Business Wire | Aug 26, 2021 04:06PM EDT

Bill.com Reports Fourth Quarter and Fiscal Year 2021 Financial Results

Aug. 26, 2021

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 26, 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 fourth quarter and fiscal year ended June 30, 2021.

"We delivered record growth in fiscal 2021 as we helped SMBs across the country automate their financial operations and make billions of dollars in payments," said Ren Lacerte, Bill.com CEO and Founder. "Our strategic initiatives drove strong adoption of our platform and set us up well for future opportunities. We expanded our e-payment offerings to make it easy for businesses to get paid faster, extended our reach with new strategic partners, and entered the spend management space with our acquisition of Divvy. We are building the one-stop shop platform for SMBs to manage all their financial operations and B2B spend."

"Our organic core revenue increased 73% year-over-year driven by the strength of our platform and excellent execution against our strategic initiatives," said John Rettig, Bill.com CFO. "We are pursuing a large, global opportunity to help millions of small businesses digitally transform their financial operations. With the strength of our organic business and the acquisition of Divvy, we believe we are on a path to extend our leadership position in serving the large SMB market."

Bill.com completed the acquisition of DivvyPay, Inc. ("Divvy"), a leader in spend management for SMBs, on June 1, 2021. Bill.com's reported financial results for the fourth quarter and full fiscal year 2021 include the results of Divvy from that date, while prior periods presented do not. Organic results exclude the impact of Divvy during the month of June 2021.

Financial Highlights for the Fourth Quarter of Fiscal 2021, as reported, including Divvy unless otherwise indicated:

* Total revenue was $78.3 million, an increase of 86% from the fourth quarter of fiscal 2020. * Core revenue, which represents subscription and transaction fees, including Divvy interchange revenue, was $77.5 million, with $10.3 million from Divvy, an increase of 100% year-over-year. Excluding Divvy, core revenue was $67.2 million, up 73% year-over-year. Subscription fees were $31.2 million, including $0.1 million from Divvy, up 32% year-over-year. Transaction fees were $46.3 million, including $10.2 million from Divvy, up 204% year-over year. Excluding Divvy, transaction fees were $36.1 million, up 137% year-over-year. * Gross profit was $58.0 million, representing a 74.1% gross margin, compared to $32.0 million, or a 76.0% gross margin, in the fourth quarter of fiscal 2020. Non-GAAP gross profit was $62.4 million, representing a 79.7% non-GAAP gross margin, compared to $33.0 million, or a 78.5% non-GAAP gross margin in the fourth quarter of fiscal 2020. * Loss from operations was $70.7 million, compared to a loss from operations of $10.3 million in the fourth quarter of fiscal 2020. Non-GAAP loss from operations was $6.2 million, compared to a non-GAAP loss from operations of $0.5 million in the fourth quarter of fiscal 2020. * Net loss was $41.9 million, or ($0.48) per share, basic and diluted, compared to net loss of $9.5 million, or ($0.13) per share, basic and diluted, in the fourth quarter of fiscal 2020. Non-GAAP net loss was $5.8 million, or ($0.07) per share, basic and diluted, compared to non-GAAP net income of $0.3 million, or $0.00 per share, basic and diluted, in the fourth quarter of fiscal 2020.

Financial Highlights for Fiscal Year 2021, as reported, including Divvy:

* Total revenue was $238.3 million, an increase of 51% from the prior fiscal year. * Core revenue was $232.3 million, an increase of 70% from the prior fiscal year. Subscription fees were $111.6 million, up 33% year-over-year, and transaction fees were $120.7 million, up 129% year-over-year. * GAAP gross profit was $176.5 million, representing a 74.1% gross margin, compared to $118.5 million, or a 75.2% gross margin, from the prior fiscal year. Non-GAAP gross profit was $185.0 million, representing a 77.6% non-GAAP gross margin, compared to $121.8 million, or a 77.3% non-GAAP gross margin from the prior fiscal year. * Loss from operations was $114.0 million, compared to a loss from operations of $34.2 million in the prior fiscal year. Non-GAAP loss from operations was $12.2 million, compared to a non-GAAP loss from operations of $11.5 million in the prior fiscal year. * Net loss was $98.7 million, or ($1.19) per share, basic and diluted, compared to net loss of $31.1 million, or ($0.70) per share, basic and diluted, in the prior fiscal year. Non-GAAP net loss was $10.0 million, or ($0.12) per share, basic and diluted, compared to non-GAAP net loss of $7.7 million, or ($0.11) per share, basic and diluted, in the prior fiscal year.

Business Highlights and Recent Developments

The metrics listed below identified as "Bill.com" metrics exclude the results of Divvy for the month of June 2021.

* Completed the acquisition of Divvy, a leader in spend management for SMBs. * Served 121,200 Bill.com customers as of the end of the fourth quarter of fiscal 2021, representing year-over-year customer growth of 24%. Also served 10,700 spending businesses that used Divvy for spend management in June 2021. * Processed $41.7 billion in total payment volume for Bill.com customers in the fourth quarter, an increase of 64% year-over-year. For the full fiscal year, processed $140.3 billion in total payment volume, an increase of 45% over last fiscal year. Spending businesses that used Divvy cards executed $437 million in card payment volume in June 2021. * Processed 8.2 million transactions for Bill.com customers in the fourth quarter of fiscal 2021, an increase of 46% year-over-year. For the full fiscal year, processed 29.2 million transactions, an increase of 22% over last fiscal year. * As of June 30, 2021, Bill.com had 3.2 million network members, an increase of 28% year-over-year. * Net dollar-based retention rate for Bill.com customers was 124% during fiscal 2021 compared to 121% during fiscal 2020 and 110% during fiscal 2019. * Signed a definitive agreement to acquire Invoice2go, a leading mobile-first accounts receivable software provider for small businesses.

Financial Outlook

We are providing the following guidance for the fiscal first quarter ending September 30, 2021 and the full fiscal year ending June 30, 2022.

