![]() It has two-way (bidirectional) sync capabilities in order to track AP and AR workflows and automates the tracking of clients, vendors, POs, invoices, and payments between itself and the accounting software. wants to serve as a seamless layer over all AP/AR processes and cash flows, to become an indispensable tool that sits over (not replacing) the accounting layer. The financial benefit to SMBs is easy to see – it helps these businesses immediately see all their cash flows in one secure & auditable place, and not only allows them to see today's reality, but tomorrow's as well, by overlaying the calendar of payments and receipts expected in the future.įrom the start, the platform has been focused heavily on integrations with popular SMB accounting software. ![]() They have web and mobile app that helps businesses automate invoicing and payments end-to-end, and store any associated documentation. It has separate modules for businesses of all sizes to manage their cash flows – both for outflows to suppliers/vendors in Accounts Payable (AP), as well as inflows from customers in Accounts Receivable (AR). ![]() ![]() An SMB back-office operational toolĪt its core, is a SaaS platform for SMBs to more easily handle their books. The extremely high valuation remains, plus some added risks and well-funded rising competition. After researching, I liked what I saw, started a position that has slowly built up the more I learn. In Nov-21, I finally got curious about why remained so high on this list through 2021, with such a heavy amount of institutional ownership. From Jamin Ball's Clouded Judgement in Apr-22, remains an expensive stock. And, since IPO, I had been mystified by being at the "top of the valuation charts", as I hadn't really dived in to understand the company's mechanics. I wasn't that interested in a quick scan of the metrics at the time. Being in the back-office accounting is in his family as well – two distant cousins founded a tax-prep software company (Lacerte Software) that was sold to Intuit in 1998 (and that is still a product).īill.com IPO'd in Dec-19, and at the time, revenue was growing +57% (dropping from the +70%s) from an ARR of $140M, with gross margin of 74%, while NRR was only 110%. He worked at Intuit from 1994, leaving in 1999 to found Pa圜ycle – only to eventually be removed by the BOD in 2004 due to lingering growth (and the company eventually sold to Intuit in 2009). The founder, CEO Rene Lacerte, is no stranger to back-office accounting and bill pay. What matters is the transactional part that it feeds.Īt its core, is back-office operational tooling, with a focus on small to mid-sized businesses (SMBs). The SaaS subscription (recurring revenue driven) part of the business is interesting, but, by itself, is not enough for me to be interested. is one of those exceptions, as it bridges the gap between SaaS and transactional. But I've made some exceptions around that adherence to SaaS & recurring revenue, both in consumer-facing companies I have owned in the past (especially with a razor/blade that is feeding a more scalable part of the business), and disruptive fintech platforms that have a transactional-based component that scales on usage/volume. I want to see recurring revenue, high gross margins, and improving operational costs (signs of operational leverage), having platforms & solutions that customers are flocking to and spending more (land and expand) and that I can see growing into something larger (signs of platform leverage). I have a strong preference for enterprise SaaS that can scale at all levels.
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