Aug. 28 at 1:46 PM
Piper Sandler downgraded Bill. com Holdings to Neutral from Overweight, cutting its price target to
$50 from
$70, citing heavier-than-expected monetization hurdles.
Despite strong Q4 trends—core revenue +15% YoY, total payment volume (TPV) +13% to $ 86B, beating consensus—AP/AR take rate hit 16.5 bps, the highest of the year, supported by recent pricing changes.
Guidance for FY26: core revenue +12-15% (vs prior 20% target, consensus 15%), total revenue
$1.59B–
$1.63B (+9-11%), EBIT margin 16%, EPS
$2.10 (down 5% YoY due to lower non-op income amid expected rate cuts).
Analyst Clarke Jeffries noted monetization hurdles are “much higher than anticipated,” citing limited AP/AR expansion, spending pressure, and conservative TPV per client assumptions amid macro uncertainty.
$BILL $PIPR