Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Paycor (NASDAQ:PYCR), and the best and worst performers in the HR software group.
HR software benefits from dual trends around costs savings and ease of use. First is 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. Second is the consumerization of business software, whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy to use platforms.
The 6 HR software stocks we track reported a solid Q2; on average, revenues beat analyst consensus estimates by 3.51%, while on average next quarter revenue guidance was 2.8% above consensus. Tech multiples have reverted to the historical mean after reaching all time levels in early 2021, but HR software stocks held their ground better than others, with the share prices up 1.27% since the previous earnings results, on average.
Best Q2: Paycor (NASDAQ:PYCR)
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 and a solid beat of analyst estimates.
“We completed our first year as a public company with accelerated revenue growth of 26% for the quarter and 22% for the year,” said Raul Villar, Jr., Chief Executive Officer of Paycor.
Paycor pulled off the strongest analyst estimates beat of the whole group. The stock is down 2.97% since the results and currently trades at $30.
Is now the time to buy Paycor? Access our full analysis of the earnings results here, it's free.
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 guidance for both the next quarter and full year beating analysts' expectations.
Paylocity delivered the fastest revenue growth and highest full year guidance raise among its peers. The stock is up 8.8% since the results and currently trades at $246.39.
Is now the time to buy Paylocity? Access our full analysis of the earnings results here, it's free.
Slowest Q2: 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.
Asure Software had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is up 5.51% since the results and currently trades at $5.45.
Paycom Software (NYSE:PAYC)
Founded in 1998 as one of the first online payroll companies. Today, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place.
Paycom Software reported revenues of $316.9 million, up 30.8% year on year, beating analyst expectations by 2.7%. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but a decline in gross margin.
The stock is down 1.12% since the results and currently trades at $334.43.
Founded in 1992 as an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Ceridian (NYSE:CDAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.
Ceridian reported revenues of $301.2 million, up 20.2% year on year, beating analyst expectations by 2.27%. It was a decent quarter for the company, with a significant improvement in gross margin compared to the previous quarter, but decelerating customer growth.
The company added 119 customers to a total of 5,728. The stock is down 3.59% since the results and currently trades at $56.60.
The author has no position in any of the stocks mentioned