$

31,120

$

118,479

$

86,446

Add:Stock-based compensation expense728

422

1,971

781

Payroll taxes related to stock-based compensation expense119

-

263

-

Depreciation and amortization expense800

514

1,868

1,575

Non-GAAP gross profit$

45,951

$

32,056

$

122,581

$

88,802

GAAP gross margin74.2

%

75.5

%

74.1

%

74.9

%

Non-GAAP gross margin76.9

%

77.7

%

76.6

%

76.9

%

Three months ended March 31,

Nine months ended March 31,

2021

2020 (2)

2021

2020 (2)

Reconciliation of operating expenses:GAAP research and development expenses$

22,286

$

13,969

$

60,558

$

38,476

Less:Stock-based compensation expense(3,638

)

(1,466

)

(9,953

)

(3,221

)

Payroll taxes related to stock-based compensation expense(404

)

-

(978

)

-

Depreciation and amortization expense(213

)

(113

)

(313

)

(312

)

Non-GAAP research and development expenses$

18,031

$

12,390

$

49,314

$

34,943

GAAP sales and marketing expenses$

15,190

$

11,802

$

42,272

$

33,560

Less:Stock-based compensation expense(1,711

)

(767

)

(5,086

)

(1,643

)

Payroll taxes related to stock-based compensation expense(204

)

-

(507

)

-

Depreciation and amortization expense(119

)

(76

)

(177

)

(220

)

Non-GAAP sales and marketing expenses$

13,156

$

10,959

$

36,502

$

31,697

GAAP general and administrative expenses$

22,124

$

15,064

$

58,897

$

38,347

Less:Stock-based compensation expense(4,603

)

(2,430

)

(14,253

)

(4,791

)

Payroll taxes related to stock-based compensation expense(445

)

-

(1,485

)

-

Depreciation and amortization expense(182

)

(133

)

(391

)

(325

)

Non-GAAP general and administrative expenses$

16,894

$

12,501

$

42,768

$

33,231

Three months ended March 31,

Nine months ended March 31,

2021

2020 (2)

2021

2020 (2)

Reconciliation of loss from operations:GAAP loss from operations$

(15,296

)

$

(9,715

)

$

(43,248

)

$

(23,937

)

Add:Stock-based compensation expense10,680

5,085

31,263

10,436

Payroll taxes related to stock-based compensation expense1,172

-

3,233

-

Depreciation and amortization expense1,314

836

2,749

2,432

Non-GAAP loss from operations$

(2,130

)

$

(3,794

)

$

(6,003

)

$

(11,069

)

Three months ended March 31,

Nine months ended March 31,

2021

2020 (2)

2021

2020 (2)

Reconciliation of net loss:GAAP net loss$

(26,728

)

$

(8,319

)

$

(56,858

)

$

(21,593

)

Add (less):Stock-based compensation expense10,680

5,085

31,263

10,436

Payroll taxes related to stock-based compensation expense1,172

-

3,233

-

Depreciation and amortization expense1,314

836

2,749

2,432

Amortization of debt discount and issuance cost11,819

-

15,724

-

Loss on revaluation of warrant liability-

-

-

717

Income tax benefit associated with 2025 Notes-

-

(333

)

-

Non-GAAP net loss$

(1,743

)

$

(2,398

)

$

(4,222

)

$

(8,008

)

Three months ended March 31,

Nine months ended March 31,

2021

2020 (2)

2021

2020 (2)

Reconciliation of net loss per share attributable tocommon stockholders, basic and dilutedGAAP net loss per share attributable to common stockholders,basic and diluted$

(0.32

)

$

(0.11

)

$

(0.70

)

$

(0.63

)

Add (less):Stock-based compensation expense0.13

0.07

0.38

0.31

Payroll taxes related to stock-based compensation expense0.01

-

0.04

-

Depreciation and amortization expense0.02

0.01

0.04

0.07

Amortization of debt discount and issuance cost0.14

-

0.19

-

Loss on revaluation of warrant liability-

-

-

0.02

Income tax benefit associated with 2025 Notes-

-

-

-

Impact of the assumed conversion of redeemableconvertible preferred stock-

-

-

0.11

Non-GAAP net loss$

(0.02

)

