BILL Holdings, Inc. (BILL) Earnings Call Transcript & Summary

[Audio Gap] over the past year or 2 as we've been spending more focus on really what the opportunities are across B2B and more specifically with Bill and its cross-sell opportunities, with Divvy and its incremental opportunities as they go more and more into other areas like accounts receivable and expense management. And its been one of our topics on the growth side of our coverage. So with that, John, I'm really happy to have you. Thanks for joining us.

Great. Thanks a lot, Darrin. It's great to be with you.

For everyone here, just to be clear, we're going to start off with some Q&A on my side. I'm going to try to leave about 5 minutes at the end for questions. There should be a spot for you to type in questions at the end that you're -- and we'll try to leave some time to read them off to John. Look, with that, I know that a lot of folks here probably know the Bill story, but it might be helpful either way just to take a step back and start by giving an overview of Bill.com for those that may be a little less familiar with either the company or the addressable market opportunity.

Yes. Thanks, Darrin. That's a great place to start. So Bill.com is a solution for more than 350,000 SMBs across the globe to automate their financial operations. Our platform becomes a one-stop shop, if you will, to manage the financial back office. It covers accounts payable, accounts receivable, and spend management. Businesses realize time savings, more than 50% of the time that they used to spend on these processes, and businesses trust our platform to process over $200 billion a year in payments. Our go-to-market motion is working with accounting firms, financial institutions and direct to small businesses. We have a network of 3.2 million members, who are involved in transactions with our 350,000 customers. The business, since we've been public, has delivered very strong organic growth. In revenue terms, 85% in our last quarter year-over-year. And we recently completed 2 acquisitions: Divvy, as you mentioned, in the spend management space; and Invoice2go in accounts receivable. And both of those transactions enhance our platform and bring us closer to being that all-in-one solution for SMBs. We have a very powerful business model. It's a combination of subscription fees and transaction fees in a rising interest rate environment. Float as well. Not only drives growth, it's aligned with customer usage of our platform, but also provides a recurring revenue model with really high visibility. And to close today, we're a $600 million revenue run rate business, growing north of 100%. And we feel like with the market opportunity, we're really just getting started.

That's great to hear. Thank you. One of the more common questions we get is obviously competitive dynamics and how you guys really keep yourselves differentiated. So I think maybe that could be an easy place to start. It's just to help us understand the barriers to entry from a payments perspective that keeps Bill really well insulated from especially the larger software players entering the AP automation space, John.

Sure. I mean, I think there's 3 things that set us apart as a business: our platform capabilities, our scale, and our go-to-market motion. Let me just touch on each of these. First, on the platform. From the beginning, we've been focused on process and workflow automation related to AP and AR, plus we've had embedded payments from day 1. This really puts our platform in a position to be mission-critical for SMBs. It's not just a payment, it's how they run their financial operations. Secondly, in terms of scale, we have over 350,000 customers using our solutions, 3 million network members, as I mentioned, and $60 billion a quarter in payment volume. This gives us tremendous advantages as it relates to data and risk management and feeds our hybrid business model for subscription and transaction revenue growth. And the third point of differentiation is really around our unique go-to-market. We focus on the small business segment versus the enterprise market. This is the most difficult segment to serve, and we've spent years building an efficient, diverse go-to-market capability by working with the trusted advisers of small businesses. Really, there are accountants and financial institutions, the banks that they work with. And then this morning, we also announced an agreement that Divvy's reached with CPA.com, which is one of the groups that accounting firms work with for expense management, corporate cards and spend management, and this is an example of the types of synergies that our go-to-market motion can create when adding new product capabilities to our platform.

Okay. Makes sense. John, before we get into the company specifics, which we're going to spend more time on, just maybe a quick reminder of your view of the market, the addressable market, if you can break down the various buckets of opportunity in B2B, what you're going after and how big it could be versus where you are today.

Yes, it's a great question. So the market is 6 million businesses in the U.S. have employees, tens of millions more small businesses if you include sole props and then there's 70 million businesses globally. The vast majority of the businesses still use these legacy manual paper-based processes. They haven't really adopted a cloud solution for the back-office financial operations. So we're really, think of it as, at the beginning of a digital transformation wave. This isn't an upgrade cycle like you've seen in other more mature markets in the enterprise space. So there's this large greenfield opportunity to help SMBs digitally transform their operations for the first time and then really start to use digital payments instead of paper checks. With our platform, we feel like we can address the needs of a large spectrum of these businesses from the smallest businesses with sole proprietors with just one person running the company all the way to mid-market businesses. We're about 2% penetrated in the U.S. alone. And so when you look at the overall global market opportunity, it's huge, and we have a long way to go.

