One of your portfolio holdings is a company called Bill.com, which is a cloud-based provider of Billings, accounts payable and automated invoicing services to small and growing businesses. Our thesis on this investment is that cloud solutions for small businesses are a growing market and that more and more businesses will choose to save time and simplify their processes by using Bill.com.
Well, their most recent results are in and our thesis is validated. In their latest earnings report, the company reported a 52% jump in revenue, and a 70% increase in transaction and subscription fees, which has spurred investment sentiment around their stock. The company’s stock has since then soared more than 30% bringing our total gain on the investment position to above 80%. We believe there is still room to go as the company is still growing its subscriber base and will almost certainly post higher revenues in the near future.
However, we remain watchful considering that Bill.com’s cost of revenue increased alongside their revenue growth, which is an area of some concern. As the company executes, we will be looking out for improved margins and lower user acquisition costs to demonstrate some competitive advantage. In the meantime, however, your investment is being proven out and we expect to see continued growth in this stock over the short to medium terms
Thank you for investing with Rise and continue to rest knowing that your investments are being managed at the highest level of expertise.
Love and returns
The Rise Team