Wrapping up Q2 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, including Coupa (NASDAQ:COUP) 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 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 multiples have reverted to the historical mean after reaching all time levels in early 2021, but finance and HR software stocks held their ground better than others, with share prices down 3.01% since the previous earnings results, on average.
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 $211.1 million, up 17.7% year on year, beating analyst expectations by 3.48%. It was a mixed quarter for the company, with meaningful improvement in gross margin but underwhelming revenue guidance for the next quarter.
"We're proud of our results this quarter. We delivered record revenues, strong growth in our subscription calculated billings, and we continue to deliver strong cash flows and profitability on a Non-GAAP basis," said Rob Bernshteyn, chairman and chief executive officer at Coupa.
The stock is up 5.2% since the results and currently trades at $58.80.
Is now the time to buy Coupa? 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 delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 3.6% since the results and currently trades at $22.75.
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 and slow revenue growth.
Intuit had the slowest revenue growth in the group. The stock is down 13.8% since the results and currently trades at $387.32.
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 $316.9 million, up 30.8% year on year, beating analyst expectations by 2.7%. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but a decline in gross margin.
The stock is down 0.47% since the results and currently trades at $336.64.
Founded in 2007, Zuora (NYSE:ZUO) offers a software as a service platform that allows companies to bill and accept payments for recurring subscription products.
Zuora reported revenues of $98.7 million, up 14.2% year on year, beating analyst expectations by 1.26%. It was a weaker quarter for the company, with guidance for both the next quarter and the full year guidance missing analysts' expectations.
Zuora had the weakest full year guidance update among the peers. The company's total enterprise customers paying more than $100,000 annually declined to 745. The stock is down 16.4% since the results and currently trades at $7.48.
The author has no position in any of the stocks mentioned