The end of earnings season is always a good time to take a step back and look at who’s excelling (and who’s not so good). Let’s take a look at how finance and HR software stocks fared in the third quarter, starting with Flywire (NASDAQ:FLYW).
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, the companies’ share prices have been resilient, having risen an average of 9.4% since the last earnings results.
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. This print exceeded analyst expectations by 7.1%. Overall, it was a very strong quarter for the company, with full-year EBITDA expectations exceeding analyst expectations.
“Our third quarter results highlight our ability to drive higher payment volumes from new and existing customers, indicating the growth potential within our accounts and verticals.” said Mike Massaro, CEO of Flywire.
Flywire achieved the highest earnings forecast from analysts, the fastest revenue growth and the highest full-year forecast increase of the entire group. Unsurprisingly, the stock is up 13.3% since reporting and is currently trading at $20.73.
Is Now the Time to Buy Flywire? See our full analysis of earnings results here. It’s free.
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, and beat analyst expectations by 3.3%. The company had a very strong quarter, with earnings per share expectations for next quarter exceeding analyst expectations and a solid improvement in analyst EBITDA estimates.
The market seems pleased with the results, as the stock is up 35.3% since reporting. It is currently trading at $89.10.
Is Now the Time to Buy Bill.com? 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 next quarter’s revenue expectations significantly missed analysts’ expectations and analysts’ EBITDA estimates were significantly missed.
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 has fallen 14.4% since the results and is currently trading at $8.50.
Read our full analysis of Asure’s results here.
Founded 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 revenue of $167.5 million, up 16.6% year over year. This figure exceeded analyst expectations by 3.3%. Overall, it was a strong quarter as it also saw an impressive increase in analyst EBITDA estimates and a solid increase in analyst billing estimates.
The stock is up 17.5% since reporting and is currently trading at $19.58.
Read our full, actionable report on Paycor here. It’s free.
Workday (NASDAQ:WDAY), founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, provides cloud-based software for organizations to manage and plan finances and human resources.
Workday reported revenue of $2.16 billion, up 15.8% year over year. This figure exceeded analyst expectations by 1.4%. It was a strong quarter as it also saw a solid improvement in analysts’ annual recurring revenue estimates and an impressive improvement in analysts’ EBITDA estimates.
The stock is up 1.1% since reporting and is currently trading at $273.50.
Read our full, actionable report on Workday 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 Top 5 Growth Stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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