BILL Holdings, Inc.

Hello, everybody, and welcome to the Bill.com First Quarter Fall Year 2023 Earnings Conference Call. My name is Sam, and I'll be coordinating your call today. If you wish to ask a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I'll now hand you over to your host, Karen Sansot, Vice President of Investor Relations to begin. Karen, please go ahead.

Thank you, operator. Welcome to Bill's fiscal first quarter 2023 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 Lacerte, chairman, CEO, and founder of Bill, 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 the bill that involve any 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 Bill's standalone results, which exclude our DIPI spend management and Invoice2Go accounts receivable solutions. Now I'll turn the call over to Rene. Rene?

Thank you, Karen. Good afternoon, everyone. Thank you for joining us today. Bill delivered strong financial results in Q1. with revenue growth of more than 90% year over year in our first quarter of non-GAAP profitability. From the beginning, we have created a durable business model and have been steadily building towards profitability while investing in more ways to create value for small and mid-sized businesses. Q1 was another quarter where disciplined execution led to us achieving several significant performance milestones. We acquired a record number of net new customers, achieved our highest ever non-GAAP gross margin and expanded transaction monetization on the Bill standalone platform. We delivered these results in an increasingly dynamic macro environment. In today's climate, businesses are looking for ways to do more with less. While these trends may lead to moderated payment volume growth near term, our platform has never been more relevant. As we've heard from many satisfied customers, by digitizing their back offices, Bill increases visibility into cash flow and delivers operational efficiencies giving businesses back time, which they can use to focus on their most pressing priorities. In an inflationary world, choosing our platform acts as a deflationary force. We are proud that our platform helps businesses operate more efficiently in both up and down economic cycles. Today, more than 400,000 businesses use our solutions to transform their back offices. We aspire to serve millions of businesses and are making investments to capture this large opportunity. There are 30 million small businesses in the U.S. and 70 million globally, and many of them still use manual paper-based processes to manage their financial back offices. With our platform ecosystem and scale, we believe we are uniquely positioned to be the essential financial operations solution for SMBs. A great example of how we help businesses succeed is Repurpose, Inc., a plant-based compostable home goods company that uses both our bill software and Divi spend management solutions. Repurposes, tableware, trash bags, and other home products are available at more than 17,000 retailers nationwide. Since their founding, Repurpose has kept more than 3.5 million pounds of waste out of landfills. Sarah Sanders, Senior Controller, said, and I quote, Bill and Divvy have saved the finance team two days out of every work week and take care of expense management for employees. Additionally, having so many of our vendors on the Bill network helps us reduce payment transit time and gain more control of our cash flow. Bill is helping to make us even greener and more efficient, end quote. Customers like Repurpose that are using both Bill and our Divi solutions have been fantastic sources of inspiration as our product and engineering teams work together to deliver a unified platform experience, our number one priority for fiscal 2023. We are making great progress on the product roadmap for this unified platform. And just a few weeks ago, we announced that we had become Bill, leaving the .com behind. Leveraging the strong design expertise for our combined teams, we are modernizing our brand identity. In addition to our organic efforts to enhance our platform, today we announced that we signed a definitive agreement to acquire Finmark, a leading cloud-based financial planning tool for startups and SMBs. Finmark aggregates data from disparate systems such as payroll, sales, and accounting to help businesses build budgets, forecast future earnings, and gain real-time insights through easy-to-customize dashboards. When combined with our data, we will further empower businesses to better manage their cash flow and financial operations. We believe this new financial planning solution will be especially useful to accountants, enabling them to add another valuable offering to their strategic advisory practices. These capabilities will increase the value proposition of our platform for this important channel. Our second priority in fiscal 2023 is to further scale our go-to-market ecosystem by offering more of our platform solutions to our current partners, as well as acquiring new relationships. In Q1, we expanded our relationships with our financial institution partners, driving platform adoption among their SMBs, as well as driving overall ad valorem payment adoption in the FI channel. Recently, we entered into a new agreement with a bank partner to bring our spend and expense management solution to its customers. This deployment of net new functionality to an existing bank partner is an important milestone, and we are optimistic about the opportunity to extend our reach into the FI channel through spend management. Continuing on the theme of going deeper into existing bank relationships, for the first time, we are now issuing virtual cards on behalf of an existing FI partner. This partner adopted the bill solution because of our supplier enablement momentum and processing expertise. Finally, we continue to expand our reach in the financial institution channel. We recently signed two new bank partners that we'll talk more about on future calls as implementation progresses. Accounting firms are another major component of our go-to-market ecosystem. Today, more than 6,000 firms leverage our platform to grow their practices and automate their bookkeeping operations. Through our partnership with CPA.com, we have already begun to see good interest in our Divi solution and have enabled hundreds of our accounting firm partners to begin offering it to their clients. A great example of how accountants use our suite of solutions is Bergen KDV, a top 100 accounting firm in the U.S. Bergen KDV leverages Bill and Divi for their growing business advisory practice. Chris Gallo, solution leader of Bergen KDV's financial accounting advisory services team, said, and I quote, The powerful combination of Bill and Divi drives speed and efficiency. These are key tech stack tools enabling the successful growth of our financial accounting and advisory services team practice. We now have a substantial number of clients using Bill and Divi, and they love both. Our third priority is to drive ongoing payment adoption and innovation across all channels. Recently, we made it simpler for Canadian and UK suppliers to choose to receive payments in their preferred currency via our network. driving higher FX adoption and more engagement. In the near term, we plan to offer this option to suppliers in other countries that receive cross-border payments for us, further expanding our reach. As we enhance the capabilities of our multifaceted platform, we continue to strengthen our competitive mode. Our proprietary payment technology and the end-to-end payment visibility afforded us by our network gives our team the tools to be able to quickly and creatively solve S&B pain points. Our risk management expertise, money transmitter licenses, and data assets enable us to drive efficiencies that smaller players can't replicate. We go to market with partners that SMBs trust to help them manage their businesses. Our culture acts as a magnet to attract world-class experts in software payments and small businesses. On the people front, we recently added another seasoned executive with experience developing global multi-billion dollar businesses. In Q1, we welcomed Lauren Paddleford as our Chief Commercial Officer. Lauren brings a wealth of sales and leadership experience, including seven years at Shopify, where his team brought Shopify's products and services to more than 2 million merchants in over 175 countries, generating over $4 billion in annual revenue. We also recently welcomed Allison Wagenfeld, the Chief Marketing Officer of Google Cloud, to our Board of Directors. Allison joined Google in 2016 as the first global marketing leader for Google Cloud. contributing to the division's rapid growth over the last six years. Prior to Google Cloud, Allison was an operating partner at Emergence Capital, where she worked with over 30 SaaS companies, helping with their strategy and go-to-market plans. Her experience scaling fast-growing businesses on a global level will be invaluable to Bill. In closing, we kicked off fiscal 2023 with excellent results. We are laser-focused on executing against our strategic priorities while also managing our business to deliver non-GAAP profitability in fiscal 2023 and investing for the long run. All of us at Bill are dedicated to helping SMB succeed. We are excited about the many opportunities ahead, and I would like to thank our employees, customers, and partners for the trust they continue to place in us. I'll now turn the call over to John to talk in more detail about our quarter.