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Q2 Earnings Highs And Lows: BlackLine (NASDAQ:BL) Vs The Rest Of The Finance and HR Software Stocks


Kayode Omotosho /
2022/10/14 3:56 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 BlackLine (NASDAQ:BL), and the best and worst performers in the finance and HR software group.

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 Q2; on average, revenues beat analyst consensus estimates by 4.24%, while on average next quarter revenue guidance was 2.63% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and while some of the finance and HR software stocks have fared somewhat better that others, they have not been spared, with share prices declining 9.15% since the previous earnings results, 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 $128.4 million, up 25.8% year on year, beating analyst expectations by 1.52%. It was a mixed quarter for the company, with accelerating customer growth but an underwhelming revenue guidance for the next quarter.

"This was a solid quarter for BlackLine, as we delivered strong revenue growth combined with overall operating efficiency and profitability," said Marc Huffman, CEO of BlackLine.

BlackLine Total Revenue

The stock is down 9.81% since the results and currently trades at $60.98.

Is now the time to buy BlackLine? Access our full analysis of the earnings results here, it's free.

Best Q2: 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 $56.5 million, up 52.9% year on year, beating analyst expectations by 18.7%. 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 Total Revenue

Flywire achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 11% since the results and currently trades at $20.99.

Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.

Slowest Q2: Intuit (NASDAQ:INTU)

Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses.

Intuit reported revenues of $2.41 billion, down 5.74% year on year, beating analyst expectations by 3.61%. It was a weak quarter for the company, with an underwhelming guidance for the next year.

Intuit had declining revenue and the stock is down 11.9% since the results and currently trades at $395.60.

Read our full analysis of Intuit's results here.

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 $20.3 million, up 18.2% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a decline in gross margin and a full year guidance missing analysts' expectations.

The stock is up 3.97% since the results and currently trades at $5.37.

Read our full, actionable report on Asure Software here, it's free.

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 $110.9 million, up 26.1% year on year, beating analyst expectations by 7.26%. It was a very strong quarter for the company, with a full year guidance beating analysts' expectations.

The stock is down 5.3% since the results and currently trades at $29.28.

Read our full, actionable report on Paycor here, it's free.

The author has no position in any of the stocks mentioned