Q3 Earnings Highs And Lows: Flywire (NASDAQ:FLYW) Vs The Rest Of The Finance and HR Software Stocks
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 finance and HR software stocks, starting with Flywire (NASDAQ:FLYW).
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. Stocks have faced challenges as investors prioritize near-term cash flows, but finance and HR software stocks held their ground better than others, with the share prices up 2.6% on average since the previous earnings results.
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, topping analyst expectations by 2.9%. It was an exceptional quarter for the company, with a significant improvement in its gross margin and optimistic revenue guidance for the next quarter.
"We are pleased with our third quarter results, where we generated our highest quarter of revenue and adjusted EBITDA, ever,” said Mike Massaro, CEO of Flywire.
Flywire scored the highest full-year guidance raise of the whole group. The stock is down 25.3% since the results and currently trades at $20.68.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free.
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, outperforming 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.
Marqeta pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 13.1% since the results and currently trades at $6.05.
Is now the time to buy Marqeta? 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 18.9% since the results and currently trades at $198.45.
Read our full analysis of Paycom's results here.
BlackLine (NASDAQ:BL)
Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks.
BlackLine reported revenues of $150.7 million, up 12.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with accelerating customer growth but underwhelming revenue guidance for the next quarter.
The company added 89 customers to reach a total of 4,368. The stock is up 19% since the results and currently trades at $60.55.
Read our full, actionable report on BlackLine here, it's free.
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 $29.33 million, up 33.9% year on year, surpassing analyst expectations by 11.1%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but underwhelming revenue guidance for the next quarter.
Asure pulled off the fastest revenue growth among its peers. The stock is up 6.9% since the results and currently trades at $9.15.
Read our full, actionable report on Asure here, it's free.
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The author has no position in any of the stocks mentioned
