Marqeta (NASDAQ:MQ): Strongest Q3 Results from the Finance and HR Software Group
As finance and HR software stocks’ Q3 earnings season wraps, let's dig into this quarter's best and worst performers, including Marqeta (NASDAQ:MQ) 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 Q3; on average, revenues beat analyst consensus estimates by 3% while next quarter's revenue guidance was 1.9% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but finance and HR software stocks held their ground better than others, with the share prices up 0.5% on average since the previous earnings results.
Best Q3: 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 $108.9 million, down 43.2% year on year, topping analyst expectations by 14.1%. It was an incredible quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' revenue estimates.
“Our Q3 results represent the new baseline for Marqeta, post Block’s Cash App renewal. We've shown continued sales bookings momentum against a backdrop of operational discipline, continued scale, and new innovations through the launch of our credit platform,” said Simon Khalaf, CEO of Marqeta.
Marqeta pulled off the biggest analyst estimates beat but had the slowest revenue growth of the whole group. The stock is up 21.5% since the results and currently trades at $6.5.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free.
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 $123.3 million, up 29.5% year on year, outperforming analyst expectations by 2.9%. Despite the stock dropping on the results, it was a good quarter for the company, with a significant improvement in its gross margin and optimistic revenue guidance for the next quarter.
Flywire achieved the highest full-year guidance raise among its peers. The stock is down 21.8% since the results and currently trades at $21.64.
Is now the time to buy Flywire? 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 and underwhelming revenue guidance for the next quarter.
Paycom had the weakest performance against analyst estimates in the group. The stock is down 17.5% since the results and currently trades at $202.
Read our full analysis of Paycom's results here.
Intuit (NASDAQ:INTU)
Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses.
Intuit reported revenues of $2.98 billion, up 14.7% year on year, surpassing analyst expectations by 3.3%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but full-year revenue guidance missing analysts' expectations.
The stock is up 8% since the results and currently trades at $611.03.
Read our full, actionable report on Intuit here, it's free.
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 $158.2 million, up 19.1% year on year, surpassing analyst expectations by 1.6%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
The company added 91 enterprise customers paying more than $100,000 annually to reach a total of 1,561. The stock is up 1.8% since the results and currently trades at $93.24.
Read our full, actionable report on Workiva here, it's free.
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The author has no position in any of the stocks mentioned
