Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

<ul>
<li>BILL Holdings shares have bottomed out near $40 per share after Starboard Value and Elliott Management built large stakes in the American SMB back-office pioneer.</li>
<li>BILL Holding shares significantly underperformed in 2025 with shares down ~44% over the year versus a 21% gain on the Nasdaq.</li>
<li>I see further room for upside on potential launching new intelligent AI agents, partnerships with software providers, disciplined expense management and operating efficiency.</li>
</ul>


BILL Holdings shares have bottomed out near $40 per share after Starboard Value and Elliott Management built large stakes in the American SMB back-office pioneer.
BILL Holding shares significantly underperformed in 2025 with shares down ~44% over the year versus a 21% gain on the Nasdaq.
I see further room for upside on potential launching new intelligent AI agents, partnerships with software providers, disciplined expense management and operating efficiency.


2024 High Conviction Update: BILL Holdings, Starboard Value and Elliott Move In

<ul>
<li>BILL Holdings shares have materially underperformed year-to-date and fell ~51%. Shares saw selling pressure post 2QFY25 earnings as results indicated weak outlook.</li>
<li>I see limited room for downside given current valuation of ~3x 2025E EV/Revenue (with ~13% growth) and recent acquisition of AvidXchange at a higher multiple.</li>
<li>I believe BILL’s current attractive valuation levels can be viewed as opportunity to unwind bearish positions and valuation looks more reasonable vs. peers, especially AvidXchange.</li>
</ul>


BILL Holdings shares have materially underperformed year-to-date and fell ~51%. Shares saw selling pressure post 2QFY25 earnings as results indicated weak outlook.
I see limited room for downside given current valuation of ~3x 2025E EV/Revenue (with ~13% growth) and recent acquisition of AvidXchange at a higher multiple.
I believe BILL’s current attractive valuation levels can be viewed as opportunity to unwind bearish positions and valuation looks more reasonable vs. peers, especially AvidXchange.


2024 High Conviction Update: BILL Holdings, Attractive Valuation Levels To Unwind Bearish Positions

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>AvidXchange operates as a payment processing company disguised as a SAAS business</li><li>Despite benefiting from a rising interest rate environment, its core performance suggests it may not warrant a growth multiple</li><li>The company assists middle-market businesses with Accounts Payable management, but recent insider sales and industry competition raise concerns, prompting a recommendation for a short position in the stock</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

AvidXchange operates as a payment processing company disguised as a SAAS businessDespite benefiting from a rising interest rate environment, its core performance suggests it may not warrant a growth multipleThe company assists middle-market businesses with Accounts Payable management, but recent insider sales and industry competition raise concerns, prompting a recommendation for a short position in the stockThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Avidxchange Holdings Inc (AVDX) - Friday, May 17, 2024

Algosun Global

<ul>
<li>AvidXchange is one of the leading providers of AP automation software and payment solutions for mid-market businesses and their suppliers. The company was founded in 2000 in the United States. </li>
<li>With a large $20B+ TAM and valuation at ~5x FY23 revenue estimate of $392M – significantly below the average for software and payment peers – we believe shares are undervalued. </li>
<li>Management raised the FY22 revenue outlook and expected a strong FY23. AvidXchange is two years from GAAP profitability, likely making the stock volatile in the coming years.  </li>
</ul>


AvidXchange is one of the leading providers of AP automation software and payment solutions for mid-market businesses and their suppliers. The company was founded in 2000 in the United States. 
With a large $20B+ TAM and valuation at ~5x FY23 revenue estimate of $392M – significantly below the average for software and payment peers – we believe shares are undervalued. 
Management raised the FY22 revenue outlook and expected a strong FY23. AvidXchange is two years from GAAP profitability, likely making the stock volatile in the coming years.  


AvidXchange: How Mid-Market Can Save Money. Attractive Valuation and Low-Risk Entry Point

United States

AvidXchange Holdings, Inc. operates as a software company. The Company develops accounts payable, automation, and payment solutions for middle market businesses. AvidXchange Holdings serves customers worldwide.

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AvidXchange Holdings (AVDX US)

2024 High Conviction Update: BILL Holdings, Starboard Value and Elliott Move In

BILL Holdings shares have bottomed out near $40/share. The activist investor Starboard Value and hedge fund Elliott Management move in: a double...

Andrei Zakharov

2024 High Conviction Update: BILL Holdings, Attractive Valuation Levels To Unwind Bearish Positions

BILL Holdings shares have underperformed, but current valuation presents opportunity to unwind bearish positions and the stock valuation looks...

Andrei Zakharov

Avidxchange Holdings Inc (AVDX) - Friday, May 17, 2024

Despite benefiting from a rising interest rate environment, its core performance suggests it may not warrant a growth multiple

Value Investors Club (VIC)

AvidXchange: How Mid-Market Can Save Money. Attractive Valuation and Low-Risk Entry Point

AvidXchange’s EV/Revenue multiple is near a trough for a company in our SaaS universe, and we have a favorable view of the company’s business

Andrei Zakharov

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2024 High Conviction Update: BILL Holdings, Starboard Value and Elliott Move In

​BILL Holdings shares have bottomed out near $40/share. The activist investor Starboard Value and hedge fund Elliott Management move in: a double...

Andrei Zakharov

2024 High Conviction Update: BILL Holdings, Attractive Valuation Levels To Unwind Bearish Positions

​BILL Holdings shares have underperformed, but current valuation presents opportunity to unwind bearish positions and the stock valuation looks...

Andrei Zakharov

Avidxchange Holdings Inc (AVDX) - Friday, May 17, 2024

Despite benefiting from a rising interest rate environment, its core performance suggests it may not warrant a growth multiple

Value Investors Club (VIC)

AvidXchange: How Mid-Market Can Save Money. Attractive Valuation and Low-Risk Entry Point

AvidXchange’s EV/Revenue multiple is near a trough for a company in our SaaS universe, and we have a favorable view of the company’s business

Andrei Zakharov

BILL Holdings shares have bottomed out near $40/share. The activist investor Starboard Value and hedge fund Elliott Management move in: a double...

BILL Holdings shares have underperformed, but current valuation presents opportunity to unwind bearish positions and the stock valuation looks...