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Finance and HR Software Stocks Q1 In Review: Intuit (NASDAQ:INTU) Vs Peers


Jabin Bastian /
2024/05/31 5:05 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Intuit (NASDAQ:INTU) and the best and worst performers in the finance and hr software industry.

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 15 finance and HR software stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and finance and HR software stocks have had a rough stretch, with share prices down 11.6% on average since the previous earnings results.

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 $6.74 billion, up 11.9% year on year, topping analysts' expectations by 1.4%. It was a solid quarter for the company, with a significant improvement in its gross margin and in-line revenue guidance for the next quarter.

“The era of AI is one of the most significant technology shifts in our lifetime and our strategy to be the global AI-driven expert platform is delivering significant benefits to our customers and strong results across the company,” said Sasan Goodarzi, Intuit's chief executive officer.

Intuit Total Revenue

The stock is down 15.2% since the results and currently trades at $562.

We think Intuit is a good business, but is it a buy today? Read our full report here, it's free.

Best Q1: 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 $323 million, up 18.5% year on year, outperforming analysts' expectations by 5.6%. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and a solid beat of analysts' revenue estimates.

Bill.com Total Revenue

The stock is down 17.1% since the results and currently trades at $52.49.

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

Weakest Q1: Global Business Travel (NYSE:GBTG)

Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide.

Global Business Travel reported revenues of $610 million, up 5.5% year on year, falling short of analysts' expectations by 2.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and full-year revenue guidance missing analysts' expectations.

Global Business Travel had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 5.2% since the results and currently trades at $5.9.

Read our full analysis of Global Business Travel'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 $114.1 million, up 20.9% year on year, surpassing analysts' expectations by 6%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter.

Flywire delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 12.2% since the results and currently trades at $18.06.

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

Paycom (NYSE:PAYC)

Founded in 1998 as one of the first online payroll companies, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place.

Paycom reported revenues of $499.9 million, up 10.7% year on year, in line with analysts' expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

The stock is down 7.2% since the results and currently trades at $172.79.

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

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