BILL (BILL) Q4 2026 Earnings Call Transcript

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DATE

Wednesday, Aug. 19, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Chairman, Chief Executive Officer, and Founder - René A. Lacerte
• Chief Financial Officer - Rohini Jain
• Vice President Investor Relations - Jon Philip Andrews Jr.
• Chief Revenue Officer - Jon Philip Andrews Jr.

TAKEAWAYS

• Total Revenue -- $436.2 million in the fourth quarter, representing 14% growth year over year.
• Core Revenue -- $400.5 million, an increase of 16% year over year, consisting of subscription and transaction fees.
• Non-GAAP Operating Margin -- 23.0% in the fourth quarter, representing an expansion of 860 basis points year over year.
• AI Adoption -- Over 175,000 businesses utilized AI agents to improve financial operations across accounts payable and Spend & Expense.
• W-9 Agents -- Over 40,000 organizations utilized the agent to collect more than 240,000 W-9 forms with zero manual work from customers.
• Invoice Coding Agent -- Used by over 60,000 companies to eliminate approximately 90% of coding steps for multiline invoices.
• Touchless Transactions Agent -- Automated more than 7 million transaction fields for 30,000 customers since becoming generally available in April.
• Invoice Financing -- Volume and revenue grew approximately 30% in fiscal 2026, driven by a relationship-level data underwriting model that improved expected loss rates by more than 50%.
• Joint Customers -- The number of customers adopting both accounts payable and Spend & Expense solutions grew 35% year over year.
• Net Revenue Retention -- 111% for customers utilizing both accounts payable and Spend & Expense solutions for at least 12 months.
• Supplier Payments Plus (SPP) -- Committed total payment volume from early adoption suppliers reached nearly $800 million.
• Total Payment Volume (TPV) -- $98.2 billion in the fourth quarter, growing 14% year over year driven by new mid-market customers and ACH volumes.
• Share Repurchases -- Approximately 8.4 million shares were retired in the fourth quarter for $300 million, with $400 million remaining on the $1 billion authorization.
• Net-New Customer Additions -- Added 1,800 net-new customers in the fourth quarter, a result below recent trends due to organizational restructuring and a focus on higher ROI customer profiles.
• AP/AR Take Rate -- 16.0 basis points, representing a contraction of 0.5 basis points primarily due to a higher mix of ACH transactions from larger customers.
• Spend & Expense Take Rate -- 261 basis points in the fourth quarter, reflecting a favorable vertical mix in high-interchange categories.
• Fiscal 2027 Core Revenue Guidance -- $1.669 billion to $1.719 billion, representing projected growth of 11% to 14%.
• GAAP Profitability Guidance -- Management expects to generate more than $125 million in GAAP net profit for fiscal 2027.
• Stock-Based Compensation -- Expected to be approximately $190 million in fiscal 2027, or 10% of total revenue, down from 14% in fiscal 2026.
• Card Payment Volume -- 20% growth year over year in the Spend & Expense segment, driven by spending in health services, travel, and entertainment.
• Subscription Revenue -- $76.2 million in the fourth quarter, an increase of 11% year over year reflecting up-market movement and tactical pricing adjustments.
• Transaction Fees -- $324.3 million in the fourth quarter, representing 17% growth year over year.
• Non-GAAP Net Income -- $94.0 million in the fourth quarter, an improvement of 53% compared to the prior year.
• Same-Store Sales TPV -- Grew 6% year over year, representing a sequential acceleration of 2 percentage points.
• Restructuring Savings -- Gross savings from organizational changes reached approximately $110 million, with $30 million planned for reinvestment.

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RISKS

• Jain stated, "We are monitoring a dynamic environment regarding card acceptance that may impact a small number of merchants," reflecting potential headwinds for the Spend & Expense segment.
• Lacerte stated, "The early progress has not met our initial expectations," regarding the initial rollout and adoption of the Supplier Payments Plus product.
• Lacerte noted that management does "not expect that every existing bank channel relationship will carry forward" as the company transitions to its Embed 2.0 platform strategy.

SUMMARY

Management for BILL Holdings, Inc. (NYSE:BILL) reported a strategic transition toward an agentic platform that automates financial operations by default for its customer base. The company completed a significant organizational restructuring during the quarter to reduce internal layers and shift to a functional model designed to improve execution speed. CFO Rohini Jain introduced a three-pillar financial framework focused on achieving Rule of 40 performance and sustained GAAP profitability starting in fiscal 2027. Strategic priorities for the new fiscal year include delivering AI-native customer experiences, acquiring higher ROI customers through integrated platform selling, and expanding the Embed 2.0 partner channel.

• Lacerte stated, "Achieving an AI native experience means that AI is so deeply embedded that removing it would make the product no longer work."
• The entire sales organization has been trained to sell the integrated platform as a single solution to drive multi-product adoption.
• Management decided to consolidate its bank channel efforts onto a scalable, standardized embedded platform, moving away from legacy custom versions.
• A new AI underwriting model for invoice financing utilizes a proprietary data set to assess risk with precision that traditional credit bureaus cannot replicate.
• Customer spend on AI through the platform increased over 50% year over year in the fourth quarter, with TPV from AI-first customers nearly doubling sequentially.
• Beginning in fiscal 2027, the company will transition to reporting revenue net of rewards expense to better reflect the unit economics of the Spend & Expense business.

INDUSTRY GLOSSARY

• TPV: Total Payment Volume, the total dollar value of all transactions processed through the company's platform.
• Take Rate: Revenue earned from processing payments, expressed as a percentage of total payment volume.
• Rule of 40: A financial metric calculated as the sum of total revenue growth (net of rewards) and non-GAAP operating margin.
• Embed 2.0: A standardized embedded finance solution that allows software partners to integrate the company's financial tools into their own products.
• SPP: Supplier Payments Plus, a product designed to consolidate and automate receivables for large-scale suppliers.
• ACH: Automated Clearing House, an electronic network for financial transactions in the United States.
• ICP: Ideal Customer Profile, a specific target segment characterized by higher payment volume and multi-product potential.

Full Conference Call Transcript

Operator: Hello, everyone. Thank you for joining us. And welcome to Bill's Fourth Quarter and Fiscal Year 26 Earnings Call. After today's prepared remarks, we will host a question and answer session. To withdraw your question, press 1 again. I will now hand the conference over to Jack Andrews, Vice President Investor Relations. Jack, please go ahead.

