Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

<ul>
<li>BILL Holdings is a cloud-based provider of SaaS, payments, spend and expense management products, which automate accounts payable (AP) and accounts receivable (AR) transactions</li>
<li>The company has successfully completed its IPO in 2019 and raised $200M+ in net proceeds. Today, BILL Holdings includes subsidiaries such as Bill.com, DivvyPay, Invoice2go, Cimrid and Finmark Financial.</li>
<li>My bear case assumes a ~5% ten-year revenue CAGR from FY24 through FY34, maximum competitive pressure, high customer churn, headwind to float revenue and volatile transactional revenue.</li>
</ul>


BILL Holdings is a cloud-based provider of SaaS, payments, spend and expense management products, which automate accounts payable (AP) and accounts receivable (AR) transactions
The company has successfully completed its IPO in 2019 and raised $200M+ in net proceeds. Today, BILL Holdings includes subsidiaries such as Bill.com, DivvyPay, Invoice2go, Cimrid and Finmark Financial.
My bear case assumes a ~5% ten-year revenue CAGR from FY24 through FY34, maximum competitive pressure, high customer churn, headwind to float revenue and volatile transactional revenue.


2024 High Conviction: BILL Holdings – Hyper Growth Through M&A Deals Is Over While SMBs Struggle

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>BILL Holdings Inc. managed to exceed analyst expectations in terms of revenue and earnings.</li><li>The company demonstrated robust growth in total revenue and core revenue, reflecting the success of its various services.</li><li>In the fourth quarter, BILL Holdings continued to exhibit impressive growth, reporting a significant increase in total revenue and attaining non-GAAP net income.</li></ul>

BILL Holdings Inc. managed to exceed analyst expectations in terms of revenue and earnings.The company demonstrated robust growth in total revenue and core revenue, reflecting the success of its various services.In the fourth quarter, BILL Holdings continued to exhibit impressive growth, reporting a significant increase in total revenue and attaining non-GAAP net income.

BILL Holdings Inc.: What Are The 3 Biggest Growth Drivers Of This Fintech Major? - Financial Forecasts

<ul><li>BILL Holdings, Inc. (formerly known as Bill.com) had a solid third quarter, with a 63% year-over-year growth in revenue and an all-around beat.</li><li>Over 450,000 businesses used Bill to automate their financial operations, generating $65 billion in payment volume.</li><li>We give BILL Holdings, Inc. a 'Hold' rating with a revised target price.</li></ul>

BILL Holdings, Inc. (formerly known as Bill.com) had a solid third quarter, with a 63% year-over-year growth in revenue and an all-around beat.Over 450,000 businesses used Bill to automate their financial operations, generating $65 billion in payment volume.We give BILL Holdings, Inc. a 'Hold' rating with a revised target price.

BILL Holdings Inc.: The Hyper Growth Story Continues … - Key Drivers

<ul><li>Bill.com generated decent second-quarter result with revenues beyond market expectations and narrower-than-expected losses.</li><li>Its extensive and expanding partner and network ecosystem offered a competitive advantage by allowing them to access new firms efficiently.</li><li>With the joint objective of generating additional value for SMBs, they collaborate with an SMB's most reliable advisors, including their accounting firms and financial institutions.</li></ul>

Bill.com generated decent second-quarter result with revenues beyond market expectations and narrower-than-expected losses.Its extensive and expanding partner and network ecosystem offered a competitive advantage by allowing them to access new firms efficiently.With the joint objective of generating additional value for SMBs, they collaborate with an SMB's most reliable advisors, including their accounting firms and financial institutions.

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

BILL Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, offers cloud-based applications that simplifies, digitizes, and automates back-office financial processes for small and mid-sized businesses. BILL Holdings serves customers worldwide.

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BILL Holdings (BILL US)

2024 High Conviction: BILL Holdings – Hyper Growth Through M&A Deals Is Over While SMBs Struggle

BILL Holdings shares have underperformed the Nasdaq, with shares down ~40% over the year. My $25 PT is based on ~2x FY25 EV/Rev, the lower-end of...

Andrei Zakharov

BILL Holdings Inc.: What Are The 3 Biggest Growth Drivers Of This Fintech Major? - Financial Forecasts

BILL Holdings Inc. managed to exceed analyst expectations in terms of revenue and earnings. The company demonstrated robust growth in total...

Baptista Research

BILL Holdings Inc.: The Hyper Growth Story Continues … - Key Drivers

BILL Holdings, Inc. (formerly known as Bill.com) had a solid third quarter, with a 63% year-over-year growth in revenue and an all-around...

Baptista Research

Bill.com Holdings: Major Drivers

Bill.com generated decent second-quarter result with revenues beyond market expectations and narrower-than-expected losses. Its extensive and...

Baptista Research

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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