categories

HOT TOPICS

NEWSLETTER

If you are considering becoming a 1M/1M premium member and would like to join our mailing list to receive ongoing information, please sign up here.

Subscribe to our Feed

Cloud Stocks: Analysis of Bill.com’s Divvy Acquisition

Posted on Tuesday, Jul 6th 2021

Bill.com (NYSE:BILL), a cloud-based provider of financial services for SMBs, recently announced its third quarter results that surpassed market expectations. Bill.com continues to expand its offerings for the sector through partnerships and acquisitions.

Bill.com’s Financials

Revenue for the quarter grew 38% to $59.74 million, significantly ahead of estimates of $54.64 million. GAAP net loss was $26.7 million, compared to net loss of $8.3 million a year ago. Non GAAP net loss was $1.7 million, or $0.02 per share, compared with a net loss of $2.4 million or $0.03 per share last year. The market was looking for a loss of $0.07 per share for the quarter.

By segment, subscription and transaction revenues grew 62% to $58.6 million. Subscription fees grew 32% to $29.3 million, and Transaction fees increased 112% to $29.3 million.

Among key metrics, it reported a customer growth of 27% over the year to over 115,600. It processed $35 billion in total payment volume, growing 44% over the year from 7.2 million transactions.

Bill.com’s Product Upgrades

Recently, Bill.com announced its acquisition of Utah-based Divvy. Founded in 2016 by Alex Bean and Blake Murray, Divvy is a secure financial platform that allows businesses to manage payments and subscriptions, build strategic budgets, and eliminate expense reports. It integrates real-time tracking with each business transaction, giving organizations instant insight into their spends. The acquisition enhances Bill.com’s ability to deliver value to the combined customer base. It will give businesses the opportunity to automatically manage both payable and receivable accounts as well as corporate card spend in one combined space. Prior to the acquisition, Divvy had raised $417.5 million in five rounds of funding from investors including New Enterprise Associates, Pelion Venture, Insight Partners, Jonathan Weiner, PayPal Ventures, Whale Rock Capital Management, Schonfeld Strategic Advisors, Hanaco Venture Capital, and Acrew Capital.

Meanwhile, Bill.com continued to expand its payment offerings through partnerships. It recently partnered with the San Francisco Chamber of Commerce, the Black Chambers of Atlanta, and the regional economic development organization Greater St. Louis to support small and midsize businesses to provide insights into how different regions are approaching business in the next year. To further help SMBs, Bill.com is offering a free 90-day use of the platform with private consultations and introductory support to help streamline onboarding and to address any questions for businesses as they transition to digital tools.

Its stock is currently trading at $184.7 with a market capitalization of $15.4 billion. It had fallen to a 52-week low of $77.81 in July last year. It hit a 52-week high of $195.95 in February. Bill.com had listed on the NYSE in December 2019 when it raised $216 million at an IPO price of $22 apiece and a valuation of $1.6 billion. Prior to listing, it had raised $279.7 million through venture rounds. Its last venture round had valued the organization at $1.1 billion.

Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.