Jon Philip Andrews Jr.: Thank you. Good afternoon, everyone. Welcome to Bill's fiscal fourth quarter 26 earnings conference call. We issued our earnings press release a short time ago and filed the related Form 8-K with the SEC. The press release can be found on our Investor Relations website at investor.bill.com. Joining me on the call today are René A. Lacerte, chairman, CEO, and founder and Rohini Jain, CFO. Our remarks today include forward looking statements about our business, products and expectations that involve many assumptions, risks and uncertainties. Actual results could differ materially from those expressed or implied by such statements. On today's call, we will also refer to both GAAP and non GAAP financial measures.

Please refer to our earnings press release and investor presentation posted today and to our periodic reports filed with the SEC for additional information about such risks and uncertainties and for reconciliations of non GAAP measures to GAAP. With that, let me turn the call over to René.

Rene A. Lacerte: Thanks, Jack. Good afternoon, everyone, and thank you for joining us. Q4 was 1 of the most significant quarters in the history of 16% year over year. While our non GAAP operating margin exceeded 23%. With increased activity in the industry, it is clear that Bill's value proposition of an integrated platform continues to resonate with SMBs. I will first recap the highlights from Q4, then provide an update on our new organizational structure and then introduce our key priorities for FY 2027. As I shared on our last earnings call, innovating with AI represented our top priority during the past fiscal year. We continue to see strong momentum in adoption of our AI capabilities among our customer base.

To date, we have had over 175 thousand businesses using our agents to improve their financial operations across S&E and AP. The number of organizations using our W-9 agents more than tripled to over 40 thousand. As a result, we have collected over 240 thousand W-9s with 0 work from our customers. This agent handles outreach collection and validation with the IRS without anyone touching it. Eliminating a job nobody wanted in the first place. Next up, Bill's invoice coding agent. Which launched in February, has already been used by over 60 thousand companies to eliminate around 90% of the coding steps for a multiline invoice.

This has generated significant time savings reducing the processing time across our AP customers by nearly half. In addition, our touchless transactions agent became generally available at the end of April to all of our Spend & Expense customers, Already, it has automated more than 7 million transaction fields for 30 thousand customers. Lastly, our pay 40 agent became generally available at the end of Q3 and completed over 30 thousand card transactions Without any human interaction during Q4. These examples are just some of the many AI capabilities we have and are building for customers. Given these successes, we are excited to launch major new AI powered functionality over the coming months.

The value to Bill and its customers from this technology will come from better business outcomes with greater speed, control, and efficiency. AI success is all about this, period. It is easy to drive agent creation and code completion but it takes great domain expertise to build products that customers never knew they wanted or needed. Our domain expertise and scale is long established. Customers know that we have built our platform to deliver better business outcomes and that has built a brand trusted by businesses everywhere. We are making these AI investments to extend the significant value creation for SMBs that we are known for.

It will help them save more time, maximize financial performance, and leverage AI with confidence. As a result, customers will spend more time on strategic work catch risks that would otherwise have been missed, and focus on growing their businesses. Our commitment to constantly innovating and delivering software that optimizes and executes the workflows and decisions that run the financial operations for our customers has a real impact. They trust us. Let me share a customer quote from Matthew May, national accounting manager partner at Sorin, a large accounting firm. We handle some of the world's most sensitive data, so our philosophy is always security first.

Rather than using generic AI tools, we trust solutions from vetted tech partners like Bill who have proven their security with our clients' financial information. AI is an enabler but only with guardrails and the right partnerships augmenting expertise and trust. When it comes to financial operations, trust is a critical factor in the purchasing decision. That trust is helping our integrated platform gain strong traction among the fastest growing segments of SMB spend, AI first businesses, technology services, and professional services firms. These firms are scaling quickly and need financial infrastructure that keeps pace.

Customer spend on AI through build grew over 50% year over year in Q4, and TPV from our AI-first customers nearly doubled from Q3 to Q4. AI is not only a game changer for our customers, but it is critical to how we build and operate at scale inside of Bill. We are driving more and more internal efficiencies while improving execution across the entire company. 1 use case is having a direct impact on our financial results. A few quarters ago, we introduced a new AI underwriting model to assist with our invoice financing applications. This new model is built on signals and patterns based on how businesses pay and receive payments within the bill network over time.

Relationship level data allows the model to assess invoice level risk with a precision not replicable from traditional credit bureaus. We are seeing a material impact on our invoice financing business. Both volume and revenue grew approximately 30% year over year in FY 2026 while the expected loss rate has improved by more than 50%. This is a strong illustration of 2 of Bill's key moats, our massive proprietary dataset and our network. As more and more transactions are executed on our platform, our models get smarter, our risk selection improves, and we can extend more credit at better economics for the customer and us. This is a compounding advantage that grows with scale.

Next, I would like to provide an update regarding a number of organizational changes we completed during Q4. Over the last fiscal year, we have been working diligently and intently on structuring bill for our next phase. We significantly simplified and reduced layers across the entire company. In addition, we moved from a hybrid general manager structure to a functional model. The imperative to become an AI native organization combined with driving speed of execution on the initiatives that drive the results across the business is the primary motivation for these changes. We are moving fast with strong accountability and end to end ownership. in order to drive velocity, impact, and growth.

Simply stated, we built Bill to achieve what it needs to in the future. During Q4, we made some deliberate leadership changes to support this direction. I was pleased to welcome Jon Philip Andrews Jr. to Bill as our new Chief Revenue Officer. Jon has a strong background and track record in scaling revenue organizations to serve lower and mid market companies. He is responsible for all aspects of our go to market organization. In addition, Mike Cherry, who joined Bill last year, has been promoted to chief product officer He now leads the end to end platform experience spanning software solutions, payments, and financial services.

This structure reflects how customers use all of Bill's capabilities together across a single integrated platform. Finally, Eric Chan has been appointed chief technology officer. As Bill's founding engineer former CTO, and chief architect, Eric has exceptionally strong knowledge of our technology, the team, the current technology landscape, and operates with the speed this moment requires. We have done the work to assemble the right team, and our focus, are energized, and positioned to win in our market. Entering FY 2027, we are focused on the following 3 strategic priorities: Our first and most important priority is to deliver AI native experiences for our customers.

Because this is our top priority, I would like to spend a moment on what that means for Bill. Achieving an AI native experience means that AI is so deeply embedded that removing it would make the product no longer work. Our success with over a 175 thousand customers leveraging AI capabilities is compelling. We are making a strategic pivot to an agentic platform that automates financial operations out of the box by default for nearly 0.5 million customers. We are building new front end experiences that remove friction so that customers can instantly realize value from AI.

