Let’s dig into the relative performance of Workiva (NYSE:WK) and its peers as we unravel the now-completed Q1 finance and hr software earnings season.
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.
While some finance and HR software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.
Workiva (NYSE:WK)
Nicknamed “the Excel killer” by some finance professionals for its ability to eliminate spreadsheet chaos, Workiva (NYSE:WK) provides a cloud-based platform that enables organizations to streamline financial reporting, ESG, and compliance processes with connected data and automation.
Workiva reported revenues of $247.3 million, up 19.9% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The stock is down 9.2% since reporting and currently trades at $50.31.
We think Workiva is a good business, but is it a buy today? Read our full report 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 delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $15.98.
Is now the time to buy Flywire? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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.