Wrapping up Q4 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, including Intuit (NASDAQ:INTU) 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 17 finance and HR software stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 5.66%, while on average next quarter revenue guidance was 2.56% above consensus. The whole tech sector has been facing a sell-off since late last year , but finance and HR software stocks held their ground better than others, with the share price up 2.61% since earnings, on average.
Weakest Q4: 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 $2.67 billion, up 69.6% year on year, missing analyst expectations by 1.65%. It was a weaker quarter for the company, with a miss of the top line analyst estimates and a full year guidance below analysts' expectations.
“We see continued strong momentum across the company as we focus on our mission to power prosperity and solve our customers’ biggest financial problems," said Sasan Goodarzi, Intuit's chief executive officer.
Intuit delivered the weakest performance against analyst estimates of the whole group. The stock is down 7.47% since the results and currently trades at $459.35.
Is now the time to buy Intuit? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $155.4 million, up 76.2% year on year, beating analyst expectations by 12.7%. It was an incredible quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
The stock is up 3.17% since the results and currently trades at $11.05.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
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 $1.37 billion, up 21.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decent beat of analyst estimates but a decline in gross margin compared to the previous quarter.
The stock is up 3.92% since the results and currently trades at $238.49.
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 $156.4 million, up 189% year on year, beating analyst expectations by 19.3%. It was a stunning quarter for the company, with an impressive beat of analyst estimates.
Bill.com scored the fastest revenue growth among the peers. The company added 8,200 customers to a total of 135,000. The stock is up 29.4% since the results and currently trades at $220.
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 $21.1 million, up 28.4% year on year, beating analyst expectations by 2%. It was a solid quarter for the company, with a significant improvement in gross margin and a strong top line growth.
The stock is down 11.1% since the results and currently trades at $5.99.
The author has no position in any of the stocks mentioned