Q1 FY22 FY22 Guidance Guidance

Total revenue (millions) $103.2 - $104.2 $476.0 - $480.0

Year-over-year total revenue growth 123% - 126% 100% - 102%

Non-GAAP net loss (millions) ($20.0) - ($19.0) ($89.0) - ($85.0)

Non-GAAP net loss per share ($0.21) - ($0.20) ($0.92) - ($0.88)

The financial outlook does not include any potential impact from the proposed acquisition of Invoice2go. 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 fourth quarter and fiscal year 2021 results and our outlook for the fiscal first quarter ending September 30, 2021 and full fiscal year ending June 30, 2022. 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 is headquartered in San Jose, California. 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 revenue and net loss for the fiscal first quarter ending September 30, 2021 and our fiscal year 2022, 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 our ability to integrate Divvy and the pending acquisition of Invoice2go, our accounting for Divvy and Invoice2go financial results, changes in staffing levels, and other risks detailed in registration statements and periodic reports we file with the SEC, including our quarterly and annual reports, 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. 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 expense, amortization of intangible assets, acquisition-related expenses, amortization of debt discount (and accretion of debt premium) 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. These changes are reflected in our non-GAAP financial measures for the quarter ended June 30, 2021. In addition, our non-GAAP financial measures for the quarter ended June 30, 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 expense. We exclude depreciation 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 intangible assets. We exclude amortization of intangible assets from certain of our non-GAAP financial measures because we believe that excluding this non-cash expense provides meaningful supplemental information regarding our operational performance.

Acquisition-related expenses. We exclude acquisition-related expenses from certain of our non-GAAP financial measures because these costs would have not otherwise been incurred in the normal course of our business operations. In addition, we believe that acquisition-related expenses are non-recurring charges unique to a specific acquisition. Although we may engage in future acquisitions, such acquisitions and the associated acquisition-related expenses are considered unique and not comparable to other acquisitions.

Amortization of debt discount (accretion of debt premium) and issuance costs. We exclude amortization of debt discount and issuance costs associated with our issuance of convertible senior notes due 2025 and accretion of debt premium associated with our credit agreement 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 and acquisition. We exclude the income tax benefit associated with our 2025 Notes and acquisition 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)

June 30,

2021

2020

ASSETSCurrent assets:Cash and cash equivalents$

509,615

$

573,643

Short-term investments655,314

123,974

Accounts receivable, net18,222

4,252

Acquired card receivables, net147,093

-

Unbilled revenue8,118

6,549

Prepaid expenses and other current assets59,077

26,781

Funds held for customers2,208,598

1,644,250

Total current assets3,606,037

2,379,449

Non-current assets:Operating lease right-of-use assets, net71,925

-

Property and equipment, net48,902

13,866

Intangible assets, net417,341

-

Goodwill1,772,043

-

Other assets52,925

10,700

Total assets$

5,969,173

$

2,404,015

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$

11,904

$

3,478

Accrued compensation and benefits20,287

12,387

Deferred revenue12,848

5,891

Other accruals and current liabilities72,022

10,841

Customer fund deposits2,208,598

1,644,250

Total current liabilities2,325,659

1,676,847

Non-current liabilities:Deferred revenue2,926

2,622

Operating lease liabilities86,639

-

Borrowings from credit facilities, net79,534

-

Convertible senior notes, net909,847

-

Deferred income tax liability9,090

-

Other long-term liabilities25,888

13,827

Total liabilities3,439,583

1,693,296

Commitments and contingenciesStockholders' equity:Common stock2

2

Additional paid-in capital2,777,155

857,044

Accumulated other comprehensive (loss) income(100

)

2,420

Accumulated deficit(247,467

)

(148,747

)

Total stockholders' equity2,529,590

710,719

Total liabilities and stockholders' equity$

5,969,173

$

2,404,015

BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

June 30,

2021 2020

ASSETSCurrent assets:Cash and cash equivalents $ 509,615 $ 573,643

Short-term investments 655,314 123,974

Accounts receivable, net 18,222 4,252

Acquired card receivables, net 147,093 -

Unbilled revenue 8,118 6,549

Prepaid expenses and other current assets 59,077 26,781

Funds held for customers 2,208,598 1,644,250

Total current assets 3,606,037 2,379,449

Non-current assets:Operating lease right-of-use assets, net 71,925 -

Property and equipment, net 48,902 13,866

Intangible assets, net 417,341 -

Goodwill 1,772,043 -

Other assets 52,925 10,700

Total assets $ 5,969,173 $ 2,404,015

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 11,904 $ 3,478

Accrued compensation and benefits 20,287 12,387

Deferred revenue 12,848 5,891

Other accruals and current liabilities 72,022 10,841

Customer fund deposits 2,208,598 1,644,250

Total current liabilities 2,325,659 1,676,847

Non-current liabilities:Deferred revenue 2,926 2,622

Operating lease liabilities 86,639 -

Borrowings from credit facilities, net 79,534 -

Convertible senior notes, net 909,847 -

Deferred income tax liability 9,090 -

Other long-term liabilities 25,888 13,827

Total liabilities 3,439,583 1,693,296

Commitments and contingenciesStockholders' equity:Common stock 2 2

Additional paid-in capital 2,777,155 857,044

Accumulated other comprehensive (loss) income (100 ) 2,420

Accumulated deficit (247,467 ) (148,747 )

Total stockholders' equity 2,529,590 710,719

Total liabilities and stockholders' equity $ 5,969,173 $ 2,404,015

BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)

Three months ended June 30,

Year ended June 30,

2021 (2)

2020

2021 (2)

2020

RevenueSubscription and transaction fees$

77,512

$

38,801

$

232,255

$

136,405

Interest on funds held for customers761

3,309

6,010

21,195

Total revenue78,273

42,110

238,265

157,600

Cost of revenue (1)20,293

10,100

61,806

39,144

Gross profit57,980

32,010

176,459

118,456

Operating expensesResearch and development (1)29,677

14,929

90,235

53,405

Sales and marketing (1)29,102

11,796

71,374

45,356

General and administrative (1)69,920

15,546

128,817

53,893

Total operating expenses128,699

42,271

290,426

152,654

Loss from operations(70,719

)

(10,261

)

(113,967

)

(34,198

)

Other (expense) income, net(11,427

)

764

(25,370

)

3,160

Loss before (benefit from) provision for income taxes(82,146

)

(9,497

)

(139,337

)

(31,038

)

(Benefit from) provision for income taxes(40,284

)

1

(40,617

)

53

Net loss$

(41,862

)

$

(9,498

)

$

(98,720

)

$

(31,091

)

Net loss per share attributable to common stockholders, basic anddiluted$

(0.48

)

$

(0.13

)

$

(1.19

)

$

(0.70

)

Weighted-average number of common shares used to computenet loss per share attributable to common stockholders,basic and diluted86,965

