Wrapping up Q4 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, including Workiva (NYSE:WK) 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 17 finance and HR software stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 5.66%, while on average next quarter revenue guidance was 2.56% above consensus. The whole tech sector has been facing a sell-off since late last year, but finance and HR software stocks held their ground better than others, with the share price up 1.03% since earnings, on average.
Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.
Workiva reported revenues of $120.7 million, up 28.7% year on year, beating analyst expectations by 3.14%. It was a mixed quarter for the company, with a decent beat of analysts' estimates but decelerating customer growth.
"The Workiva team once again delivered strong financial results. In both the fourth quarter and full-year, we beat the high end of our guidance in revenue and operating profit," said Marty Vanderploeg, Chief Executive Officer.
The stock is up 7.51% since the results and currently trades at $110.03.
Is now the time to buy Workiva? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $155.4 million, up 76.2% year on year, beating analyst expectations by 12.7%. It was an incredible quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.
The stock is down 0.93% since the results and currently trades at $10.61.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $193.2 million, up 18.1% year on year, beating analyst expectations by 3.82%. It was a mixed quarter for the company, with an improvement in gross margin but underwhelming revenue guidance for the next year.
Coupa had the weakest full year guidance update in the group. The stock is up 13.4% since the results and currently trades at $102.
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 $2.67 billion, up 69.6% year on year, missing analyst expectations by 1.65%. It was a weaker quarter for the company, with a miss of the top-line revenue estimates and full-year guidance below analysts' expectations.
Intuit had the weakest performance against analyst estimates among the peers. The stock is down 3.4% since the results and currently trades at $479.34.
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 $156.4 million, up 189% year on year, beating analyst expectations by 19.3%. It was a stunning quarter for the company, with an impressive beat of analyst estimates.
Bill.com scored the fastest revenue growth among the peers. The company added 8,200 customers to a total of 135,000. The stock is up 14.7% since the results and currently trades at $195.05.
The author has no position in any of the stocks mentioned