I think on that note, I mean you've been adding customers at a healthy clip. And then even last quarter, you went from running at a range of somewhere around 5,600, just organic without Divvy, customer adds up to 8,000 in the last most recent print from a quarterly standpoint. And so can you just expand on that for a minute again? Let's revisit that. And what drove that strength and your confidence going forward? And I think you've said 6,000-plus going forward potentially.

Yes, exactly. So we're very pleased with the progress we've had in net new adds, particularly in the last quarter. It's really a continuation of the trends we've seen in the last couple of years showing that there is significant demand from SMBs for digitizing the back office. The customer add strength that we saw in the last quarter really came across all of our channels. There wasn't one particular standout. But we did note the accounting channel, which I mentioned earlier, showed the largest quarter-over-quarter growth. And we've spent years investing in our relationships with accounting firms, and it's one of the reasons that our platform resonates with accountants. It's not only that we deliver features for end customers to automate their financial operations, but we also have tools that help accountants run their business, help them interact with their clients, go digital for communications and document sharing and things like that. So it's really the strength of that channel and our relationships led to the outsized adds that we had in the last quarter.

Was there anything anomalistic about the accounting channel itself in the sense of like an incremental large partner of some sort or anything else that inflected it that caused an inflection?

No, not in the most recent quarter. It's typically a relatively strong seasonal quarter, the December quarter, which is a little bit different than the March quarter, where we have some seasonality related to tax work. But it wasn't a new program or anything like that as much as momentum building in the channel as we work closely with accounting firms.

They probably wanted to get it done before tax season.

Exactly.

Many companies wanted to get it done. Interesting. When we think about the other opportunities just going forward now, I mean you have BofA coming on with a pretty material tail that could drive incremental customer adds. You have Divvy cross-selling. To be clear, those weren't really in the run rate last quarter in terms of incremental adds, right?

No, that's exactly right, Darrin. The 8,000 adds that we had, there was very -- that was all organic Bill.com and very little contribution from BofA. We really just started to get in market with Bank of America. It led to recognizing revenue for the first time, but no material customer adds. So that's an opportunity that's still ahead of us as we look at scaling from here.

Speaking of BofA, I mean, now that we're moving into more of that SMB category with specifically BofA's customers versus the commercial customers that often banks will resell to, what kind of conversations are you having with FIs in that regard? Is this opening up other dialogue with other FIs as well? And maybe just expand a little more on what you can do with BofA.

Sure. Directionally, I think that's exactly right. Historically, our financial institution partners have used our platform on a white label basis for their commercial customers. So the businesses that have revenue in the range of, call it, $5 million to $50 million. And for BofA, we created a small business-focused basic product with an upgrade path to the full Bill.com advanced platform. And this is what launched in the last quarter with BofA. And our path ahead is really rolling out to the rest of the markets, hopefully, in calendar 2022 for the new business banking customers. And then we want to drive adoption in partnership with BofA and usage of the platform and ultimately get to reach the existing customer base as well. And with driving success there, I think it opens up 2 other opportunities. One, is to sell into the small business segment of our existing bank partners; and then two, the potential to go acquire additional bank partners through our business development cycle. So the relationship with BofA is important. It's going to take time to drive adoption and success, but we think it leads to other opportunities as well.

Just to be clear, I mean was there something -- the pandemic probably did have an element of a tailwind in terms of customers wanting to do more from a digital standpoint. The more efficient, most likely, right? But on the other hand, work from home may have almost limited some people's ability to do so. So where are we now? Now that we're hopefully coming on the other side of this pandemic, where are you -- what kind of behaviors are you seeing among SMBs? And maybe I'll just -- I'll leave it to you there.

Yes. So we've noticed with SMBs just in a higher intent to adopt digital solutions. It used to be pre-pandemic that a small business would try our solution perhaps and be in that test-and-trial mode for some period of time without the urgency to actually change the way they operate. And that's really one of the impacts from the pandemic, is a lot of businesses realize that they weren't prepared to maintain continuity in their operations no matter what happens. And so we see customers coming to the platform much more quickly getting up and running, adding users and converting all of their processes and transactions and documents to the platform and going digital. And I think that's a trend that continues. Like that's not a onetime event. So the market, I think, ultimately ends up maturing quicker than it otherwise would have, knowing that where we're starting from...

