April 3-7, 2023

Let’s get into the news from this week! On March 14th, BILL’s CFO presented at a conference. Here are just a few notable quotes: BILL We had some funds with Silicon Valley Bank that will earn lower float revenue in March. We have a commercial agreement with Silicon Valley Bank in support of their businesses, that agreement obviously terminates. There's 3,000 to 4,000 customers who are on that platform. From a financial standpoint, it's immaterial to build. It's less than 0.5% of core revenue The company did a good job of transitioning over from SVB to, presumably, Chase. There will be a mini headwind from float income but nothing to worry about at all. Over the next 5 years, we want to be the platform that is really being leveraged, integrating with other tools that small businesses use, whether that's an accounting system, an e-commerce system, CRM and really helping drive automation. And for most businesses today, there's still a legacy manual component to what they do, and we're going to work hard over the next 3 to 5 years to try to help them go digital. Being the system of record for SMBs would be an amazing position to be in. At the time of the IPO, I think we said, our long-term operating margin to be 20%. I would view that -- at the time, we viewed that as the floor, not the ceiling. We don't see with the way that we've built the model, the significant improvement that we've made in revenue per customer and gross margins and how we see operating leverage playing out. We don't see structural obstacles that would prevent us from operating at or above, say, 30% margins I love to see it when companies update their long term guidance. For companies with 70-80% gross margins and a sticky product, there’s no reason why they shouldn’t be able to get to 30% operating or free cash flow margins. Tesla Tesla released its delivery numbers on Monday for Q1 2023. The market wasn’t thrilled but if we zoom out, I think they’re business as usual.

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