Let’s dig into the relative performance of Marqeta (NASDAQ:MQ) and its peers as we unravel the now-completed Q2 finance and hr software earnings season.
Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software.
The 13 finance and hr software stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 8.5% on average since the latest earnings results.
Best Q2: Marqeta (NASDAQ:MQ)
Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ:MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions.
Marqeta reported revenues of $150.4 million, up 20.1% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA and total payment volume estimates.
Marqeta pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.6% since reporting and currently trades at $5.90.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it’s free.
Workiva (NYSE:WK)
Nicknamed "the Excel killer" by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE:WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Workiva reported revenues of $215.2 million, up 21.2% year on year, outperforming analysts’ expectations by 3%. The business had a very strong quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 21.7% since reporting. It currently trades at $77.70.
Is now the time to buy Workiva? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Paychex (NASDAQ:PAYX)
Once known as the go-to service for small business payroll needs, Paychex (NASDAQ:PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.
Paychex reported revenues of $1.43 billion, up 10.2% year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted a miss of analysts’ EBITDA estimates.
As expected, the stock is down 11.7% since the results and currently trades at $134.49.
Read our full analysis of Paychex’s results here.
Dayforce (NYSE:DAY)
Rebranded from Ceridian in January 2024 to highlight its flagship product, Dayforce (NYSE:DAY) provides cloud-based software that helps organizations manage their entire employee lifecycle, including HR, payroll, workforce management, benefits, and talent development.
Dayforce reported revenues of $464.7 million, up 9.8% year on year. This number beat analysts’ expectations by 1.5%. Zooming out, it was a slower quarter as it recorded revenue guidance for next quarter missing analysts’ expectations significantly.
Dayforce had the weakest full-year guidance update among its peers. The stock is up 29.7% since reporting and currently trades at $68.81.
Read our full, actionable report on Dayforce here, it’s free.
BlackLine (NASDAQ:BL)
Born from the vision to eliminate tedious manual spreadsheet work for accountants, BlackLine (NASDAQ:BL) provides cloud-based software that automates and streamlines financial close, intercompany accounting, and invoice-to-cash processes for accounting departments.
BlackLine reported revenues of $172 million, up 7.2% year on year. This result topped analysts’ expectations by 0.7%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
The company lost 4 customers and ended up with a total of 4,451. The stock is flat since reporting and currently trades at $55.
Read our full, actionable report on BlackLine here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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