Third Quarter Earnings Summary: Bill.com (NYSE:BILL) Tops Financial and HR Software Stocks
To wrap up the third quarter results, we look at the numbers and key takeaways for the financial and HR software stocks, including Bill.com (NYSE:BILL) and its peers.
Organizations are constantly looking for ways to improve organizational efficiency, whether it is financial planning, tax management or payroll. Financial and HR software are benefiting from the SaaSification of businesses large and small, who much prefer the flexibility of cloud-based, web browser-delivered, subscription-based software to the hassle and expense of purchasing and managing on a subscription basis. location business software.
The fourteen financial and HR software stocks we track reported a mixed third quarter. As a group, revenues exceeded analyst consensus expectations by 1.4%, while revenue expectations for the next quarter were 1% below that.
Fortunately, financial and HR software stocks have performed well, with share prices up an average of 10.2% since the last earnings results.
Founded 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 businesses. and medium-sized companies. .
Bill.com reported revenue of $358.5 million, up 17.5% year over year. This print exceeded analyst expectations by 3.3%. Overall, it was a very strong quarter for the company, with earnings per share expectations for next quarter exceeding analyst expectations and a solid improvement in analyst EBITDA estimates.
Bill.com’s total revenue
Interestingly, the stock is up 33.5% since reporting and is currently trading at $87.90.
We think Bill.com is a good company, but is it a buy today? Read our full report here, it’s free.
Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross-border payments processor and software platform focused on complex, high-value transactions such as education, healthcare and B2B payments.
Flywire reported revenue of $156.8 million, up 27.2% year over year, beating analyst expectations by 7.1%. The company had a very strong quarter, with full-year EBITDA expectations exceeding analyst expectations.
Flywire’s total revenue
Flywire delivered the biggest earnings forecast from analysts, the fastest revenue growth and the highest full-year forecast increase among its peers. The market seems pleased with the results, as the stock is up 9.2% since reporting. It is currently trading at $19.98.
Is Now the Time to Buy Flywire? See our full analysis of earnings results here. It’s free.
Asure (NASDAQ:ASUR), formed from the merger of two small workforce management companies in 2007, offers cloud-based payroll and HR software for small and medium-sized businesses (SMBs).
Asure reported revenue of $29.3 million, flat year-over-year, falling 6.5% short of analyst expectations. It was a disappointing quarter, as revenue expectations for the following quarter did not match analyst expectations.
Asure delivered the weakest performance against analyst estimates, the slowest revenue growth and the weakest full-year forecast update in the group. The stock is flat since the results and is currently trading at $9.96.
Read our full analysis of Asure’s results here.
Founded in 1997 by payroll software veteran Steve Sarowitz, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized businesses.
Paylocity reported revenue of $363 million, up 14.3% year over year. This print exceeded analyst expectations by 1.9%. Overall, it was a strong quarter, as analyst EBITDA estimates and revenue expectations for the next quarter also impressively exceeded analyst expectations.
The stock is up 12.3% since reporting and is currently trading at $200.40.
Read our full, actionable report on Paylocity here. It’s free.
Global Business Travel (NYSE:GBTG) has close ties with American Express and is a comprehensive travel and expense management provider for businesses worldwide.
Global Business Travel reported revenue of $597 million, up 4.6% year over year. This figure was 2.7% lower than analysts’ expectations. Overall, it was a slower quarter as full-year revenue expectations also lagged slightly behind analyst expectations.
The stock is up 17.5% since reporting and is currently trading at $9.
Read our full, actionable report on Global Business Travel here. It’s free.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has fallen from its frothy post-pandemic levels. Overall price growth for goods and services has been trending toward the Fed’s 2% target lately, which is good news. The higher interest rates that combated inflation also did not slow economic activity enough to catalyze a recession. A soft landing so far. This, combined with recent interest rate cuts (half a percent in September 2024 and a quarter of a percent in November 2024) has led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the US presidential election in 2024. in early November, sending the major indices to record highs in the week after the election. Still, debates persist about the health of the economy and the impact of potential rate cuts and corporate tax cuts. In other words: there is still a lot of uncertainty around 2025.
Do you want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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