Business Context and Reporting Period
Bill.com Holdings, Inc. filed this Form 8-K on May 20, 2020, under Item 8.01 (Other Events). The filing concerns a new statement of work entered into by its subsidiary, Bill.com, LLC, with one of the three largest small business banks in the United States. The company’s fiscal year ends June 30, 2020.
Material Business Arrangement
- Bill.com will integrate and host a bank-branded version of its Bill.com Connect product.
- The bank intends to offer the solution to its small business banking clients as the default bill payment and receivables solution for all new small business customers.
- Existing small business banking customers will have the option to enable the services.
- The statement of work has a five-year term beginning on the launch date, which is anticipated in 2021.
Financial Metrics and Liquidity
The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, contract value, or expected financial contribution from the arrangement.
Guidance, Outlook, and Risks
Bill.com stated that it was not updating its financial guidance for the fourth quarter of fiscal 2020 ending June 30, 2020. The anticipated 2021 launch date, implementation requirements, customer adoption, and the financial impact of the bank relationship remain subject to execution and are not quantified in the filing.
Important Facts to Verify
- Confirm the identity of the bank and the final launch date.
- Verify the contract’s economic terms, including fees, minimum commitments, implementation costs, and revenue-sharing arrangements, which are not disclosed.
- Monitor whether the bank-branded product launches as planned in 2021.
- Assess customer adoption among new and existing small business banking customers.
- Review subsequent filings for updates to fiscal 2020 guidance and any reported financial impact.