Still plenty of room to go, but it's just moving faster.

That's exactly right. It's a very low level of penetration for cloud solutions in the back office today.

Yes. That's good. On the same token, on the other side of the SMB, you're obviously moving more and more into some larger customers, too, and I think QuickBooks advanced. It's probably an example of that, right? So to revisit that a little bit, you guys used to do more of the much smaller businesses with QuickBooks, and there's been more of a preference by QuickBooks to route you towards the slightly larger customer base. It looked like that had some pretty traction actually last quarter from our checks when we looked at how fast that was growing, and then we saw some of your customer growth numbers. So can you just touch on what kind of traction you're having as you move up market a little bit? And if you're providing everything that needs to be provided for those customers?

Yes, it's a great question. So our sweet spot really is small businesses, but we continue to see demand from larger mid-market companies. And we define a mid-market company as $10 million or more in revenue. We've learned that our value proposition around ease of use and workflow automation and low cost resonates with larger businesses also. In response to that demand, we've started to invest in some additional product features that we know are important to bigger businesses. These -- it includes things like single sign-on from a security standpoint, dual controls, bulk and batch payments and integrations with some of the larger ERP systems like Microsoft Dynamics. These are all things that a small business can use also, so it's not unique to larger businesses, but sometimes it's -- those features that are required for adoption of the mid-market companies. And we'll continue to add features that can apply to both mid-market and the long tail of small businesses that we serve.

Understood. Let's shift gears a little bit and just talk about payment monetization now. Clearly, your payments growth rate has been pretty outstanding. And you're starting off, like you've said before with a lot of your business parts, being at a pretty low level of penetration of what it could be, right? So if we -- maybe we could start by revisiting what percentage of your mix on your business is actually going through the higher-monetized areas like virtual card versus cross-border relative to checks, if you could just break that down for us. And then we can go from there in terms of explaining what the opportunity is.

Yes. I mean we feel really good about the progress we're making, driving adoption of these ad valorem payment products, and this is really what leads to growth in payment monetization. In the last quarter, we had transaction revenue per transaction of about $5.80, up 63% year-over-year. But at the same time, the vast majority of transactions on our platform are still ACH and check payments. So we know that we're very early in that adoption cycle for the new products. To give you a couple of stats, our virtual card penetration was 2.2% of TTV in the June quarter versus our target range of 5% to 10%. International payments was about 4% versus our range of 10% to 20%. And real-time payments is really just getting started, and the demand has been good. So we don't really run the business to optimize for a particular payment method. But given where we are versus these target penetration rates, we're confident that there is really a long way to go in terms of expanding payment monetization. It's obviously not going to be a straight line with linear growth quarter-to-quarter. But over the longer term, we think there's -- it's still a big opportunity.

You're probably annoyed I keep asking this question like I've done on calls many times in the past, but when we think about the pathway of what we've been seeing in terms of the take rate itself expanding, call it, 30% to 40% on a year-over-year basis, is there any reason that, that can't continue at a similar profile? Or like -- I understand it may not be perfectly linear.

Yes. I mean without commenting on the quarter-to-quarter changes, looking out a year, 2 years, 3 years, I think we have a long way to go. And this is with the existing product portfolio, which, as I mentioned, we're still early in driving adoption. We also have lots of new products that we're constantly evaluating as we talk to customers and learn about what their needs are and what their -- what the opportunity is to continue to add value for them. So we think we're really -- we've come a long way in the last couple of years at driving the take rate. I think we're at 10.1 basis points in the last quarter, but I think that will seem small relative to where we'll be a few years from now.

Okay. That makes a lot of sense. And just remind us of the actual levers you're trying to take or pull to actually help that along, right? I mean I remember when we first initiated coverage, we talked a lot about data on AI. We talked about supplier enablement strategies and sales around it. Can you just give us a sense of what you're actually trying to -- how you're being proactive about it?

Yes. I mean our strategy is all around having a broad set of payment offerings to make it easier for either the buyer or the supplier as the case may be to choose the right payment method. In fact, in some cases, the buyer and supplier want different payment types, and we can support that as well. Our overall goal with this strategy is to minimize friction, like just to make it as easy as possible to get transactions done so that they become repeat transactions, repeat payments on our platform. That leads to consistency and in visibility in the transaction flows. In fact, our most recent number was approximately 80% of transactions are repeat transactions between buyer and supplier on our platform. So we're really focused on building better relationships with suppliers to be able to serve their needs because it might be different than their buyers' needs. An example is in the case of a cross-border payment, a U.S. buyer might want to be invoiced in U.S. dollars and pay in U.S. dollars. But an international supplier might not even have a multicurrency bank account, so they're going to get a payment converted at the highest probably marginal exchange rate upon deposit. So we can offer them an FX payment even though their buyer didn't want to pay. So it's things like that, that we're doing to reduce friction in the system and support the needs of both buyers and suppliers.

