Payfinia Partners with TAPP Engine to Provide Instant Wealth Management Capabilities
PORTLAND, Ore., February 18, 2025--(BUSINESS WIRE)--Payfinia, an open, real-time payments framework, today announced it partnered with TAPP Engine, a B2B2C provider of SaaS embedded finance solutions, to offer an embedded suite of instant payments services to financial institutions (FIs) and wealth management providers.
The partnership enables participating clients to access Payfinia's full suite of instant payment services, enabling an embedded suite of services to support account-to-account transactions, ACH messaging and instant payments requests. The embedded payment services offering from TAPP Engine and Payfinia is scheduled for availability in Q2.
Tosin Osunsanya, CEO and founder of TAPP Engine, said, "Community financial institutions are competing with megabanks and third parties to provide the best services possible – and a key part of this is offering the fastest and most fraud-proof solutions when managing multi-assets brokerage, fractional shares investing, clearing and more. By partnering with Payfinia, we will provide our clients with a fully managed, instant payments option to attract and retain more assets. Our partnership with Payfinia ensures our clients have a secure money movement framework to transform their businesses."
TAPP Engine provides WealthTech-as-a-service solutions and back-office operations support to financial services providers. Infusing instant payment capabilities into TAPP Engine's platform enhances the account holder's ability to manage cash flow within their checking accounts and accelerates the purchase of securities through the connected brokerage account. Account holders also can request immediate withdrawals from the brokerage account to the credit union checking account.
Through Payfinia's comprehensive admin console, participating FIs gain access to Payfinia's layered fraud controls for mitigating risk associated with instant transfers and the ability to secure ACH data for origination. Additionally, FIs can send instant payments on behalf of account holders and create instant disbursements to a defined portfolio of suppliers via Payfinia's Concierge Payments Module (CPM).
Keith Riddle, general manager of Payfinia CUSO, said, "Combining Payfinia's open payments framework, instant account-to-account transfer experience, and suite of layered fraud controls with TAPP Engine's wealth management and brokerage tools, TAPP Engine clients will have more a secure, seamless wealth management experience. We're thrilled to partner with TAPP Engine to offer its clients immediate access to funds, creating more efficient and secure money management capabilities. Our partnership will transform money movement experiences within the wealth management and financial services landscape."
To learn more, Payfinia and TAPP Engine will be attending America's Credit Unions Governmental Affairs Conference 2025 in Washington D.C., taking place March 2 – 6. Please contact Keith Riddle, General Manager, Payfinia CUSO – keith.riddle@payfinia.com, or Vincent Maggiulli, Head of Sales and Business Development, TAPP Engine – vincent@tappengine.com to schedule an introductory session.
About TAPP Engine
TAPP Engine® offers Banking-as-a-Service solutions with embedded digital-first financial services for wealth management firms and other financial institutions. Our SaaS open brokerage and digital banking infrastructure solution enables our clients to compete quickly and cost effectively with big banks. Our micro-services embedded finance infrastructure APIs support multi-assets brokerage, fractional shares investing, clearing and custody. For more information, visit https://tappengine.com/.
About Payfinia Inc.