74,141

82,813

44,106

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

967

$

476

$

2,938

$

1,257

Research and development6,138

2,274

16,091

5,495

Sales and marketing3,461

1,134

8,547

2,777

General and administrative30,158

3,744

44,411

8,535

$

40,724

$

7,628

$

71,987

$

18,064

(2) Includes the results of Divvy from the date of acquisition on June 1, 2021.BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share amounts)

Three months ended Year ended June 30, June 30,

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

RevenueSubscription and $ 77,512 $ 38,801 $ 232,255 $ 136,405 transaction feesInterest on funds held 761 3,309 6,010 21,195 for customersTotal revenue 78,273 42,110 238,265 157,600

Cost of revenue ^(1) 20,293 10,100 61,806 39,144

Gross profit 57,980 32,010 176,459 118,456

Operating expensesResearch and 29,677 14,929 90,235 53,405 development ^(1)Sales and marketing ^ 29,102 11,796 71,374 45,356 (1)General and 69,920 15,546 128,817 53,893 administrative ^(1)Total operating 128,699 42,271 290,426 152,654 expensesLoss from operations (70,719 ) (10,261 ) (113,967 ) (34,198 )

Other (expense) (11,427 ) 764 (25,370 ) 3,160 income, netLoss before (benefit (82,146 ) (9,497 ) (139,337 ) (31,038 )from) provision forincome taxes(Benefit from) (40,284 ) 1 (40,617 ) 53 provision for incometaxesNet loss $ (41,862 ) $ (9,498 ) $ (98,720 ) $ (31,091 )

Net loss per shareattributable to common $ (0.48 ) $ (0.13 ) $ (1.19 ) $ (0.70 )stockholders, basicanddilutedWeighted-averagenumber of commonshares used to compute 86,965 74,141 82,813 44,106 net loss per shareattributable to commonstockholders,basic and diluted (1) Includesstock-basedcompensation expenseas follows:Cost of revenue $ 967 $ 476 $ 2,938 $ 1,257

Research and 6,138 2,274 16,091 5,495 developmentSales and marketing 3,461 1,134 8,547 2,777

General and 30,158 3,744 44,411 8,535 administrative $ 40,724 $ 7,628 $ 71,987 $ 18,064

(2) Includes the results of Divvy from the date of acquisition on June 1, 2021.BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

Three months ended June 30,

Year ended June 30,

2021

2020

2021

2020

Cash flows from operating activities:Net loss$

(41,862

)

$

(9,498

)

$

(98,720

)

$

(31,091

)

Adjustments to reconcile net loss to net cash provided by(used in) operating activities:Depreciation and amortization1,901

1,052

5,350

4,257

Stock-based compensation37,027

7,628

68,290

18,064

Amortization of debt discount (accretion of debt premium)and issuance costs11,807

-

27,531

-

Amortization of intangible assets5,659

-

5,659

-

Amortization of premium (accretion of discount) oninvestments in marketable debt securities2,722

(960

)

4,692

(3,815

)

Non-cash operating lease expense1,178

-

3,813

-

Provision for losses on acquired card receivables741

-

741

-

Deferred income taxes(40,284

)

-

(40,617

)

-

Other-

-

-

717

Changes in assets and liabilities:Accounts receivable(1,203

)

(2,012

)

(6,535

)

(1,054

)

Unbilled revenue(253

)

802

(1,569

)

(554

)

Prepaid expenses and other current assets7,108

409

2,275

(10,434

)

Other assets(726

)

(3,881

)

(12,525

)

(4,928

)

Accounts payable6,490

(121

)

7,417

(1,596

)

Other accruals and current liabilities22,922

2,862

22,980

9,755

Operating lease liabilities613

-

8,395

-

Other long-term liabilities16

2,302

592

12,991

Deferred revenue3,930

314

6,854

3,258

Net cash provided by (used in) operating activities17,786

(1,103

)

4,623

(4,430

)

Cash flows from investing activities:Cash paid for acquisition, net of acquired cash(556,090

)

-

(556,090

)

-

Purchases of corporate and customer fund short-term investments(584,271

)

(257,917

)

(2,070,296

)

(1,088,611

)

Proceeds from maturities of corporate and customer fundshort-term investments273,599

209,689

1,104,532

806,000

Proceeds from sale of corporate and customer fund short-term investments23,593

20,822

142,665

46,159

(Increase) decrease in other receivables included in funds held for customers(1,720

)

5,642

(10,792

)

(959

)

Increase in acquired card receivables(15,703

)

-

(15,703

)

-

Purchases of property and equipment(1,840

)

(5,701

)

(18,902

)

(11,437

)

Capitalization of internal-use software costs(1,266

)

(150

)

(2,304

)

(639

)

Net cash used in investing activities(863,698

)

(27,615

)

(1,426,890

)

(249,487

)

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

-

1,129,379

-

Purchase of capped calls-

-

(87,860

)

-

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

(63

)

-

225,481

Proceeds from issuance of common stock upon follow-on public offering, net ofunderwriting discounts and commissions and other offering costs-

308,176

-

308,176

Increase in customer fund deposits liability278,758

290,698

564,348

314,944

Proceeds from line of credit borrowings-

-

-

2,300

Payments on line of credit and bank borrowings-

-

(2,300

)

-

Proceeds from exercise of stock options5,175

10,486

28,209

12,232

Proceeds from issuance of common stock under theemployee stock purchase plan-

-

8,864

-

Other(393

)

-

(1,057

)

(7

)

Net cash provided by financing activities283,540

609,297

1,639,583

863,126

Net (decrease) increase in cash, cash equivalents,restricted cash, and restricted cash equivalents(562,372

)

580,579

217,316

609,209

Cash, cash equivalents, restricted cash, and restrictedcash equivalents, beginning of period2,372,065

1,011,798

1,592,377

983,168

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

1,809,693

$

1,592,377

$

1,809,693

$

1,592,377

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

509,615

$

573,643

$

509,615

$

573,643

Restricted cash included in other current assets10,977

35

10,977

35

Restricted cash included in other assets6,875

-

6,875

-

Restricted cash and restricted cash equivalentsincluded in funds held for customers1,282,226

1,018,699

1,282,226

1,018,699

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

1,809,693

$

1,592,377

$

1,809,693

$

1,592,377

BILL.COM HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

Three months ended June 30, Year ended June 30,

2021 2020 2021 2020

Cash flowsfrom operatingactivities:Net loss $ (41,862 ) $ (9,498 ) $ (98,720 ) $ (31,091 )