$

(0.03

)

$

(0.05

)

$

(0.12

)

Three months ended March 31,

Nine months ended March 31,

2021

2020

2021

2020

Reconciliation of shares used to compute net loss pershare attributable to common stockholdersShares used to compute GAAP net loss per share attributableto common stockholders, basic and diluted82,627

72,379

81,446

34,167

Add: Weighted average effect of the assumed conversionof redeemable convertible preferred stock from thedate of issuance-

-

-

31,079

Shares used to compute non-GAAP net loss per shareattributable to common stockholders, basic and diluted82,627

72,379

81,446

65,246

BILL.COM HOLDINGS, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited, in thousands except percentages and per share amounts) Three months ended Nine months ended March 31, March 31,

2021 2020 ^(2) 2021 2020 ^(2)

Reconciliation of grossprofit:GAAP gross profit $ 44,304 $ 31,120 $ 118,479 $ 86,446

Add:Stock-based compensation 728 422 1,971 781 expensePayroll taxes related to 119 - 263 - stock-based compensationexpenseDepreciation and 800 514 1,868 1,575 amortization expenseNon-GAAP gross profit $ 45,951 $ 32,056 $ 122,581 $ 88,802

GAAP gross margin 74.2 % 75.5 % 74.1 % 74.9 %

Non-GAAP gross margin 76.9 % 77.7 % 76.6 % 76.9 %

Three months ended Nine months ended March 31, March 31,

2021 2020 ^(2) 2021 2020 ^(2)

Reconciliation ofoperating expenses:GAAP research and $ 22,286 $ 13,969 $ 60,558 $ 38,476 development expensesLess:Stock-based compensation (3,638 ) (1,466 ) (9,953 ) (3,221 )expensePayroll taxes related to (404 ) - (978 ) - stock-based compensationexpenseDepreciation and (213 ) (113 ) (313 ) (312 )amortization expenseNon-GAAP research and $ 18,031 $ 12,390 $ 49,314 $ 34,943 development expensesGAAP sales and marketing $ 15,190 $ 11,802 $ 42,272 $ 33,560 expensesLess:Stock-based compensation (1,711 ) (767 ) (5,086 ) (1,643 )expensePayroll taxes related to (204 ) - (507 ) - stock-based compensationexpenseDepreciation and (119 ) (76 ) (177 ) (220 )amortization expenseNon-GAAP sales and $ 13,156 $ 10,959 $ 36,502 $ 31,697 marketing expensesGAAP general and $ 22,124 $ 15,064 $ 58,897 $ 38,347 administrative expensesLess:Stock-based compensation (4,603 ) (2,430 ) (14,253 ) (4,791 )expensePayroll taxes related to (445 ) - (1,485 ) - stock-based compensationexpenseDepreciation and (182 ) (133 ) (391 ) (325 )amortization expenseNon-GAAP general and $ 16,894 $ 12,501 $ 42,768 $ 33,231 administrative expenses Three months ended Nine months ended March 31, March 31,

2021 2020 ^(2) 2021 2020 ^(2)

Reconciliation of lossfrom operations:GAAP loss from operations $ (15,296 ) $ (9,715 ) $ (43,248 ) $ (23,937 )

Add:Stock-based compensation 10,680 5,085 31,263 10,436 expensePayroll taxes related to 1,172 - 3,233 - stock-based compensationexpenseDepreciation and 1,314 836 2,749 2,432 amortization expenseNon-GAAP loss from $ (2,130 ) $ (3,794 ) $ (6,003 ) $ (11,069 )operations Three months ended Nine months ended March 31, March 31,

2021 2020 ^(2) 2021 2020 ^(2)

Reconciliation of netloss:GAAP net loss $ (26,728 ) $ (8,319 ) $ (56,858 ) $ (21,593 )