Our knowledge of SMB specific pain points and workflows combined with our proprietary data advantage, our network of over 9 million members and our robust payments infrastructure, creates a powerful foundation to build trusted, accurate, secure AI solutions specifically aimed at the Fortune 5 Million. Our second priority is to acquire higher ROI customers. 1 of the key areas of focus here is driving multi product adoption. In Q4, the number of joint customers leveraging both of our AP and Spend & Expense solutions grew 35% year-over-year. Those who were customers both in Q4 and a year ago exhibited a net revenue retention of 111%.

Given the success we have seen, we have made a change to our go to market in FY 2027. The entire sales team is now trained to sell Bill as a single platform, rather than individual components. This is how we will engage with customers and prospects moving forward. Our Embed 2.0 strategy represents an efficient channel opportunity. We believe there is a large market for software companies interested in deploying our embedded finance solutions to support the financial operation needs of their clients. We are gaining traction with our embed partners. As an example, 1 of our embed partners, TPV and units, more than tripled sequentially from Q3 to Q4.

And focusing on higher ROI go to market activities, we have made the decision to align our bank channel efforts with Bill's broader embedded strategy. We are investing in scalable, standardized embedded solutions, We need all of our partners to use all of our products and experiences. Focus here will allow us to leverage 1 platform across all of our partners versus the multiple versions we support today. We do not expect that every existing bank channel relationship will carry forward. Our third priority is to expand value through Bill's platform. We aim to achieve this by providing greater value for customers in terms of new product introductions and enhancements.

This, in turn, should result in greater value to build from a monetization perspective We have a strong track record of introducing new ad valorem payment products over time, that have solved specific pain points for our customers while leading to broader monetization opportunities. 1 example of this is supplier payments plus, or SPP. Driving adoption of our SPP offering remains a key area of focus to expand value for both customers and Bill. The early progress has not met our initial expectations. The enterprise sales motion required was new to Bill in FY 2026.

Over the last year, we have invested in building out this go to market motion, and we are now starting to see increased deal momentum and faster implementations. Our contracts with these large customers lock in new ACH monetization and preserve virtual card volume. Our committed TPV across all of our payment offerings from these early adoption suppliers has reached almost $800 million. Building great products is hard work. It takes vision, execution, listening to customers, and iterating over and over to create a great customer experience. We have been doing that with SPP, and the customer response is positive.

I would like to share a case study from 1 of our early customers describing the value they are deriving from SPP. We recently signed a business services company that is managing over $75 million in annual SMB payment volume through Bill. Prior to adopting SPP, they faced a fragmented receivables operation with hundreds separate accounts spread across multiple field locations. Half of all incoming payments were invisible to corporate treasury, and posted manually with no automation. This is a painful way to run a business. After deploying Bill Supplier Payments Plus, the company consolidated 168 accounts into 1 centralized corporate account in just 10 weeks. With 0 IT involvement and no disruption to customers or field teams.

The percentage of payment transactions that are processed and settled automatically without any manual intervention jumped from 72% to 98% and then to 100%. The company has recovered more than 400 hours of manual labor per month, time that is now redirected toward higher value customer facing work. The customer summed it up in 1 word, efficient. AI dramatically expands what is possible. But the requirements of financial operation systems that serve critical functions remain the same. Accuracy, control, and security are paramount. Our wealth of proprietary data combined with our infrastructure, scale, reliability, and experience, having moved almost $2 trillion in spend, gives Bill an advantage in the market that is not easily replicated at scale.

Successfully executing hundreds of millions of transactions for hundreds of thousands of customers gives us invaluable learnings. We are uniquely positioned to develop and deliver AI native solutions that are best tailored to address the needs of the customers we serve. A year ago, we set out to do something hard. Grow the business, return capital to shareholders, and fundamentally reshape how Bill operates. All at the same time. We did that. I could not be more proud of the team given the amount of change experience and the results delivered. The team I have beside me today is smaller, faster, and more aligned.

The product we are building is the most compelling it has ever been, and the customers who trust us with their financial operations are telling us it is working. I am excited and confident in where we are headed, And with that, I will turn it over to Rohini.

Rohini Jain: Thanks, René. Before getting into the details of our quarterly results, I would like to make some comments up upfront regarding how we view the longer term financial trajectory for Bill. During my first year here, many investor conversations have focused on the importance of providing a financial framework for how we view both growth and margin opportunities over time. There are 3 key pillars to our framework that I would like to share now. First, Bill has built a durable business model, and we are well positioned to deliver low double digits to mid teens core revenue growth with expanding margins over time. Second, we are focused on driving progress towards the Rule of 40.

We define this metric as growth in total revenue less rewards plus non GAAP operating margin. This is a measure we believe better reflects our underlying unit economics and improves comparability to peers. Our actions in FY 2026 have positioned us to be a rule of 40 company. And we expect to exceed this threshold exiting FY 2027. Third, Bill is focused on achieving meaningful GAAP profitability in FY 2027 and expanding from there. Now let's dive into the financial results for the quarter. In Q4, we delivered $400.5 million in core revenue, growing 16% year over year. Jon GAAP operating margin was 23%, expanding 370 basis points sequentially and 860 basis points year over year.

Jon GAAP net income was $94 million representing a 22% improvement sequentially and a 53% improvement year over year. The large profitability beat this quarter was driven by earlier than planned work workforce reduction timing, and lower fraud and credit losses. Within our integrated platform, we saw double digit growth in both AP/AR and Spend & Expense. AP/AR core revenue grew 10% with subscription ARPU increasing by 1.4% year over year. Mid market core ARPU from newly acquired customer cohorts grew 31% year over year as we continue to focus on higher quality customers. In Q4, we added approximately 1.8 thousand net-new customers, which is below recent trends.

In addition to our decision to deliberately prioritize signing the right customers for Bill, the organizational restructuring impacted this result. We decided to exit salespeople earlier than originally planned in order to familiarize the remaining sales team with their new pipeline and quota opportunities. Under Jonathan's leadership, we have moved quickly to a single platform selling motion with tighter execution across the team. The early indicators in Q1 are already trending in the right direction, which gives us confidence. AP/AR transaction revenue was $131 million, up 10% year over year. We saw very strong TPV in Q4, exceeding our expectations by approximately 300 basis points. This came mainly from newly acquired larger customers and their ACH volumes.