Adjustments toreconcile netloss to netcash providedby(used in)operatingactivities:Depreciation 1,901 1,052 5,350 4,257 andamortizationStock-based 37,027 7,628 68,290 18,064 compensationAmortizationof debtdiscount 11,807 - 27,531 - (accretion ofdebt premium)and issuancecostsAmortization 5,659 - 5,659 - of intangibleassetsAmortizationof premium(accretion ofdiscount) on 2,722 (960 ) 4,692 (3,815 )investments inmarketabledebtsecuritiesNon-cash 1,178 - 3,813 - operatinglease expenseProvision forlosses on 741 - 741 - acquired cardreceivablesDeferred (40,284 ) - (40,617 ) - income taxesOther - - - 717

Changes inassets andliabilities:Accounts (1,203 ) (2,012 ) (6,535 ) (1,054 )receivableUnbilled (253 ) 802 (1,569 ) (554 )revenuePrepaidexpenses and 7,108 409 2,275 (10,434 )other currentassetsOther assets (726 ) (3,881 ) (12,525 ) (4,928 )

Accounts 6,490 (121 ) 7,417 (1,596 )payableOther accruals 22,922 2,862 22,980 9,755 and currentliabilitiesOperating 613 - 8,395 - leaseliabilitiesOther 16 2,302 592 12,991 long-termliabilitiesDeferred 3,930 314 6,854 3,258 revenueNet cashprovided by 17,786 (1,103 ) 4,623 (4,430 )(used in)operatingactivitiesCash flowsfrom investingactivities:Cash paid foracquisition, (556,090 ) - (556,090 ) - net ofacquired cashPurchases ofcorporate and (584,271 ) (257,917 ) (2,070,296 ) (1,088,611 )customer fundshort-terminvestmentsProceeds frommaturities ofcorporate and 273,599 209,689 1,104,532 806,000 customer fundshort-terminvestmentsProceeds fromsale ofcorporate and 23,593 20,822 142,665 46,159 customer fundshort-terminvestments(Increase)decrease inother (1,720 ) 5,642 (10,792 ) (959 )receivablesincluded infunds held forcustomersIncrease in (15,703 ) - (15,703 ) - acquired cardreceivablesPurchases of (1,840 ) (5,701 ) (18,902 ) (11,437 )property andequipmentCapitalizationof (1,266 ) (150 ) (2,304 ) (639 )internal-usesoftware costsNet cash used (863,698 ) (27,615 ) (1,426,890 ) (249,487 )in investingactivitiesCash flowsfrom financingactivities:Proceeds fromissuance ofconvertible - - 1,129,379 - senior notes,net ofdiscounts andissuance costsPurchase of - - (87,860 ) - capped callsProceeds fromissuance ofcommon stockupon initialpublicoffering, net - (63 ) - 225,481 ofunderwritingdiscounts andcommissionsand otheroffering costsProceeds fromissuance ofcommon stockupon follow-onpublicoffering, net - 308,176 - 308,176 ofunderwritingdiscounts andcommissionsand otheroffering costsIncrease incustomer fund 278,758 290,698 564,348 314,944 depositsliabilityProceeds from - - - 2,300 line of creditborrowingsPayments online of credit - - (2,300 ) - and bankborrowingsProceeds from 5,175 10,486 28,209 12,232 exercise ofstock optionsProceeds fromissuance ofcommon stock - - 8,864 - under theemployee stockpurchase planOther (393 ) - (1,057 ) (7 )

Net cashprovided by 283,540 609,297 1,639,583 863,126 financingactivitiesNet (decrease)increase incash, cashequivalents, (562,372 ) 580,579 217,316 609,209 restrictedcash, andrestrictedcashequivalentsCash, cashequivalents,restrictedcash, and 2,372,065 1,011,798 1,592,377 983,168 restrictedcashequivalents,beginning ofperiodCash, cashequivalents,restrictedcash, and $ 1,809,693 $ 1,592,377 $ 1,809,693 $ 1,592,377 restrictedcashequivalents,end of period Reconciliationof cash, cashequivalents,restrictedcash, andrestrictedcashequivalentswithin thecondensedconsolidatedbalance sheetsto the amountsshown in theconsolidatedstatements ofcash flowsabove:Cash and cash $ 509,615 $ 573,643 $ 509,615 $ 573,643 equivalentsRestrictedcash included 10,977 35 10,977 35 in othercurrent assetsRestrictedcash included 6,875 - 6,875 - in otherassetsRestrictedcash andrestrictedcash 1,282,226 1,018,699 1,282,226 1,018,699 equivalentsincluded infunds held forcustomersTotal cash,cashequivalents,restricted $ 1,809,693 $ 1,592,377 $ 1,809,693 $ 1,592,377 cash, andrestrictedcashequivalents,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 June 30,

Year ended June 30,

2021

2020 (2)

2021

2020 (2)

Reconciliation of gross profit:GAAP gross profit$

57,980

$

32,010

$

176,459

$

118,456

Add:Amortization of intangible assets2,653

-

2,653

-

Stock-based compensation expense (3)967

476

2,938

1,257

Payroll taxes related to stock-based compensation expense108

39

371

39

Depreciation expense709

520

2,577

2,095

Non-GAAP gross profit$

62,417

$

33,045

$

184,998

$

121,847

GAAP gross margin74.1

%

76.0

%

74.1

%

75.2

%

Non-GAAP gross margin79.7

%

78.5

%

77.6

%

77.3

%

Three months ended June 30,

Year ended June 30,

2021

2020 (2)

2021

2020 (2)

Reconciliation of operating expenses:GAAP research and development expenses$

29,677

$

14,929

$

90,235

$

53,405

Less:Stock-based compensation expense (3)(6,138

)

(2,274

)

(16,091

)

(5,495

)

Payroll taxes related to stock-based compensation expense(328

)

(192

)

(1,306

)

(192

)

Depreciation expense(419

)

(96

)

(732

)

(408

)

Non-GAAP research and development expenses$

22,792

$

12,367

$

72,106

$

47,310

GAAP sales and marketing expenses$

29,102

$

11,796

$

71,374

$

45,356

Less:Amortization of intangible assets(3,006

)

-

(3,006

)

-

Stock-based compensation expense (3)(3,461

)

(1,134

)

(8,547

)

