Q3 Earnings Highlights: Marqeta (NASDAQ:MQ) vs. the Rest of the Finance and HR Software Stocks
Quarterly results are a good time to check a company’s progress, especially compared to peers in the same sector. Today we look at Marqeta (NASDAQ:MQ) and the best and worst performers in the financial and HR software industries.
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 11.4% since the last earnings results.
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 print was in line with analyst expectations, but overall it was a mixed quarter for the company with a solid improvement in analyst EBITDA estimates, but revenue expectations for the next quarter fell significantly short of analyst expectations .
“The third quarter saw our real growth trajectory again as we completed the Block contract extension, while continuing to demonstrate operational discipline to deliver strong Adjusted EBITDA. We combined this with several new product announcements that further enhance the Marqeta platform to deliver transformative payment solutions at scale for our growing customer base,” said Simon Khalaf, CEO of Marqeta.
Marqeta Total turnover
Unsurprisingly, the stock has fallen 30.7% since reporting and is currently trading at $4.14.
Is Now the Time to Buy Marqeta? 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.
Bill.com’s total revenue
The market seems pleased with the results, as the stock is up 38.8% since reporting. It is currently trading at $91.36.
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 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 has fallen 3.9% since the results and is currently trading at $9.54.
Read our full analysis of Asure’s results here.
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%. It was a very strong quarter as it also delivered full-year EBITDA guidance that exceeded analyst expectations.
Flywire delivered the largest earnings forecast from analysts, the fastest revenue growth and the highest full-year forecast increase among its peers. The stock is up 13.9% since reporting and is currently trading at $20.83.
Read our full, actionable report on Flywire here. It’s free.
Paychex (NASDAQ:PAYX), one of the oldest service providers in the industry, offers payroll and HR software solutions to its customers.
Paychex reported revenue of $1.32 billion, up 2.5% year over year. This number met analysts’ expectations. It was a satisfying quarter, as it also significantly beat analysts’ EBITDA estimates.
The stock is up 6% since reporting and is currently trading at $142.18.
Read our full, actionable report on Paychex 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 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 Top 5 High Quality Compounder Stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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