Assertion Partly supported AI assessment confidence: 88% certainty 4/5 debate potential 1/5

BILL has roughly 80% gross margins compared to Shopify's 50%

Jason Lemkin · Approaching Half a Million Customers: How to Win in SMB | BILL CEO and Founder René Lacerte · Oct 22, 2024 · at 29:07

Jason Lemkin discusses business model differences between BILL and other payment-enabled vertical SaaS platforms like Shopify and Toast.

0:00 / 0:08exact quote · 8.2s

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“It took forever, but as a result, you've got, you have, like, 80% gross margins. Shopify is like 50, toast is 30.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

The claim, plainly

BILL has approximately 80% gross margins, compared to Shopify at approximately 50% and Toast at approximately 30%.

a quote alone can be ambiguous, so this restates it with the references and context of the conversation around it resolved. AI-written; the tape below the player is the source.

Assessment

The claim accurately reflects the approximate gross margins for BILL and Shopify, but overstates Toast's gross margin. In filings around mid-to-late 2024, BILL Holdings reported GAAP gross margins of 81.0% to 81.8% (and ~85% Non-GAAP), and Shopify reported GAAP gross margins of 51.1% to 51.7%, perfectly matching the 'like 80%' and 'like 50%' approximations. However, Toast reported GAAP gross margins of 23.0% (Q2 2024), 24.7% (Q3 2024), and ~24% to 25% for full-year 2024, materially lower than the stated 30%.

BILL Holdings Form 10-K (FY2024 ended June 30, 2024) reported GAAP gross margin of 81.8% ($1,055.6M gross profit on $1,290.2M revenue) and Q1 FY2025 gross margin of 81.7%.
Shopify Form 6-K filings for Q2 2024 and Q3 2024 reported gross margins of 51.1% and 51.7% respectively (FY2024 ~50.5%–51.0%).
Toast Form 10-Q filings reported GAAP gross margins of 23.0% in Q2 2024 ($286M on $1,242M revenue) and 24.7% in Q3 2024 ($322M on $1,305M revenue), averaging ~23.7%–25.0% in 2024.

Checked against

[1] sec.gov [2] bill.com [3] publicnow.com [4] publicnow.com [5] sec.gov [6] stocktitan.net [7] newsfilecorp.com [8] betakit.com

"Toast, Inc." "Total revenue" "Gross profit" "Three Months Ended June 30, 2024" 10-Q "Shopify" "June 30, 2024" "Gross profit" "Revenues" 6-K OR "gross margin" "BILL Holdings" "gross margin" OR "gross profit" "2024" 10-K OR 10-Q "Bill Holdings" FY24 gross margin "80%" OR "81%" OR "82%" OR "85%" "BILL Holdings" "June 30, 2024" "Total revenue" "Gross profit" 10-K "Shopify" "September 30, 2024" "Gross profit" "Revenues" "Subscription solutions" "Merchant solutions" 6-K "Shopify Inc." "CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS" "September 30, 2024" 6-K "Shopify" "gross margin" "2024" 10-Q OR 10-K OR "gross profit" "Toast, Inc." "December 31, 2024" 10-K "Total revenue" "Gross profit" OR "Cost of revenue" "Toast, Inc." "Costs of revenue" "Hardware" "Three months ended September 30, 2024" 10-Q OR "Three Months Ended September 30, 2024" "Toast" "gross margin" "2024" 10-Q OR 10-K OR "gross profit"

assessed as of 2026-09-03

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Mentioned

BILL gross margin Shopify Toast

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