(2,777

)

Payroll taxes related to stock-based compensation expense(125

)

(461

)

(632

)

(461

)

Depreciation expense(256

)

(66

)

(433

)

(286

)

Non-GAAP sales and marketing expenses$

22,254

$

10,135

$

58,756

$

41,832

GAAP general and administrative expenses$

69,920

$

15,546

$

128,817

$

53,893

Less:Stock-based compensation expense (3)(30,158

)

(3,744

)

(44,411

)

(8,535

)

Payroll taxes related to stock-based compensation expense(412

)

(672

)

(1,897

)

(672

)

Depreciation expense(310

)

(117

)

(701

)

(442

)

Acquisition-related expenses(15,471

)

-

(15,471

)

-

Non-GAAP general and administrative expenses$

23,569

$

11,013

$

66,337

$

44,244

Three months ended June 30,

Year ended June 30,

2021

2020 (2)

2021

2020 (2)

Reconciliation of loss from operations:GAAP loss from operations$

(70,719

)

$

(10,261

)

$

(113,967

)

$

(34,198

)

Add:Amortization of intangible assets5,659

-

5,659

-

Stock-based compensation expense (3)40,724

7,628

71,987

18,064

Payroll taxes related to stock-based compensation expense973

1,364

4,206

1,364

Depreciation expense1,694

799

4,443

3,231

Acquisition-related expenses15,471

-

15,471

-

Non-GAAP loss from operations$

(6,198

)

$

(470

)

$

(12,201

)

$

(11,539

)

Three months ended June 30,

Year ended June 30,

2021

2020 (2)

2021

2020 (2)

Reconciliation of net loss:GAAP net loss$

(41,862

)

$

(9,498

)

$

(98,720

)

$

(31,091

)

Add (less):Amortization of intangible assets5,659

-

5,659

-

Stock-based compensation expense (3)40,724

7,628

71,987

18,064

Payroll taxes related to stock-based compensation expense973

1,364

4,206

1,364

Depreciation expense1,694

799

4,443

3,231

Acquisition-related expenses15,471

-

15,471

-

Amortization of debt discount (accretion of debt premium)and issuance costs11,807

-

27,531

-

Loss on revaluation of warrant liability-

-

-

717

Income tax benefit associated with 2025 Notes and acquisition(40,284

)

-

(40,617

)

-

Non-GAAP net (loss) income$

(5,818

)

$

293

$

(10,040

)

$

(7,715

)

Three months ended June 30,

Year ended June 30,

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$

(0.48

)

$

(0.13

)

$

(1.19

)

$

(0.70

)

Add (less):Amortization of intangible assets0.07

-

0.07

-

Stock-based compensation expense (3)0.46

0.10

0.87

0.41

Payroll taxes related to stock-based compensation expense0.01

0.02

0.05

0.03

Depreciation expense0.01

0.01

0.05

0.07

Acquisition-related expenses0.18

-

0.19

-

Amortization of debt discount (accretion of debt premium)and issuance costs0.14

-

0.33

-

Loss on revaluation of warrant liability-

-

-

0.02

Income tax benefit associated with 2025 Notes and acquisition(0.46

)

-

(0.49

)

-

Impact of the assumed conversion of redeemableconvertible preferred stock-

-

-

0.06

Non-GAAP net (loss) income per share attributable to commonstockholders, basic and diluted$

(0.07

)

$

-

$

(0.12

)

$

(0.11

)

Three months ended June 30,

Year ended June 30,

2021

2020

2021

2020

Reconciliation of shares used to compute basic net loss pershare attributable to common stockholdersShares used to compute GAAP net (loss) income per shareattributable to common stockholders, basic86,965

74,141

82,813

44,106

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

-

-

23,352

Shares used to compute non-GAAP net (loss) income pershare attributable to common stockholders, basic86,965

74,141

82,813

67,458

Three months ended June 30,

Year ended June 30,

2021

2020

2021

2020

Reconciliation of shares used to compute diluted net (loss)income per share attributable to common stockholdersShares used to compute GAAP net (loss) income per shareattributable to common stockholders, basic86,965

74,141

82,813

44,106

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

-

-

23,352

Add: Dilutive effect of incremental shares-

8,900

-

-

Shares used to compute non-GAAP net (loss) income pershare attributable to common stockholders, diluted86,965

83,041

82,813

67,458

BILL.COM HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands except percentages and per share amounts)

Three months ended Year ended June 30, June 30,

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

Reconciliation ofgross profit:GAAP gross profit $ 57,980 $ 32,010 $ 176,459 $ 118,456

Add:Amortization of 2,653 - 2,653 - intangible assetsStock-based 967 476 2,938 1,257 compensation expense ^(3)Payroll taxes related 108 39 371 39 to stock-basedcompensation expenseDepreciation expense 709 520 2,577 2,095

Non-GAAP gross profit $ 62,417 $ 33,045 $ 184,998 $ 121,847

GAAP gross margin 74.1 % 76.0 % 74.1 % 75.2 %

Non-GAAP gross margin 79.7 % 78.5 % 77.6 % 77.3 %

Three months ended Year ended June 30, June 30,

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

Reconciliation ofoperating expenses:GAAP research and $ 29,677 $ 14,929 $ 90,235 $ 53,405 development expensesLess:Stock-based (6,138 ) (2,274 ) (16,091 ) (5,495 )compensation expense ^(3)Payroll taxes related (328 ) (192 ) (1,306 ) (192 )to stock-basedcompensation expenseDepreciation expense (419 ) (96 ) (732 ) (408 )

Non-GAAP research and $ 22,792 $ 12,367 $ 72,106 $ 47,310 development expenses GAAP sales and $ 29,102 $ 11,796 $ 71,374 $ 45,356 marketing expensesLess:Amortization of (3,006 ) - (3,006 ) - intangible assetsStock-based (3,461 ) (1,134 ) (8,547 ) (2,777 )compensation expense ^(3)Payroll taxes related (125 ) (461 ) (632 ) (461 )to stock-basedcompensation expenseDepreciation expense (256 ) (66 ) (433 ) (286 )

Non-GAAP sales and $ 22,254 $ 10,135 $ 58,756 $ 41,832 marketing expenses GAAP general and $ 69,920 $ 15,546 $ 128,817 $ 53,893 administrativeexpensesLess:Stock-based (30,158 ) (3,744 ) (44,411 ) (8,535 )compensation expense ^(3)Payroll taxes related (412 ) (672 ) (1,897 ) (672 )to stock-basedcompensation expenseDepreciation expense (310 ) (117 ) (701 ) (442 )

