Finance and HR Software Stocks Q2 Earnings Review: BlackLine (NASDAQ:BL) Shines
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at finance and HR software stocks, starting with BlackLine (NASDAQ:BL).
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.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. However, finance and HR software stocks have held steady amidst all this with share prices up 4.5% on average since the latest earnings results.
Best Q2: BlackLine (NASDAQ:BL)
Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks.
BlackLine reported revenues of $160.5 million, up 11% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with accelerating customer growth and a decent beat of analysts’ ARR (annual recurring revenue) estimates.
“BlackLine delivered solid results this quarter, exceeding our revenue and profitability expectations, while continuing to generate robust free cash flow,” said Owen Ryan, co-CEO of BlackLine.
Interestingly, the stock is up 15.2% since reporting and currently trades at $50.83.
Is now the time to buy BlackLine? Access our full analysis of the earnings results 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, outperforming analysts’ expectations by 4.8%. It was a decent quarter for the company with an impressive beat of analysts’ billings estimates but management forecasting growth to slow.
Bill.com achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.7% since reporting. It currently trades at $47.37.
Is now the time to buy Bill.com? 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.
Paycom (NYSE:PAYC)
Founded in 1998 as one of the first online payroll companies, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place.
Paycom reported revenues of $437.5 million, up 9.1% year on year, in line with analysts’ expectations. More broadly, it was a slower quarter for the company with a decline in its gross margin and full-year revenue guidance missing analysts’ expectations.
The stock is down 2.1% since reporting and currently trades at $163.23.
Read our full, actionable report on Paycom here, it’s free.
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%. Taking a step back, it was a decent quarter for the company with management forecasting healthy growth.
The stock is down 6.3% since reporting and currently trades at $624.
Read our full, actionable report on Intuit here, it’s free.
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