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Bill.com (NYSE:BILL) Q2 Earnings: Leading The Finance and HR Software Pack


Kayode Omotosho /
2021/10/01 7:25 am EDT
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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 Q2. Today we are looking at the finance and HR software stocks, starting with Bill.com(NYSE:BILL).

Organizations are constantly looking for improving 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 9 finance and HR software stocks we track reported a strong Q2; on average, revenues beat analyst consensus estimates by 9.1%, while on average next quarter revenue guidance was 9.19% above consensus. The market rewarded the results with the average return the day after earnings coming in at 8.47%.

Best Q3: Bill.com (NYSE:BILL)

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 $78.2 million, up 85.8% year on year, beating analyst expectations by 20.4%. It was impressive quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth.

“We delivered record growth in fiscal 2021 as we helped SMBs across the country automate their financial operations and make billions of dollars in payments,” said René Lacerte, Bill.com CEO and Founder.

Bill.com Total Revenue

Bill.com scored the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The stock is up 29.9% since the results and currently trades at $266.95.

Read why we think that Bill.com is one of the best finance and HR software stocks, our full report is free.

Coupa Software (NASDAQ:COUP)

Founded in 2006 by former Oracle executives, Coupa Software (COUP) is a software as a service platform that helps enterprises manage their spending across procurement, billing and business expenses and get a better visibility into how the money is spent.

Coupa Software reported revenues of $179.2 million, up 42.3% year on year, beating analyst expectations by 9.98%. It was impressive quarter for the company, with a significant improvement in gross margin and a strong beat of analyst estimates.

Coupa Software Total Revenue

The stock is down 4.43% since the results and currently trades at $215.

Is now the time to buy Coupa Software? 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 $1.26 billion, up 18.6% year on year, beating analyst expectations by 1.61%. It was decent quarter for the company, with a narrow beat of analyst estimates.

The stock is up 9.23% since the results and currently trades at $249.89.

Read our full analysis of Workday's results here.

Avalara (NYSE:AVLR)

Founded in 2004, Avalara offers software as a service that provides companies with real-time information on how much tax to charge and automates tax compliance. Transactional taxes are complex, with thousands of rules set by local, regional, state, federal and international authorities.

Avalara reported revenues of $169 million, up 45.1% year on year, beating analyst expectations by 9.62%. It was very strong quarter for the company, with a significant improvement in net revenue retention rate.

The stock is down 0.05% since the results and currently trades at $174.77.

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

Workiva (NYSE:WK)

Founded in 2010, Workiva offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.

Workiva reported revenues of $105.5 million, up 25.9% year on year, beating analyst expectations by 3.85%. It was strong quarter for the company, with accelerating customer growth.

The company added 68 enterprise customers paying more than $100,000 annually to a total of 952. The stock is up 7.73% since the results and currently trades at $140.84.

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

The author has no position in any of the stocks mentioned