The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how BlackLine (NASDAQ:BL) and the rest of the finance and HR software stocks fared in Q1.
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 16 finance and HR software stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.22%, while on average next quarter revenue guidance was 2.1% 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 1.92% since earnings, on average.
BlackLine (NASDAQ:BL)
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 $120.2 million, up 21.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an optimistic revenue guidance for the next quarter but decelerating customer growth.
"BlackLine delivered an outstanding first quarter with strong performance that beat our revenue and income expectations," said Marc Huffman, CEO of BlackLine.
BlackLine delivered the weakest performance against analyst estimates of the whole group. The company added 72 customers to a total of 3,897. The stock is up 19.9% since the results and currently trades at $74.65.
Is now the time to buy BlackLine? Access our full analysis of the earnings results here, it's free.
Best Q1: Flywire (NASDAQ:FLYW)
Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments.
Flywire reported revenues of $64.5 million, up 43.4% year on year, beating analyst expectations by 13.5%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.
Flywire scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 5.25% since the results and currently trades at $20.01.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
Slowest Q1: Zuora (NYSE:ZUO)
Founded in 2007, Zuora (NYSE:ZUO) offers software as a service platform that allows companies to bill and accept payments for recurring subscription products.
Zuora reported revenues of $93.1 million, up 16% year on year, beating analyst expectations by 1.03%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and decelerating growth in large customers.
The stock is up 0.73% since the results and currently trades at $9.60.
Read our full analysis of Zuora's results here.
Paychex (NASDAQ:PAYX)
One of the oldest payroll service providers, Paychex provides payroll and human resource (HR) solutions.
Paychex reported revenues of $1.14 billion, up 11.1% year on year, beating analyst expectations by 3.34%. It was a weak quarter for the company, with a decline in gross margin and a slow revenue growth.
Paychex had the slowest revenue growth among the peers. The stock is down 2.75% since the results and currently trades at $116.52.
Read our full, actionable report on Paychex here, it's free.
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 $353.5 million, up 29.8% year on year, beating analyst expectations by 3%. It was a strong quarter for the company, with a significant improvement in gross margin.
The stock is up 12.7% since the results and currently trades at $326.
Read our full, actionable report on Paycom Software here, it's free.
The author has no position in any of the stocks mentioned