Payfinia Inc. is an independent payments company, providing community financial institutions (CFIs) access to and ownership of their instant payments services. Payfinia's flagship product offering, the Instant Payments Xchange (IPX), is a secure, scalable and affordable real-time money movement service. Additionally, Payfinia partners with third-party digital providers to integrate instant payments with traditional payment and money movement solutions, extending the technology provider's capabilities, while also providing member FIs a more robust payments ecosystem. To learn more about Payfinia, visit payfinia.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218570610/en/
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MEDIA CONTACTS: Laura Lenz / Anna Stanleylaura@williammills.com / anna@williammills.com 678.781.7226 / 251.517.7857
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Accordingly, reconciliations are not available without unreasonable effort, although it is important to note that these factors could be material to Braze's results calculated in accordance with GAAP. 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These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "anticipate," "believe," "could," "estimate," "expect," "goal," "hope," "intend," "may," might," "potential," "predict," "project," "shall," "should," "target," "will" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on Braze's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Braze's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (1) the extent to which Braze achieves anticipated financial targets; (2) the impact of management and organizational changes on OfferFit's business; (3) the impact on OfferFit employees and Braze's ability to retain key personnel; (4) the effectiveness in integrating the OfferFit platform and operations with our business; (5) Braze's ability to realize its broader strategic and operating objectives; (6) unstable market and economic conditions may have serious adverse consequences on Braze's business, financial condition and share price; (7) Braze's recent rapid revenue growth may not be indicative of its future revenue growth; (8) Braze's history of operating losses; (9) Braze's limited operating history at its current scale; (10) Braze's ability to successfully manage its growth; (11) the accuracy of estimates of market opportunity and forecasts of market growth and the impact of global and domestic socioeconomic events on Braze's business; (12) Braze's ability and the ability of its platform to adapt and respond to changing customer or consumer needs, requirements or preferences; (13) Braze's ability to attract new customers and renew existing customers; (14) the competitive markets in which Braze participates and the intense competition that it faces; (15) Braze's ability to adapt and respond effectively to rapidly changing technology, evolving cybersecurity and data privacy risks, evolving industry standards or changing regulations; and (16) Braze's reliance on third-party providers of cloud-based infrastructure; as well as other risks and uncertainties discussed in the "Risk Factors" section of Braze's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 31, 2025 and other subsequent filings Braze makes with the SEC from time to time, including Braze's Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2025 that will be filed with the SEC. The forward-looking statements included in this press release represent Braze's views only as of the date of this press release and Braze assumes no obligation, and does not intend to update these forward-looking statements, except as required by law. About Braze Braze is the leading customer engagement platform that empowers brands to Be Absolutely Engaging.™ Braze allows any marketer to collect and take action on any amount of data from any source, so they can creatively engage with customers in real time, across channels from one platform. From cross-channel messaging and journey orchestration to Al-powered experimentation and optimization, Braze enables companies to build and maintain absolutely engaging relationships with their customers that foster growth and loyalty. The company has been recognized as a 2024 U.S. News & World Report Best Companies to Work For, 2024 Best Small & Medium Workplaces in Europe by Great Place to Work®, 2024 Fortune Best Workplaces for Women™ by Great Place to Work® and was named a Leader by Gartner® in the 2024 Magic Quadrant™ for Multichannel Marketing Hubs and a Strong Performer in The Forrester Wave™: Email Marketing Service Providers, Q3 2024. Braze is headquartered in New York with 15 offices across AMER, LATAM, EMEA, and APAC. Learn more at Braze uses its Investor website at as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor its investor relations website in addition to following its press releases, blog posts on its website ( SEC filings and public conference calls and webcasts. BRAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) Three Months Ended April 30, 2025 2024 Revenue $ 162,059 $ 135,459 Cost of revenue (1)(2) 50,857 44,548 Gross Profit 111,202 90,911 Operating expenses: Sales and marketing (1)(2) 74,127 69,827 Research and development (1)(2) 36,797 34,373 General and