This TPV mix resulted in an APAR take rate of 16.0 basis points, which contracted by 0.5 basis points. Normalizing for the large ACH TPV take rate would have been in line with our Q3 guidance. TPV on a same store sales basis grew 6% year over year, representing a sequential acceleration of 2 points. and the highest since Q1 FY 2023. By industry vertical, we saw increased spending in manufacturing, administrative services information technology and construction. We saw decreased spending in retail trade and wholesale trade. Customer spend on AI increased over 50% year over year in Q4. In Spend & Expense, Q4 revenue totaled $105 million up 23% year over year.

Card payment volume grew 20% year over year. Travel, entertainment and health services drove that growth, more than offsetting the slight softness in advertising spend. Take rate for the quarter came in at 261 basis points reflecting a favorable mix of high interchange verticals. Reward rate was 133 basis points up 3 basis points sequentially driven by higher than expected volume in our top rewards tier from a concentrated group of customers. We have renegotiated those commercial contracts moving forward. S&E fraud and credit losses continue to improve over time. Driven by AI enabled enhancements to our fraud platform and underwriting. In Q4, as a percentage of TPV, it improved nearly 6 basis points sequentially. Turning to capital allocation.

In the fourth quarter, we repurchased approximately $300 million of stock at an average price of $35.31 per share. We have now retired approximately 15 million shares, representing close to 14% of our common stock outstanding, since our Q3 earnings call. As of today, we have $400 million remaining on our $1 billion repurchase authorization announced in May. Given our confidence in Bill's durable growth profile and free cash flow generation, we expect to execute the remaining authorization within the parameters we have established. Before turning to formal guidance, I want to highlight 3 factors that are shaping our near term outlook.

First, we are navigating through a lot of change, our go to market organization specifically, we are in our first quarter of a new sales motion under new leadership, unified around a single platform sale. Second, on SNE, we are monitoring a dynamic environment regarding card acceptance that may impact a small number of merchants. Additionally, we are taking proactive commercial actions on certain higher reward tiers and contracts. Third, as Rene noted, we are concentrating our channel on new Embed 2.0 platform. This means moving away from custom 1.0 solutions we built for a small number of bank partners. This is a deliberate choice to consolidate on a scalable and standardized embedded platform that supports our full product suite.

Given these aspects, we believe a measure of prudence is appropriate in our forward outlook. I also want to address an accounting presentation change we are making. Beginning in Q1 of fiscal year 27, we will present revenue net of rewards expense. Rewards expense will be recognized as a reduction of subscription and transaction fees rather than as a sales and marketing expense. This voluntary change better reflects unit economics of our Spend & Expense business. It will sharpen focus on the right customer segments improve comparability with our peer group, and will help us drive profitable growth. The change has no impact on the operating income or net income.

The total revenue and total operating expenses will each be reduced by the same amount. We will begin reporting under this new presentation in Q1. I will now detail our guidance for our first quarter and fiscal year 27. In light of this accounting change, we will guide to our historical presentation of revenue and rewards today. However, beginning with Q1 of fiscal year 27, our guidance framework will be presented on a revenue net of rewards basis only.

For fiscal Q1 27, on a historical presentation of revenue basis, we expect total revenue to be in the range of $432.5 million to $442.5 million and core revenue to be in the range of $398 million to $408 million reflecting 11% to 14% year over year growth. For fiscal Q1 27, we expect the rewards expense to be $92.5 million implying a core revenue net of rewards growth rate of 10% to 14%. Here are a few key assumptions that underpin Q1 revenue guidance. First, on volume, we expect AP/AR TPV growth to be in line with FY 2026 volume growth. For Spend & Expense, we are assuming year over year volume growth of mid teens in Q1.

Second, turning to monetization, we expect AP/AR take rate in line with Q4 as we expect higher ACH TPV growth trends to continue Moving to Spend & Expense, we expect the take rate to be approximately 260 basis points. On the bottom line, for Q1, we expect to report non GAAP operating income in the range of $112.5 million to $117.5 million We expect non GAAP EPS to be between $0.96 and $1.00 These EPS figures are based on fully diluted share count assumption of approximately 102 million shares.

Turning to full year guidance for fiscal year 2027 on a historical revenue presentation basis, we expect total revenue in the range of $1.807 billion to $1.857 billion reflecting 9% to 12% year over year growth. We expect core revenue in the range of $1.669 billion to $1.719 billion reflecting 11% to 14% year over year growth. 1 modeling point to flag is that Q2 FY 27 faces our highest prior year comparison. And we expect this to represent the trough of our growth trajectory for the year. Our guidance reflects 3 points of year over year growth headwind. 2 points from S&E dynamics and 1 point from the bank channel.

For fiscal 27, we expect the rewards expense to be $401.5 million implying a core revenue net of rewards growth rate of 10% to 14%. Turning to bottom line. For fiscal 27, we expect to report non GAAP operating income in the range of $421 million to $451 million which represents a 23% to 24% range in non GAAP operating margin. This implies an ex float operating margin expansion of approximately 590 basis points at the midpoint. We expect non GAAP net income in the range of $370.5 million to $394.5 million and non GAAP EPS to be between $3.56 to $3.79 representing 33% year over year growth.

These EPS figures are based on fully diluted share count of approximately 104 million shares. This accounts for the $600 million share repurchase completed under our $1 billion authorization. As we mentioned, GAAP profitability is now a key focus area. We expect to generate well over $125 million of GAAP profits for the full year. Included in this guide is an expectation for stock based compensation expenses to be approximately $190 million As a percentage of total revenue, we expect stock based compensation to represent 10% in fiscal year 2027, down from 14% in fiscal year 2026. A year ago, we were a company with questions around profitability, Today, that question is answered.

We are a leaner organization with a sharper focus. Exiting Q4 26, we are a rule of 40 company. Driving strong revenue growth and GAAP profitability. We have made deliberate decisions to trade low quality revenue for durable, high quality growth. Anchored in AI led initiatives stronger unit economics and a platform our customers trust. FY 2027 is about executing against that foundation. And now we will open up the call for Q&A.

Operator: We will now begin question-and-answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press 1 on your telephone keypad. To withdraw your question, press 1 again. Please pick up your handset when asking a question. And if muted locally, please remember to unmute your device. Please standby while we compile the Q&A roster. Your first question comes from the line of Tien-Tsin Huang with JPMorgan. Your line is now open. Please go ahead.

