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HR Software Stocks Q4 Earnings Review: Asure Software (NASDAQ:ASUR) Shines


Kayode Omotosho /
2023/04/13 6:17 am EDT

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

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

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