The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Marqeta (NASDAQ:MQ) and the rest of the finance and hr software stocks fared in Q3.
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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q3: 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 $163.3 million, up 27.6% year on year. This print exceeded analysts’ expectations by 9.7%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ total payment volume estimates.
Interestingly, the stock is up 6.9% since reporting and currently trades at $4.79.
Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it’s free for active Edge members.
Flywire (NASDAQ:FLYW)
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ:FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Flywire reported revenues of $200.1 million, up 27.6% year on year, outperforming analysts’ expectations by 7.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
Flywire achieved the fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.2% since reporting. It currently trades at $13.97.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $178.3 million, up 7.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and decelerating customer growth.
BlackLine delivered the slowest revenue growth in the group. The company lost 27 customers and ended up with a total of 4,424. The stock is flat since the results and currently trades at $56.99.
Read our full analysis of BlackLine’s results here.
American Express Global Business Travel (NYSE:GBTG)
Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE:GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.
American Express Global Business Travel reported revenues of $674 million, up 12.9% year on year. This result beat analysts’ expectations by 10%. It was an exceptional quarter as it also produced a solid beat of analysts’ revenue estimates and a decent beat of analysts’ EBITDA estimates.
American Express Global Business Travel pulled off the biggest analyst estimates beat among its peers. The stock is down 4.9% since reporting and currently trades at $7.71.
Paylocity (NASDAQ:PCTY)
Operating in a field where companies traditionally juggled multiple disconnected systems, Paylocity (NASDAQ:PCTY) provides cloud-based human capital management and payroll software solutions that help businesses manage their workforce and HR processes.
Paylocity reported revenues of $408.2 million, up 12.5% year on year. This number surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
The stock is up 5.4% since reporting and currently trades at $146.92.
Read our full, actionable report on Paylocity here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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