administrative (1)(2)(3)(4)(5)(6) 40,500 26,791 Total operating expenses 151,424 130,991 Loss from operations (40,222 ) (40,080 ) Other income, net 5,652 5,171 Loss before provision for income taxes (34,570 ) (34,909 ) Provision for income taxes 1,071 798 Net loss (35,641 ) (35,707 ) Net income (loss) attributable to redeemable non-controlling interest 145 (66 ) Net loss attributable to Braze, Inc. $ (35,786 ) $ (35,641 ) Net loss per share attributable to Braze, Inc. common stockholders, basic and diluted $ (0.34 ) $ (0.35 ) Weighted-average shares used to compute net loss per share attributable to Braze, Inc. common stockholders, basic and diluted 104,572 100,788 (1) Includes stock-based compensation as follows: Three Months Ended April 30, 2025 2024 Cost of revenue $ 1,077 $ 964 Sales and marketing 10,011 9,445 Research and development 11,336 10,832 General and administrative 7,975 7,037 Total stock-based compensation expense $ 30,399 $ 28,278 (2) Includes employer taxes related to stock-based compensation as follows: Three Months Ended April 30, 2025 2024 Cost of revenue $ 60 $ 68 Sales and marketing 413 541 Research and development 744 836 General and administrative 213 297 Total employer taxes related to stock-based compensation expense $ 1,430 $ 1,742 (3) Includes 1% Pledge charitable donation expense as follows: Three Months Ended April 30, 2025 2024 General and administrative $ 1,109 $ — (4) Includes acquisition related expense as follows: Three Months Ended April 30, 2025 2024 General and administrative $ 10,020 $ — (5) Includes amortization of intangible assets acquired in the acquisition expense as follows: Three Months Ended April 30, 2025 2024 General and administrative $ 101 $ 218 (6) Includes adjustment to the fair value of the contingent consideration liability as follows: Three Months Ended April 30, 2025 2024 General and administrative $ — $ (137 ) BRAZE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts) April 30, 2025 January 31, 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 231,499 $ 83,062 Accounts receivable, net of allowance of $3,231 and $2,563 at April 30, 2025 and January 31, 2025, respectively 86,093 95,234 Marketable securities 307,795 430,457 Prepaid expenses and other current assets 33,752 35,273 Total current assets 659,139 644,026 Restricted cash, noncurrent 530 530 Property and equipment, net 38,803 38,550 Operating lease right-of-use assets 76,060 76,147 Deferred contract costs 79,320 76,766 Goodwill 28,448 28,448 Intangible assets, net 3,029 3,130 Other assets 3,805 3,401 TOTAL ASSETS $ 889,134 $ 870,998 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,304 $ 2,150 Accrued expenses and other current liabilities 58,269 64,189 Deferred revenue 265,015 239,976 Operating lease liabilities, current 19,275 18,162 Total current liabilities 343,863 324,477 Operating lease liabilities, noncurrent 68,036 69,278 Other long-term liabilities 2,776 2,494 TOTAL LIABILITIES 414,675 396,249 COMMITMENTS AND CONTINGENCIES (Note 13) Redeemable non-controlling interest (Note 4) 33 (112 ) STOCKHOLDERS' EQUITY Class A common stock, $0.0001 par value; 2,000,000,000 and 2,000,000,000 shares authorized as of April 30, 2025 and January 31, 2025, respectively; 91,844,313 and 87,934,059 shares issued and outstanding as of April 30, 2025 and January 31, 2025, respectively 9 8 Class B common stock, $0.0001 par value; 110,000,000 and 110,000,000 shares authorized as of April 30, 2025 and January 31, 2025, respectively; 13,022,634 and 16,017,314 shares issued and outstanding as of April 30, 2025 and January 31, 2025, respectively 1 2 Additional paid-in capital 1,095,070 1,062,613 Accumulated other comprehensive income (loss) 1,968 (926 ) Accumulated deficit (622,622 ) (586,836 ) TOTAL STOCKHOLDERS' EQUITY 474,426 474,861 TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY $ 889,134 $ 870,998 BRAZE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Three Months Ended April 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss (including amounts attributable to redeemable non-controlling interests) $ (35,641 ) $ (35,707 ) Adjustments to reconcile net loss to net cash provided by operating activities: Stock-based compensation 30,643 28,620 Amortization of deferred contract costs 9,421 8,313 Depreciation and amortization 2,606 2,126 Provision for credit losses 232 668 Value of common stock donated to charity 1,109 — (Accretion) amortization of (discount) premium on marketable securities (399 ) (487 ) Non-cash foreign exchange (gain) loss 227 (295 ) Fair value adjustments to contingent consideration — (137 ) Other 9 280 Changes in operating assets and liabilities: Accounts receivable 9,108 9,876 Prepaid expenses and other current assets 3,147 (984 ) Deferred contract costs (11,870 ) (10,730 ) ROU assets and liabilities (410 ) 1,522 Other assets (403 ) 277 Accounts payable (978 ) (1,800 ) Accrued expenses and other current liabilities (7,203 ) (7,351 ) Deferred revenue 24,547 25,285 Other long-term liabilities (1 ) (81 ) Net cash provided by operating activities 24,144 19,395 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (217 ) (6,915 ) Capitalized internal-use software costs (1,055 ) (1,039 ) Purchases of marketable securities (52,364 ) (59,650 ) Maturities of marketable securities 