Looking back on finance and HR software stocks' Q3 earnings, we examine this quarter's best and worst performers, 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 15 finance and HR software stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 3.13%, while on average next quarter revenue guidance was 1.54% 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 9.3% since the previous earnings results, on average.
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 $191.6 million, up 45.7% year on year, beating analyst expectations by 5.92%. It was a very strong quarter for the company, with exceptional revenue growth and a solid beat of analyst estimates.
"This recent quarter serves as a great example of our continued success and the tremendous market opportunity in front of Marqeta. We signed innovative new customers in both the United States and Europe, we expanded our platform with the launch of new banking capabilities to complement our leadership in modern card issuing, and increased the global utility of our platform with our European data residency program," said Jason Gardner, Founder and CEO of Marqeta.
The stock is up 0.8% since the results and currently trades at $6.28.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $95.2 million, up 40.4% year on year, beating analyst expectations by 8.39%. It was a stunning quarter for the company, with a significant improvement in gross margin and very optimistic guidance for the next quarter.
Flywire pulled off the highest full year guidance raise among its peers. The stock is up 36.3% since the results and currently trades at $24.67.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $1.59 billion, up 16.2% year on year, beating analyst expectations by 0.85%. It was a weak quarter for the company, with slow revenue growth.
Workday had the weakest performance against analyst estimates in the group. The stock is up 12.7% since the results and currently trades at $161.74.
Read our full analysis of Workday's results here.
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 $132.8 million, up 17.8% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
The company added 71 enterprise customers paying more than $100,000 annually to a total of 1,257. The stock is up 28.1% since the results and currently trades at $86.91.
Read our full, actionable report on Workiva here, it's free.
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 $229.9 million, up 94.2% year on year, beating analyst expectations by 9.02%. It was a very strong quarter for the company, with exceptional revenue growth and guidance for the next quarter above anaysts' estimates.
Bill.com scored the strongest analyst estimates beat and fastest revenue growth among the peers. The company added 14,200 customers to a total of 172,000. The stock is down 13.7% since the results and currently trades at $100..00
Read our full, actionable report on Bill.com here, it's free.
The author has no position in any of the stocks mentioned