As we reflect back on the just completed Q2 finance and HR software sector earnings season, we dig into the relative performance of Flywire (NASDAQ:FLYW) 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. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and finance and hr software stocks have not been spared, with share prices down 12.7% since the previous earnings results, on average.
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.
“I'm really pleased to report another strong quarter for Flywire, where we delivered strong revenue, adjusted gross profit and better than expected adjusted EBITDA, which is a reflection of our continued execution of our growth strategies," said Mike Massaro, CEO of Flywire.
Flywire pulled off the strongest analyst estimates beat and highest full year guidance raise of the whole group. The stock is down 16.3% since the results and currently trades at $19.73.
Is now the time to buy Flywire? Access our full analysis of the earnings results 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 and a solid beat of analyst estimates.
The stock is down 9.5% since the results and currently trades at $27.98.
Is now the time to buy Paycor? 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 declining revenue.
Intuit had declining revenue, and the stock is down 15.5% since the results and currently trades at $379.41.
Read our full analysis of Intuit's results here.
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 $98.7 million, up 14.2% year on year, beating analyst expectations by 1.26%. It was a weaker quarter for the company, with revenue 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 lost a net of 1 enterprise customer paying more than $100,000 annually and ended up with a total of 745. The stock is down 26.5% since the results and currently trades at $6.57.
Read our full, actionable report on Zuora here, it's free.
Bill.com (NYSE:BILL)
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 $200.2 million, up 155% year on year, beating analyst expectations by 9.35%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter.
Bill.com delivered the fastest revenue growth among the peers. The company added 11,200 customers to a total of 157,800. The stock is down 21.8% since the results and currently trades at $117.00.
Read our full, actionable report on Bill.com here, it's free.
The author has no position in any of the stocks mentioned