Tien-Tsin Huang: Thanks a lot. Good afternoon. Good results here. I think I was going to ask on the restructuring charge maybe, and that came in on the higher side. But just to get to that charge, where did everything land? Versus what we talked about last quarter in terms of headcount reduction? Reduction, savings run rate, and reinvestments. I know you gave some initial views there. Where did you land, and what is the assumption on the timeline for realization? And in fiscal 27?

Rohini Jain: Afternoon. Thank you so much for the question. And let me start by just letting you know the restructuring efforts went exactly as we had planned. So we had given you an initial estimate of about $110 million of gross saving. We came very, very close to that number. So that is good. We had given a range of investments back into the business of about 20 to 30. We are right now anchoring those investments on the number 30. So that puts our net benefit from this at around $80 million.

Tien-Tsin Huang: Okay. Terrific. And then maybe for you, Rene, just thinking big picture here. I heard the go to market change, and you brought in the CRO as you talked about. Any big learnings worth sharing here from whether it be the employees or the clients that you talk to or your partners given the reorg? Love to hear your thoughts on that.

Rene A. Lacerte: Yeah. Thank you, Tien-Tsin. Yeah. it is a great question. I think the way that, you know, you are starting to hear us talk the way that we are executing is really across the platform. We started on day 1 to build a platform, the platform that makes doing business simple. We started with workflow. We started you know, then adding AP, AR, SNE, but we do so much more than that. And I think, you know, the go to market changes that you are referencing and kind of the momentum and energy that we are feeling inside the company is that the platform capabilities we have matter to our customers. They matter to our partners.

They matter because that is how you get the most value out of the experience. And so when I look at the last 12 months, we did really, really important work that unified the platform and the organization. They go hand in hand. We have aligned both the products and the go to market organizations to specifically sell all of AP and S&E customer experiences. They are now fully integrated across the new modern UI. We are leveraging that customer experience to start selling that platform. You heard me talk about that. And then we are seeing results. I mean, 35% growth in the multiproduct adoption. Is great in the course of the year.

And that success has accelerated our change from a go to market perspective to really look at the totality of the offering that we have and to make sure that the marketing, the selling, the supporting is thinking about a unified platform approach. The tight organizational changes that we made during the year are both supporting the shift and are in concert with this belief that the platform is the key to driving customer satisfaction and success. You know, and given what we have already seen, you know, the excitement that we have across the impact, only increases when we think about the broader platform that we are building.

And so again, when you ask the question, like, what is kind of giving you confidence, momentum, or energy here, it is really this platform. And just like to step back, you know, we see this really resonating with customers. And it resonates because, you know, financial operations is complex. there is a lot of moving pieces with that. And if you think about a customer does not want to have to make a lot of decisions about their financial operations. The same way they do not want to have to make the decisions about building their own car. They would rather buy a fully loaded and finished product.

And so we at Bill are the masters at simplifying that complexity behind financial operations. And we are increasingly becoming the fully loaded finished product for our customers. So the core products that customers come for we know that. that is the AP. that is the SNE. But we also know they come for way more than that. They come for all the payment capabilities. And just to give you an example about how the platform just was extended to create more value for our customers, in the past year. In the midst of all the restructuring that we have done, you know, we have now had SPP, a new product, new platform extension.

That really is taking advantage of the multisided network that we have with over 9 million connections. You know, close to $400 billion in annual spend and the data that actually allows us to understand what matters to our suppliers and really how to go target those suppliers. That data is what is behind the development of SPP. And nobody else has this data that data today.

And so when we think about, you know, the platform play, and, again, giving me energy, what is giving me confidence, it is seeing that the combined, you know, product minds capabilities that we have in the company and that platform capabilities we have from the shared data capabilities that we have we are doing stuff that nobody else can do. We have a really interesting opportunity. We see that in invoice financing. You can see the prepared remarks that, you know, we are able to now extend, obviously, into small suppliers to help them you know, get their funds faster. They do not have to wait.

We can only do that because of the data graph we have. it is unique. It enables us to make real time offers based on patterns and documents that we see across the largest b 2 b payment network that we know of. And simply put, you know, no 1 else has this capability at this scale today. The third thing I would like to call out from a platform perspective is more looking forward in how we think about build cash. Again, it is a reminder of how we have built a platform that actually solves the financial complexities that are behind the operations of any business. So payments require speed.

They require you know, clarity, and they require a clean audit trail. And Bill Cash delivers that. it is faster same day payments. We have perfect visibility into every transaction when it is a bill cash transaction. No FI has that. No accounting software has that today. And we are in a position to continue to create value for our customers and to really reinforce the trust and confidence that they have in our platform with Bill Cash. Now it is early days on Bill Cash and already I think, you know, we are seeing strong, good adoption from our early customers.

And 1 of the most important factors that we are seeing in that adoption is that they are moving spend that was offline, spend that was never on the bill platform before, it is now becoming online. And so when you combine you know, all the capabilities that we have from a core front end, you know, the front door, of AP, SNE, and AR You add all the payment capabilities and the extensions that we are doing, with suppliers and cash management, on bill cash.

You know, and the ability for us to now start selling that platform that is what gets us excited. it is something that, you know, we have been building a long time to make happen. And we know that the scale that we have begets scale. And we know that we have got a very large, successful, and profitable business that we can invest from. And we are now 100% in line thanks to the restructuring on how to go make that happen. So a lot of things that are kind of underneath that go to market consolidation, if you will, but it all comes back to the platform. Good. I could feel the energy, René. Thank you.

Operator: Your next question comes from the line of Scott Berg with Needham and Company. Your line is open. Please go ahead.

Scott Berg: Hi, everyone. Nice quarter and a nice forecast here. I guess 2 questions. Rene, we will start off with all the AI usage in the platform. Your adoption rates are impressive and realized use cases are deeply impressive. And how they are saving your customers time. How do you think about the monetization strategy of your AI efforts going forward. Now that you have some, I guess, more time to read usage data and understanding how customers are using it. You have both existing functionality and the innovations you spoke about in the pipeline coming up this year.

Rene A. Lacerte: Thank you, Scott. I, yeah, I think this is, you know, obviously, a really important part of strategic direction of the company. The pivot to really becoming AI native gives us lots of opportunities. But the first and foremost thing to think about is that we are sitting on a massive opportunity. There are you know, millions of businesses that need financial operational help. And we are in a position with the platform that we have to go reach them and support them in ways that they never knew was possible.

