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 15 finance and HR software stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 3.13%, while on average next quarter revenue guidance was 1.54% above consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital, but finance and HR software stocks held their ground better than others, with the share prices up 13.1% since the previous earnings results, 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 $134.2 million, up 22.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
“BlackLine reported solid financial results this quarter as customer demand for finance and accounting solutions that drive efficiency and automation remained healthy,” said Marc Huffman, CEO of BlackLine.
The stock is up 45.5% since the results and currently trades at $71.33.
Best Q3: 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 $95.2 million, up 40.4% year on year, beating analyst expectations by 8.39%. It was a stunning quarter for the company, with a significant improvement in gross margin and very optimistic guidance for the next quarter.
Flywire scored the highest full year guidance raise among its peers. The stock is up 42.8% since the results and currently trades at $25.84.
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Slowest Q3: Workday (NASDAQ:WDAY)
Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources.
Workday reported revenues of $1.59 billion, up 16.2% year on year, beating analyst expectations by 0.85%. It was a weak quarter for the company, with slow revenue growth.
Workday had the weakest performance against analyst estimates in the group. The stock is up 13.7% since the results and currently trades at $163.17.
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 $118.3 million, up 27.5% year on year, beating analyst expectations by 4.42%. It was a very strong quarter for the company, with a full year guidance beating analysts' expectations.
The stock is down 8.84% since the results and currently trades at $25.15.
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 $217.3 million, up 16.9% year on year, beating analyst expectations by 1.88%. It was a weaker quarter for the company, with a decline in gross margin and slow revenue growth.
The stock is up 25.4% since the results and currently trades at $77.92. Coupa announced it has entered into a definitive agreement to be acquired by Thoma Bravo.
The author has no position in any of the stocks mentioned