Looking back on finance and HR software stocks' Q3 earnings, we examine this quarters’ best and worst performers, including Avalara (NYSE:AVLR) 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 17 finance and HR software stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 6.37%, while on average next quarter revenue guidance was 4.1% above consensus. The whole tech sector has been facing a sell-off since late last year and finance and HR software stocks have not been spared, with share price down 27.9% since earnings, on average.
Founded by Scott McFarlane in 2004, Avalara (NYSE:AVLR) offers software as a service that provides companies with real-time information on how much tax to charge and automates tax compliance.
Avalara reported revenues of $181.1 million, up 41.6% year on year, beating analyst expectations by 6.35%. It was a strong quarter for the company, with an exceptional revenue growth and a solid beat of analyst estimates.
“The third quarter was another great quarter for Avalara, demonstrating the strength and durability of our business model. We reported total revenue of $181 million, representing an increase of 42% year-over-year, one of our strongest quarters in history,” said Scott McFarlane, Avalara co-founder and chief executive officer.
The popular fintech stock is down 44.8% since the results and currently trades at $102.76.
Is now the time to buy Avalara? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $131.5 million, up 56% year on year, beating analyst expectations by 10.3%. It was a good quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
The stock is down 49% since the results and currently trades at $12.76.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
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 $257.2 million, up 25.8% year on year, beating analyst expectations by 1.19%. It was a slower quarter for the company, with a decline in gross margin and decelerating customer growth.
Ceridian had the weakest full year guidance update in the group. The company added 63 customers to a total of 5,227. The stock is down 37.6% since the results and currently trades at $79.98.
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 $89.2 million, up 15.5% year on year, beating analyst expectations by 3.1%. It was a strong quarter for the company, with accelerating growth in large customers .
The company added 26 enterprise customers paying more than $100,000 annually to a total of 720. The stock is down 13.2% since the results and currently trades at $16.00.
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 billion, up 51.7% year on year, beating analyst expectations by 10.6%. It was an strong quarter for the company, with an impressive beat of analyst estimates.
The stock is down 15.1% since the results and currently trades at $535.51.
The author has no position in any of the stocks mentioned