Finance and HR Software Stocks Q1 Earnings: Bill.com (NYSE:BILL) Best of the Bunch
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Bill.com (NYSE:BILL) and the rest of the finance and hr software stocks fared in Q1.
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 15 finance and HR software stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and finance and HR software stocks have had a rough stretch, with share prices down 9.3% on average since the previous earnings results.
Best Q1: 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 $323 million, up 18.5% year on year, topping analysts' expectations by 5.6%. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and a solid beat of analysts' revenue estimates.
“We delivered strong profitable growth for the quarter, continued our rapid pace of innovation, and executed with persistent rigor and effectiveness,” said René Lacerte, BILL CEO and Founder.
The stock is down 17.1% since the results and currently trades at $52.49.
We think Bill.com is a good business, but is it a buy today? Read our full report 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 $118 million, down 45.7% year on year, in line with analysts' expectations. It was a very strong quarter for the company, with a meaningful improvement in its gross margin.
Marqeta had the slowest revenue growth among its peers. The stock is down 7.7% since the results and currently trades at $5.38.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Global Business Travel (NYSE:GBTG)
Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide.
Global Business Travel reported revenues of $610 million, up 5.5% year on year, falling short of analysts' expectations by 2.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and full-year revenue guidance missing analysts' expectations.
Global Business Travel had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 5.2% since the results and currently trades at $5.9.
Read our full analysis of Global Business Travel's results here.
Paycom (NYSE:PAYC)
Founded in 1998 as one of the first online payroll companies, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place.
Paycom reported revenues of $499.9 million, up 10.7% year on year, in line with analysts' expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
The stock is down 7.2% since the results and currently trades at $172.79.
Read our full, actionable report on Paycom here, it's free.
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 $109.8 million, up 6.5% year on year, in line with analysts' expectations. It was a slower quarter for the company, with a decline in its gross margin and a miss of analysts' billings estimates.
The stock is up 3.5% since the results and currently trades at $10.21.
Read our full, actionable report on Zuora here, it's free.
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