This segment is a part in the series : Cloud Stocks


. Smartsheet Acquiring Bootstrapped Startups to Drive Growth
. Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups
. Netflix Price Hike Ruffles Competition
. How Will Carbon Black Differentiate?
. ServiceNow Grows Through Addition of Capital-Efficient Startups
. Zendesk and Freshworks Follow Different Acquisition Strategies
. Tableau Grows Through Small Acquisitions
. Open Platform Strategy Stands Intuit in Good Stead
. Will GoDaddy Follow the PaaS Route?
. Adobe Delivers Via PaaS
. A Look at Oracle’s 2018 M&A Activity
. What Apps Will Drive More Traction for Cloudera?
. Slack's App Focus Will Be Key to Post-IPO Success
. IBM Counts on its Cloud and Platform for the Turnaround
. Atlassian Acquires From its PaaS Marketplace
. What Should SAP Acquire to Triple its Value by 2023?
. Expect ServiceNow to Acquire From App Marketplace
. Should Alarm.com Follow a PaaS Strategy?
. How Upwork Can Leverage the Virtual Company Trend
. Qualys Scouting For Acquisitions
. Should SAP Acquire Zendesk or Freshworks?
. HubSpot Counts on its API Strategy
. SurveyMonkey Eyes Acquisitions for Growth
. Workday Wants to Disrupt Cloud Computing Using Machine Learning
. Einstein and Open-Source Platform Lead the Charge for Salesforce
. DocuSign Prepares to Beat Rival Adobe
. Veeva Soars, But Dassault Acquires Medidata for $5.8 Billion
. Tableau Acquisition Signals Massive Analytics Push for Salesforce
. Oracle Joins Hands with Microsoft to Take on Amazon
. GoDaddy is Making Strategic Acquisitions for the Next Level of Growth
. Alteryx Sees Strong Momentum
. Adobe Leveraging Magento and Marketo to Deliver Blockbuster Performance
. Is Slack Overvalued?
. How Will Cloudera Address the Competition?
. Zoom is Not Bothered by Cisco or Microsoft
. Domo Counts on Enterprise Revenue for Growth
. Netflix Plays with Pricing and Games to Attract Subscribers
. CrowdStrike Has a Successful IPO
. Atlassian Crosses the Billion Dollar Revenue Milestone
. ServiceNow Believes Strength Lies in Tie-ups
. Partnerships are the Mantra for BlackLine
. SurveyMonkey Counts on Enterprise Segment for Growth
. HubSpot Soars to a New High
. Intuit Pushes AI to Simplify Tax Filing
. Splunk Sees Strong Cloud Momentum
. Forescout Partners with Big Names
. Smartsheet Tapping into the Government Sector
. Salesforce Continues its Shopping Spree
. Palo Alto Networks Targets the IoT Security Market
. DocuSign Focuses on the Mortgage Sector
. Oracle Brags About Autonomous Database
. Blackbaud Acquires YourCause to Grow Addressable Market
. The Market Expects a Lot More from Adobe
. Anaplan Makes its First Acquisition Post IPO
. Activist Investor Drives Market Interest in Box
. MongoDB's Formula for Success
. Coupa Aims for $1B Revenue
. Dropbox on a Rocky Road
. Medallia Banks on Acquisitions
. IBM Banks on AI
. Time For Skepticism with Netflix
. SAP Riding High on the Cloud
. Amazon's Faster Shipping Hurting its Earnings
. ServiceNow CEO Change Signals Focus on Acquisitions
. Will Google Acquire Fitbit?
. HubSpot Focuses on Its Platform
. BlackLine Partners with Google Cloud
. Rapid7’s Focus on Cloud SIEM Pays Off
. Splunk Bets Big on Data Streaming
. Intuit's QBO Scores Big
. VMware Builds Up With Acquisitions
. Palo Alto Targets $5B Revenue by 2022
. Workday Targeting Procure-to-Pay Cycle
. Will Salesforce Acquire DocuSign?
. Okta Targets Enterprise Customers
. MongoDB Eyeing China With Alibaba Partnership
. Twilio Counts on API Upgrades for Growth
