Wrapping up Q2 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, including 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 14 finance and HR software stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 4.11%, while on average next quarter revenue guidance was 0.15% above consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows, but finance and HR software stocks held their ground better than others, with share prices down 3.69% 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 $84.9 million, up 50.1% year on year, beating analyst expectations by 15.5%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.
"I am extremely proud to report our excellent second quarter results, which capped off a strong first half of the year for us,” said Mike Massaro, CEO of Flywire.
Flywire scored the fastest revenue growth and highest full year guidance raise of the whole group. The stock is down 0.87% since the results and currently trades at $31.89.Is now the time to buy Flywire? Read our full report on Flywire 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 $30.4 million, up 49.9% year on year, beating analyst expectations by 19.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.
Asure Software scored the strongest analyst estimates beat among its peers. The stock is down 29.8% since the results and currently trades at $9.42.
Is now the time to buy Asure Software? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $108 million, up 9.39% year on year, missing analyst expectations by 0.69%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
Zuora had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is down 14.9% since the results and currently trades at $8.24.
One of the oldest payroll service providers, Paychex provides payroll and human resource (HR) solutions.
Paychex reported revenues of $1.29 billion, up 6.62% year on year, in line with analyst expectations. Adjusted EBITDA and EPS exceeded analysts' estimates. It was a decent quarter for the company, with a meaningful improvement in its gross margin.
Paychex had the slowest revenue growth among the peers. The stock is up 2.31% since the results and currently trades at $115.33.
Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ: MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards.
Marqeta reported revenues of $231.1 million, up 23.8% year on year, beating analyst expectations by 5.13%. It was a solid quarter for the company, with TPV (total processing volume) and revenue surpassing Wall Street's expectations. Adjusted EBITDA also beat by a meaningful amount. On the other hand, its deteriorating gross margin was a minor negative.
The stock is up 23.6% since the results and currently trades at $6.12.
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The author has no position in any of the stocks mentioned