Wrapping up Q1 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including BlackLine (NASDAQ:BL) 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 12 finance and HR software stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% since the latest earnings results.
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 9.7% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but decelerating customer growth.
“BlackLine delivered a solid first quarter with accelerating revenue growth, operating leverage, and momentum from our platform strategy,” said Owen Ryan, CEO of BlackLine.
The market seems disappointed with the results as the stock is down 13.6% since reporting and currently trades at $27.93.
Is now the time to buy BlackLine? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $184 million, up 42.9% year on year, outperforming analysts’ expectations by 7.2%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA and revenue estimates.
Flywire scored the biggest analyst estimate beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $14.63.