Acquisition-related (15,471 ) - (15,471 ) - expensesNon-GAAP general and $ 23,569 $ 11,013 $ 66,337 $ 44,244 administrativeexpenses Three months ended Year ended June 30, June 30,

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

Reconciliation of lossfrom operations:GAAP loss from $ (70,719 ) $ (10,261 ) $ (113,967 ) $ (34,198 )operationsAdd:Amortization of 5,659 - 5,659 - intangible assetsStock-based 40,724 7,628 71,987 18,064 compensation expense ^(3)Payroll taxes related 973 1,364 4,206 1,364 to stock-basedcompensation expenseDepreciation expense 1,694 799 4,443 3,231

Acquisition-related 15,471 - 15,471 - expensesNon-GAAP loss from $ (6,198 ) $ (470 ) $ (12,201 ) $ (11,539 )operations Three months ended Year ended June 30, June 30,

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

Reconciliation of netloss:GAAP net loss $ (41,862 ) $ (9,498 ) $ (98,720 ) $ (31,091 )

Add (less):Amortization of 5,659 - 5,659 - intangible assetsStock-based 40,724 7,628 71,987 18,064 compensation expense ^(3)Payroll taxes related 973 1,364 4,206 1,364 to stock-basedcompensation expenseDepreciation expense 1,694 799 4,443 3,231

Acquisition-related 15,471 - 15,471 - expensesAmortization of debtdiscount (accretion of 11,807 - 27,531 - debt premium)and issuance costsLoss on revaluation of - - - 717 warrant liabilityIncome tax benefit (40,284 ) - (40,617 ) - associated with 2025Notes and acquisitionNon-GAAP net (loss) $ (5,818 ) $ 293 $ (10,040 ) $ (7,715 )income Three months ended Year ended June 30, June 30,

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

Reconciliation of netloss per shareattributable tocommon stockholders,basic and dilutedGAAP net loss pershare attributable to $ (0.48 ) $ (0.13 ) $ (1.19 ) $ (0.70 )common stockholders,basic and dilutedAdd (less):Amortization of 0.07 - 0.07 - intangible assetsStock-based 0.46 0.10 0.87 0.41 compensation expense ^(3)Payroll taxes related 0.01 0.02 0.05 0.03 to stock-basedcompensation expenseDepreciation expense 0.01 0.01 0.05 0.07

Acquisition-related 0.18 - 0.19 - expensesAmortization of debtdiscount (accretion of 0.14 - 0.33 - debt premium)and issuance costsLoss on revaluation of - - - 0.02 warrant liabilityIncome tax benefit (0.46 ) - (0.49 ) - associated with 2025Notes and acquisitionImpact of the assumedconversion of - - - 0.06 redeemableconvertible preferredstockNon-GAAP net (loss)income per share $ (0.07 ) $ - $ (0.12 ) $ (0.11 )attributable to commonstockholders, basicand diluted Three months ended Year ended June 30, June 30,

2021 2020 2021 2020

Reconciliation ofshares used to computebasic net loss pershare attributable tocommon stockholdersShares used to computeGAAP net (loss) income 86,965 74,141 82,813 44,106 per shareattributable to commonstockholders, basicAdd: Weighted averageeffect of the assumedconversion - - - 23,352 of redeemableconvertible preferredstock from thedate of issuanceShares used to computenon-GAAP net (loss)income per 86,965 74,141 82,813 67,458 share attributable tocommon stockholders,basic Three months ended Year ended June 30, June 30,

2021 2020 2021 2020

Reconciliation ofshares used to computediluted net (loss)income per shareattributable to commonstockholdersShares used to computeGAAP net (loss) income 86,965 74,141 82,813 44,106 per shareattributable to commonstockholders, basicAdd: Weighted averageeffect of the assumedconversion - - - 23,352 of redeemableconvertible preferredstock from thedate of issuanceAdd: Dilutive effect - 8,900 - - of incremental sharesShares used to computenon-GAAP net (loss)income per 86,965 83,041 82,813 67,458 share attributable tocommon stockholders,diluted(2) During 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. These changes are reflected in our non-GAAP financial measures for the quarter and year ended June 30, 2021. In addition, our non-GAAP financial measures for the quarter and year ended June 30, 2020 were adjusted to conform to the current period presentation. The tables below show the reconciliation of the non-GAAP financial measures as previously reported and as restated during the quarter and year ended June 30, 2020.(3) The stock-based compensation expense, which totaled $40.7 million and $72.0, during the three months and year ended June 30, 2021, respectively, includes $3.7 million paid in cash in connection with the acquisition of Divvy ^(2) During 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. Thesechanges are reflected in our non-GAAP financial measures for the quarter andyear ended June 30, 2021. In addition, our non-GAAP financial measures for thequarter and year ended June 30, 2020 were adjusted to conform to the currentperiod presentation. The tables below show the reconciliation of the non-GAAPfinancial measures as previously reported and as restated during the quarterand year ended June 30, 2020.

^(3) The stock-based compensation expense, which totaled $40.7 million and$72.0, during the three months and year ended June 30, 2021, respectively,includes $3.7 million paid in cash in connection with the acquisition of DivvyThree months endedJune 30, 2020Year endedJune 30, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of gross profit:GAAP gross profit$

32,010

$

-

$

32,010

$

118,456

$

-

$

118,456

Add (less):Stock-based compensation expense476

-

476

1,257

-

1,257

Payroll taxes related to stock-basedcompensation expense39

-

39

39

-

39

Depreciation expense520

-

520

2,095

-

2,095

Amortization of capitalized service costs(206

)

206

-

374

(374

)

-

Amortization of capitalized internal-usesoftware costs255

(255

)

-

1,027

(1,027

)

-

Non-GAAP gross profit$

33,094

$

(49

)

$

33,045

$

123,248

$

(1,401

)

$

121,847

GAAP gross margin76.0

%

76.0

%

75.2

%

75.2

%

Non-GAAP gross margin78.6

%

-0.1

%

78.5

%

78.2

%

-0.9

%

77.3

%

Three months endedJune 30, 2020Year endedJune 30, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of operating expenses:GAAP research and development expenses$

14,929

$

-

$

14,929

$

53,405

$

-

$

53,405

Add (less):Stock-based compensation expense(2,274

)

