HR Software Q3 Earnings: Paycor (NASDAQ:PYCR) Simply the Best
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q3. Today we are looking at the HR software stocks, starting with Paycor (NASDAQ:PYCR).
Modern HR software has two powerful benefits: cost savings and ease of use. For cost savings, businesses large and small much prefer the flexibility of cloud-based, web-browser-delivered software paid for on a subscription basis rather than the hassle and complexity of purchasing and managing on-premise enterprise software. On the usability side, the consumerization of business software creates seamless experiences whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy-to-use platform.
The 6 HR software stocks we track reported a weak Q3; on average, revenues beat analyst consensus estimates by 2.5% while next quarter's revenue guidance was 3.5% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but HR software stocks held their ground better than others, with share prices down 0.2% on average since the previous earnings results.
Best Q3: 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 $143.6 million, up 21.4% year on year, topping analyst expectations by 2.9%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but underwhelming revenue guidance for the next quarter.
“We had a strong start to the year driven by a continued healthy demand environment for our modern HCM solution that powers people and performance,” said Raul Villar, Jr., Chief Executive Officer of Paycor.
The stock is up 16% since the results and currently trades at $20.71.
Read our full report on Paycor here, it's free.
Paychex (NASDAQ:PAYX)
One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions.
Paychex reported revenues of $1.26 billion, up 5.7% year on year, falling short of analyst expectations by 0.7%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Paychex had the slowest revenue growth among its peers. The stock is down 3.9% since the results and currently trades at $122.83.
Is now the time to buy Paychex? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $406.3 million, up 21.6% year on year, falling short of analyst expectations by 1.2%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
Paycom had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 18.9% since the results and currently trades at $198.45.
Read our full analysis of Paycom's results here.
Ceridian (NYSE:CDAY)
Founded in 1992 as an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Ceridian (NYSE:CDAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.
Ceridian reported revenues of $377.5 million, up 19.6% year on year, surpassing analyst expectations by 2.2%. It was a mixed quarter for the company, with strong sales guidance for the next quarter but decelerating customer growth.
Ceridian pulled off the highest full-year guidance raise among its peers. The company added 74,000 customers to reach a total of 6.35 million. The stock is up 8.9% since the results and currently trades at $69.68.
Read our full, actionable report on Ceridian 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 $317.6 million, up 25.4% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.
The stock is down 6.9% since the results and currently trades at $159.9.
Read our full, actionable report on Paylocity here, it's free.
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The author has no position in any of the stocks mentioned
