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HR Software Stocks Q4 Results: Benchmarking Ceridian (NYSE:CDAY)


Adam Hejl /
2022/04/18 7:01 am EDT
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Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q4 now behind us, let’s have a look at Ceridian (NYSE:CDAY) and its peers.

HR software benefits from dual trends around costs savings and ease of use. First is 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. Second is the consumerization of business software, whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy to use platforms.

The 6 HR software stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 3.36%, while on average next quarter revenue guidance was 0.81% above consensus. Technology stocks have been hit hard on fears of higher interest rates , but HR software stocks held their ground better than others, with share price down 3.17% since earnings, on average.

Ceridian (NYSE:CDAY)

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 $282.1 million, up 26.6% year on year, beating analyst expectations by 2.56%. It was a solid quarter for the company, with accelerating customer growth and a decent beat of analyst estimates.

"I am very pleased to report that we closed fiscal year 2021 with strong momentum and performance with Dayforce recurring revenue, excluding float revenue, growing by 32% in the fourth quarter," said David Ossip, Chair and Co-Chief Executive Officer of Ceridian.

Ceridian  Total Revenue

The stock is down 25.1% since the results and currently trades at $60.63.

Is now the time to buy Ceridian? Access our full analysis of the earnings results here, it's free.

Best Q4: Paychex (NASDAQ:PAYX)

One of the oldest payroll service providers, Paychex provides payroll and human resource (HR) solutions.

Paychex reported revenues of $1.27 billion, up 14.7% year on year, beating analyst expectations by 4.64%. It was a strong quarter for the company, with a significant improvement in gross margin and a decent beat of analyst estimates.

Paychex Total Revenue

Paychex achieved the strongest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 2.9% since the results and currently trades at $136.45.

Is now the time to buy Paychex? Access our full analysis of the earnings results here, it's free.

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 $196 million, up 33.9% year on year, beating analyst expectations by 4.11%. It was a decent quarter for the company, with a strong top line growth but a decline in gross margin.

Paylocity delivered the fastest revenue growth and highest full year guidance raise in the group. The stock is up 1.64% since the results and currently trades at $200.

Read our full analysis of Paylocity's results here.

Paycor (NASDAQ:PYCR)

Found in 1990 in Cincinnati, Ohio Paycor (NASDAQ: PYCR), provides software for small businesses to manage their payroll and HR needs in one place.

Paycor reported revenues of $103 million, up 20% year on year, beating analyst expectations by 3.56%. It was a solid quarter for the company, with a very optimistic guidance for the next quarter.

The stock is up 20.7% since the results and currently trades at $30.28.

Read our full, actionable report on Paycor 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 $284.9 million, up 28.9% year on year, beating analyst expectations by 3.31%. It was an impressive quarter for the company, with a strong guidance for the next year.

The stock is down 4.52% since the results and currently trades at $319.36.

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

The author has no position in any of the stocks mentioned