Looking back on finance and HR software stocks' Q2 earnings, we examine this quarters’ best and worst performers, including 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 Q2; on average, revenues beat analyst consensus estimates by 4.24%, while on average next quarter revenue guidance was 2.63% above consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows and while some of the finance and HR software stocks have fared somewhat better that others, they have not been spared, with share prices declining 9.93% since the previous earnings results, 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 $200.2 million, up 155% year on year, beating analyst expectations by 9.35%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.
“We delivered a strong fourth quarter to conclude fiscal 2022, serving 400,000 businesses and crossing $200 million in quarterly revenue,” said René Lacerte, Bill.com CEO and Founder.
Bill.com pulled off the fastest revenue growth of the whole group. The company added 11,200 customers to a total of 157,800. The stock is down 16.5% since the results and currently trades at $124.94.
We think Bill.com is a good business, but is it a buy today? Read our full report here, it's free.
Best Q2: 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 $56.5 million, up 52.9% year on year, beating analyst expectations by 18.7%. 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 pulled off the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is down 16% since the results and currently trades at $19.81.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
Slowest Q2: Intuit (NASDAQ:INTU)
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 $2.41 billion, down 5.74% year on year, beating analyst expectations by 3.61%. It was a weak quarter for the company, with an underwhelming guidance for the next year and slow revenue growth.
Intuit had the weakest YoY revenue in the group. The stock is down 14.9% since the results and currently trades at $382.30.
Read our full analysis of Intuit's results here.
Coupa (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 reported revenues of $211.1 million, up 17.7% year on year, beating analyst expectations by 3.48%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but an underwhelming revenue guidance for the next quarter.
The stock is down 6.45% since the results and currently trades at $52.28.
Read our full, actionable report on Coupa here, it's free.
Paycom Software (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 Software reported revenues of $316.9 million, up 30.8% year on year, beating analyst expectations by 2.7%. It was a decent quarter for the company, with a very optimistic guidance for the next quarter but a decline in gross margin.
The stock is down 3.17% since the results and currently trades at $327.50.
Read our full, actionable report on Paycom Software here, it's free.
The author has no position in any of the stocks mentioned