63,215 57,000 Return of principal on marketable securities 113,258 — Net cash provided by/(used in) investing activities 122,837 (10,604 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of common stock options 605 1,035 Payments of deferred purchase consideration — (2,916 ) Net cash provided by/(used in) financing activities 605 (1,881 ) Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash 851 (337 ) Net change in cash, cash equivalents, and restricted cash 148,437 6,573 Cash, cash equivalents, and restricted cash, beginning of period 83,592 72,131 Cash, cash equivalents, and restricted cash, end of period $ 232,029 $ 78,704 BRAZE, INC. U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (in thousands, except per share amounts) The following tables reconcile each non-GAAP financial measure to its most directly comparable GAAP financial measure: Reconciliation of GAAP to Non-GAAP Gross Margin Three Months Ended April 30, 2025 2024 Gross profit $ 111,202 $ 90,911 Plus: Stock-based compensation expense 1,077 964 Employer taxes related to stock-based compensation expense 60 68 Non-GAAP gross profit $ 112,339 $ 91,943 GAAP gross margin 68.6 % 67.1 % Non-GAAP gross margin 69.3 % 67.9 % Reconciliation of GAAP to Non-GAAP Operating Expenses Three Months Ended April 30, 2025 2024 GAAP sales and marketing expense $ 74,127 $ 69,827 Less: Stock-based compensation expense 10,011 9,445 Employer taxes related to stock-based compensation expense 413 541 Non-GAAP sales and marketing expense $ 63,703 $ 59,841 GAAP research and development expense $ 36,797 $ 34,373 Less: Stock-based compensation expense 11,336 10,832 Employer taxes related to stock-based compensation expense 744 836 Non-GAAP research and development expense $ 24,717 $ 22,705 GAAP general and administrative expense $ 40,500 $ 26,791 Less: Stock-based compensation expense 7,975 7,037 Employer taxes related to stock-based compensation expense 213 297 1% Pledge charitable contribution expense 1,109 — Acquisition related expense 10,020 — Amortization of intangibles expense 101 218 Contingent consideration adjustment — (137 ) Non-GAAP general and administrative expense $ 21,082 $ 19,376 Reconciliation of GAAP to Non-GAAP Operating Income (Loss) Three Months Ended April 30, 2025 2024 Loss from operations $ (40,222 ) $ (40,080 ) Plus: Stock-based compensation expense 30,399 28,278 Employer taxes related to stock-based compensation expense 1,430 1,742 1% Pledge charitable contribution expense 1,109 — Acquisition related expense 10,020 — Amortization of intangibles expense 101 218 Contingent consideration adjustment — (137 ) Non-GAAP income (loss) from operations $ 2,837 $ (9,979 ) GAAP operating margin (24.8 )% (29.6 )% Non-GAAP operating margin 1.8 % (7.4 )% Reconciliation of GAAP to Non-GAAP Net Income (Loss) Three Months Ended April 30, 2025 2024 Net loss attributable to Braze, Inc. $ (35,786 ) $ (35,641 ) Plus: Stock-based compensation expense 30,399 28,278 Employer taxes related to stock-based compensation expense 1,430 1,742 1% Pledge charitable contribution expense 1,109 — Acquisition related expense 10,020 — Amortization of intangibles expense 101 218 Contingent consideration adjustment — (137 ) Non-GAAP net income (loss) attributable to Braze, Inc. (1) $ 7,273 $ (5,540 ) Non-GAAP net income (loss) per share attributable to Braze, Inc. common stockholders, basic $ 0.07 $ (0.05 ) Non-GAAP net income (loss) per share attributable to Braze, Inc. common stockholders, diluted $ 0.07 $ (0.05 ) Weighted-average shares used to compute net income (loss) per share attributable to Braze, Inc. common stockholders, basic 104,572 100,788 Weighted-average shares used to compute net income (loss) per share attributable to Braze, Inc. common stockholders, diluted 107,977 100,788 (1) Assumes no non-GAAP tax expenses associated with the non-GAAP adjustment due to the Company's historical non-GAAP net loss position and available deferred tax assets sufficient to offset such non-GAAP tax expense. Reconciliation of GAAP Cash Flow from Operating Activities to Non-GAAP Free Cash Flow Three Months Ended April 30, 2025 2024 Net cash provided by operating activities $ 24,144 $ 19,395 Less: Purchases of property and equipment (217 ) (6,915 ) Capitalized internal-use software costs (1,055 ) (1,039 ) Non-GAAP free cash flow $ 22,872 $ 11,441 Braze is a registered trademark of Braze, product and company names herein may be trademarks of their registered owners. View source version on Contacts Investors:Christopher FerrisIR@ (609) 964-0585 Media:Katelyn BryantPress@