So the first thing from an AI perspective is going to be building the capabilities to actually drive you know, significant improvement opportunities around customer retention and adoption in the early stages of their life cycle with us. So 1 of the ways that you will see the monetization is that we will be really tracking, hold ourselves accountable to driving better conversion, better retention, if you will, in the first 90 days. But the other thing that you will see us thinking about is the strategic rationale of from a pricing perspective. And so the reason I broke these up here is there is obviously customers that matter, and then there is obviously the revenue per customer.

And on the revenue per customer, we have been, you know, I would say, tactical with some price increases in the last year. But as we roll out these AI capabilities, we are going to really be strategic. And 1 of the things that we know is that we are going to be inclined to move customers from a per seat basis to really a platform fee. To really understanding the capabilities and the value that we are providing them, as well as a usage consumption fee, if you will. And so those are, you know, I would say, the kind of direction that we are moving towards.

Agents will be grouped into different subscription tiers based on the value that they are creating for our customers. And, obviously, you know, we will have some consumption based as we roll these out. So a lot of opportunity coming in the future, and obviously, it is predicated on us getting the agents that actually completely simplify the experience for SMBs. Move them from a do it yourself approach to the do it for me approach. And we think that is the key thing to the AI strategy. Very helpful, René. Thank you.

Rohini Jain: And then from a follow-up we have modeled this out a couple times what your operating kind of margin structure will look like in this post reduction in force environment. environment. And your rule of 40 is, I think, a great strategy to be achieving here as you get through the year. But where does incremental leverage in the model come from? Because we look at the model ex-rewards as well. And we think you will be exiting this year at an already relatively high rate. there is always some additional room to move those margins up over time. But what does that incremental kind of next step come from now that this phase is in the background? Yeah.

Thank you for the question. And the way I think about it, we have done a lot of work in expanding the operating margins over the last year. Think this was the 3rd year in a row that we doubled our operating margin ex float. So we wanna continue in expanding the margin We did a lot of work on labor related OpEx and some on the other OpEx in the last year. Where the additional opportunities will continue to come from is the AI led productivity. So we are starting out on that journey.

We are starting to see some good examples across our risk teams, across CS teams, across engineering teams, but we would, you know, expect to see that mature further and drive operating leverage. Additionally, we are going to really move our focus on revenue growth. We have now really taken a very focused approach to durable and profitable revenue prioritization. And you will, you know, continue to see that happen through the year. And the easiest way to grow margin is to grow revenue. Really. So I think driving the right product structure, making sure that the economics behind the product itself are robust. Those would be our next moves.

Operator: Your next question comes from the line of Christopher Quintero with Morgan Stanley. Your line is open. Please go ahead.

Christopher Quintero: Hey, René, Hi. Thank you for taking the questions here. I want to ask about the TPV upside, especially on the APAR side in the quarter. Could you maybe just unpack a little bit more of the details around what really surprised you to the upside there, the drivers of that outperformance, You know, we heard from the airlines talking about some travel inflation. So curious if that was any impact and, I think, Rene, you talked about AI spend on bill being up 50% year over year in Q4. So just curious if you can unpack all those drivers for us.

Rohini Jain: Yeah. Absolutely. So as I look at Q4 and the larger performance on TPV, I would come back to, you know, how strong our ACH product is. it is really best in class, and we continue to see usage across ACH continuing to increase. Our product gets better and better. So that is where we saw majority of the uptick from. Now if you compare that to the verticals where we are seeing within our AP/AR platform. We are seeing construction, the manufacturing side, some of these verticals that are very tied to the new AI flywheel that we are seeing and spending.

So big ticket items, construction manufacturing type of verticals doing really well. that is impacting the ACH TPV growth as well. Additionally, 1 very interesting dynamic is emerging, which is our mid market customers have some really large ticket size transactions that come on the platform. Which, you know, they have more ACH, they have generally lower take rates than the rest of our portfolio, but they are extremely valuable customers to us because their ARPU is 3 times more than an average customer at Bill. Their TPV is 4x more. So as we continue to grow the mid market segment of our business, we will see some of this dynamic, you know, continue to happen.

1 thing I would like to highlight is, you know, this additional TPV that is flowing through the system is actually giving us good benefit in terms of load over performance. You guys saw in Q4, we did float by close to $3 million, and this is not due to the rate fluctuations. it is really because of more TPV flowing through systems. And I think it is just the flywheel of the product that Rene was talking about as well. We have multiple ways to monetize. Very helpful.

Christopher Quintero: And then I wanted to follow-up on subscription revenue. That line item, the growth rate there had been kind of stuck around this mid single digit. Type of range for a few quarters now. And in the past 2 quarters, you have seen it accelerate up to 11%. This quarter. So I am just curious if you can unpack what are some of the drivers there and considerations around that performance.

Rohini Jain: Yeah. Absolutely. On the, specifically, on the subscription side, over the last couple of quarters, we did see a sequential uptick, which broke the trend of, you know, flattish trend that we had seen in the past and exciting. It was just showing that we are going up market a little bit. We are you know, we were doing some tactical changes with the pricing as well, so that was starting to show up as a combination.

What we continue to also see from a subscription ARPU side is the largest -- the biggest number of customer ads that we get continue to be from the accounting channel. there is a mixed element that plays out there where we continue to add a smaller set of customers at a faster clip. And, obviously, the bigger customers are fewer in numbers, although much higher in our group. So there is a little bit of that dynamic that will play out into the subscription number. Having said that, what we really focus on is the core ARPU or the total ARPU of the customer we are bringing in.

And as we rethink strategically what our pricing models frameworks are going forward based on usage and capacity usage, etcetera. This will continue to be more important. How many customers are we getting in? And how are we monetizing them, which is the ARPU. So the core ARPU actually sequentially grew again 3% versus the last quarter, which continues to be a good trend. Excellent. Appreciate the color, Rohini. Thank you.

Operator: Your next comes from the line of Will Nance with Goldman Sachs. Your line is open. Please go ahead.

Will Nance: Hey. Thank you for taking the question. I wanted to follow-up on some of the commentary on ACH volumes and maybe tie it back to some of the longer term thoughts on growth that I think you talked about, Rohini, in the prepared remarks. just when we think about the longer term growth rate, I think the guidance this year called for a relatively flat take rate, I think you said. And you called out some drivers there, ACH volumes and larger customers as well as maybe some changes in virtual card acceptance in the near term.

