BILL Holdings, Inc. Discusses Leadership Changes, Q3 Performance, and Strategic Initiatives at Bank of America Global Technology Conference 2025

Key Takeaways

TL;DR: BILL Holdings is executing a leadership transition with strong new talent, continuing to innovate its payment suite for small biz amid a challenging macro environment. Key Q3 highlights include product innovations, steady net new adds, expanding monetization through advanced payment solutions, and a cautious but promising outlook on TPV and take rate expansion. Additionally, the co is actively investing in Agentic AI to revolutionize SMB back-office operations.

• Leadership & Organizational Changes
  • COO/CFO Transition: John Rettig, transitioning to COO while remaining CFO, emphasized the strategic hire of Rohini as new CFO. He noted, “Rohini brings great leadership capabilities… her experience at PayPal perfectly positions us for scaling BILL’s payments biz.”
  • Growth Strategy: John’s role will focus on go-to-market enablement, operational execution, and expanding risk and credit capabilities, indicating a comprehensive plan for next-phase growth.
• Q3 Financial & Operational Performance
  • Innovation & Product Launches:
    • New products targeted at larger customers, including procurement, multi-entity, mass payments, local transfers for international payments, and an advanced ACH solution (beta, GA by month-end).
    • Expansion of the accounting channel reached 9,000 firms, demonstrating platform resilience and embedded growth, with Invoice2go’s AR solution serving hundreds of thousands globally.
  • Key Metrics:
    • Maintained steady net new adds of 4,200 (within the target range of 4,000–5,000).
    • Achieved a 25% FCF margin with consistent growth in billing segments like Divvy card, which grew north of 20% in payment volume.
  • Take Rate Expansion:
    • Core AP/AR take rate expanded by 0.6 basis points to 16.2% QoQ, driven by ad valorem payment initiatives and product mix improvements despite FX volatility and tariff uncertainties on international payments.
• Macro Environment & TPV Per Customer Dynamics
  • External Environment Impact:
    • Small businesses remain cautious amid economic uncertainty, with some spend declines noted in wholesale trade, real estate, payroll, and nonprofits.
    • TPV per customer experienced a slight contraction (decline 2% YoY, normalized decline of ~0.5–1%), largely influenced by macro headwinds rather than product shortcomings.
  • Growth Outlook:
    • The co targets a mid-SD annual growth rate in TPV per customer once the environment stabilizes, leveraging enhanced products (e.g., faster payment solutions) to capture increased share of wallet.
• Product Strategy & Monetization Levers
  • Virtual Card & New Transaction Services:
    • Virtual card penetration stable at around 3% TPV share; the strategy focuses on reducing friction via increased automation and improved supplier integrations to unlock future volume growth.
    • Other emerging services include Pay By Card (extended payment terms), Instant Transfer (real-time payments), and invoice financing, all aimed at expanding the ad valorem portfolio for higher monetization.
  • Advanced ACH Rollout:
    • Positioned to be a transformative volume driver, targeting tens of bn $ in addressable payment volume, especially with large suppliers, with higher monetization potential than flat-rate products.
• Customer Acquisition & Competitive Positioning
  • Net New Adds & Channel Strategy:
    • Consistent net adds (4,000–5,000 range) affirmed product market fit, with notable 60% growth in customer acquisition via accounting firms—a critical distribution channel (serving ~50% of customers).
    • Emphasis on embedded strategies (via APIs and integrations) to serve customers less viable for direct acquisition, improving onboarding automation and conversion rates.
  • Competitive Environment:
    • The competitive landscape remains steady. BILL leverages workflow automation, network effects, and dual benefits for accounting firms to retain and cross-sell to customers across AP and AR segments.
    • The Invoice2go AR channel remains an important growth lever, setting the stage for a more balanced approach between AP and AR over the next 3–5 years.
• Spend & Expense (Corporate Card) Business
  • Performance & Strategy:
    • The corporate card segment delivered 22% account volume growth amid headwinds from changes in card acceptance policies by major advertisers.
    • Focus on larger, financially stable mid-market customers enables improved underwriting, with an average acquisition of ~1,500–1,800 customers per Q, promising higher rev. per cohort despite lower overall acquisition counts.
• Growth & Margin Philosophy
  • Balanced Investment Approach:
    • BILL is focused on balancing rev. growth with margin expansion—moving from a negative 3% non-GAAP OP margin in Q3 '22 to 15% in the recent Q, alongside maintaining a 25% FCF margin.
    • The firm favors disciplined, multiyear investments despite near-term economic uncertainties, leveraging product innovation, network effects, and broader market capture as long-term drivers.
• Investment in Agentic AI
  • AI Strategy & Value Proposition:
    • BILL is prioritizing investments in AI by building automation agents to complete back-office tasks for SMBs.
    • John emphasized leveraging the “richness of our data assets” to create AI-driven efficiencies, signaling a potentially transformative impact on small biz financial operations and overall cost structures.

Overall, the call provided strong investment signals around BILL Holdings’ strategic pivots—from leadership transitions and product innovation to disciplined growth investment and significant AI initiatives—all of which are poised to enhance long-term competitive positioning and financial performance amid a challenging macro backdrop.

Call Q&A

• Bradley Sills: Could you discuss the transition to COO and why Rohini is the right choice for CFO?
  • John Rettig: Rohini brings leadership, team development, and growth experience, esp. in scaling payments businesses. My focus will shift to go-to-market capabilities, operational execution, and enhancing our credit biz.
• Bradley Sills: Any highlights from Q3 and investor feedback?
  • John Rettig: Despite a challenging environment, we launched new products for larger customers and enhanced payment capabilities. We broadened our distribution ecosystem and maintained a balance between growth and profitability.
• Bradley Sills: What drove the delta in core AP/AR TBP growth and what are you seeing in the SMB spending environment?
  • John Rettig: Small businesses are stable but not in growth mode. Some spend categories like wholesale trade and real estate are declining. Larger companies are pulling back on discretionary spend, and nonprofits face funding challenges.