Bill.com stock drops 20% as weak revenue forecast overshadows earnings beat

Bill.com Holdings Inc. shares dropped in the extended session Thursday after the business automation software company’s revenue outlook struggled to exceed Wall Street expectations.

Bill.com
BILL,
+8.18%

shares fell as much as 20% after hours, following an 8.2% gain in the regular session to close at $128.91.

The company reported a second-quarter loss of $95.1 million, or 90 cents a share, compared with a loss of $80.4 million, or 78 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 42 cents a share, compared with break-even a share in the year-ago period.

Revenue rose to $260 million from $156.5 million a year ago.

Analysts surveyed by FactSet had estimated earnings of 13 cents a share on revenue of $243.6 million.

Then, Bill.com forecast third-quarter earnings of 22 cents to 25 cents a share on revenue of $245 million to $248 million for the third quarter, and 99 cents to $1.05 a share on revenue of $999 million to $1.01 billion for the year.

Analysts had estimated 13 cents a share on revenue of $251.5 million for the third quarter, and 57 cents a share on revenue of $1 billion.

The company also announced its board approved a $300 million share buyback plan.

Source: https://www.marketwatch.com/story/bill-com-stock-drops-20-as-weak-revenue-forecast-overshadows-earnings-beat-11675374132?siteid=yhoof2&yptr=yahoo