According to ’s annual report, Divvy and Invoice2go contributed $241.7 mln in revenue to, making up about 37.6% of ’s total revenue. Lastly, we examined the company’s acquisitions of Invoice2go and Divvy. Overall, we forecasted ’s total revenues attributable to its core business including subscription and transaction fees as well as interest on funds to grow at a 5-year forward average of 32.3% supported by strong growth in revenue from transaction fees. Multiplied by the number of customers projected, we estimate FY2023 subscription fees to be $207.2 mln with a growth rate of 39.8%.īill.com total subscription and transaction fees We first forecasted the growth of subscription fees per customer by using the average growth in FY2021 and FY2022 which gave us a subscription growth per customer of 10.2%. The transaction fee as a % of payment volume multiplied by our projected payment volume estimates results in a forecasted transaction fee of $303 mln in FY2023, a YoY increase of 32.9% and a 5-year average forward growth of 29.3%.įrom its annual report, besides transaction fees, also charges subscription fees for its customers who use its platforms to process transactions. As the company’s transaction fee as a % of payment volume has increased in the past 2 years, we based our forecast on its FY2022 figure (0.1%). Thus, we believe the growth in small businesses could support ’s payment volume growth.įurthermore, the company charges transaction fees on its payment volumes. with aĢ.2% increase from the previous year and an overall growth of 12.2% from 2017 to 2022. From there, multiplied by our customer base projections, we expect its payment volumes of $291 bln in FY2023.Īccording to the Small Business Administration of the U.S., there are about 33.2 mln small businesses in the U.S. We forecasted its payment volume per customer growth through 2027 based on its 4-year average (15.7%) from $779,000 in 2018 to $1.61 mln in 2023. Transaction Fees as a % of Payment Volume ('d')īased on the table, the company’s average past 4 years' payment volume per customer growth is 15.7%. Strong Organic Growth from Subscription and Transaction Fees – René Lacerte, Chairman, CEO and Founder. Overall, with our estimates, we projected customers to reach 275,000 customers by 2027.Īnd as we, sort of look out over FY2023, we think that 4,000 to 5,000 range (of customer additions per quarter) for Bill, excluding the financial institution contribution, is probably a good placeholder. This is slightly above management guidance according to its Q4 2022 earnings briefing for the customer additions. Thus, we believe this could benefit with the largest network of accounting professionals.īased on the past 4 years of customer additions for, we estimated its yearly organic customer additions to be around 23,500.
#DIVVY HOMES REVIEWS SOFTWARE#
Partnered with CPA.com to launch the Divvy Accountant Advisor program, which provides accounting firms with expense management software tools.Īccording to the American Institute of CPAs (AICPA), there are over 428,000 members. According to PayPal’s ( PYPL) study, revenues for SMBs declined by 9% in Q2 20220.įurthermore, since 2008, had partnered with CPA as its bill management partner. We believe the growth slowdown was due to Covid-19. As a result, its customer growth was only 23.5% which is lower compared to FY2020 (27.8%) but recovered in FY2022. In FY2021, the increase in the number of customer additions slowed down to 1,800 and the company only achieved 23,100 in customer additions. Robust Customer Growthīill.com’s customer growth had been steadily increasing over the past 4 years, ending FY2022 with a growth rate of 30.2%. We analyzed the company’s growth outlook based on its customers, payment volumes and revenue growth as well as its acquisitions of Invoice2go and Divvy.
Based on its latest earnings briefing, management guided its FY2023 total revenue growth to be 48.8% YoY. ( NYSE: BILL), we examined the company following its strong growth in FY2022 with core revenues growing by 68.6% YoY.
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