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Finance and HR Software Stocks Q1 Results: Benchmarking Avalara (NYSE:AVLR)


Jabin Bastian /
2022/07/15 3:29 am EDT
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Wrapping up Q1 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, 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 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. Tech stocks have had a rocky start in 2022, but finance and hr software stocks held their ground better than others, with share price down 6.48% since earnings, on average.

Avalara (NYSE:AVLR)

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 $204.5 million, up 33.1% year on year, beating analyst expectations by 3.26%. It was a decent quarter for the company, with a strong top line growth.

“We started 2022 with another strong quarter, exceeding our guidance and achieving topline revenue growth of 33% year-over-year,” said Scott McFarlane, Avalara co-founder and chief executive officer.

Avalara Total Revenue

The stock is up 16.2% since the results and currently trades at $81.34.

Is now the time to buy Avalara? 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 pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 1.89% since the results and currently trades at $21.52.

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, beating analyst expectations by 1.03%. 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 9.75% since the results and currently trades at $8.60.

Read our full analysis of Zuora's results here.

Paylocity (NASDAQ:PCTY)

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 $245.9 million, up 32.2% year on year, beating analyst expectations by 1.79%. It was a very strong quarter for the company, with a significant improvement in gross margin.

The stock is down 9.37% since the results and currently trades at $171.33.

Read our full, actionable report on Paylocity 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 17.2% since the results and currently trades at $139.07.

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

The author has no position in any of the stocks mentioned