-

(2,274

)

(5,495

)

-

(5,495

)

Payroll taxes related to stock-basedcompensation expense(192

)

-

(192

)

(192

)

-

(192

)

Depreciation expense(96

)

-

(96

)

(408

)

-

(408

)

Capitalized service costs206

(206

)

-

526

(526

)

-

Capitalized internal-use software costs149

(149

)

-

594

(594

)

-

Non-GAAP research and developmentexpenses$

12,722

$

(355

)

$

12,367

$

48,430

$

(1,120

)

$

47,310

GAAP sales and marketing expenses$

11,796

$

-

$

11,796

$

45,356

$

-

$

45,356

Add (less):Stock-based compensation expense(1,134

)

-

(1,134

)

(2,777

)

-

(2,777

)

Payroll taxes related to stock-basedcompensation expense(461

)

-

(461

)

(461

)

-

(461

)

Depreciation expense(66

)

-

(66

)

(286

)

-

(286

)

Capitalized sales commissions2,501

(2,501

)

-

5,955

(5,955

)

-

Amortization of capitalized salescommissions(668

)

668

-

(2,255

)

2,255

-

Non-GAAP sales and marketing expenses$

11,968

$

(1,833

)

$

10,135

$

45,532

$

(3,700

)

$

41,832

GAAP general and administrative expenses$

15,546

$

-

$

15,546

$

53,893

$

-

$

53,893

Less:Stock-based compensation expense(3,744

)

-

(3,744

)

(8,535

)

-

(8,535

)

Payroll taxes related to stock-basedcompensation expense(672

)

-

(672

)

(672

)

-

(672

)

Depreciation expense(117

)

-

(117

)

(442

)

-

(442

)

Non-GAAP general and administrative expenses$

11,013

$

-

$

11,013

$

44,244

$

-

$

44,244

Three months endedJune 30, 2020Year endedJune 30, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of loss from operations:GAAP loss from operations$

(10,261

)

$

-

$

(10,261

)

$

(34,198

)

$

-

$

(34,198

)

Add (less):Stock-based compensation expense7,628

-

7,628

18,064

-

18,064

Payroll taxes related to stock-based compensationexpense1,364

-

1,364

1,364

-

1,364

Depreciation expense799

-

799

3,231

-

3,231

Amortization of capitalized service costs,net of amount capitalized(412

)

412

-

(152

)

152

-

Amortization of capitalized internal-usesoftware costs, net of amount capitalized106

(106

)

-

433

(433

)

-

Capitalized sales commissions, netof associated amortization expense(1,833

)

1,833

-

(3,700

)

3,700

-

Non-GAAP loss from operations$

(2,609

)

$

2,139

$

(470

)

$

(14,958

)

$

3,419

$

(11,539

)

Three months endedJune 30, 2020Year endedJune 30, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of net loss:GAAP net loss$

(9,498

)

$

-

$

(9,498

)

$

(31,091

)

$

-

$

(31,091

)

Add (less):Stock-based compensation expense7,628

-

7,628

18,064

-

18,064

Payroll taxes related to stock-basedcompensation expense1,364

1,364

1,364

-

1,364

Depreciation expense799

-

799

3,231

-

3,231

Amortization of capitalized service costs,net of amount capitalized(412

)

412

-

(152

)

152

-

Amortization of capitalized internal-usesoftware costs, net of amount capitalized106

(106

)

-

433

(433

)

-

Capitalized sales commissions, netof associated amortization expense(1,833

)

1,833

-

(3,700

)

3,700

-

Loss on revaluation of warrant liability-

-

717

-

717

Non-GAAP net (loss) income$

(1,846

)

$

2,139

$

293

$

(11,134

)

$

3,419

$

(7,715

)

Three months endedJune 30, 2020Year endedJune 30, 2020AsreportedAdjustmentAsrestatedAsreportedAdjustmentAsrestatedReconciliation of net loss per shareattributable to common stockholders,basic and dilutedGAAP net loss per share attributable to commonstockholders, basic and diluted$

(0.13

)

$

0.13

$

(0.13

)

$

(0.70

)

$

-

$

(0.70

)

Add (less):-

Stock-based compensation expense0.10

-

0.10

0.41

-

0.41

Payroll taxes related to stock-basedcompensation expense0.02

-

0.02

0.03

-

0.03

Depreciation expense0.01

-

0.01

0.07

-

0.07

Amortization of capitalized service costs,net of amount 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(0.02

)

0.02

-

(0.09

)

0.09

-

Loss on revaluation of warrant liability-

-

-

0.02

-

0.02

Impact of assumed conversion ofredeemable convertible preferred stock(0.02

)

0.02

-

0.08

(0.02

)

0.06

Non-GAAP net (loss) income$

(0.05

)

$

0.05

$

0.00

$

(0.17

)

$

0.06

$

(0.11

)