So maybe you can help unpack a little bit over the long term How do you think about monetization and ad valorem mix over time? And you know, if take rate expansion still part of that algorithm over time, or as you think about pricing and the answer that you just gave, are there other ways to kinda monetize consumption-based pricing beyond, explicitly charging some of the payment volumes Curious how that thought process over the long term? Thanks.

Rohini Jain: Yes. Thank you. Thank you for that question. There are a couple of things that you mentioned, and some of them actually are AP/AR dynamics and some of them S&E. I am going to try and unpack them 1 by 1. So we have talked let's talk about SNE from a take rate perspective. We talked about some of the acceptance challenges more from an SME side. We do not see that on the APR side. And from that perspective, we do have a slight reduction in the volume growth rate on SNE. But on SNE, the take rate range we have given to you in the past is 250 to 260.

We expect the quarter and then going forward to be on the higher end of that range. So that is that is where the revenue growth from an SME perspective is to be modeled. From APAR perspective, our ACH TPV continues to do much better than our expectations, which you know, is kind of an isolated variable at the lower TPV. Continues to grow at a healthy clip as well as we are seeing some of our established portfolio items are doing well. And, you know, the emerging portfolio continues to add to that growth as well. So I feel good about that.

Just the math of the take rate because of the ACH performance, you know, is compressing the number a little bit. So as we think about it, I would say, lot of the growth in the APAR will be based on the TPV and monetizing that TPV through multiple ways. And a bigger TPB number monetized at the same rates still gives you the growth. So Flat to a slightly up take rate from what we were at in Q4. How I would you know, guide you.

Will Nance: Got it. that is very helpful. And just on the rewards change, you know, obviously, I think that makes a lot of sense. I thought you said being netted against both subscription and transaction revenue. Just wondering if you could clarify that. Does it not all go through transaction revenue? And then just separately, how are you thinking about breaking that out? Like, do you expect to disclose that separately and talk about the rewards rate going forward? Or do you expect to largely talk about F and E dynamics as a kind of just like a net take rate from here on out? Thanks.

Rohini Jain: Yeah. So just to clarify, the way we will talk about our revenue will be net of what you see today as gross revenue line minus the rewards dollars numbers. That will be our net revenue. We use those words just because it is exactly what we externally report. So more of an accounting thing. So it will be the net revenue. We will give periodic color to the performance of rewards as well, but, you know, the way I think about rewards, it is a really great incentive and a tool for us to drive the right customers onto the platform. We are in the business of trying to win on rewards basis only.

The business we wanna bring to our company is 1 that is profitable or we are incentivizing our customer to use many products that, you know, again, align with what Rene had said about the platform approach. Got it. Appreciate that question.

Operator: Your next question comes from the line of Andrew Schmidt with KeyBanc Capital Markets. Your line is open. Please go ahead.

Andrew Schmidt: Hi, René. Hi, Rohini. Thank you for taking the questions. I just want to dig into the FY 2027 core revenue outlook for a moment. I think it is 11% to 14% Just how you are reporting today. But I think you called out 2 points from S&E dynamics, 1 point from the channel. And then I think you also it sounds like you are also baking in some prudence from go to market and reorg implications.

Maybe just you know, help us understand what is recurring, what is nonrecurring, and then sort of level set us in terms of how you think about the ongoing rate of growth for the business over the intermediate term, considering some of these things seem transitory? Thanks so much.

Rohini Jain: Yeah, I can take that question. Thank you. So as I think about the SME business overall, we there are some short term dynamics. We have the change in the approach that we are taking both from net revenue perspective as well as the you know, the whole team is now selling all of the products. We do not have a separate S&E team and a separate AP sales team. Which means that there is training involved. there is ramping. there is structures changing, incentive changing, all of that. So it takes time to ramp some of that up to its full potential. So those are some of the things that are transitionary.

I talked a little bit about the impact of 1 of the larger crackdowns and the card acceptance issues. Again, very concentrated towards some of the bigger customers. So we will see some impact from that also transitionary Over time, we you know, the net approach should help us get back to, you know, strong growth levels and, you know, drive more profitability in the business than we had in the past. So some of these dynamics that I talked about are, you know, in a shorter term.

And that is why as we open as I open my scripted remarks, I had mentioned that the range in the midterm that we think of is low double digits to mid teens. Got it.

Andrew Schmidt: Thanks for that, Rohini. Very helpful. And then if I could just ask a follow-up just on the net new ads on Bill APAR. Understanding that there was some disruption in the quarter from the reorg and things like that. Just want clarify if what you are seeing. Was there any sort of demand dynamics at play? Or do you think it was all self-driven? And then as we think about just FY 2027, the trajectory for net new adds, it sounds like that is improving even intra quarter. Can you just talk about the expectation in terms of how that should trend, understanding there is a lot of you know, changes going on that are working through.

Thank you so much.

Rohini Jain: Sure. Happy to talk about that. So just as a reminder, we have been talking for the last couple of quarters that we have a deliberate focus on the ICP or our ideal customer profile. We want to continue to focus on slightly bigger customers than we have in the past, which then is a trade off between the number of customers we are getting on the platform and the quality of the customers we are getting. So we had indicated in the last earnings or 2 that expect the trend to be not in line with what we had seen in the past and slightly lower. So we continue to be on that path.

Nothing has changed in that regard. What has changed was the material organizational restructuring and the sales motion that we are getting into. So what I mentioned earlier in my remarks also was that in July, we started to see some green shoots in recovery. Within the numbers, which we are actually quite pleased about. And as I think about the quarter, I could see us land in the range of 2.5 thousand to 3 thousand having made large part of that recovery towards the number that we want to get to, you know, which would be sort of higher than this range.

Over the remaining part of the year, but this is the range that I expect for the quarter. That makes a lot of sense. Thank you so much. Okay.

Operator: Your next question comes from the line of Christopher Svensson with Deutsche Bank. Your line is open. Please go ahead.

Christopher Svensson: Hi. Thanks for the question. Rene, I wanted to ask about the second key priority you laid out in your prepared remarks. acquiring the higher ROI customers. So I mean, it sounds like the 35% growth you are seeing in the adoption of APAR and, Spend & Expense is coming ahead of all of these go to market changes. So I was hoping you could put some guardrails around kind of how to think about these go to market changes and how they can help improve the already strong trajectory of growth that you are seeing today. Then just maybe the second 1 on that topic is just around the bank channel partners.