Add (less):Stock-based compensation 10,680 5,085 31,263 10,436 expensePayroll taxes related to 1,172 - 3,233 - stock-based compensationexpenseDepreciation and 1,314 836 2,749 2,432 amortization expenseAmortization of debt 11,819 - 15,724 - discount and issuancecostLoss on revaluation of - - - 717 warrant liabilityIncome tax benefit - - (333 ) - associated with 2025NotesNon-GAAP net loss $ (1,743 ) $ (2,398 ) $ (4,222 ) $ (8,008 )

Three months ended Nine months ended March 31, March 31,

2021 2020 ^(2) 2021 2020 ^(2)

Reconciliation of netloss per shareattributable tocommon stockholders,basic and dilutedGAAP net loss per shareattributable to common $ (0.32 ) $ (0.11 ) $ (0.70 ) $ (0.63 )stockholders,basic and dilutedAdd (less):Stock-based compensation 0.13 0.07 0.38 0.31 expensePayroll taxes related to 0.01 - 0.04 - stock-based compensationexpenseDepreciation and 0.02 0.01 0.04 0.07 amortization expenseAmortization of debt 0.14 - 0.19 - discount and issuancecostLoss on revaluation of - - - 0.02 warrant liabilityIncome tax benefit - - - - associated with 2025NotesImpact of the assumedconversion of redeemable - - - 0.11 convertible preferredstockNon-GAAP net loss $ (0.02 ) $ (0.03 ) $ (0.05 ) $ (0.12 )

Three months ended Nine months ended March 31, March 31,

2021 2020 2021 2020

Reconciliation of sharesused to compute net losspershare attributable tocommon stockholdersShares used to computeGAAP net loss per share 82,627 72,379 81,446 34,167 attributableto common stockholders,basic and dilutedAdd: Weighted averageeffect of the assumedconversion - - - 31,079 of redeemable convertiblepreferred stock from thedate of issuanceShares used to computenon-GAAP net loss pershare 82,627 72,379 81,446 65,246 attributable to commonstockholders, basic anddiluted(2) Beginning the quarter ended March 31, 2021, we changed our method of calculating certain non-GAAP financial measures by removing the adjustments related to the capitalized service costs, capitalized internal-use software, capitalized sales commissions, and the associated amortization expenses. Our non-GAAP financial measures for the quarter ended March 31, 2020 were also adjusted to conform to the current quarter presentation. The tables below show the reconciliation of the non-GAAP financial measures as previously reported and as restated during the three and nine months ended March 31, 2020.(2) Beginning the quarter ended March 31, 2021, we changed our method ofcalculating certain non-GAAP financial measures by removing the adjustmentsrelated to the capitalized service costs, capitalized internal-use software,capitalized sales commissions, and the associated amortization expenses. Ournon-GAAP financial measures for the quarter ended March 31, 2020 were alsoadjusted to conform to the current quarter presentation. The tables belowshow the reconciliation of the non-GAAP financial measures as previouslyreported and as restated during the three and nine months ended March 31,2020.Three months endedMarch 31, 2020Nine months endedMarch 31, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of gross profit:GAAP gross profit$

31,120

$

-

$

31,120

$

86,446

$

-

$

86,446

Add (less):Stock-based compensation expense422

-

422

781

-

781

Depreciation and amortization expense514

-

514

1,575

-

1,575

Amortization of capitalized service costs178

(178

)

-

577

(577

)

-

Amortization of capitalized internal-usesoftware costs264

(264

)

-

774

(774

)

-

Non-GAAP gross profit$

32,498

$

(442

)

$

32,056

$

90,153

$

(1,351

)

$

88,802

GAAP gross margin75.5

%

75.5

%

74.9

%

74.9

%

Non-GAAP gross margin78.8

%

-1.1

%

77.7

%

78.1

%

-1.2

%

76.9

%

Three months endedMarch 31, 2020Nine months endedMarch 31, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of operating expenses:GAAP research and development expenses$