That makes a lot of sense. Maybe we could shift gears from the payments monetization side to the SaaS pricing potential because, again, I mean it's an area that you've obviously provided a lot of value and yet it seems like you haven't really raised your software subscription pricing for some time. I think -- correct me if wrong, I think it's been almost 2 years. And so we always looked at it like there was an underpriced area here for you to raise. You want to obviously provide value with that. So maybe just touch on your -- how we should think about that and expectations for your SaaS model.

Sure. Makes sense. So we have seen a good expansion in our subscription ARPU in recent quarters, in part because of the BofA revenue recognition that started, which is predominantly subscription fees. But then also, we're seeing that average size of our customer increase slightly due to that success that we're having with the mid-market segment. They just have many more users, and they enter the platform at higher pricing figures than the typical small business. It has been about a little over 2 years since our last price increase. We're very confident with our pricing today. It's a low price point. It minimizes is barriers to adoption. It isn't really a standard use case where somebody doesn't adopt the platform because of price. But at the same time, we're able to increase overall revenue per customer as we scale with the payment volume from our customers. So it creates alignment between usage of our platform and our revenue outcomes. At the same time, I think we do have ideas about how to grow and optimize subscription pricing over time, and so we'll keep looking at that. But we're not in a mode where okay, a year has gone by, we're going to raise prices 5% or 10%. That's just not the philosophy that we have in determining the right balance between the value we deliver and the value that we generate from customers.

Okay. Let's shift gears a little bit given the interest of time. When we start with Divvy, I mean a deal that obviously made a lot of sense in terms of really providing a bigger solution set to your SMB to your customer base. And it also gives you a lot more data underwriting capabilities, et cetera. But when you think about what you really are going to do, what the road map is going to look like, I guess start off with what you've already done from an integration standpoint and then what we can expect to see from an integration standpoint around it. And maybe give us some idea as to what to look for in terms of revenue and monetization cross-sell potential opportunities.

Sure. Just first, as a reminder, like as a finance leader who's managed corporate card programs for many years, I can tell you from first-hand experience that the Divvy spend management solution is life-changing for the back office in all seriousness. There's lots of credit providers out there, and we actually partner with many of them in our FI channel, but it's the software is where the innovation happens, and that's where we were able to create value. And Divvy's been a leader in the space in doing this. Control and visibility for businesses combined with credit or prepaid card is really like the game changer. So we think the momentum that you've seen with the numbers from Divvy have been all organic. It's their success in the market creating awareness and driving adoption. We think there's a large opportunity with the Bill.com customer base. That was one of the assumptions we had in doing the transaction. We think approximately 50% of the Bill.com base is a great candidate for the Divvy product. And it's probably the largest 50%, right, because they have the financial profile to get credit, go through underwriting and things like that. And then the bottom half, if you will, the smaller 50%, there's still the opportunity to deliver the software solution, perhaps combined with a prepaid card or another solution for them to create value in running their financial operations. So we think there's a potential solution with the Divvy product for really all of the Bill.com customers. It will take time for us to determine what kind of penetration rate and adoption we believe we can drive, but we think the opportunity is really large.

I mean you have a leg up on underwriting, right, just given that you see the accounts payable side for these businesses. And so credit quality-wise, it should be a little bit better here than even others, I would say, or Divvy by itself.

I would agree with that. So one of the things that Divvy did really well as an independent business is develop the credit and underwriting capabilities for a horizontal go-to-market focused on SMBs, and they're way ahead of anyone else in the space. And now combined with Bill.com, we have an even bigger data asset than Divvy does. So we've put the risk teams together, we've consolidated our data, we've created automation and algorithms to assess customers. We, in an automated way, assessed all the Bill.com customers from a credit profile standpoint already. And because, as you mentioned, we have history with those customers, we think we're going to have better credit outcomes and be able to drive growth efficiently from that cross-sell motion.

