Bill Holdings’ founder and chief executive on Wednesday defended his company’s performance as two activist hedge funds agitate for change at the payments and accounting software firm.
“The board has always actively thought about shareholder value and how you create more shareholder value,” Bill CEO René Lacerte said at an investor conference, adding later in the discussion that “the DNA of the company” is focused on growth and profits.
Lacerte declined to directly address the recent 8.5% stake taken by the activist hedge fund Starboard Value, which aims to add directors to the company’s board. He also sidestepped commenting on the stake of at least 5% acquired by Elliott Investment Management, which the Financial Times reported Tuesday, citing two people familiar with the matter.
The CEO listed several Bill accomplishments in recent years, including a doubling of revenue and non-GAAP profits over the past three years and increasing investments to spur company growth. On a GAAP basis, Bill posted a $24 million net profit last month for its 2025 fiscal year, following three years of losses totaling $579 million.
Bill, based in San Jose, California, sells to small and midsized businesses, including about 9,000 accounting firms. The company is seeking to better monetize its current client base and to extend its 10 payments products into more companies.
“We have a massive opportunity,” Lacerte said, citing only a current 4% market penetration among SMBs.
Bill also has “significant opportunities to increase both the penetration of our payment products across our customer base” and to increase customer growth, he said at the Goldman Sachs Communicaopia + Technology Conference.
Bill shares have declined 37% this year and sit about 85% below their $342 peak in November 2021. Bill’s board authorized a new $300 million share repurchase program last month, atop $100 million in shares the company has repurchased so far in 2025.
Bill’s revenue growth has been pressured recently as its small and mid-sized business customers have faced financial uncertainty due to the Trump administration’s tariffs and an unclear outlook for the U.S. economy, the company’s executives noted last month. Bill has also faced increased competition from multiple payments rivals, including Intuit and Tipalti.
A spokesperson for Elliott Management, a $76 billion fund established by billionaire investor Paul Singer, declined to comment Thursday on the firm’s Bill investment. Elliott’s position predates Starboard’s stake, the Financial Times reported.
A third of Bill’s 12 directors’ terms expire this year, according to the company’s 2024 proxy filing. Starboard plans to nominate several new directors, the New York-based hedge fund said last week in its securities disclosure.
Separately, Bill and Paychex, a human resources software company, announced a partnership Wednesday in which Bill will power a new platform to offer payroll, human resources and payments services.
