Unpacking Q2 Earnings: Workday (NASDAQ:WDAY) In The Context Of Other Finance and HR Software Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Workday (NASDAQ:WDAY) and the best and worst performers in the finance and HR software industry.

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 15 finance and HR software stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% below.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, finance and HR software stocks have held steady amidst all this with share prices up 4.8% on average since the latest 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, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources.

Workday reported revenues of $2.09 billion, up 16.7% year on year. This print was in line with analysts’ expectations, but overall, it was a weaker quarter for the company with a miss of analysts’ billings estimates.

"Workday delivered a solid quarter of growth and operating margin expansion, as businesses of all sizes and industries around the world increasingly turn to Workday as their trusted partner in navigating the future of work," said Carl Eschenbach, CEO, Workday.

Interestingly, the stock is up 11.9% since reporting and currently trades at $259.01.

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

Best Q2: Zuora (NYSE:ZUO)

Founded in 2007, Zuora (NYSE:ZUO) offers software as a service platform that allows companies to bill and accept payments for recurring subscription products.

Zuora reported revenues of $115.4 million, up 6.8% year on year, outperforming analysts’ expectations by 2.5%. It was a strong quarter for the company with an impressive beat of analysts’ billings estimates and in-line revenue guidance for the next quarter.

The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $8.76.

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

Slowest Q2: Global Business Travel (NYSE:GBTG)

Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide.

Global Business Travel reported revenues of $625 million, up 5.6% year on year, falling short of analysts’ expectations by 1.1%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations.

Interestingly, the stock is up 19.1% since the results and currently trades at $7.18.

Read our full analysis of Global Business Travel’s results here.

Intuit (NASDAQ:INTU)

Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses.

Intuit reported revenues of $3.18 billion, up 17.4% year on year, surpassing analysts’ expectations by 3.1%. Overall, it was a mixed quarter for the company with management forecasting healthy growth but a decline in its gross margin.

The stock is down 6.3% since reporting and currently trades at $624.

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

Bill.com (NYSE:BILL)

Started 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 and medium-sized businesses.

Bill.com reported revenues of $343.7 million, up 16.1% year on year, surpassing analysts’ expectations by 4.8%. Revenue aside, it was a decent quarter for the company with an impressive beat of analysts’ billings estimates but management forecasting growth to slow.

Bill.com delivered the biggest analyst estimates beat among its peers. The stock is down 6.7% since reporting and currently trades at $47.37.

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

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