Wrapping up Q1 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, including Workiva (NYSE:WK) and its peers.
Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software.
The 15 finance and HR software stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and finance and hr software stocks have had a rough stretch, with share prices down 7.2% on average since the previous earnings results.
Workiva (NYSE:WK) Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.
Workiva reported revenues of $175.7 million, up 17% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with decelerating customer growth and a miss of analysts' billings estimates.
"The Workiva team delivered another solid quarter, resulting in subscription revenue growth of 20%," said Julie Iskow, President & Chief Executive Officer.
The stock is down 6.8% since reporting and currently trades at $74.58.
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Best Q1: Bill.com (NYSE:BILL) Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit (NASDAQ:INTU), Bill.com (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses.
Bill.com reported revenues of $323 million, up 18.5% year on year, outperforming analysts' expectations by 5.6%. It was a very strong quarter for the company with an impressive beat of analysts' billings estimates and optimistic revenue guidance for the next quarter.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 16.5% since reporting. It currently trades at $52.83.
Weakest Q1: Global Business Travel (NYSE:GBTG) Holding close ties to American Express (NYSE:AXP), Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide.
Global Business Travel reported revenues of $610 million, up 5.5% year on year, falling short of analysts' expectations by 2.3%. It was a weak quarter for the company with full-year revenue guidance missing analysts' expectations.
Global Business Travel posted the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 7.6% since the results and currently trades at $6.70.
Asure (NASDAQ:ASUR) Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).
Asure reported revenues of $31.65 million, down 4.3% year on year, surpassing analysts' expectations by 2%. Revenue aside, it was a slower quarter for the company with a miss of analysts' billings estimates.
Asure delivered the highest full-year guidance raise among its peers. The stock is up 26.8% since reporting and currently trades at $10.07.
Paycor (NASDAQ:PYCR) Found in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place.
Paycor reported revenues of $187 million, up 15.8% year on year, in line with analysts' expectations. Revenue aside, it was a weak quarter for the company with full-year revenue guidance missing analysts' expectations and a miss of analysts' billings estimates.
The stock is down 26.4% since reporting and currently trades at $12.89.
This content was originally published on Stock Story
