Bill.com shares are up 25% on Friday morning: what happened?

Bill.com Holdings Inc (NYSE: BILL) is up nearly 25% in the stock market this morning as shareholders rewarded its excellent results for the fiscal second quarter.

What the second-quarter earnings report tells us

Bill.com said it lost $80.4 million in Q2 or 78 cents per share. This compares to a narrower $17.2 million in loss a year ago or 21 cents per share. On an adjusted basis, however, the payments automation company lost less than a quarter-million and broke even on a per-share basis.

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In the same quarter last year, it had posted 1 cent of adjusted per-share loss. At $156.5 million, the cloud company noted close to a massive 190% annualised growth in revenue. The FactSet consensus was for 18 cents of adjusted per-share loss on $131.1 million in revenue.

In the earnings press release, Bill.com said its total payment volume printed at $56.4 billion for the second quarter – well ahead of the expected $50.6 billion. Sequentially, its TPV was up 20%.

Bill.com gave better-than-expected guidance for Q3

For the current quarter, Bill.com forecasts up to 16 cents of adjusted per-share loss on $157 to $158 million in revenue. In comparison, experts were calling for a higher 22 cents of adjusted per-share loss on a lower $141 million in revenue. CFO John Rettig said:

We’re pleased with our organic core revenue growth of 85% YoY and Divvy spend management revenue growth of 188% YoY. During the quarter, we expanded our gross margin and continued to drive efficiencies. Continued platform innovation, our efficient go-to-market ecosystem, and disciplined investing drive strong results.

Despite the price action on Friday, the stock is still down more than 5.0% year-to-date and just under 40% from its high in early November.