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AI and cloud services have already made their mark on the tech landscape, and the next iteration is taking shape: artificial intelligence software as a service, or AI SaaS. Simply put, it refers to the use of cloud technology to deliver advanced AI tools while minimizing cost and resource demands for end users. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The cloud can already reach a wide range of customers, users who require high-end computing but can't support the infrastructure themselves. Adding AI to the mix will put advanced functions – think machine learning and natural language processing – into the cloud's toolbox. From a user perspective, putting AI tools into the subscription-based SaaS model will also give advantages in flexibility and scalability. The opportunity here is substantial. According to Zion Market Research, last year, the AI SaaS market was estimated to be worth $115.22 billion – and it's predicted to see a CAGR of 38% or more over the next decade, to reach $2.97 trillion by 2034. Covering the AI/SaaS segment from Cantor, analyst Matthew VanVliet sees major upside in this space – and in the stocks poised to benefit. 'We believe there is ample upside for the group ahead, as AI represents a much greater catalyst than anything in the past couple of years, more significant and sustainable than pandemic-era work-from-anywhere investments. Our view is the opportunity for growth to re-accelerate points to upside for the AI winners, unlocking multiple expansion if this plays out as we are expecting,' VanVliet opined. Building on that bullish outlook, the analyst has singled out two top picks he believes are especially well-positioned to ride this next wave of AI-driven growth – a view echoed by the broader analyst community. According to the TipRanks database, both stocks carry Strong Buy consensus ratings from the Street. Let's take a closer look. Klaviyo, Inc. (KVYO) The first company we'll look at here is Klaviyo, a software firm that brings CRM (customer relationship management) to the B2C world. The company fields a proprietary data platform with AI insights, to give its customers effective marketing automation, data analysis, and customer service. The aim here is personalized service – Klaviyo's customers can use the company's software packages to improve their own customers' interactions: customer profiles, omnichannel campaigns, web forms, and more. Klaviyo has built its operations and reputation on the quality of its data-based services – which positioned the company well to integrate AI into its offerings. The company's email and SMS marketing services already make use of AI tech to smooth out customization and targeting, to automate content generation, and to optimize send times. Klaviyo's clean data library is a key support for the AI services. Strong services have allowed this company to build a solid customer base. In its last financial release, Klaviyo defined a customer as 'a distinct paid subscription to our platform;' by that definition, the company stated that it had over 169,000 customers as of this past March 31. Within that customer base, the number of large customers – defined as those generating more than $50,000 in annual recurring revenue (ARR) came to 3,030, up 40% year-over-year. In addition to building a strong customer base, Klaviyo's 1Q25 financial release also showed quarterly revenue of $279.8 million, up 33% year-over-year and $11.89 million ahead of the forecasts. The company ran a net loss in the quarter, of 5 cents per share, but that was one cent per share better than had been anticipated. Turning to Cantor's VanVliet, we find the analyst upbeat on Klaviyo, citing the company's strong position and its large total addressable markets and potential for growth. He writes of the stock, 'KVYO's core ecommerce/retail SAM is ~$16b, with a clear eye to more of the market as the platform expands, uptake of its CRM increases, such that it becomes a true system of record, and AI broadens its reach. KVYO's TAM also keeps expanding as it moves upmarket and diversifies across new industries and geographies. Within the US, it sizes the TAM at $34b and the global opportunity at $68b. At $1b+ of revenue today, KVYO's penetration remains low, providing it a long runway of potential future growth.' VanVliet's comments back up his Overweight (i.e., Buy) rating here, and his $48 price target implies a potential gain of 41% for the shares in the year ahead. (To watch VanVliet's track record, click here) The Strong Buy consensus rating on KVYO shares is based on 18 recent Wall Street recommendations, which break down to 15 Buys and 3 Holds. The stock's $33.95 current trading price and $43.41 average target together suggest a one-year upside of 28%. (See KVYO stock forecast) HubSpot, Inc. (HUBS) Next on our list of Cantor's Top Picks is HubSpot, the well-known marketing software platform. The company has a reputation for innovation and has developed a solid stable of marketing software packages offered through a unified platform. HubSpot's software solves problems and smooths out processes in CRM, content management, social media management, and SEO – in fact, in pretty much any area of online direct marketing, inbound sales, and customer service. HubSpot introduced its Breeze AI toolkit last year as an AI enhancement of the company's existing services – and as an independent set of AI-powered marketing tools. The company's Breeze Customer Agent is billed as a '24/7 AI concierge,' capable of independently automating features in marketing, sales, and service. The system is designed to act on the human operator's instruction, with the AI agent handling the implementation. HubSpot claims that client teams using the AI agent see a 10% higher close rate on work orders, a 39% faster ticket resolution, and upwards of 50% of customer contact conversations resolved automatically – with the top users reaching 90%. In addition to streamlining