Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Workiva (NYSE: WK) and its peers.

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 1.1% below.

Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Interestingly, the stock is up 26.5% since reporting and currently trades at $80.79.

Is now the time to buy Workiva? Access our full analysis of the earnings results here, it’s free.

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, outperforming analysts’ expectations by 6.9%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA and total payment volume estimates.

Marqeta scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $6.42.

Is now the time to buy Marqeta? 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 8.9% since the results and currently trades at $138.72.

Read our full analysis of Paychex’s results here.

Paycom (NYSE: PAYC)

Pioneering the concept of employees doing their own payroll with its "Beti" technology, Paycom (NYSE: PAYC) provides cloud-based human capital management software that helps businesses manage the entire employment lifecycle from recruitment to retirement.

Paycom reported revenues of $483.6 million, up 10.5% year on year. This result surpassed analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

The stock is up 1.3% since reporting and currently trades at $225.71.

Read our full, actionable report on Paycom here, it’s free.

BILL (NYSE: BILL)

Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE: BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses.

BILL reported revenues of $383.3 million, up 11.5% year on year. This print beat analysts’ expectations by 2%. Zooming out, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.

The company added 5,200 customers to reach a total of 493,800. The stock is up 17.7% since reporting and currently trades at $49.10.

Read our full, actionable report on BILL 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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