Third Quarter Earnings Summary: Workday (NASDAQ:WDAY) and the Rest of the Financial and HR Software Segment
Let’s take a look at the relative performance of Workday (NASDAQ:WDAY) and its peers as we unravel the now-completed third quarter financial and HR software 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 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 11.5% since the last earnings results.
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 print exceeded analyst expectations by 1.4%. Overall, it was a strong quarter for the company with a solid gain in analyst annual recurring revenue estimates and an impressive gain in analyst EBITDA estimates.
“Workday’s solid performance in the third quarter reflects the trust our customers have in us across industries, the global momentum around our AI-driven innovations, and the strength of our partner ecosystem,” said Carl Eschenbach, CEO of Workday.
Total turnover on working day
Interestingly, the stock is up 1.7% since reporting and is currently trading at $275.01.
Is Now the Time to Buy Workday? 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 an impressive improvement in analyst EBITDA estimates.
Bill.com’s total revenue
The market seems pleased with the results, as the stock is up 35.7% since reporting. It is currently trading at $89.35.
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 6.1% since the results and is currently trading at $9.32.
Read our full analysis of Asure’s results here.
Intuit was founded in 1983 when founder Scott Cook saw his wife struggling to balance the family checkbook. It provides tax and accounting software for small and medium businesses.
Intuit reported revenue of $3.28 billion, up 10.2% year over year. This print exceeded analyst expectations by 4.6%. More broadly, it was a mixed quarter as it also recorded an impressive increase in analyst expectations, but earnings expectations for the following quarter fell significantly short of analyst expectations.
The stock is flat since reporting and is currently trading at $676.11.
Read our full, actionable report on Intuit here. It’s free.
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 number met analysts’ expectations. That aside, it was a mixed quarter, as it also posted a solid profit versus analyst EBITDA estimates, but revenue expectations for the next quarter fell significantly short of analyst expectations.
The stock has fallen 34.8% since reporting and is currently trading at $3.89.
Read our full, actionable report on Marqeta 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: around 2025 there is still a lot of uncertainty.
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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