could see stronger than expected payment volume in fiscal Q4 amid user growth

Jun. 22, 2022 3:04 PM Holdings, Inc. (BILL)By: Max Gottlich, SA News Editor headquarters building exterior.

Michael Vi/iStock Editorial via Getty Images Holdings (NYSE:BILL) may see stronger than expected total payment volume ("TPV") in fiscal Q4, as the number of daily active users ("DAUs") on its mobile app grow triple digits QTD vs. the same period a year ago, Wells Fargo analyst Jeff Cantwell wrote in a note Wednesday, citing QTD data for and Divvy web traffic

Cantwell is estimating's (BILL) TPV growth to increase 9% Q/Q to $60B, exceeding the consensus of $57B, the note said. That would follow a Q/Q decline of 2% in the previous quarter.

For Divvy, which (BILL) acquired for $2.5B in the beginning of May, "QTD unique visitors to Divvy's login page grew nearly 80% Y/Y with similar strength in site visits and total page views, which we see as supportive of management's expected 120% growth in Divvy revenue for F4Q," Cantwell, who views BILL shares as Overweight, explained.

Going forward, "if we assume similar trends as seen in past years, then given the current demand environment we expect this will be another strong quarter for net adds," according to the note.

Meanwhile, BILL stock is inching up 0.7% in afternoon trading as the broader stock market experiences risk-on sentiment.

Towards the end of May, SA contributor Gary Alexander said the "bubble is bursting."

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