BILL Holdings, Inc.

Hello and welcome to Build.com's third quarter fiscal year 2022 earnings conference call. My name is Alex and I'll be coordinating the call today. If you'd like to ask a question at the end of the presentation, you can press star 1 on your telephone keypad. If you would like to withdraw your question, you may press star 2. I will now hand over to your host, Karen Sansot, Vice President of Investor Relations. Over to you, Karen.

Thank you, Operator. Welcome to Bill.com's fiscal third quarter 2022 earnings conference call. We issued our earnings press release a short time ago and furnished the related form 8K to the SEC. The press release can be found on the investor relations section of our website at investor.bill.com. With me on the call today is Renee LeCert, Chairman, CEO, and founder of Bill.com, and John Reddick, Executive Vice President and CFO. Before we begin, please remember that during the course of this call, we may make forward-looking statements about the operations and future results of Bill.com that involve many assumptions, risks, and uncertainties. If any of these risks or uncertainties develop, or if any of the assumptions prove incorrect, actual results could differ materially from those expressed or implied by our forward-looking statements. For discussion of the risk factors associated with our forward-looking statements, Please refer to the text in the company's press release issued today and to our periodic reports filed with the SEC, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q, filed with the SEC and available on the Investor Relations section of our website. We disclaim any obligation to update any forward-looking statements. On today's call, we will refer to both GAAP and non-GAAP financial measures The non-revenue financial figures discussed today are non-GAAP, unless stated that the measure is a GAAP number. Please refer to today's press release for the reconciliation of GAAP to non-GAAP financial performance and additional disclosures regarding these measures. At times during this call, we will discuss organic or stand-alone results, which exclude DV and invoice-to-go, which we acquired on June 1, 2021, and September 1, 2021, respectively, to help listeners understand our organic performance. Now I'll turn the call over to Rene. Rene?

