We believe the domestic SMB office automation opportunity is at an inflection point of accelerated adoption and is worthy of continued discussion. BILL Holdings (NTSE: BILL) is a cloud based, industrial strength, financial platform that enables and ties together previously disparate functions. BILL is a unique service provider by combining Accounts Payable (AP), Accounts Receivable (AR), Spend, Expense and Credit management onto a single platform. We estimate 3 billion paper invoices in the SMB market are processed manually every year which may represent billions of dollars in uncaptured transaction and digitization fees for AP service providers. BILL’s combined service revenue opportunity is even larger as it manages a broader suite of mission critical financial functions. Small and medium sized businesses face the uneconomical challenge of managing rising labor costs, such as California’s $16 per hour minimum wage, while handling AP and AR transactions on different systems, and in many cases, manually. This approach is not sustainable for the SMB market as operational inefficiencies may stymie the benefits of revenue growth. BILL’s all-in-one approach may help alleviate these pressures, streamlining end-to-end information processes, and leveling the competitive playing field with larger, enterprise corporates.
