This Growth Stock Could Deliver 10X Returns in the Long Run

The stock market is on shaky ground right now as investors digest higher interest rates and geopolitical tensions in Europe. The Nasdaq 100 technology index briefly dipped into bear-market territory in March, with a decline of more than 20% for 2022, and although it has bounced back slightly, it's still down about 15% for the year.

It's, therefore, more important than ever to play the long game. Focusing on an investment horizon of 5-10 years significantly increases the chance of generating a positive return and, in some cases, a life-changing one. (NYSE: BILL) is a financial technology (fintech) company with soaring revenue growth, and its addressable market suggests it has only just begun to tap its potential.

Smiling business owner hanging open sign on shop door.

Image source: Getty Images.

Serving small businesses's flagship platform centers on its digital inbox technology designed to simplify the accounts payable process for small to mid-sized businesses. The paper trail can get tricky to manage for smaller enterprises that might not have full-time bookkeeping or accounting staff, and aims to ensure invoices don't get lost, misrouted, or forgotten.

When a business loads invoices into, it can pay them in a single click. And thanks to integrations with key accounting software platforms, also logs the transactions automatically in the books.

The company has had enormous success amassing 135,000 business customers, but it began aggressively expanding into new verticals in 2021 through two key acquisitions. It purchased Invoice2go, a platform technology that helps businesses manage accounts receivable, and Divvy, a budgeting and expense management software.

That makes a closed-loop provider for all business payment needs, whether sending or receiving money. That's important because the company's largest source of revenue is generated by taking fees based on transaction volume.

How stock could grow 10x in the long run

It all starts with the company's gigantic addressable market. The two charts below depict's current position compared to its domestic and global opportunities in terms of total payment volume and customer base.

A chart depicting total payment volume and its addressable market.

Clearly, has only captured a fraction of its $125 trillion global addressable market for payment volume. On a trailing-12-month basis, the company has processed $181 billion in transactions, leaving room for 69,000% growth in the unlikely scenario it took the entire market.

But theoretically, may only need to increase its annual payment volume to $1.81 trillion for its stock to grow tenfold, assuming its current valuation metrics remain constant (its price-to-sales ratio, for example).

A chart depicting customer base and its addressable opportunity.

On the customer side, has an enticing pool of 70 million businesses around the world to go after. As mentioned, 135,000 businesses have joined its flagship platform, but thanks to the acquisitions of Invoice2go and Divvy, that figure now stands at 373,500 -- supercharging the company's growth potential. is already charting a path to the top, on track to grow its revenue almost tenfold in the last five years alone, assuming it meets its fiscal 2022 projections.

Metric Fiscal 2018 Fiscal 2022 (Guidance) CAGR
Revenue $65 million $600 million 56%

Data source: Chart by author. CAGR = compound annual growth rate.'s fiscal year ends June 30.'s stock price is down by 43% from its all-time high amid the broader tech sell-off, so now might be the perfect moment to buy with a long-term horizon. If its current growth trajectory continues, a 10x return might even be conservative, looking back a decade from now.

10 stocks we like better than Holdings, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Holdings, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of April 7, 2022

The Motley Fool owns and recommends Holdings, Inc. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.