Thank you, Karen. Good afternoon, everyone. Thank you for joining us today. Zill.com produced great results in the third quarter. Total revenue increased 179% year-over-year. Zill.com's organic core revenue grew 74% year-over-year, and revenue from our Divi Spend Management solution increased 155% year-over-year. Additionally, our non-GAAP gross margin was 85%, and our non-GAAP net loss was much lower than we expected. We are delivering meaningful growth at scale while continuing our track record of efficient operational execution. We are the leader in helping small and mid-sized businesses transform and automate their financial operations so they can easily gain control of their spend and cash management. Our growth this quarter demonstrates that demand for our solution continues to be robust. As of the end of fiscal Q3, more than 380,000 businesses trusted Bill.com to manage their financial operations, and we processed over $55 billion of total payment volume on our platform. We know that in inflationary times, businesses increasingly seek cost-effective solutions that provide cash management control and increased visibility. The powerful combination of our platform and go-to-market ecosystem delivered more than 11,000 net new Bill.com organic customers in the third quarter. We experienced strong demand across all channels, particularly among financial institutions, where our white-label platform for Bank of America small business customers continued to roll out to new regions in the U.S. During the quarter, we reorganized fully integrating the Divi and Invoice2Go employees into the Bill.com organization. We are now one team focused on building an integrated, easy-to-use solution for customers. We are combining Bill.com's AP platform, powerful distribution capabilities, and significant scale with Divi's spend management expertise, customer success initiatives, and modern design, and with Invoice2Go's account receivables capabilities, mobile experiences, and global reach. Having a combined team will enable us to move faster. With remote work capabilities now being essential for businesses of all sizes, SMBs increasingly need to reduce the complexity of their businesses. They want fewer solutions and tools to run their back office. A great example of how we help companies streamline their operations is InfluenceLogic, an online marketing platform that helps SMBs grow. Samantha Parsick, Director of Finance, said, and I quote, prior to adopting Bill.com, our international payment process was manual and time-consuming. We had to go to a bank for international payments and track AP with an Excel spreadsheet. Go.com really simplified our process and improved the timeliness of our payments. We also adopted Divi, which has become our go-to program for all payments outside of the accounts payable process. Having AP and spend management in one place makes managing and tracking payments and spend way more efficient. It reduces the amount of time spent toggling between different solutions and gives me more confidence in our financial operations. End quote. Every employee at build.com is energized by the value we create for our customers and the very large market opportunity ahead of us with 30 million micro, small, and mid-sized businesses in the U.S. and more than 70 million globally. A key component of our go-to-market is the relationships we have built with the strategic partners. These partners enable us to efficiently reach the long tail of SMBs who do not have the time or the resources to keep up on the latest trends in back-office automation. Accountants and banks are the most trusted advisors to SMBs, and as trusted advisors, SMBs look to them first to recommend new tools and technologies that can help improve their businesses. We have been investing in our relationships with accounting professionals since Build.com's inception. Our platform enables accounting firms to automate routine manual tasks, creating staff to offer value-added client advisory services, called CAS, to their clients. Accounting firms that have embraced CAS have strengthened their relationships with clients, expanding far beyond bookkeeping and tax preparation to become strategic advisors. This quarter, we expanded our longstanding exclusive partnership with CPA.com, the business and technology arm of the American Institute of CPAs, known as the AICPA, the world's largest member association representing the CPA profession. CPA.com serves more than 400,000 members of the AICPA by identifying emerging trends and technologies and providing education, training, and other resources. In recognition of Divi's leadership position in the spend management arena, CPA.com has selected Divi as its exclusive partner for expense management, corporate cards, and spend management. Eric Asterson, president and CEO of CPA.com, said, and I quote, We are thrilled to build upon our long history of success with Bill.com, who has been instrumental in the evolution and broad adoption of CAS by accounting firms. And now, with the powerful combination of Bill.com and Divi, we will continue to help firms expand their role as the most trusted advisors as we define the next generation of CAS, end quote. Moving on to financial institutions, during the quarter, we continued our planned rollout with Bank of America. The service is now available in all 50 states for new small business customers within the online banking experience. We are excited that this new white-label platform extends our reach beyond Bank of America's commercial customers. We will continue to support B of A's rollout throughout Calendar 22 to drive awareness and adoption of the new platform. In addition to strengthening our strategic partnerships, we have continued our rapid pace of innovation as we broaden the portfolio of payment and funding options our customers have to choose from. During the quarter, we introduced an early version of Enhanced ACH, which provides large vendors with faster payment speed and rich remittance data. This offering complements our menu of Avvalor and payment offerings, including virtual card, cross-border, instant transfer, and pay-by-card. These offerings enable us to provide more value to customers and, as a result, increase our share of wallet for their payment flows. We are scaling our organization to address the large global opportunity ahead of us, and to build a solid foundation for becoming a multi-billion dollar company. As we do so, our people continue to be the key to our success. I'm happy to announce two new additions to the Build.com team. First, we have a new Chief People Officer, Michael D'Angelo. I'm excited to work with Michael to tap his global experience scaling teams and organizations from startups to large public companies, including Pinterest, Google, and Microsoft. His experience aligns with our global ambitions, Michael takes over from Jackie Handy, who has led our people team for the last eight years. I would like to thank Jackie for all of her contributions to our success and for being a wonderful partner to me and the team. Second, we have added Aida Alvarez to our board of directors. Aida brings a wealth of experience from large public boards like Walmart and HP, and having served in the first cabinet-level position for the Small Business Administration under President Bill Clinton, she brings deep knowledge of SMBs. In addition, Mark Leonard, the CEO of Invoice2Go and Bill.com's COO, will be leaving the company in September. Mark has helped us quickly complete organizational integration across the three companies, and the one-year anniversary of the Invoice2Go acquisition marks the right timing for Mark to pursue his entrepreneurial interests. In closing, we delivered another strong quarter of results driven by focused execution against our objectives. Each of our 2,000 employees is inspired by the opportunity to help hundreds of thousands of businesses transform their financial operations so they can focus on their passions, the reasons they started their businesses. I'll now turn the call over to John to talk in more detail about our quarter.