Bill.com (NYSE: BILL) might not be the flashiest name in fintech, but this software provider is quietly laying the groundwork for a strong recovery. Down 85% from its 2021 peak, Bill.com is now trading at its lowest price-to-sales ratio in history. For day traders seeking short-term opportunities, this could be a prime candidate for a profitable turnaround.
Who Is Bill.com?
Bill.com offers a suite of software solutions designed to simplify accounts receivable, accounts payable, and expense management for small and mid-sized businesses. The company's primary revenue streams are transaction fees from payments made through its platform and subscription fees for its software.
Bill.com's flagship product is a cloud-based digital inbox that allows businesses to upload, receive, and pay invoices with a single click. Each transaction seamlessly integrates with leading accounting software, ensuring accurate and up-to-date financial records. Bill.com's Invoice2go subsidiary also provides businesses with tools to create, send, and track invoices, streamlining the entire billing process.
The company currently serves 464,900 customers, a small fraction of its potential market of 70 million businesses worldwide. This not only indicates significant room for growth but also paints an optimistic picture of Bill.com's future as it continues to expand its reach.
What The Analysts Are Saying
Analysts are taking note of Bill.com's strategic shift from a growth-at-all-costs approach to a focus on profitability. In Q3 fiscal 2024, Bill.com reported $323 million in revenue, surpassing management's forecast and marking a 19% year-over-year increase. More impressively, the company turned a net profit of $31.8 million, a significant improvement from the $31.1 million net loss in the same period last year, instilling confidence in the company's financial performance.
This transition has positioned Bill.com for potential short-term gains. The stock's price-to-sales ratio of 4.1 is the lowest it has ever been, suggesting it is undervalued compared to its growth prospects. Analysts see the company's vast addressable market and steady revenue growth as strong indicators of future performance.
While Bill.com's stock has faced significant pressure, its robust business model and vast market potential are hard to ignore. The company's successful shift towards profitability while expanding its customer base signals promising growth.
Neither Sean Kelland nor Stocks.News have positions in this company.
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Sean Kelland
Financial Commentator
Sean Kelland is a financial commentator with a keen interest in the intricate interplay between geopolitical movements and market dynamics. With a sharp eye for curating leading analyst insights, Sean delivers timely and impactful financial content that navigates the complexities of the global market. Drawing on his extensive experience in content creation and writing, he provides readers with val...