. Adobe Revs up its Experience Platform
. Top 20 for 2020
. Anaplan Sees Expanding Use Cases
. Dropbox Gears Up to Regain Lost Valuation
. Forescout Fails to Deliver
. Enterprise Bet Pays Off for SurveyMonkey
. SAP Bets Big on Experience Management
. Twilio Steps up Investment in 2020 to Preserve Growth Momentum
. Zendesk, Freshworks Focus on Marketplaces and Integrations
. Proofpoint Targets Insider Threats Through Acquisition
. RingCentral's Powerful Partner Strategy Would Augment with PaaS
. Qualys Counts on Google and Microsoft for Growth
. Shopify Soars on Improved Merchant Offerings
. HubSpot Believes in the Importance of PaaS
. BlackLine Remains Focused on SAP Integration
. Recently Public Cloudflare has New Edge
. GoDaddy is on a Shopping Spree
. Intuit Targets Online User Base Through Acquisition
. Should Palo Alto Networks Acquire ZScaler?
. Why Salesforce Buying Vlocity Proves the Growing Importance of PaaS
. Datadog Performing Well Post Recent IPO
. Workday Should Open Up About its PaaS Success
. Anaplan Focuses on API Connectors for its Platform
. Veeva
. Five9 Strengthens its PaaS Focus
. RealPage Brings AI and SaaS to Real Estate
. Splunk Should Open up About its PaaS Metrics
. Okta Benefiting from App Diversity
. Oracle Sees Growth Momentum
. Xero Focuses on a PaaS Strategy
. DocuSign Resilient to COVID-19
. Smartsheet Looking up to Enterprise Customers for Growth
. Paylocity Delivers Solid Results
. Q2 Holdings Expands TAM with Acquisitions
. New Relic Focuses on PaaS
. AppFolio Leverages AI for Product Enhancement
. Will Adobe Open Up About its PaaS Statistics?
. Change Healthcare Pushes APIs
. Dropbox Needs to Share API Metrics
. Upwork Improves Monetization
. MongoDB has Miles to go
. Nutanix Needs to Define a PaaS Strategy
. Cloudera Focuses on Hybrid Cloud
. Atlassian Gears Up for Growth, Unfazed by Covid-19
. Shopify Helps Merchants Pivot to Online Stores
. ServiceNow Steady in Turbulent Seas
. RingCentral Sees Strong Traction
. Twilio Hits 52-Week High Amidst COVID Crisis
. HubSpot Lowers Outlook Amidst Virus Concerns
. Proofpoint Acquiring Even Amidst Crisis
. BlackLine Looks Solid In The Face of Covid-19
. GoDaddy Continues to Acquire
. Qualys Expands Cloud Offerings to Soar to New Highs
. Zendesk Struggling Amidst the Downturn
. Alteryx Bounces Back Despite Low Outlook
. Palo Alto Networks Continues to Acquire
. Workday Extends its PaaS Strategy
. Splunk Rides High on Cloud Initiatives
. Salesforce Partners with Workday to Address the New Normal
. Veeva Scales New Highs
. Is Smartsheet’s Pullback a Buying Opportunity?
. MongoDB Soars Even in the Crisis
. Okta Reiterates Outlook
. Is Anaplan a Prospect for Oracle, SAP?
. Oracle Relies on Autonomous Offerings
. Adobe Shifts its Focus
. Paycom Confident Under Current Conditions
. DocuSign Soars to Record Highs
. Paylocity Acquires Amid Crisis
. Datadog's Integrations and Upgrades Help it Soar
. AppFolio Improves Offerings for Current Conditions
. SurveyMonkey Should Get Into PaaS
. Model N Soars to a Record High
. Appian Focuses on RPA for Growth
. Slack Beefs up its Portfolio
. Coupa Expands into Treasury Services
. CrowdStrike Soars to Record Highs
. Guidewire Expands Cloud Offerings
. Dropbox Should Focus on PaaS
. Talend Expands Data Offering Through Partners
. IBM Expands Cloud Partners
. One Medical Supports COVID-19 Care Digitally
. Microsoft Rides High on Teams and Gaming
. Investors Say Yes to nCino’s IPO
. Nutanix Focuses on Government and Media Verticals
