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Finance and HR Software Stocks Q1 Results: Benchmarking Marqeta (NASDAQ:MQ)


Jabin Bastian /
2022/07/19 4:46 am EDT
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Heading into the new earnings season, it’s time to take stock of the best and worst performers amongst the finance and HR software stocks in Q1, including 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 Q1; on average, revenues beat analyst consensus estimates by 3.22%, while on average next quarter revenue guidance was 2.1% 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 share price down 5.37% since earnings, 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 $166.1 million, up 53.8% year on year, beating analyst expectations by 3%. It was a mixed quarter for the company, with an exceptional revenue growth but a decline in gross margin.

“Our results for the first quarter of 2022 put the fundamentals of Marqeta’s modern card issuing platform on strong display, as we powered our customers to new milestones of scale and enabled their global expansion, while launching new products and partners that further enrich the value we provide them,” said Jason Gardner, Founder and CEO of Marqeta.

Marqeta Total Revenue

The stock is up 26.3% since the results and currently trades at $8.39.

Is now the time to buy Marqeta? 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 $64.5 million, up 43.4% year on year, beating analyst expectations by 13.5%. 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 2.27% since the results and currently trades at $20.64.

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

Slowest Q1: Zuora (NYSE:ZUO)

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 $93.1 million, up 16% year on year, in line with analyst expectations. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and decelerating growth in large customers.

The stock is down 10.3% since the results and currently trades at $8.54.

Read our full analysis of Zuora's results here.

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 $166.9 million, up 179% year on year, beating analyst expectations by 5.7%. Despite the stock dropping on the results, it was an impressive quarter for the company, with a very optimistic guidance for the next quarter.

Bill.com scored the fastest revenue growth among the peers. The company added 11,600 customers to a total of 146,600. The stock is down 17.8% since the results and currently trades at $125.15.

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

Workday (NASDAQ:WDAY)

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 $1.43 billion, up 22% year on year, in line with analyst expectations. It was a mixed quarter for the company, with top-line results in line with analysts' estimates but a miss on the bottom line.

The stock is down 17% since the results and currently trades at $139.51.

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

The author has no position in any of the stocks mentioned