As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the finance and hr software industry, including Global Business Travel (NYSE: GBTG) 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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.2% below.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Weakest Q1: 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 $621 million, up 1.8% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
Paul Abbott, Amex GBT’s Chief Executive Officer, stated: "In the first quarter, we delivered on our commitments, with strong profit growth, margin expansion and cash generation. Investments in our software and services are driving share gains and productivity improvements. Our strong and flexible operating model positions us well to navigate through a more uncertain environment.”
Global Business Travel delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 12.6% since reporting and currently trades at $6.02.
Read our full report on Global Business Travel here, it’s free.
Best Q1: Flywire (NASDAQ: FLYW)
Originally created to process international tuition payments for universities, Flywire (NASDAQ: FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments.
Flywire reported revenues of $133.5 million, up 17% year on year, outperforming analysts’ expectations by 5%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter meeting analysts’ expectations.
Flywire delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7% since reporting. It currently trades at $10.75.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it’s free.
Dayforce (NYSE: DAY)
Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE: DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.
Dayforce reported revenues of $481.8 million, up 11.7% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and billings in line with analysts’ estimates.
Dayforce delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.3% since the results and currently trades at $56.87.
Read our full analysis of Dayforce’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 $7.75 billion, up 15.1% year on year. This print topped analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also put up full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Intuit achieved the highest full-year guidance raise among its peers. The stock is up 14.6% since reporting and currently trades at $763.31.
Read our full, actionable report on Intuit here, it’s free.
Paylocity (NASDAQ: PCTY)
Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ: PCTY) is a provider of payroll and HR software for small and medium-sized enterprises.
Paylocity reported revenues of $454.5 million, up 13.3% year on year. This result surpassed analysts’ expectations by 2.9%. It was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The stock is down 10.6% since reporting and currently trades at $173.81.
Read our full, actionable report on Paylocity 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.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