. SAP Rethinks Qualtrics Acquisition
. Tenable Expands Into Industrial Cyber-Security
. ServiceNow Expands Ties with Zoom
. Cloudera Powers its Data Platform with Partnerships
. Atlassian Continues to Acquire from PaaS Ecosystem
. Shopify Soars to an All-Time High
. The PaaS Landscape
. HubSpot Focuses on the Enterprise Segment
. GoDaddy Restructures During COVID
. Akamai's Security Solutions Thriving
. BlackLine Needs a PaaS Strategy
. Twilio - A Successful PaaS Story
. Zendesk Invests in the Future
. Qualys Continues to Acquire Indian Startups
. ZoomInfo Lists Despite COVID-19
. Analysis of Alteryx PaaS Strategy
. Fastly Needs to Diversify from TikTok
. Way to Go, Salesforce
. Intuit Continues to Acquire
. VMware Continues Buying Spree
. Analysis of Five9's PaaS Strategy
. Okta Expands Alliances to Attract Enterprises
. Palo Alto Continues to Acquire
. Analysis of Splunk's PaaS Strategy
. BigCommerce Goes Big with IPO
. Analysis of Workday's PaaS Strategy
. Analysis of Anaplan's PaaS Strategy
. Bill.com Sees Strong Demand
. Analysis of MongoDB's PaaS Strategy
. Analysis of Wix's Platform Strategy
. New Relic Product Upgrades Deliver Growth
. What Should Proofpoint Acquire?
. Smartsheet Should Follow Atlassian’s Example
. Adobe's Relentless Growth Continues
. SurveyMonkey's PaaS Prospects
. DocuSign Acquires Amid COVID
. Paylocity Counts on Video
. The Unstoppable Veeva
. Magic Software Acquires to Expand in Europe
. What Can Cloud Startups Do To Raise Seed Capital in 2021?
. Guardant Seeks to Disrupt Oncology Testing
. Dropbox Adds Security Capabilities
. Domo Growing Steadily
. Nutanix Focuses on the Hybrid Cloud
. IBM Fails to Impress
. Microsoft’s Partnership with Tom Siebel’s C3 AI is Intriguing
. ServiceNow Well-Positioned for Digital Transformation
. Analysis of Shopify’s Long Term Strategy
. HubSpot Rethinks Pricing Model to Support Businesses
. Akamai Investing in 5G Security Solutions
. Twilio Should Provide Developer Marketplace Revenue Metrics
. How can Alteryx Improve its PaaS Strategy?
. Partnerships Ringing in Growth for RingCentral
. Five9 Focuses on AI-based Contact Centers
. Nutanix Builds a Kubernetes PaaS
. Workday and Anaplan Executing Well Amid Pandemic
. BlackLine Expands in Order-to-Cash Market
. Zoom Investing in Security
. Splunk is on a Shopping Spree
. Veeva Sees Customer Momentum
. Palo Alto Networks Has Missed the Window to Buy Zscaler
. Can Okta Keep the Momentum Going?
. Adobe Acquires to Address Growing Market Opportunity
. nCino's AI Products Help it Soar
. Analysis of Pure Storage’s Portworx Acquisition
. Analysis of Coupa's LLamasoft Acquisition
. Analysis of ZoomInfo’s Everstring Acquisition
. Q2 Holdings at a New High
. Data Breach Drives Cloud Security Stocks to Record Highs
. Should Zoom Acquire Smartsheet?
. New Relic Needs to Accelerate PaaS Strategy
. Proofpoint in the Cyber Attack Aftermath
. Talend Focuses on Data Reliability
. Medallia Continues to Acquire
. Lemonade and Root Disrupting the Insurance Industry
. The Key to PagerDuty's API Strategy
. CrowdStrike Gears up to Tackle Security Breach Concerns
. Everbridge Widens Products and Partnerships
. Cornerstone OnDemand Expands Product Line-up
. Alarm.com Expands Products to Address Competition
. Sumo Logic's IPO Going Strong
. Cloudera Grows Through Acquisition
. IBM Trying and Failing to Reignite Growth
. Box Knows it's All About PaaS
. Bill.com Focuses on Mobile and AI
. DocuSign Leverages AI in Product Innovation
