As we reflect back on the just completed Q1 finance and HR software sector earnings season, we dig into the relative performance of 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 14 finance and HR software stocks we track reported a solid Q1; on average, revenues beat analyst consensus estimates by 3.78%, while on average next quarter revenue guidance was 2.5% above consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but finance and HR software stocks held their ground better than others, with the share prices up 9.11% since the previous earnings results, on average.
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 $6.02 billion, up 6.85% year on year, missing analyst expectations by 1.21%. It was a weaker quarter for the company, with a miss of the top line analyst estimates.
Intuit delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is up 0.22% since the results and currently trades at $451.1.
Is now the time to buy Intuit? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $94.4 million, up 46.2% year on year, beating analyst expectations by 14%. It was an incredible quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates. In addition, revenue guidance for the next quarter was above Consensus, and the full-year revenue guidance was lifted.
Flywire delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 8.88% since the results and currently trades at $31.52.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks.
BlackLine reported revenues of $139 million, up 15.6% year on year, in line with analyst expectations. It was a weaker quarter for the company, with decelerating customer growth and declining gross margin.
The stock is up 7.13% since the results and currently trades at $54.68.
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 $217.3 million, up 30.8% year on year, beating analyst expectations by 2.58%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a decline in gross margin.
The stock is up 12.3% since the results and currently trades at $4.96.
Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.
Workiva reported revenues of $150.2 million, up 15.8% year on year, in line with analyst expectations. It was a mixed quarter for the company, with decelerating customer growth and a decline in gross margin.
The company added 18 enterprise customers paying more than $100,000 annually to a total of 1,363. The stock is up 10.2% since the results and currently trades at $100.22.
The author has no position in any of the stocks mentioned