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Reflecting On Finance and HR Software Stocks’ Q4 Earnings: Workday (NASDAQ:WDAY)

WDAY Cover Image

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 Q4. Today, we are looking at finance and hr software stocks, starting with Workday (NASDAQ: WDAY).

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 11 finance and hr software stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% 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.

Workday (NASDAQ: WDAY)

Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.

Workday reported revenues of $2.53 billion, up 14.5% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ billings estimates.

Workday Total Revenue

Interestingly, the stock is up 2.4% since reporting and currently trades at $133.40.

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

Best Q4: 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 $152.7 million, up 35.4% year on year, outperforming analysts’ expectations by 5.9%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Flywire Total Revenue

Flywire achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.2% since reporting. It currently trades at $12.28.

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

Weakest Q4: 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 $544.3 million, up 10.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year guidance of slowing revenue growth.

Interestingly, the stock is up 6% since the results and currently trades at $125.85.

Read our full analysis of Paycom’s results here.

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 $183.2 million, up 8.1% year on year. This result was in line with analysts’ expectations. More broadly, it was a satisfactory quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations but EPS guidance for next quarter missing analysts’ expectations significantly.

BlackLine had the weakest performance against analyst estimates and slowest revenue growth among its peers. The company lost 30 customers and ended up with a total of 4,394. The stock is down 20.7% since reporting and currently trades at $35.17.

Read our full, actionable report on BlackLine 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 $414.7 million, up 14.4% year on year. This print topped analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The stock is up 24.4% since reporting and currently trades at $44.39.

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

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