Let’s dig into the relative performance of Intuit (NASDAQ: INTU) and its peers as we unravel the now-completed Q3 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 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 as they are up 1.8% on average since the latest earnings results.

Intuit (NASDAQ: INTU)

Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ: INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.

Intuit reported revenues of $3.89 billion, up 18.3% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations.

Interestingly, the stock is up 1.2% since reporting and currently trades at $653.80.

Is now the time to buy Intuit? Access our full analysis of the earnings results here, it’s free for active Edge members.

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, outperforming analysts’ expectations by 9.7%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA and total payment volume estimates.

The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $4.81.

Is now the time to buy Marqeta? 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 $56.75.

Read our full analysis of BlackLine’s results here.

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 $493.3 million, up 9.2% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a narrow beat of analysts’ EBITDA estimates but billings in line with analysts’ estimates.

The stock is down 9.8% since reporting and currently trades at $165.66.

Read our full, actionable report on Paycom 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 $194.1 million, up 28.2% year on year. This print surpassed analysts’ expectations by 7.8%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Flywire achieved the fastest revenue growth among its peers. The stock is up 3.8% since reporting and currently trades at $14.33.

Read our full, actionable report on Flywire here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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