Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Asure Software (NASDAQ:ASUR), and the best and worst performers in the HR software group.
HR software benefits from dual trends around costs savings and ease of use. First is 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. Second is the consumerization of business software, whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy to use platforms.
The 6 HR software stocks we track reported a strong Q4; on average, revenues beat analyst consensus estimates by 6.6%, while on average next quarter revenue guidance was 5.15% above consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021 , but HR software stocks held their ground better than others, with share prices down 0.56% since the previous earnings results, on average.
Best Q4: Asure Software (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 Software reported revenues of $29.3 million, up 38.7% year on year, beating analyst expectations by 23.3%. It was a very strong quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
![Asure Software Total Revenue](https://news-assets.stockstory.org/chart-images/Asure-Software-Total-Revenue_2023-04-13-101752_tean.png)
Asure Software achieved the strongest analyst estimates beat and highest full year guidance raise of the whole group. The stock is up 38.5% since the results and currently trades at $15.55.
Is now the time to buy Asure Software? Access our full analysis of the earnings results here, it's free.
Paylocity (NASDAQ:PCTY)
Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and human resources software for small and medium-sized enterprises.
Paylocity reported revenues of $273 million, up 39.3% year on year, beating analyst expectations by 5.13%. It was a very strong quarter for the company, with very optimistic guidance for the next quarter and exceptional revenue growth.
![Paylocity Total Revenue](https://news-assets.stockstory.org/chart-images/Paylocity-Total-Revenue_2023-04-13-101757_dfnp.png)
Paylocity achieved the fastest revenue growth among its peers. The stock is down 16.1% since the results and currently trades at $190.17.
Is now the time to buy Paylocity? Access our full analysis of the earnings results here, it's free.
Slowest Q4: Paychex (NASDAQ:PAYX)
One of the oldest payroll service providers, Paychex provides payroll and human resource (HR) solutions.
Paychex reported revenues of $1.38 billion, up 8.23% year on year, beating analyst expectations by 2.4%. Despite the stock rising on the results, It was a mixed quarter for the company, with a significant improvement in gross margin but weak revenue growth.
Paychex had the slowest revenue growth in the group. The stock is down 0.27% since the results and currently trades at $108.65.
Read our full analysis of Paychex's results here.
Paycom Software (NYSE:PAYC)
Founded in 1998 as one of the first online payroll companies. Today, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place.
Paycom Software reported revenues of $370.6 million, up 30% year on year, beating analyst expectations by 1.06%. It was a mixed quarter for the company, with strong top line growth but a decline in gross margin.
Paycom Software had the weakest performance against analyst estimates and weakest full year guidance update among the peers. The stock is down 14.7% since the results and currently trades at $294.
Read our full, actionable report on Paycom Software here, it's free.
Ceridian (NYSE:CDAY)
Founded in 1992 as an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Ceridian (NYSE:CDAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.
Ceridian reported revenues of $336.1 million, up 19.1% year on year, beating analyst expectations by 3.39%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but a decline in gross margin.
The company added 145,000 customers to a total of 5,993,000. The stock is down 10.9% since the results and currently trades at $66.52.
Read our full, actionable report on Ceridian here, it's free.
The author has no position in any of the stocks mentioned