13,969

$

-

$

13,969

$

38,476

$

-

$

38,476

Add (less):Stock-based compensation expense(1,466

)

-

(1,466

)

(3,221

)

-

(3,221

)

Depreciation and amortization expense(113

)

-

(113

)

(312

)

-

(312

)

Capitalized service costs150

(150

)

-

444

(444

)

-

Capitalized internal-use software costs243

(243

)

-

320

(320

)

-

Non-GAAP research and development expenses$

12,783

$

(393

)

$

12,390

$

35,707

$

(764

)

$

34,943

GAAP sales and marketing expenses$

11,802

$

-

$

11,802

$

33,560

$

-

$

33,560

Add (less):Stock-based compensation expense(767

)

-

(767

)

(1,643

)

-

(1,643

)

Depreciation and amortization expense(76

)

-

(76

)

(220

)

-

(220

)

Capitalized sales commissions1,163

(1,163

)

-

3,454

(3,454

)

-

Amortization of capitalized sales commissions(581

)

581

-

(1,587

)

1,587

-

Non-GAAP sales and marketing expenses$

11,541

$

(582

)

$

10,959

$

33,564

$

(1,867

)

$

31,697

GAAP general and administrative expenses$

15,064

$

-

$

15,064

$

38,347

$

-

$

38,347

Less:Stock-based compensation expense(2,430

)

-

(2,430

)

(4,791

)

-

(4,791

)

Depreciation and amortization expense(133

)

-

(133

)

(325

)

-

(325

)

Non-GAAP general and administrative expenses$

12,501

$

-

$

12,501

$

33,231

$

-

$

33,231

Three months endedMarch 31, 2020Nine months endedMarch 31, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of loss from operations:GAAP loss from operations$

(9,715

)

$

-

$

(9,715

)

$

(23,937

)

$

-

$

(23,937

)

Add (less):Stock-based compensation expense5,085

-

5,085

10,436

-

10,436

Depreciation and amortization expense836

-

836

2,432

-

2,432

Amortization of capitalized service costs, net ofamount capitalized28

(28

)

-

133

(133

)

-

Amortization of capitalized internal-usesoftware costs, net of amount capitalized21

(21

)

-

454

(454

)

-

Capitalized sales commissions, netof associated amortization expense(582

)

582

-

(1,867

)

1,867

-

Non-GAAP loss from operations$

(4,327

)

$

533

$

(3,794

)

$

(12,349

)

$

1,280

$

(11,069

)

Three months endedMarch 31, 2020Nine months endedMarch 31, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of net loss:GAAP net loss$

(8,319

)

$

-

$

(8,319

)

$

(21,593

)

$

-

$

(21,593

)

Add (less):Stock-based compensation expense5,085

-

5,085

10,436

-

10,436

Depreciation and amortization expense836

-

836

2,432

-

2,432

Amortization of capitalized service costs, net ofamount capitalized28

(28

)

-

133

(133

)

-

Amortization of capitalized internal-usesoftware costs, net of amount capitalized21

(21

)

-

454

(454

)

-

Capitalized sales commissions, netof associated amortization expense(582

)

582

-

(1,867

)

1,867

-

Loss on revaluation of warrant liability-

-

-

717

-

717

Non-GAAP net loss$

(2,931

)

$

533

$

(2,398

)

$

(9,288

)

$

1,280

$

(8,008

)

Three months endedMarch 31, 2020Nine months endedMarch 31, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of net loss per share attributableto common stockholders,basic and dilutedGAAP net loss per share attributable to commonstockholders, basic and diluted$

(0.11

)

$

-

$

(0.11

)

$

(0.63

)

$

-

$

(0.63

)

Add (less):Stock-based compensation expense0.07

-

0.07

0.31

-

0.31

Depreciation and amortization expense0.01

-

0.01

0.07

-

0.07

Amortization of capitalized service costs, net ofamount capitalized-

-

-

0.01

(0.01

)

-

Amortization of capitalized internal-usesoftware costs, net of amount capitalized-

