and Divvy offerings are clearly complementary and strengthen the company’s offering in the US, while Invoice2Go provides a path to international growth (60% of Invoice2Go subscribers are residing outside of the US). I would expect the company to start cross-selling its products across the customer bases of, Divvy, and Invoice2Go. A comparison of FY 2022 results vs the 2023 guidance will provide guidance on the growth rate of the combined business (meaning, Divvy, and Invoice2Go), as well as its separate components.įull consolidation of Divvy and Invoice2Go. The company will report the results of the full fiscal year 2022 next month, and, hopefully, will provide guidance for the fiscal year 2023. The company’s management did not provide guidance for the Gross profit, but the revenue guidance implies $142-143 million in Gross profit in Fiscal Q4 2022 (assuming the 78% gross profit margin), and $480.4 - 481.2 million in Gross profit for the full Fiscal year 2022. “I’m proud that Divvy is joining to bring the one-stop-shop platform that our customers and the market have been asking for,” CEO Blake Murray said.The company defines the “ Cost of revenue” as “ primarily personnel-related costs, including stock-based compensation expenses, for our customer success and payment operations teams, costs that are directly attributed to processing customers’ transactions (such as the cost of printing checks), postage for mailing checks, expenses for processing payments (ACH, check, and cross-border wires), direct and amortized costs for implementing and integrating our strategic partners’ systems, costs for maintaining, optimizing, and securing our cloud payments infrastructure, amortization of capitalized internal-use developed software, amortization of developed technology, fees on the investment of customer funds, and allocation of overhead costs. “By buying Divvy, will be able to offer expense management and budgeting software, along with smart corporate cards, to its more than 115,000 customers and its 2.5 million network members,” Barron’s said.ĭivvy currently serves more than 7,500 small businesses. “Investors believe that companies can benefit from an all-in-one software platform to manage all aspects of spending,” Protocol said.īill.com, which employs roughly 800 people and has a $10.7 billion market capitalization, reported first-quarter revenue of $59.7 million on Thursday, beating estimates of $54.63 million. On the news of the deal, shares jumped 14.3% to $149 in after-hours trading Thursday.Īccording to Protocol, there has been a “frenzy in the industry for startups focused on spend management and corporate credit cards.” Among Divvy’s rivals, Brex just raised $425 million at a $7.4 billion valuation and Ramp also raised capital, at a $1.6 billion valuation. “Our expanded platform will provide more automation and real-time information to SMBs, enabling them to make more informed decisions,” he added. “Customers have been asking us to help them with their spend management, and I am excited that together with Divvy, we can deliver on that ask, furthering our vision to transform SMB financial operations,” CEO René Lacerte said in a news release
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