. Atlassian Makes over $100M in PaaS in 2020
. PaaS Strategy Makes Unity IPO Soar
. ON24 Goes Public with $42B TAM as Covid Puts Webinars and Virtual Events Front and Center
. Amazon After Jeff Bezos
. ServiceNow Firing on All Cylinders But One
. Snowflake Focuses on Developer Community for Growth
. Is SAP Acquiring Alteryx?
. Qualys Focuses on SaaS App Security
. SurveyMonkey Remains Focused on APIs, ISV PaaS Still Missing
. Domo Needs to Open up About PaaS Metrics
. Like Wix, GoDaddy Needs to Focus on PaaS
. Datadog on an Acquisition Spree
. Twilio Soars, Focuses on Social Initiatives
. HubSpot Expands Content Offering Through Acquisition
. Zendesk Adds Products, While Freshdesk Keeps Acquiring
. Shopify and BigCommerce Building API-based Ecosystems
. RingCentral Acquires and Adds Partners, But PaaS is Still Missing
. Acquisitions and Product Upgrades are the Mantra for Palo Alto Networks
. Salesforce can Transform Slack PaaS, But Acquisition Still Pending
. After Acquisitions, Five9 Focuses on Channel and Network Partnerships
. Workday Drives Enterprise Use Cases Through PaaS, as Anaplan Taps Into Consultants
. C3.ai Should Do ISV Focused PaaS
. Splunk on the Right Track with Cloud and PaaS
. Veeva Sets an Example, Transitions to a Public Benefit Corporation
. BlackLine is Targeting A/R Automation Market
. Okta Targets $25B Customer Identity Market with Acquisition
. Teradata Trying to Reinvent Itself on the Cloud
. Dropbox Acquires, But Competition Remains Stiff
. Smartsheet Focuses on Partners, and not on ISVs
. MongoDB has Huge Room to Grow in $97B Market
. Cloud and Platform Expansion Continues at Nutanix
. Rapid7 Targets $1B ARR by 2025
. DocuSign Exploring Unprecedented Digital Signature Offerings
. Tenable Continues its Acquisition Spree
. SolarWinds Attack Driving Zscaler's Stellar Performance
. Zoom Should Report Developer Ecosystem Metrics
. DigitalOcean Goes Public with a Strong ISV PaaS Strategy
. Dynatrace Competing with Rivals by Simplifying DevOps
. Talend Becomes a Private Firm, Once Again
. Everbridge Focuses on the Government Sector
. Analysis of Fastly’s Signal Sciences Acquisition
. Cloudera Focuses on Machine Learning for Verticals
. Medallia Acquires to Expand Digital Experience Analytics
. PagerDuty Sees Market Expand Beyond ITOps
. Bill.com Expanding Payment Offerings for Small Businesses
. Alarm.com's Product and Partner Portfolio Helps Address Competition
. Sumo Logic Counts on Acquisition and Product Upgrades
. Analysis of Crowdstrike’s Humio Acquisition
. IBM's Transition to a Hybrid Cloud and AI Company
. Analysis of Box's Acquisition of SignRequest
. ON24 Should Look at Consolidating MarTech SaaS
. Snowflake Exploring AI for Data Warehousing Capabilities
. Unity Software Focuses on Digital Marketing with RestAR Acquisition
. Tuya Counts on PaaS for Growth Within IoT
. ServiceNow Continues to Acquire, Partner, and Integrate
. Atlassian Expands Beyond IT Teams to Enterprise-Wide Offerings
. Google's Growth Continues Despite Regulatory Concerns
. Analysis of Microsoft's Acquisition of Nuance
. Amazon's Ad Revenue on the Rise
. Alteryx Focuses on the User and Partner Community
. Qualys Expands Endpoint Security Offerings
. SurveyMonkey Investing in AI and ML Tools
. GoDaddy Expands Registry Catalog
. Wix Goes on an Acquisition Spree
. Analysis of Twilio's Zipwhip Acquisition
. HubSpot's PaaS Ecosystem Revenues Expected to Grow Rapidly
. Zendesk's Products Help Increase Average Deal Size
