BILL Holdings, Inc.
BILL Holdings, Inc. provides financial operations platform for small and midsize businesses worldwide. The company offers cloud-based payments, accounts payable, accounts receivable, and spend and expense management solutions. It also provides BILL Spend and Expense, a spend and expense management suite that provides a solution for businesses to have charge cards, build and monitor budgets, manage payments, and eliminate the need for manual expense reports. In addition, the company offers onboarding implementation support, and ongoing support and training services. Additionally, it provides payment services, including ACH, card, real-time, and cross-border payments, as well as checks and pay by card services; lending and deposit products; and value-added services. The company's artificial intelligence enabled financial software platform provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software provider companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.
What does it do?
BILL is a software platform that helps small and medium-sized businesses automate the boring but critical stuff — like paying suppliers, collecting payments from customers, and managing employee expenses. Think of it like replacing a pile of paper invoices and manual bank transfers with a smart dashboard that does it automatically. For example, instead of a business owner manually logging into their bank to pay 30 vendors every month, BILL handles it all in a few clicks. It also connects businesses directly with their suppliers and customers, so both sides of a transaction can track what's owed in real time.
Small and medium businesses are massively underserved by traditional banking software — most still rely on spreadsheets or outdated accounting tools that don't talk to each other. BILL sits right in the middle of trillions of dollars in annual business payments, taking a small cut each time money moves through its platform. With over 6 million businesses in its network, it has built a payments web that gets more valuable the more companies join — which is exactly the kind of compounding growth story investors love.
How does it make money?
BILL makes money in two main ways: subscription fees (businesses pay a monthly fee to use the software) and transaction fees (BILL takes a small percentage or flat fee every time a payment is processed through the platform). The transaction fee business is the bigger and faster-growing piece, because it scales with the volume of money flowing through BILL — not just the number of customers. Revenue grew from $1.3B to $1.5B in the latest year, roughly a 15% increase. It also owns Divvy, a spend management and corporate card product, which adds another layer of fee income from card transactions.
Why do investors care?
The core growth bet is that millions of small businesses are still doing financial operations manually, and BILL is slowly but surely pulling them onto its platform. Once a business is on BILL, switching costs are high — nobody wants to re-train their whole team on new software — so customers tend to stay for years. The acquisition of Divvy expanded BILL beyond just bill payments into the much larger corporate card and expense management market. For the thesis to work, BILL needs to keep growing its payment volume, hold onto its customers, and eventually turn its thin profits into something more meaningful.
Deep Dive
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