BILL Holdings, Inc.

Good afternoon and welcome to Bill's First Quarter Fiscal 2024 Earnings Conference Call. Joining us today for today's call are Bill's CEO, Rene Lasset, CFO and President, John Rettig, and VP of Investor Relations, Karen Sansot. With that, I would like to turn the call over to Karen Sansot for introductory remarks. Karen?

Thank you, Operator. Welcome to Bill's Fiscal First Quarter 2024 Earnings Conference Call. We issued our 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 are Rene Lacerte, Chairman, CEO, and Founder of Bill, and John Reddick, President and CFO. Before we begin, please remember that during the course of this call, we may make forward-looking statements about the future operations and results of bill 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 additional discussion, 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 reports on Form 10-Q. 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. Please refer to today's press release for the reconciliation of GAAP to non-GAAP financial performance and additional disclosures regarding these measures. Note that, at times during this call, we will discuss Bill's standalone results. which exclude our Bill Spend and Expense Management, formerly called DIVI, Invoice to Go Accounts Receivable, and Finmark Financial Planning Solutions. Now I'll turn the call over to Rene. Rene?

Thank you, Karen. Good afternoon, everyone. Thank you for joining us today. During the quarter, Bill delivered strong, profitable growth and continued to redefine the category with the launch of our integrated financial operations platform. Revenue in Q1 exceeded $300 million for the first time and grew 33% year-over-year. Non-GAAP net income was also strong at a 21% margin. While our performance exceeded our outlook and strong customer adoption continued, we started to see more intense macro pressure on our business related to spend late in the quarter, and that has continued through October. As a result of higher interest rates and tighter credit markets, capital and cash have become less affordable and available for SMBs. Some of our larger businesses have scaled back their spend while both customers and their suppliers became more selective with their payment choices. Business behavior changed rapidly in this respect. This has impacted our fiscal year outlook, which John will talk about more in a few minutes. We are taking actions to adjust to this new environment and are confident in our ability to navigate the short-term macro challenges while continuing to invest behind the long-term opportunity at hand. SMBs are often forgotten when things are most challenging for them. Serving SMBs is our North Star, and we will not forget them as we work to create more value for them and their suppliers in this market. We know these headwinds are only temporary and that our long-term focus on innovation, combined with the strength of our business model, will help millions of businesses transform their financial operations while building an exceptional business. I'm confident in our ability to execute, given our history of responding to the dynamic environments in the past, and we will continue to get stronger. We have built a category to help SMBs automate their financial operations so they can better manage their business and cash flow. Today, more than 470,000 businesses use our solutions and transact more than $280 billion in annualized payment volume. SMBs trust and rely on Bill to be their central hub of financial operations. Bill's platform also serves and empowers an ecosystem of thousands of accountants, leading financial institutions, and millions of network members. As we continue to innovate and develop the SMB financial operations category, we see the value customers receive from our offerings and are working hard to bring more SMBs into the future with game-changing solutions. This quarter, we rolled out our unified platform to customers. We have now integrated our portfolio of solutions into one platform for SMBs. We believe this will begin to unlock both the opportunity to serve many more businesses and meet more of their needs. Our integrated financial operations platform empowers SMBs to manage accounts payable, accounts receivable, and spend and expense management all in one place. Businesses now have access to a cohesive experience across desktop and mobile that is unified, easy to use, and consistent across solutions. With integrated and intelligent workflow and consolidated insight, the new platform breaks down operational silos and increases visibility and control. A great example of the value of our integrated platform provides for SMBs is RenewalMD, a medical group practice specializing in reconstructive and cosmetic surgery. Scott Regan, CEO, said, and I quote, Bill has transformed our AP process. The integrated platform gives us even better control. All of our full-time employees have a bill spending expense card. We now have visibility on who is spending and what they are buying. It's the best thing we've ever done. The amount of hours we now save by having everything in one place, I can just click pay in sync, is unbelievable, end quote. This integrated experience helps businesses, large or small, and will continue to further position Bill as the essential and central financial operations platform for SMBs. In addition to our integrated platform initiative, we also rolled out an enhanced Bill accounting console, a centralized home base for accounting professionals to simplify workflows and serve their clients more efficiently. Based on the learning from our 7,000 accounting partners, the new console enables firms to prioritize tasks across the client base, manage their clients, and assign staff support. It also allows accountants to easily add and select the right products across AP, AR, and spend and expense on behalf of their clients. Many of our accounting partners have started to leverage the new console to provide greater value to their clients. We are excited to see these new capabilities in action and to continue helping accounting firms reinvent their practice while strengthening their client advisory services. The Bonadio Group, a top 50 accounting firm, is a great example of how accounting firms use our platform to create more value for their customers and more efficiently run their practices. Thomas Totora, Director of Accounting Implementation said, and I quote, our professional services team at the Bonadio Group has found tremendous value in the unified platform created by Bill, seamlessly integrating access to both Bill's spend and expense and the Bill AP and AR platforms. This solution has streamlined our workflow, making it easier than ever for our team to interact with the platform. With this unified approach, we've gained greater efficiency, improved collaboration, and gained a more comprehensive view of our clients' financial operations, ultimately enabling us to better serve our clients and achieve our business goals. In addition to delivering best-in-class solutions for accountants, our white-label solutions are deeply integrated in the experience of many of the largest banks in the U.S. Through this embedded approach, we are now making more of our payment capabilities available inside of the nation's leading financial institutions. Today, I'm happy to share that we've reached an agreement with our newest partner, Regions Bank, which is one of the 10 largest S&B banks in the U.S. Regence Bank will power a new digital AP and AR solution for its commercial segment customers and will leverage a host of our payment modalities, such as virtual card, pay-by-card, and international payments. This is a great example of Bill bringing more and more of our payment solutions to the broad financial institutions market. Bill's collaborative approach with all of our bank partners, combined with our platform expertise, has enabled us to efficiently reach and better serve SMBs. Together with partners, we are executing to help millions of SMBs use our platform to automate their operations and transact trillions of dollars of B2B payments. As the business continues to grow and we move from one phase of the company to the next, I've asked John to take on more responsibility for the day-to-day operations as president and CFO. I've worked with John for over nine years, and his understanding of our business is exceptional. I look forward to seeing his impact as we continue to scale and grow the company. In closing, we are excited about the launch of our integrated financial operations platform and its potential to provide significant value for SMBs and partners. We continue to drive meaningful innovation to lead SMBs into a simpler world. We aim to be at every touchpoint where SMBs want to do business, whether that's at their banks, with their accounts, or in the future within their payroll, commerce, marketplace, or other software systems. Our objective is to be the essential operations software for businesses and partners to thrive. All of us at Bill are energized by this potential. We want to thank our customers and partners who are on this journey with us to help SMBs change the way they do business. Now, I'll turn the call over to John.