Three months ended Year ended June 30, 2020 June 30, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof grossprofit:GAAP gross $ 32,010 $ - $ 32,010 $ 118,456 $ - $ 118,456 profitAdd (less):Stock-based 476 - 476 1,257 - 1,257 compensationexpensePayroll taxesrelated to 39 - 39 39 - 39 stock-basedcompensationexpenseDepreciation 520 - 520 2,095 - 2,095 expenseAmortization (206 ) 206 - 374 (374 ) - of capitalizedservice costsAmortizationof capitalized 255 (255 ) - 1,027 (1,027 ) - internal-usesoftware costsNon-GAAP gross $ 33,094 $ (49 ) $ 33,045 $ 123,248 $ (1,401 ) $ 121,847 profitGAAP gross 76.0 % 76.0 % 75.2 % 75.2 %marginNon-GAAP gross 78.6 % -0.1 % 78.5 % 78.2 % -0.9 % 77.3 %margin Three months ended Year ended June 30, 2020 June 30, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof operatingexpenses:GAAP researchand $ 14,929 $ - $ 14,929 $ 53,405 $ - $ 53,405 developmentexpensesAdd (less):Stock-based (2,274 ) - (2,274 ) (5,495 ) - (5,495 )compensationexpensePayroll taxesrelated to (192 ) - (192 ) (192 ) - (192 )stock-basedcompensationexpenseDepreciation (96 ) - (96 ) (408 ) - (408 )expenseCapitalized 206 (206 ) - 526 (526 ) - service costsCapitalized 149 (149 ) - 594 (594 ) - internal-usesoftware costsNon-GAAPresearch and $ 12,722 $ (355 ) $ 12,367 $ 48,430 $ (1,120 ) $ 47,310 developmentexpenses GAAP sales and $ 11,796 $ - $ 11,796 $ 45,356 $ - $ 45,356 marketingexpensesAdd (less):Stock-based (1,134 ) - (1,134 ) (2,777 ) - (2,777 )compensationexpensePayroll taxesrelated to (461 ) - (461 ) (461 ) - (461 )stock-basedcompensationexpenseDepreciation (66 ) - (66 ) (286 ) - (286 )expenseCapitalized 2,501 (2,501 ) - 5,955 (5,955 ) - salescommissionsAmortizationof capitalized (668 ) 668 - (2,255 ) 2,255 - salescommissionsNon-GAAP sales $ 11,968 $ (1,833 ) $ 10,135 $ 45,532 $ (3,700 ) $ 41,832 and marketingexpenses GAAP generaland $ 15,546 $ - $ 15,546 $ 53,893 $ - $ 53,893 administrativeexpensesLess:Stock-based (3,744 ) - (3,744 ) (8,535 ) - (8,535 )compensationexpensePayroll taxesrelated to (672 ) - (672 ) (672 ) - (672 )stock-basedcompensationexpenseDepreciation (117 ) - (117 ) (442 ) - (442 )expenseNon-GAAPgeneral and $ 11,013 $ - $ 11,013 $ 44,244 $ - $ 44,244 administrativeexpenses Three months ended Year ended June 30, 2020 June 30, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof loss fromoperations:GAAP loss from $ (10,261 ) $ - $ (10,261 ) $ (34,198 ) $ - $ (34,198 )operationsAdd (less):Stock-based 7,628 - 7,628 18,064 - 18,064 compensationexpensePayroll taxesrelated to 1,364 - 1,364 1,364 - 1,364 stock-basedcompensationexpenseDepreciation 799 - 799 3,231 - 3,231 expenseAmortizationof capitalized (412 ) 412 - (152 ) 152 - service costs,net of amountcapitalizedAmortizationof capitalizedinternal-use 106 (106 ) - 433 (433 ) - softwarecosts, net ofamountcapitalizedCapitalizedsalescommissions, (1,833 ) 1,833 - (3,700 ) 3,700 - netof associatedamortizationexpenseNon-GAAP loss $ (2,609 ) $ 2,139 $ (470 ) $ (14,958 ) $ 3,419 $ (11,539 )fromoperations Three months ended Year ended June 30, 2020 June 30, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof net loss:GAAP net loss $ (9,498 ) $ - $ (9,498 ) $ (31,091 ) $ - $ (31,091 )

Add (less):Stock-based 7,628 - 7,628 18,064 - 18,064 compensationexpensePayroll taxesrelated to 1,364 1,364 1,364 - 1,364 stock-basedcompensationexpenseDepreciation 799 - 799 3,231 - 3,231 expenseAmortizationof capitalized (412 ) 412 - (152 ) 152 - service costs,net of amountcapitalizedAmortizationof capitalizedinternal-use 106 (106 ) - 433 (433 ) - softwarecosts, net ofamountcapitalizedCapitalizedsalescommissions, (1,833 ) 1,833 - (3,700 ) 3,700 - netof associatedamortizationexpenseLoss onrevaluation of - - 717 - 717 warrantliabilityNon-GAAP net $ (1,846 ) $ 2,139 $ 293 $ (11,134 ) $ 3,419 $ (7,715 )(loss) income Three months ended Year ended June 30, 2020 June 30, 2020 As Adjustment As As Adjustment As reported restated reported restatedReconciliationof net lossper shareattributableto commonstockholders,basic anddilutedGAAP net lossper shareattributable $ (0.13 ) $ 0.13 $ (0.13 ) $ (0.70 ) $ - $ (0.70 )to commonstockholders,basic anddilutedAdd (less): -

Stock-based 0.10 - 0.10 0.41 - 0.41 compensationexpensePayroll taxesrelated to 0.02 - 0.02 0.03 - 0.03 stock-basedcompensationexpenseDepreciation 0.01 - 0.01 0.07 - 0.07 expenseAmortizationof capitalized (0.01 ) 0.01 - - - - service costs,net of amountcapitalizedAmortizationof capitalizedinternal-use - - - 0.01 (0.01 ) - softwarecosts, net ofamountcapitalizedCapitalizedsalescommissions, (0.02 ) 0.02 - (0.09 ) 0.09 - netof associatedamortizationexpenseLoss onrevaluation of - - - 0.02 - 0.02 warrantliabilityImpact ofassumedconversion of (0.02 ) 0.02 - 0.08 (0.02 ) 0.06 redeemableconvertiblepreferredstockNon-GAAP net $ (0.05 ) $ 0.05 $ 0.00 $ (0.17 ) $ 0.06 $ (0.11 )(loss) income BILL.COM HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)

Three months ended June 30,

Year ended June 30,

2021

2020

2021

2020

Net cash provided by (used in) operating activities$

17,786

$

(1,103

)

$

4,623

$

(4,430

)

Purchases of property and equipment(1,840

)

(5,701

)

(18,902

)

(11,437

)

Capitalization of internal-use software costs(1,266

)

(150

)

(2,304

)

(639

)

Free cash flow$

14,680

$

(6,954

)

$

(16,583

)

$

(16,506

)

BILL.COM HOLDINGS, INC.

FREE CASH FLOW

(Unaudited, in thousands)

Three months ended Year ended June 30, June 30,

2021 2020 2021 2020

Net cash provided by (used $ 17,786 $ (1,103 ) $ 4,623 $ (4,430 )in) operating activitiesPurchases of property and (1,840 ) (5,701 ) (18,902 ) (11,437 )equipmentCapitalization of (1,266 ) (150 ) (2,304 ) (639 )internal-use softwarecostsFree cash flow $ 14,680 $ (6,954 ) $ (16,583 ) $ (16,506 )

BILL.COM HOLDINGS, INC.

REMAINING PERFORMANCE OBLIGATIONS WITH FINANCIAL INSTITUTIONS

(Unaudited, in thousands)

June 30,

2021

2020

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

28,075

$

13,001

Thereafter117,760

139,334

Total$

145,835

$

152,335

View source version on businesswire.com: https://www.businesswire.com/news/home/20210826005741/en/

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

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