Okay. That makes a lot of sense. Just to be 100% clear here, I mean we've seen growth in numbers at Divvy's customer base, like you said, was organic. Frankly, we've seen it also at some of the other newer expense management offerings and the issuers. Something is clearly resonating with SMBs around these new offerings versus the likes of an Amex card or a sole proprietorship card. I mean is it the software differentiation that's really being provided by Divvy that's winning the business? Or is it just quicker and easier underwriting that a customer maybe wouldn't have gotten from a legacy bank?

Just like with Bill.com where we focus on process automation and because we apply it to AP and AR, we get the right to do payments. With Divvy, it's the same strategy. It's software to run a better business, to have more control, visibility, transparency in your financial back office, and there's a credit product associated with it. For a smaller business, it might be a prepaid product. So the value proposition is as much as anything around the software, and the credit is on top of that. So that's the way we approach the market. And you can see with the results, it is resonating.

And you still are expecting, let's call it, later this calendar year that you would see cross-sell potential to start flowing through.

Yes. We said fiscal '23 is when we start to see customer numbers and spend and ultimately revenue flowing through from Bill.com customers. We are already introducing the product and engaged in cross-selling activities. But with any financial process, it takes time for customers to adopt and then modify their behavior and their processes to start using the new solution.

We talked a little bit about Invoice2go also. It's a different customer base, more sole proprietorship, I think, a bigger number of them, obviously. And so maybe just frame the opportunity there in terms of it now being also in the receivables side, the payments part of it as well and then maybe the international rate it could provide.

Yes, absolutely. So we've, for a long time, wanted to have more balance in how we supported businesses, more balance between accounts payable and accounts receivable. Historically, we've indexed much higher to accounts payable. And with Invoice2go, they have north of 200,000 customers. These are very small businesses, smaller on average in the Bill.com SMB. Their customer base is global. So 40% North America, 60% other countries, 150 countries in the world. It's a subscription business primarily, so they've done very little in terms of payments. They had a third-party outsourced payment relationship that had pretty high customer adoption friction because they need to go through a whole separate underwriting process and whatnot, yet they're delivering significant volume with the current platform. So it's about $25 billion a year in invoice volume, of which only $1 billion or so is being monetized with payments. And that has a lot to do with the disjointed payment experience that I mentioned. So we think there's a large opportunity to introduce a branded payment experience, leveraging Bill.com capabilities. Secondly, we think there's a big opportunity to introduce Invoice2go to the Bill.com network members. So many of them are small suppliers, just like the small businesses that Invoice2go has in their 20,000 customer base. And then there's another element that I mentioned earlier about being in the middle of transaction flow, millions of transactions across tens or hundreds of thousands of businesses, and we think that's a unique spot to be as it relates to potentially opening up working capital opportunities. So more of a financial services bent on payment flows. We're not -- we're still working on the right kind of products and what the demand might be for that, but Invoice2go is sort of a part of that solution.

Okay. That's exciting. I'm going to ask maybe 1 or 2 more, and then I'm going to let the audience ask a couple, assuming there's still some time. But first, M&A opportunities. You've done some pretty impressive deals as we just went through a couple of them. And so when we think about what you are looking for now, and you have a good balance sheet for it now, what's on your roadmap from an M&A standpoint? Maybe just help us understand sizing or what kind of areas you're really looking at.

Yes. In terms of priorities, we always anchor on customer needs first, like what do we think customers want, where can we add value by enhancing the platform. And then for all of those priorities we evaluate, should we build a product or a service? Should we partner with somebody to embed a third-party product? Or should we acquire and own? And there isn't a one-size-fits-all answer to that. Time to market is certainly a key factor, and most of the areas of interest would fall into things that are adjacent to the payment flows and the processes that we're already managing. So procurement would be an example, making that easier, removing friction. I mentioned working capital, other areas of back-office operations like payroll and human capital management, business analytics and cash flow insights, things like that, that we hear from customers about those types of products and know that it would be valuable to introduce them. As far as like the profile of what we might do from a transaction standpoint, I think it's -- time will tell on that. We are well positioned from a capital standpoint and from a platform leadership position. I think there are opportunities for sure.

Okay. That's helpful. Just to wrap it up, and then again, we'll take some questions from the audience. But John, when we look out 3 to 5 years, talk a little bit more about what you see this business looking like by then in terms of both what do you think it could be for a business, what kind of offerings it can provide. And maybe even just financially, when you think of how big the addressable market is, what kind of run rate can we still be looking at in? And you've talked about normalized margins longer term also, I'd love to hear your updated thoughts on that.

