Third Quarter Winners and Losers: BlackLine (NASDAQ:BL) vs. the Rest of the Financial and HR Software Stocks
Let’s take a look at the relative performance of BlackLine (NASDAQ:BL) and its peers as we unravel the now-completed financial and HR software third-quarter earnings season.
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 twelve financial and HR software stocks we track reported a satisfactory third quarter. As a group, revenues exceeded analyst consensus expectations by 1.9%, 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 10.4% since the last earnings results.
Founded in 2001 by software engineer Therese Tucker, one of the few female founders to take their company public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and financial tasks.
BlackLine reported revenue of $165.9 million, up 10.1% year over year. This print exceeded analyst expectations by 1.7%. Despite the revenue growth, it was still a mixed quarter for the company, with an impressive return to analyst EBITDA estimates, but slowing customer growth.
“BlackLine delivered another quarter of solid financial results, exceeding our financial expectations while generating record free cash flow,” said Owen Ryan, co-CEO of BlackLine.
Total turnover of BlackLine
Interestingly, the stock is up 8.2% since reporting and is currently trading at $64.36.
Read our full report on BlackLine here. It’s free.
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, and beat analyst expectations by 1.9%. The company had a strong quarter, solidly beating analyst EBITDA estimates and next quarter revenue expectations, which exceeded analyst expectations.
Paylocity Total revenue
The market seems pleased with the results, as the stock is up 13.6% since reporting. It is currently trading at $202.73.
Is Now the Time to Buy Paylocity? 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. As expected, the stock is down 4.5% since the results and is currently trading at $9.49.
Read our full analysis of Asure’s results here.
Marqeta (NASDAQ:MQ), founded in 2009 by CEO Jason Gardner, is an innovative card issuer that offers businesses the ability to issue and process virtual, physical and tokenized credit and debit cards.
Marqeta reported revenue of $128 million, up 17.5% year over year. This result was in line with analyst expectations. Let’s take a step back: It was a mixed quarter, as it also delivered an impressive return on analyst EBITDA estimates, but revenue expectations for the next quarter fell significantly short of analyst expectations.
The stock has fallen 32.3% since reporting and is currently trading at $4.04.
Read our full, actionable report on Marqeta here. It’s free.
Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded companies.
Workiva reported revenue of $185.6 million, up 17.4% year over year. This figure exceeded analyst expectations by 1.7%. More broadly, it was a satisfying quarter as it also recorded an impressive increase in analyst expectations, but earnings expectations for the next quarter fell significantly short of analyst expectations.
The company added 158 business customers paying more than $100,000 annually, bringing the total to 1,926. The stock is up 18.1% since reporting and is currently trading at $103.55.
Read our full, actionable report on Workiva here. It’s free.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs and is moving closer to the 2% target. This disinflation has occurred without serious consequences for economic growth, indicating a soft landing success. The stock market boomed in 2024, boosted by recent interest rate cuts (0.5% in September and 0.25% in November), and a notable rally followed Donald Trump’s presidential election victory in November, sending the indices to historic highs were pushed. Nevertheless, the outlook for 2025 remains clouded by possible changes in trade policy and corporate tax discussions, which could impact business confidence and growth. The path forward involves both optimism and caution as new policies take shape.
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.
Participate in paid stock investor research
Help us make StockStory more useful to investors like you. Participate in our paid user research session and receive a $50 Amazon gift card for your opinion. Sign up here.
Sign Up For Daily Newsletter
Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
