Wrapping up Q2 earnings, we look at the numbers and key takeaways for the finance and HR software stocks, including Zuora (NYSE:ZUO) 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 14 finance and HR software stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 4.09%, while on average next quarter revenue guidance was 0.15% 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 than others, they have not been spared, with share prices declining 5.12% since the previous earnings results, on average.
Weakest Q2: 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 $108 million, up 9.39% year on year, missing analyst expectations by 0.69%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
“The second quarter was another solid quarter. We executed on our strategy and delivered on our guidance,” said Tien Tzuo, Founder and CEO of Zuora.
Zuora delivered the weakest performance against analyst estimates and weakest full year guidance update of the whole group. The stock is down 12.8% since the results and currently trades at $8.44.
Is now the time to buy Zuora? Read our full report on Zuora here.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 $84.9 million, up 50.1% year on year, beating analyst expectations by 15.5%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding consensus estimates.
Flywire achieved the fastest revenue growth and highest full year guidance raise among its peers. The stock is down 4.48% since the results and currently trades at $30.73.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
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 $296 million, up 47.8% year on year, beating analyst expectations by 4.75%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full year. Regardless, this was a milestone year for Bill.com as its transacted payment volume accounted for approximately 1% of U.S. GDP.
The stock is down 1.71% since the results and currently trades at $99.87.
Read our full analysis of Bill.com's results here.
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 $231.1 million, up 23.8% year on year, beating analyst expectations by 5.13%. It was a solid quarter for the company, with TPV (total processing volume) and revenue surpassing Wall Street's expectations. Adjusted EBITDA also beat by a meaningful amount. On the other hand, its deteriorating gross margin was a minor negative.
The stock is up 20.2% since the results and currently trades at $5.95.
Read our full, actionable report on Marqeta here, it's free.
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 $1.79 billion, up 16.3% year on year, in line with analyst expectations. It was a decent quarter for the company, with EPS and free cash flow estimates exceeding expectations by a wide margin. We also enjoyed seeing Workday lift its full-year revenue and adjusted operating margin guidance, driven by higher expectations for subscription services revenue.
The stock is up 2.39% since the results and currently trades at $230.59.
Read our full, actionable report on Workday here, it's free.
The author has no position in any of the stocks mentioned