Could you maybe talk a little bit more about the decision to move away from the small number of those bank partners and then maybe beyond that the success you are seeing with the incremental 2.0 opportunities that can help offset that?

Rene A. Lacerte: Okay. Thank you. Thank you, Christopher, for the question. Yeah. I think the summary I would say is that, you know, we, understood our data and, you know, that is why Rohini just mentioned, we focused on our larger customers, the larger SMBs that are in the platform ones with more than 20 payments, for example. And that focus means that, you know, we are, I would say, honing the product offerings for those customers as well as the go to market motions for those customers. And what we you know, 1 of those honing exercises was to sell the platform that we have supported are hard to build, and we are seeing you know, like I said, early success.

That success, you know, as and, you know, under Jon's leadership, we are, you know, positioned now to kind of leverage that success across the entire go to market team. And so, you know, positioning ourselves to sell the platform, which you heard me talk about at the beginning, I think is a super important part of how we focus on the higher ROI customers that are in the portfolio and, you know, capable of coming into the business. So our focus is always gonna be on delivering great customer experiences and driving value for them and extending that. And that focus also applies to our partners.

So, you know, when we look at the restructuring work that we did, we knew that we needed to create more focus across the business. it is, you know, paramount. it is imperative. You know, you name the word. Like, it is super critical that we have teams aligned and that we leverage the teams, the resources, and the attention in a focused path that we can execute well. And so that exercise led us to look at, you know, individual you know, I would say, product experiences and our approach, you know, with the bank channel over the last dozen or so years has been more custom than we would like and more custom than we would do today.

And that means we have multiple platforms that make it you know, challenging to be able to actually offer all the capabilities that Bill has for all of their customers. And so our decision was really to lean in on this focus initiative across the company and to say, this is where we are going to invest. This is where we are gonna spend time. Analyzing and working how to drive more results to the business. And that is the Embed 2.0 platform. That actually enables the entire platform for those customers. And so, you know, we are super excited about you know, leveraging our platform, you know, into our partners.

But we know we have got to be disciplined in our approach to how we do that. And so as we, you know, made those decisions, we expect that not all of the banks will be able to make it. Helpful color.

Christopher Svensson: Just for a follow-up, I wanted to ask on SPP. I think in the prepared remarks, you said the initial rollout had not quite met your expectations. Some of that related to the different enterprise sales motion. Maybe you could talk more about some of the roadblocks you ran into and how you think the recent changes in go to market are going to help improve the trajectory for SPP in fiscal 27 and beyond. And I think you also mentioned that the contracts are going to preserve virtual card volumes.

I was hoping for more color on kind of what specifically is in those contracts that will allow you to maintain virtual card volume while adding the sort of incremental ACH volumes on top of that.

Rene A. Lacerte: Yeah. I think probably the you know, the most important thing in any customer offering is to get the customer experience right. And so, you know, we have spent a lot of time talking with suppliers analyzing the data. Like I mentioned about our platform, the data we have is unique and understanding the payments and the flows and understanding how we can make their experiences better. The case study I gave, somebody with, you know, hundreds of accounts across bill going down to 1, with no IT involvement, that is actually because of great product work. And so I think from a go to market perspective, having the right product is important.

And that is part of the go to market, but then also having the right sales motion. And enterprise sales is different than what we have ever done before. I think we knew that. I think the learning here is, you know, that it just sometimes takes a little bit more time. Than you would like, but I feel very good about what we have learned and the opportunity to kind of extend that. If you look at the number we called out there, $800 million under contract from a TPV perspective. That strong growth from the last time that we, you know, talked about this. And really to your question around the virtual card, the under contract is important.

You know, these suppliers have received payments across all of our payment modalities, and so having an experience for them that is you know, consistent is important. And it is also important for us that if the customer wants to you know, use a card, that card goes through as an example. And so that commitment is an important part of the conversations we have with these suppliers, and it is something that we will continue to work with them to make sure they are getting the value that they need out of those experiences. Thanks, René. Thank you.

Operator: Your final comes from the line of Kenneth Suchoski with Autonomous Research. Your line is open. Please go ahead.

Ken Suchoski: Hey. Good afternoon. Thanks for taking the question. Just wondering if you can give us some more color on the dynamic you mentioned regarding the Spend & Expense acceptance that is impacting volume growth. Is that just acceptance by the large ad providers like Meta and Google? And I guess, do we have 4 quarters of slightly slower growth, then we are sort of ticking back higher once we lap that dynamic? Any thoughts there would be great. Thank you.

Rohini Jain: Yeah. that is what we are referring to on the S&E I talked about just to clarify a little bit more, we talked about 2 points of headwind coming from that piece of the business. And this is just a part of it. There is other dynamics of us moving from gross to net and leaving on the table some of the less profitable volume, etcetera, that is playing in and a bigger part of that. But that is exactly right. And then, you know, you know, here we would lap that as it looks. And the rollout is slow and it is quite concentrated into smaller color. Small number of customers that have large volume.

But if you look at the same impact on a net basis, it will be much smaller because they are also the higher reward customers. Okay. That makes sense.

Ken Suchoski: And maybe just for my follow-up the I think you are expecting to exceed the Rule of 40 threshold exiting fiscal year 27 I think if our math is right, we are at the rule of 35 in fiscal Q1 based off of your guidance. So just curious, how do we get to something above that Rule of 40 threshold exiting fiscal year 2027? Is it mostly on the adjusted EBIT side? Or could we see core revenue growth accelerate throughout the rest of the year and into next year? Thank you.

Rohini Jain: So in my prepared remarks upfront, I actually defined our rule of 40. And the definition we use is in line with how we will report revenue going forward. So it is the net revenue growth percentage along with the total operating margin of the company. If you add those 2, we were at a rule of 40 math wise in Q4. And, you know, there will be in quarter fluctuations, but we will exit f FY 2027 exceeding that number. Okay. Alright. Thank you very much. You are welcome.

Operator: We have reached the end of the Q&A. I will now turn the call back to René A. Lacerte, Chairman, CEO, and Founder for closing remarks.

Rene A. Lacerte: Thank you, everyone, for joining. FY 2026 was a pivotal year for Bill. We accomplished a lot, restructuring the company, executing a significant share buyback, and we are well positioned to drive profitable growth leveraging our platform and AI. All of us at Bill are super excited about the future, and look forward to continuing to update you on our progress as we go forward. Thank you.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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