As we reflect back on the just completed Q4 finance and HR software sector earnings season, we dig into the relative performance of BlackLine (NASDAQ:BL) 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 17 finance and HR software stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 5.66%, while on average next quarter revenue guidance was 2.56% above consensus. The technology sell-off has been putting pressure on stocks since November, but finance and HR software stocks held their ground better than others, with the share price up 5.89% since earnings, on average.
Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks.
BlackLine reported revenues of $115.3 million, up 20.4% year on year, beating analyst expectations by 1.56%. It was a mixed quarter for the company, with a very strong guidance for the next year but a decline in gross margin.
Marc Huffman, CEO, commented, “I am very pleased with our fourth quarter results as we executed our strategy and expanded our existing technology capabilities. In particular, our recent acquisition of FourQ increases our leadership position in the growing market for intercompany transaction solutions and builds on the momentum we have created for 2022. The strong market demand and our execution continue to lay the foundation for our long-term growth as we make investments into our customer success, platform innovation and global reach.”
The stock is down 18.6% since the results and currently trades at $74.13.
Is now the time to buy BlackLine? Access our full analysis of the earnings results here, it's free.
Best Q4: Marqeta (NASDAQ:MQ)
Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ: MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards.
Marqeta reported revenues of $155.4 million, up 76.2% year on year, beating analyst expectations by 12.7%. It was an incredible quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
The stock is up 5.69% since the results and currently trades at $11.32.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Coupa (NASDAQ:COUP)
Founded in 2006 by former Oracle executives, Coupa Software (COUP) is a software as a service platform that helps enterprises manage their spending across procurement, billing and business expenses and get a better visibility into how the money is spent.
Coupa reported revenues of $193.2 million, up 18.1% year on year, beating analyst expectations by 3.82%. It was a weak quarter for the company, with the guidance for both the next quarter and the full year below analysts' estimates.
Coupa had the weakest full year guidance update in the group. The stock is up 16.6% since the results and currently trades at $104.90.
Founded by Michael Gould in 2006 in a stone barn in Yorkshire, England, Anaplan (NYSE:PLAN) is a financial modelling software that helps large enterprises with complex decision-making around budgets and financial forecasts.
Anaplan reported revenues of $162.6 million, up 32.7% year on year, beating analyst expectations by 5.09%. It was a strong quarter for the company, with a solid beat of top-line results and guidance for the next quarter above analysts' estimates.
The stock is up 39.5% since the results and currently trades at $65.25.
Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, 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 $156.4 million, up 189% year on year, beating analyst expectations by 19.3%. It was a stunning quarter for the company, with an impressive beat of analyst estimates.
Bill.com delivered the fastest revenue growth among the peers. The company added 8,200 customers to a total of 135,000. The stock is up 37.6% since the results and currently trades at $233.99.
The author has no position in any of the stocks mentioned