BILL Holdings, Inc.BILL
BILL Holdings, Inc. Revenue Disclosure
REVENUE
The Company generates revenue primarily from subscription and transaction fees. The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by solutions, and revenue from interest on funds held for customers (in thousands). For the purpose of disaggregating revenue by solutions, the Company defines BILL AP/AR as transaction and subscription revenue derived from businesses that use its core BILL accounts payable and receivable platform; BILL Spend and Expense as interchange revenue derived from BILL Divvy Card transactions; and Embedded and Other Solutions as transaction and subscription revenue from businesses that access the Company's solutions through its embedded partners' platforms and other indirect sales channels (including financial institution partners), and Invoice2go revenue.
| June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| BILL AP/AR | $ | 667,782 | $ | 595,408 | $ | 505,644 | |||||||||||
| BILL Spend and Expense | 555,016 | 457,309 | 353,132 | ||||||||||||||
| Integrated platform | 1,222,798 | 1,052,717 | 858,776 | ||||||||||||||
| Embedded and Other Solutions | 78,006 | 70,016 | 85,934 | ||||||||||||||
| Total subscription and transaction fees | 1,300,804 | 1,122,733 | 944,710 | ||||||||||||||
| Interest on funds held for customers | 161,766 | 167,439 | 113,758 | ||||||||||||||
| Total revenue | $ | 1,462,570 | $ | 1,290,172 | $ | 1,058,468 | |||||||||||
Deferred revenue
Fees from customers with which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. During the year ended June 30, 2025, the Company recognized $21.1 million of revenue that was included in the short and long term deferred revenue balances as of June 30, 2024.
Remaining performance obligations
The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of June 30, 2025, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was $73.1 million. Of the total remaining performance obligations, the Company expects to recognize approximately 46% over the next year, 23% between one to two years and 31% over the next three to five years thereafter. The Company determines remaining performance obligations at a point in time based on contracts with customers. The Company evaluates its customer relationships on an ongoing basis, and may selectively renegotiate certain terms of its agreements with financial institutions, accounting firms and SMBs. There were no subsequent events that would materially impact the amount of the remaining performance obligations as of June 30, 2025. However, actual amounts and timing of revenue recognized may differ due to subsequent contract modifications, renewals and/or terminations.
Unbilled revenue
Unbilled revenue consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $17.3 million and $16.7 million as of June 30, 2025 and 2024, respectively.
Deferred costs
Deferred costs consisted of the following as of the dates presented (in thousands):
| June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred sales commissions: | |||||||||||
| Current | $ | 10,094 | $ | 8,142 | |||||||
| Non-current | 16,237 | 15,113 | |||||||||
| Total deferred sales commissions | $ | 26,331 | $ | 23,255 | |||||||
| Deferred service costs: | |||||||||||
| Current | $ | 627 | $ | 430 | |||||||
| Non-current | 2,418 | 1,930 | |||||||||
| Total deferred service costs | $ | 3,045 | $ | 2,360 | |||||||
The current portion of deferred costs is included in prepaid expenses and other current assets and the non-current portion is included in other assets in the accompanying consolidated balance sheets. The amortization of deferred sales commissions, which is included in sales and marketing in the accompanying consolidated statements of operations, was $9.7 million, $7.9 million, and $6.6 million during the years ended June 30, 2025, 2024, and 2023, respectively. The amortization of deferred service costs, which is included in service costs in the accompanying consolidated statements of operations, was $0.2 million, $2.0 million, and $2.5 million during the years ended June 30, 2025, 2024, and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 28, 2025 | Showing above |
| 2024 | Aug 23, 2024 | |
| 2023 | Aug 29, 2023 | |
| 2022 | Aug 22, 2022 | |
| 2021 | Aug 30, 2021 | |
| 2020 | Aug 31, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.