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A Look Back at Finance and HR Software Stocks' Q2 Earnings: Marqeta (NASDAQ:MQ) Vs The Rest Of The Pack


Radek Strnad /
2022/10/03 8:59 am EDT
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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 Marqeta (NASDAQ:MQ) 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 under pressure as inflation makes their long-dated profits less valuable, but finance and HR software stocks held their ground better than others, with share prices down 4.76% since the previous earnings results, on average.

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 $186.6 million, up 52.6% year on year, beating analyst expectations by 3.62%. It was a mixed quarter for the company, with an exceptional revenue growth but a decline in gross margin compared to the previous quarter.

“Marqeta’s platform continues to enable customers across many different verticals to build products on the cutting edge of payments, and serve as an accelerator for their growth. Our second quarter results are testament to that breadth and depth, as we again launched new products and bought on major new customers globally,” said Jason Gardner, Founder and CEO of Marqeta.

Marqeta Total Revenue

The stock is down 34.4% since the results and currently trades at $7.24.

Is now the time to buy Marqeta? 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 Total Revenue

Flywire achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 3.6% since the results and currently trades at $22.75.

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

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.

Intuit had the slowest revenue growth in the group. The stock is down 13.8% since the results and currently trades at $387.32.

Read our full analysis of Intuit's results here.

Paylocity (NASDAQ:PCTY)

Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and human resources software for small and medium-sized enterprises.

Paylocity reported revenues of $228.9 million, up 36.7% year on year, beating analyst expectations by 5.04%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter.

The stock is up 4.21% since the results and currently trades at $236.01.

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

Coupa (NASDAQ:COUP)

Founded in 2006 by former Oracle executives, Coupa Software (COUP) is a software as a service platform that helps enterprises manage their spending across procurement, billing and business expenses and get a better visibility into how the money is spent.

Coupa reported revenues of $211.1 million, up 17.7% year on year, beating analyst expectations by 3.48%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but an underwhelming revenue guidance for the next quarter.

The stock is up 5.2% since the results and currently trades at $58.8.

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

The author has no position in any of the stocks mentioned