12281

Q4 Earnings Review: HR Software Stocks Led by Paycor (NASDAQ:PYCR)


Radek Strnad /
2022/03/25 7:02 am EDT
Add to Watchlist

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today we are looking at the HR software stocks, starting with Paycor (NASDAQ:PYCR).

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 decent Q4; on average, revenues beat analyst consensus estimates by 3.36%, while on average next quarter revenue guidance was 0.81% above consensus. Tech stocks have been under pressure since the end of last year, but HR software stocks held their ground better than others, with the share price up 0.71% since earnings, on average.

Best Q4: 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 $103 million, up 20% year on year, beating analyst expectations by 3.56%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter and a decent beat of analyst estimates.

“Paycor posted strong second quarter results, demonstrated by 20% revenue growth and robust bookings performance,” said Raul Villar, Jr., Chief Executive Officer of Paycor.

Paycor Total Revenue

The stock is up 12.8% since the results and currently trades at $28.28.

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

Asure (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 $21.1 million, up 28.4% year on year, beating analyst expectations by 2%. It was a solid quarter for the company, with a significant improvement in gross margin and a strong top line growth.

Asure Software Total Revenue

Asure Software had the weakest earnings beat andthe weakest full year guidance update among its peers. The stock is down 5.19% since the results and currently trades at $6.39.

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

Slowest Q4: Paychex (NASDAQ:PAYX)

One of the oldest payroll service providers, Paychex (NASDAQ:PAYX) provides payroll and human resource (HR) solutions.

Paychex reported revenues of $1.1 billion, up 12.6% year on year, beating analyst expectations by 4.63%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a slow revenue growth.

Paychex achieved the strongest analyst estimates beat but had the slowest revenue growth in the group. The stock is up 0.68% since the results and currently trades at $127.31.

Read our full analysis of Paychex's results here.

Ceridian (NYSE:CDAY)

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 $282.1 million, up 26.6% year on year, beating analyst expectations by 2.56%. It was an ok quarter for the company, with accelerating customer growth but a decline in gross margin.

The company added 207 customers to a total of 5,434. The stock is down 14.3% since the results and currently trades at $69.41.

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

Paycom (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 reported revenues of $284.9 million, up 28.9% year on year, beating analyst expectations by 3.31%. It was a solid quarter for the company, with a strong guidance for the next year.

The stock is up 4.28% since the results and currently trades at $348.85.

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

The author has no position in any of the stocks mentioned