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Q3 Earnings Highs And Lows: Intuit (NASDAQ:INTU) Vs The Rest Of The Finance and HR Software Stocks


Radek Strnad /
2022/01/18 6:03 am EST
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The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Intuit (NASDAQ:INTU) and the rest of the finance and HR software stocks fared in Q3.

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 17 finance and HR software stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 6.37%, while on average next quarter revenue guidance was 4.1% above consensus. The whole tech sector has been facing a sell-off since late last year and finance and HR software stocks have not been spared, with share price down 26.1% since earnings, on average.

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 billion, up 51.7% year on year, beating analyst expectations by 10.6%. It was a strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

“We are off to a strong start in fiscal year 2022, delivering on our strategy of becoming an AI-driven expert platform powering the prosperity of consumers and small businesses," said Sasan Goodarzi, Intuit's chief executive officer.

Intuit Total Revenue

The stock is down 12.4% since the results and currently trades at $552. Access our full analysis of the earnings results here, it's free.

Best Q3: Marqeta (NASDAQ:MQ)

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 $131.5 million, up 56% year on year, beating analyst expectations by 10.3%. It was an incredible quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.

Marqeta Total Revenue

The stock is down 45.6% since the results and currently trades at $13.60.

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

Weakest Q3: Ceridian (NYSE:CDAY)

Founded in 1992 as an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Ceridian (NYSE:CDAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.

Ceridian reported revenues of $257.2 million, up 25.8% year on year, beating analyst expectations by 1.19%. It was a weak quarter for the company, with a decline in gross margin and decelerating customer growth.

Ceridian had the weakest full year guidance update in the group. The company added 63 customers to a total of 5,227. The stock is down 35.4% since the results and currently trades at $82.83.

Read our full analysis of Ceridian's results here.

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 $67.7 million, up 61% year on year, beating analyst expectations by 29.4%. It was an incredible quarter for the company, with an impressive beat of analyst estimates.

Flywire delivered the strongest analyst estimates beat among the peers. The stock is down 29.8% since the results and currently trades at $31.09.

Read our full, actionable report on Flywire 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 $116.4 million, up 151% year on year, beating analyst expectations by 10.7%. It was a strong quarter for the company, with an impressive beat of analyst estimates.

Bill.com achieved the fastest revenue growth among the peers. The company added 5,600 customers to a total of 126,800. The stock is down 38.2% since the results and currently trades at $181.

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

The author has no position in any of the stocks mentioned