-

-

0.01

(0.01

)

-

Capitalized sales commissions, netof associated amortization expense(0.01

)

0.01

-

(0.06

)

0.06

-

Loss on revaluation of warrant liability-

-

-

0.02

-

0.02

Impact of assumed conversion of redeemableconvertible preferred stock-

-

-

0.13

(0.02

)

0.11

Non-GAAP net loss$

(0.04

)

$

0.01

$

(0.03

)

$

(0.14

)

$

0.02

$

(0.12

)

Three months ended Nine months ended March 31, 2020 March 31, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof grossprofit:GAAP gross $ 31,120 $ - $ 31,120 $ 86,446 $ - $ 86,446 profitAdd (less):Stock-based 422 - 422 781 - 781 compensationexpenseDepreciationand 514 - 514 1,575 - 1,575 amortizationexpenseAmortization 178 (178 ) - 577 (577 ) - of capitalizedservice costsAmortizationof capitalized 264 (264 ) - 774 (774 ) - internal-usesoftware costsNon-GAAP gross $ 32,498 $ (442 ) $ 32,056 $ 90,153 $ (1,351 ) $ 88,802 profitGAAP gross 75.5 % 75.5 % 74.9 % 74.9 %marginNon-GAAP gross 78.8 % -1.1 % 77.7 % 78.1 % -1.2 % 76.9 %margin Three months ended Nine months ended March 31, 2020 March 31, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof operatingexpenses:GAAP researchand $ 13,969 $ - $ 13,969 $ 38,476 $ - $ 38,476 developmentexpensesAdd (less):Stock-based (1,466 ) - (1,466 ) (3,221 ) - (3,221 )compensationexpenseDepreciationand (113 ) - (113 ) (312 ) - (312 )amortizationexpenseCapitalized 150 (150 ) - 444 (444 ) - service costsCapitalized 243 (243 ) - 320 (320 ) - internal-usesoftware costsNon-GAAPresearch and $ 12,783 $ (393 ) $ 12,390 $ 35,707 $ (764 ) $ 34,943 developmentexpensesGAAP sales and $ 11,802 $ - $ 11,802 $ 33,560 $ - $ 33,560 marketingexpensesAdd (less):Stock-based (767 ) - (767 ) (1,643 ) - (1,643 )compensationexpenseDepreciationand (76 ) - (76 ) (220 ) - (220 )amortizationexpenseCapitalized 1,163 (1,163 ) - 3,454 (3,454 ) - salescommissionsAmortizationof capitalized (581 ) 581 - (1,587 ) 1,587 - salescommissionsNon-GAAP sales $ 11,541 $ (582 ) $ 10,959 $ 33,564 $ (1,867 ) $ 31,697 and marketingexpensesGAAP generaland $ 15,064 $ - $ 15,064 $ 38,347 $ - $ 38,347 administrativeexpensesLess:Stock-based (2,430 ) - (2,430 ) (4,791 ) - (4,791 )compensationexpenseDepreciationand (133 ) - (133 ) (325 ) - (325 )amortizationexpenseNon-GAAPgeneral and $ 12,501 $ - $ 12,501 $ 33,231 $ - $ 33,231 administrativeexpenses Three months ended Nine months ended March 31, 2020 March 31, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof loss fromoperations:GAAP loss from $ (9,715 ) $ - $ (9,715 ) $ (23,937 ) $ - $ (23,937 )operationsAdd (less):Stock-based 5,085 - 5,085 10,436 - 10,436 compensationexpenseDepreciationand 836 - 836 2,432 - 2,432 amortizationexpenseAmortizationof capitalizedservice costs, 28 (28 ) - 133 (133 ) - net ofamountcapitalizedAmortizationof capitalizedinternal-use 21 (21 ) - 454 (454 ) - softwarecosts, net ofamountcapitalizedCapitalizedsalescommissions, (582 ) 582 - (1,867 ) 1,867 - netof associatedamortizationexpenseNon-GAAP loss $ (4,327 ) $ 533 $ (3,794 ) $ (12,349 ) $ 1,280 $ (11,069 )fromoperations Three months ended Nine months ended March 31, 2020 March 31, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof net loss:GAAP net loss $ (8,319 ) $ - $ (8,319 ) $ (21,593 ) $ - $ (21,593 )

