Shares of Bill.com (NYSE:) are down almost 18% in pre-open Friday despite the tech company reporting stronger-than-expected Q3 results and guidance.

The adjusted Q3 loss per share for Bill was 8c. This compares to the 2c loss per shares in the previous year and an expected loss of 16c per share. Revenue totaled $166.9m, up by $59.7m in the prior quarter. It also surpassed consensus estimates of $158million.

Company reported total payments volume of $55.1 Billion, an increase of 57% YoY and just below the $54.16 billion estimate. This quarter’s customers surpassed the expected 139.813.

Bill.com predicts that Q4 will see an adjusted loss of share between 13c-14c. Analysts were anticipating a loss of 15c per share. Expected Q4 revenue to be between $182.3 and $183.3million, which exceeds the consensus projections of $170.5 million.

BILL anticipates an adjusted loss of share for the entire fiscal year in the 34c-35c range, as opposed to the previous guidance that was a loss of 43c to 46c per share, and analysts had expected a loss of 46c per share.

This software company anticipates FY total revenue between $624 million and $625 million. That’s up from $597.0million to $600.0million in previous forecasts, as well as a higher range than analyst expectations at $599.8 million.

Will Nance of Goldman Sachs blames the drop in after-hours revenue on revenue deceleration. Organic core revenue rose 74% YoY to 85% during the last quarter. The analyst remains “constructive and expects shares to return to outperformance as the company continues to execute.”

“We believe investors were focused on the sequential deceleration in organic revenue growth. Based on conversations with investors, we think they had high expectations. They were looking for continuation of the recent quarters in which BILL outperformed by between 8-10% and 10% on top, according to their conservative guidance. While this quarter has generally been very unforgiving, fundamentally we came away very constructive, and we were particularly impressed with the acceleration of net adds in the quarter, and the particular strength in the FI channel,” Nance said in a client note.

Nance has lowered its price target from $320.00 per share to $216.00 to reflect the lower multiples.

KeyBanc analyst Josh Beck also cut the price target to $225.00 per share from $250.00 on the Overweight-rated shares but noted BILL delivered “a solid beat.”

We “continue to recommend BILL as a core holding provided an expanding X-Sell (card, AR, etc.) opportunity set that we’d expect to become more material next FY as the go-to-market motion is energized following integration work this FY, untapped payments digitization (e.g., only LSD/MSD Virtual/x-border penetration), and expanding distribution channels (e.g., BoA win),” Beck wrote to clients.

By Senad Karaahmetovic