Sam Boughedda

Investing.com — Shares Bill Com Holdings Inc (NYSE:) soared upon the release of its second-quarter results on Thursday.

Brian Schwartz of Oppenheimer was pleased with the report. The company reported an earnings per share of $0.00, which is well above analyst expectations. Revenues of $156.5 million were also revealed. This compares to $131.16m. 

This company makes software for small business that allows them to manage their finances. In the second quarter of 2012, it processed $56.4 billion for Bill.com customers, an increase 62% over last year. It processed card payments worth $1.9 billion for Divvy.

Wolfe Research’s Darrin Peller said in a note to clients that “this was arguably the biggest question for investors heading into the print given concerns around the health of SMBs [small and medium-sized businesses], some industry data points, and considering management had guided to less of a seasonal spike than occurred in the same quarter one year prior.” 

Bill.com shares rose more than 30% on Friday

Analyst forecasts for $141 million had predicted that the company would see Q3 revenues between $157 and $158 millions. Expected adjusted loss per shares to range between $0.16 and $0.15, which is above consensus estimates of -$0.22.

Scott Berg of Needham reiterated the Buy rating for Bill.com and the $370 price target after the earnings reports. Berg informed investors they believe Bill.com has an open market with a significant under-penetrated TAM and strong customer growth. The pandemic left no imprint on the company’s future prospects.

“Additionally, we believe following the Divvy and Invoice2Go acquisitions further strengthen Bill.com’s suite approach and competitive position leading to growing TPV.”