Add (less):Stock-based 5,085 - 5,085 10,436 - 10,436 compensationexpenseDepreciationand 836 - 836 2,432 - 2,432 amortizationexpenseAmortizationof capitalizedservice costs, 28 (28 ) - 133 (133 ) - net ofamountcapitalizedAmortizationof capitalizedinternal-use 21 (21 ) - 454 (454 ) - softwarecosts, net ofamountcapitalizedCapitalizedsalescommissions, (582 ) 582 - (1,867 ) 1,867 - netof associatedamortizationexpenseLoss onrevaluation of - - - 717 - 717 warrantliabilityNon-GAAP net $ (2,931 ) $ 533 $ (2,398 ) $ (9,288 ) $ 1,280 $ (8,008 )loss Three months ended Nine months ended March 31, 2020 March 31, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof net lossper shareattributableto commonstockholders,basic anddilutedGAAP net lossper shareattributable $ (0.11 ) $ - $ (0.11 ) $ (0.63 ) $ - $ (0.63 )to commonstockholders,basic anddilutedAdd (less):Stock-based 0.07 - 0.07 0.31 - 0.31 compensationexpenseDepreciationand 0.01 - 0.01 0.07 - 0.07 amortizationexpenseAmortizationof capitalizedservice costs, - - - 0.01 (0.01 ) - net ofamountcapitalizedAmortizationof capitalizedinternal-use - - - 0.01 (0.01 ) - softwarecosts, net ofamountcapitalizedCapitalizedsalescommissions, (0.01 ) 0.01 - (0.06 ) 0.06 - netof associatedamortizationexpenseLoss onrevaluation of - - - 0.02 - 0.02 warrantliabilityImpact ofassumedconversion of - - - 0.13 (0.02 ) 0.11 redeemableconvertiblepreferredstockNon-GAAP net $ (0.04 ) $ 0.01 $ (0.03 ) $ (0.14 ) $ 0.02 $ (0.12 )lossBILL.COM HOLDINGS, INC.FREE CASH FLOW(Unaudited, in thousands)Three months ended March 31,

Nine months ended March 31,

2021

2020

2021

2020

Net cash (used in) provided by operatingactivities$

(1,580

)

$

822

$

(13,163

)

$

(3,327

)

Purchases of property and equipment(3,426

)

(2,764

)

(17,062

)

(5,736

)

Capitalization of internal-use software costs(378

)

(149

)

(1,038

)

(489

)

Free cash flow$

(5,384

)

$

(2,091

)

$

(31,263

)

$

(9,552

)

BILL.COM HOLDINGS, INC.FREE CASH FLOW(Unaudited, in thousands) Three months ended Nine months ended March 31, March 31,

2021 2020 2021 2020

Net cash (used in) provided $ (1,580 ) $ 822 $ (13,163 ) $ (3,327 )by operatingactivitiesPurchases of property and (3,426 ) (2,764 ) (17,062 ) (5,736 )equipmentCapitalization of (378 ) (149 ) (1,038 ) (489 )internal-use software costsFree cash flow $ (5,384 ) $ (2,091 ) $ (31,263 ) $ (9,552 )

BILL.COM HOLDINGS, INC.REMAINING PERFORMANCE OBLIGATIONS WITH FINANCIAL INSTITUTIONS(Unaudited, in thousands)March 31,

June 30,

2021

2020

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

26,177

$

13,001

Thereafter121,283

139,334

Total$

147,460

$

152,335

View source version on businesswire.com: https://www.businesswire.com/news/home/20210506006167/en/

CONTACT: IR Contact: Karen Sansot ksansot@hq.bill.com

CONTACT: Press Contact: Oriana Branon obranon@hq.bill.com 619-997-0299