Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at 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 16 finance and HR software stocks we track reported a decent Q2; on average, revenues beat analyst consensus estimates by 4.24%, while on average next quarter revenue guidance was 2.63% above consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but finance and HR software stocks held their ground better than others, with the share prices up 0.43% since the previous earnings results, on average.
Slowest Q2: 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 $2.41 billion, down 5.74% year on year, beating analyst expectations by 3.61%. It was a weak quarter for the company, with an underwhelming guidance for the next year and a slow revenue growth.
"We had a very strong fourth quarter, ending the year with momentum. We're more confident than ever in our long-term business strategy as we power prosperity around the world," said Sasan Goodarzi, Intuit's chief executive officer.
Intuit delivered the slowest revenue growth of the whole group. The stock is down 7.83% since the results and currently trades at $414.16.
Is now the time to buy Intuit? Access our full analysis of the earnings results here, it's free.
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 $56.5 million, up 52.9% year on year, beating analyst expectations by 18.7%. It was an exceptional quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.
Flywire delivered the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 5.25% since the results and currently trades at $24.84.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
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 $98.7 million, up 14.2% year on year, beating analyst expectations by 1.26%. It was a weaker quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations.
Zuora had the weakest full year guidance update in the group. The company lost 1 enterprise customer paying more than $100,000 annually and ended up with a total of 745. The stock is down 12.7% since the results and currently trades at $7.81.
Read our full analysis of Zuora's results 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 $20.3 million, up 18.2% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a decline in gross margin and a full year guidance missing analysts' expectations.
The stock is up 0.67% since the results and currently trades at $5.20.
Read our full, actionable report on Asure Software here, it's free.
Found in 1990 in Cincinnati, Ohio Paycor (NASDAQ: PYCR), provides software for small businesses to manage their payroll and HR needs in one place.
Paycor reported revenues of $110.9 million, up 26.1% year on year, beating analyst expectations by 7.26%. It was a very strong quarter for the company, with a full year guidance beating analysts' expectations.
The stock is up 7.53% since the results and currently trades at $33.25.
Read our full, actionable report on Paycor here, it's free.
The author has no position in any of the stocks mentioned