Yes. I mean we haven't said much about the longer-term model, but I can tell you that we're expecting to offer more solutions in our platform to help SMBs automate more of their financial operations. As I mentioned earlier, we expect to be able to continue to expand our take rate multiples of where it is today, continue our track record of rolling out new payment products and driving innovation there. I think it's going to be reasonable to expect that we'll have tailored offerings for the different segments that we serve, whether that's a micro sole prop or a mid-market company. With our Invoice2Go transaction, I think that is the start of international expansion. I think there's a long way to go there, and the international opportunity is as big as the U.S. opportunity for sure. And so to summarize, large market opportunity. We have lots of ideas how to create value. We're investing for growth. I think this can be a very big business and have a very long-term durable growth runway. As far as the specifics around the forward longer-term model, we'll certainly get to that in the coming quarters and talking with investors.

Okay. All right. Why don't we take a couple from the audience? First is, John, what's the health of the SMB right now? Are you starting or are you expecting to see any churn increase given the oil shock to consumers or demand or businesses? Thanks.

Yes, obviously, very timely, great question. One thing that has become clear in recent quarters is most small businesses are certainly feeling some effect of inflation, whether that's wage inflation in staffing their businesses and attracting and retaining employees or goods and services inflation in their supply chain, that has some impact on our TPB as we are continually growing that on a per customer basis. Exactly, we haven't quantified exactly what that is. But beyond that, we haven't seen any signs of distress or other negative implications for the SMB base today. We're obviously monitoring the situation closely. But as we learn through the early months and quarters of the pandemic, we have a very resilient customer base. And this horizontal go-to-market insulates us from vertical industry issues that could arise. And so far, the signs continue to look positive.

Okay. Another question is, if you could remind us of the BofA economics on the SaaS versus payment side. And then could these FI partners be potential resellers of Divvy similar to Bill.com? And would that require a new or restructured agreement?

Yes. So the way the agreements work with the financial institutions, BofA included, is that we signed multiyear agreements with minimum revenue commitments, and those minimum commitments are reflected in our remaining performance obligation numbers, call it $150 million as of our December quarter, and that is -- that includes both subscriptions and transaction fees that has agreed upon penetration rate of customers and transaction levels. So think of that as the floor of the revenue opportunity with our financial institutions. And as we drive better adoption and partnering with them, we have the opportunity for revenue upside. And we do believe one of the thesis that we had with adding Divvy to the platform is that we could sell through to our existing distribution partners, the accounting firms, which we mentioned the CPA.com arrangement as the first step there. And with our financial institutions, we think there's an opportunity as well. It does require a sales cycle, a product integration and likely an amendment to an existing agreement, but it's not like a new start from scrap sales cycle. And we are engaged in discussions already with our partners on that.

Okay. Next question is, as you're scaling into larger customers, are these new customers continuing to move up market, get bigger? Or is this more of a onetime step function up?

Well, the average small business is not necessarily a -- has a high -- doesn't necessarily have a high growth profile, right? So whereas mid-market, it's more likely they have access to capital. They're investing in their business and they're growing, and we see that in the numbers, adding users, doing more transactions, payment volume increasing. We can work with a business through the vast majority of their life cycle. Where businesses start to think about other solutions is when they get to that enterprise phase, where their business has become complex enough that it makes sense to invest in a Workday or an Oracle or something like that. But up until then, from the smallest businesses through mid-market, we have tools that help them manage their financial operations and create automation. And as I said, that's resonating.

All right. That's helpful. I think we only have time for one more. So can you touch on competitive dynamics and what prevents into or a square or a block from entering these markets?

Yes. I mean, as I said before, we have a few important things that differentiate us. We obviously have a very unique go-to-market ecosystem. Our platform is focused on process automation, not just transactions. It's not the commodity layer, it's the value creation layer. And we obviously have scale with 350,000 customers and a network that, over time, we think will be a very important part in driving growth for the business. So as we continue to add capabilities, it's for businesses who rely on legacy processes, manual paper-based systems as well as digital-first companies, who often partner with an accounting firm or an outsourced virtual CFO. We are there from day 1 as well. So we think we've got the opportunity to serve a large swath -- a large part of the market across all the segments that we talked about.

Okay. John, we're going to have to stop it there, but thank you so much. It's been really insightful and always great to have you with us.

You bet. Thanks a lot, Darrin. I appreciate the opportunity.

Guys, for everyone on, the next session is going to be we have a short breakdown. And then at 1 p.m., we have the perspectives from venture capital, private equity and fintech panel, starting at 1 p.m. Eastern time. John, thanks again and be well.

Thanks. See you later.

Take care.