Yahoo Finance Unpacking Q1 Earnings: Workiva (NYSE:WK) In The Context Of Other Finance and HR Software Stocks
Wrapping up Q1 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 15 finance and HR software stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and finance and hr software stocks have had a rough stretch, with share prices down 7.2% on average since the previous earnings results.
Workiva (NYSE:WK)
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 $175.7 million, up 17% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with decelerating customer growth and a miss of analysts' billings estimates.
"The Workiva team delivered another solid quarter, resulting in subscription revenue growth of 20%," said Julie Iskow, President & Chief Executive Officer.
The stock is down 6.8% since reporting and currently trades at $74.58.
Is now the time to buy Workiva? 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 optimistic revenue guidance for the next quarter.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 16.5% since reporting. It currently trades at $52.83.
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 posted the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 7.6% since the results and currently trades at $6.70.
Read our full analysis of Global Business Travel's results here.
Asure (NASDAQ:ASUR)
Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).
Asure reported revenues of $31.65 million, down 4.3% year on year, surpassing analysts' expectations by 2%. Revenue aside, it was a slower quarter for the company with a miss of analysts' billings estimates.
Asure delivered the highest full-year guidance raise among its peers. The stock is up 26.8% since reporting and currently trades at $10.07.
Read our full, actionable report on Asure here, it's free.
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 $187 million, up 15.8% year on year, in line with analysts' expectations. Revenue aside, it was a weak quarter for the company with full-year revenue guidance missing analysts' expectations and a miss of analysts' billings estimates.
The stock is down 26.4% since reporting and currently trades at $12.89.
Read our full, actionable report on Paycor here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
