As we reflect back on the just completed Q1 finance and HR software sector earnings season, we dig into the relative performance of Bill.com (NYSE:BILL) 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 the share price up 2.14% since earnings, on average.
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 $166.9 million, up 179% year on year, beating analyst expectations by 5.7%. It was an impressive quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
“We delivered a great quarter driven by robust demand for our solutions,” said René Lacerte, Bill.com CEO and Founder.
Bill.com scored the fastest revenue growth of the whole group. The company added 11,600 customers to a total of 146,600. The stock is down 14.6% since the results and currently trades at $130.
We think Bill.com is a good business, but is it a buy today? Read our full report 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 achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 2.74% since the results and currently trades at $21.70.
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 up 4.72% since the results and currently trades at $9.98.
Read our full analysis of Zuora's results here.
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.
The company added 890 customers to a total of 19,160. The stock is up 25.2% since the results and currently trades at $87.66.
Read our full, actionable report on Avalara here, it's free.
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 $166.1 million, up 53.8% year on year, beating analyst expectations by 3%. It was a mixed quarter for the company, with an exceptional revenue growth but a decline in gross margin.
The stock is up 33.5% since the results and currently trades at $8.87.
Read our full, actionable report on Marqeta here, it's free.
The author has no position in any of the stocks mentioned