. Shopify Focuses on Social Commerce
. Pure Storage Expansion into Hybrid Cloud Fueled by Portworx Acquisition
. Salesforce Leverages Mulesoft and Tableau Acquisitions Successfully
. Workday Gearing up for Post Pandemic IT Spend Increase
. Veeva Pushing Forth to $3 Billion by 2025
. Anaplan Expands Vertical Offerings
. Analysis of Palo Alto's Bridgeview Acquisition
. Nutanix Expands Government Vertical Offerings
. Okta Expanding Government Sector Capabilities
. Analysis of Splunk's TruStar Acquisition
. Smartsheet Remains Focused on Integrations
. Five9's Partnerships Translating to Product Innovations
. DocuSign Sees Digital Signature Trends Here to Stay
. Market Leader Tenable Leverages Acquisitions for Growth
. Analysis of Zscaler's Recent Two Acquisitions
. Analysis of Rapid7's Velocidex Acquisition
. Dropbox Expands in International eSignature Market
. MongoDB Rides High on Five Years of Atlas
. RingCentral Leverages Partnerships for Growth
. BlackLine Remains Focused on SAP
. ON24 Expands Marketing Offerings
. Analysis of Magnite's Spot X Acquisition
. PagerDuty Focuses on Integrations
. Upstart Expands into Auto Loans Through Prodigy Acquisition
. Analysis of Bill.com's Divvy Acquisition
. C3.ai Doubles Down on Partnerships
. Analysis of Coupa's Pana Acquisition
. BigCommerce Eyes a Bigger Marketshare Through Walmart Tie-up
. Analysis of Everbridge's xMatters Acquisition
. Adobe's Digital Solutions Drive Stellar Growth
. CrowdStrike Leads in Endpoint Security Through Tie-ups
. Snowflake Focuses on Expanded Partner Program to Drive Growth
. Analysis of Sumo Logic's Sensu Acquisition
. Dynatrace Counts on AI to Continue its Market Leadership
. Analysis of IBM's Waeg Acquisition
. Tuya Focuses on Smart Product Distribution
. Appian Strengthens AI Offerings
. Analysis of Zoom's Five9 Acquisition
. Google's Offerings Help Drive Partner Revenue Growth
. ServiceNow's Entire Portfolio is Booming
. How can Atlassian Amplify its Robust Growth?
. Analysis of Microsoft's Three More Acquisitions After Nuance
. Twilio Focuses on Customer Engagement
. AppLovin Fails to Woo the Market
. Analysis of Amazon's MGM Acquisition
. Guidewire Focuses on Building its Partner Network
. Momentive, Formerly SurveyMonkey, Adds Analytics to Offerings
. Zendesk Should Look at Acquisitions
. HubSpot Continues to Grow its App Marketplace
. Is Alteryx Being Acquired?
. Can Newly Public Squarespace Compete with Wix?
. Shopify Continues to Woo Developers
. DigitalOcean Expands Partnership with MongoDB
. Analysis of UiPath's Cloud Elements Acquisition
. Analysis of Qualys' TotalCloud Acquisition
. Pure Storage Experimenting with Pricing Models
. Palo Alto Networks Expands Security Capabilities
. RingCentral Cashing in on the Hybrid Work Environment
. Splunk Tackles Decelerating Growth with Product Upgrades
. MongoDB's Atlas Capabilities Expand to the Government Sector
. Analysis of Bill.com's Invoice2Go Acquisition
. DocuSign Banks on Agreement Cloud
. Smartsheet's Expanding Use Cases
. Analysis of Salesforce's Servicetrace Acquisition
. Zscaler Focuses on Federal Agencies
. Coupa Launches PaaS Strategy
. Analysis of BlackLine’s Kyriba Partnership
. PagerDuty's Expanding Integration Portfolio
. Upstart’s Improving AI Algorithm in FinTech Consumer Lending
. Analysis of Tenable's Accurics Acquisition
. Analysis of C3.ai's Growing Partnerships
. Analysis of Veeva's Learnaboutgmp Acquisition
. Analysis of Adobe's Frame.io Acquisition

Hacker News
() Comments

Featured Videos