marketing outreach, HubSpot also makes AI systems available in the content field. The company's Breeze Content Agent can scale content marketing efforts, create and publish landing pages, and generate search-optimized blog posts – and all in minutes rather than hours. The AI can even handle scripting and voiceover for video content. In its 1Q25 financial report, HubSpot reported what it described as a 'solid start' to the year. The company's customer count as of March 31 was up 19% year-over-year, a growth figure that offset a 4% decline in average subscription revenue per customer. At the top line, HubSpot reported $714.1 million in revenue, up 16% year-over-year and $13.7 million ahead of the pre-release estimates. HubSpot runs a quarterly profit, and in Q1 it realized a non-GAAP EPS of $1.84 – 8 cents better than expected. The company finished Q1 with $2.2 billion in cash and liquid assets on hand. Checking in again with VanVliet and the Cantor view of this CRM firm, we find him impressed by HubSpot's record of success. The analyst says of the company, 'HUBS is one of the few CRM industry players that has successfully moved into adjacent sub-categories (started in Marketing, expanded to Sales, Service, Content, and increasingly Commerce). We think this is a testament to HUBS's mgmt., which we view as best-of-breed. By methodically building the platform breadth and depth, HUBS is now gaining traction upmarket, which is key to sustaining mid-to-high teens growth over the medium term. HUBS is also building a more robust partner network, which is further accelerating upmarket traction.' Looking ahead, and specifically looking at HubSpot's use of AI to chart a new path ahead, the Cantor analyst remains upbeat, adding to his comments above, 'HUBS' organically built platform is well-positioned to leverage AI and strengthen its competitive edge. Breeze AI is already driving higher Content Hub attach rates (tripled y/y in 1Q). Further, we think Breeze will play an important role in unlocking Service Hub traction, which is critical to HUBS' next leg of growth.' Unsurprisingly, VanVliet rates HUBS stock as Overweight (i.e., Buy). His price target, set at $775, indicates room for an upside potential of 28.5% on the one-year horizon. HubSpot has picked up 28 recent analyst recommendations, which include 24 to Buy against just 4 to Hold, for a Strong Buy consensus rating. The stock is selling for $602.61, and its $749.32 average price target implies a potential one-year gain of 24%. (See HUBS stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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BILL Holdings, Inc. (BILL): A Bull Case Theory
We came across a bullish thesis on BILL Holdings, Inc. (BILL) on Compounding Your Wealth's Substack. In this article, we will summarize the bulls' thesis on BILL. BILL Holdings, Inc. (BILL)'s share was trading at $43.40 as of 29th May. BILL's forward P/E was 19.76 according to Yahoo Finance. Highlighting the company's sector and industry, a technician working on a complex SaaS in a technology lab. reported strong financial results for Q1 FY25 with total revenue of $358.2 million, marking a 10.9% increase year-over-year and beating estimates by 0.8%. This growth was primarily driven by subscription and transaction fees, which rose 13.9% to $320 million and accounted for nearly 90% of total revenue. Despite this revenue strength, gross margin declined slightly by 2.3 percentage points to 84.9%, while operating margin also contracted to 14.9%, down 3.2 percentage points year-over-year, reflecting margin pressures from investments and possibly a shift in product mix. The company's free cash flow margin, however, improved significantly by 6.8 percentage points to 27.5%, highlighting efficient cash generation. Net margin remained negative at -3.2%, worsening by 13.1 percentage points, which could be attributed to non-cash expenses or continued investment in growth initiatives. Non-GAAP EPS came in at $0.50, exceeding expectations by 35%. On the customer front, served 488,600 businesses, a 5.1% increase, with the AP/AR platform growing to 164,800 customers, up 12.3% year-over-year. Total payment volume and transaction counts both rose by over 11% and 15% respectively, signaling strong user engagement despite some moderation in spending per customer. The company introduced new features like multi-entity management, procurement automation, and mass payments aimed at mid-market firms, while also accelerating investment in AI-powered finance agents to automate key processes. Management cautioned about near-term uncertainty impacting SMB discretionary spending but remains confident in the company's long-term growth prospects, supported by ongoing product innovation, strategic pricing changes, and a robust accounting channel partnership. Guidance for FY25 was slightly lowered but remains optimistic for accelerated growth and margin expansion in the following year. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Shopify Inc. (SHOP). BILL Holdings, Inc. (BILL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held BILL at the end of the first quarter which was 64 in the previous quarter. While we acknowledge the potential of LYFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
