Yahoo Finance Finance and HR Software Stocks Q1 Highlights: Marqeta (NASDAQ:MQ)
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how finance and hr software stocks fared in Q1, starting with Marqeta (NASDAQ:MQ).
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 8% on average since the previous earnings results.
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.
"Our business once again showed itself to be on a solid trajectory this quarter," said Simon Khalaf, CEO of Marqeta.
Marqeta delivered the slowest revenue growth of the whole group. 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.
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, outperforming 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.
The stock is down 17.1% since the results and currently trades at $52.49.
Is now the time to buy Bill.com? 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 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.
Paylocity (NASDAQ:PCTY)
Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises.
Paylocity reported revenues of $401.3 million, up 18.1% year on year, surpassing analysts' expectations by 1%. It was a solid quarter for the company, with a significant improvement in its gross margin and strong sales guidance for the next quarter.
The stock is up 2.8% since the results and currently trades at $153.65.
Read our full, actionable report on Paylocity here, it's free.
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