Revenues in 2017-2018
Invest in IPO Bill.com
Bill.com is a provider of software-as-a-service, cloud-based payments products, which allow users to automate accounts payable and accounts receivable transactions and enable users to easily connect with their suppliers and/or customers to do business, manage cash flows and improve back office efficiency.
The company partners with several of the largest U.S. financial institutions, including the majority of the top 100 U.S. accounting firms and accounting software providers, and is endorsed by the American Institute of CPAs (AICPA).
In April 2019, the company announced a strategic partnership with Mastercard to offer faster, automated payments made through the platform.
It estimates the annual addressable market for the services at $9 billion domestically and $30 billion globally. According to Markets and Markets, the automated payments solutions market will grow by 11.7% per year.
The company is unprofitable and may not be able to achieve or sustain profitability in the future, which could lead to decline in share price.
BILL faces significant competition which may adversely affect ability to add new customers, retain existing customers and grow business.
BILL transfers large sums of customer funds daily, and are subject to the risk of loss, errors, and fraudulent activities of customers or third parties, any of which could result in financial losses, damage to reputation, or loss of trust in brand, which would harm business and financial results.
The company experiences fast-paced growth, amassing $108 million in revenue, going up by 67% against 2018 ($65 million).
The dollar-based net revenue retention rate is 110% in 2019 – the current customers are increasing their expenses on the platform, which signals the users’ loyalty.
Through an IPO, Bill.com plans to raise $160 million at a valuation of $1.3 billion, the P/S ratio comes down to 10x. At the beginning of December, the average P/S ratio for the industry was 14x. Given the high gross margin of the business, small losses and growth rates above the industry average, we expect BILL's market capitalization after IPO to be $1.9 billion.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.