Bill.com (NYSE:BILL) saw its shares nosedive over 33% intra-day today after issuing disappointing third-quarter guidance, overshadowing an otherwise solid second-quarter performance that exceeded analyst expectations.
For Q2, the financial operations platform provider posted adjusted earnings per share of $0.56, easily beating the projected $0.46. Revenue reached $362.6 million, slightly ahead of the $359.53 million consensus estimate and marking a 14% year-over-year increase. Core revenue, derived from subscription and transaction fees, rose 16% YoY to $319.6 million.
Despite the strong results, investors reacted sharply to Bill.com’s softer-than-expected outlook for the upcoming quarter. The company expects Q3 adjusted EPS between $0.35 and $0.38, slightly above the $0.34 consensus. However, projected revenue of $352.5 million to $357.5 million fell short of analysts’ $360.4 million estimate, signaling a potential slowdown in momentum.
For the full fiscal year 2025, Bill.com provided mixed guidance. While it raised its adjusted EPS forecast to $1.87-$1.97, surpassing the $1.78 consensus, its projected annual revenue of $1.454 billion to $1.469 billion remains in line with expectations at $1.46 billion.
The sharp selloff reflects investor concerns over slowing revenue growth, even as the company continues to demonstrate profitability gains.