Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Zuora (NYSE:ZUO) 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 15 finance and HR software stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.5% below.

After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.

Thankfully, finance and HR software stocks have been resilient with share prices up 5.9% on average since the latest earnings results.

Best Q2: Zuora (NYSE:ZUO)

Founded in 2007, Zuora (NYSE:ZUO) offers software as a service platform that allows companies to bill and accept payments for recurring subscription products.

Zuora reported revenues of $115.4 million, up 6.8% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ billings estimates and in-line revenue guidance for the next quarter.

“I’m proud of our ZEOs for delivering a solid second quarter,” said Tien Tzuo, Founder and CEO at Zuora.

Interestingly, the stock is up 1.3% since reporting and currently trades at $8.62.

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

BlackLine (NASDAQ:BL)

Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks.

BlackLine reported revenues of $160.5 million, up 11% year on year, outperforming analysts’ expectations by 1.4%. The business had a strong quarter with accelerating customer growth and a decent beat of analysts’ ARR (annual recurring revenue) estimates.

The market seems happy with the results as the stock is up 24.8% since reporting. It currently trades at $55.05.

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

Slowest Q2: Global Business Travel (NYSE:GBTG)

Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide.

Global Business Travel reported revenues of $625 million, up 5.6% year on year, falling short of analysts’ expectations by 1.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Interestingly, the stock is up 27.5% since the results and currently trades at $7.69.

Read our full analysis of Global Business Travel’s results here.

Flywire (NASDAQ:FLYW)

Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments.

Flywire reported revenues of $103.7 million, up 22.2% year on year. This print beat analysts’ expectations by 3.3%. Zooming out, it was a strong quarter as it also produced full-year revenue guidance topping analysts’ expectations but a decline in its gross margin.

Flywire scored the fastest revenue growth among its peers. The stock is down 7.9% since reporting and currently trades at $16.39.

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

Paylocity (NASDAQ:PCTY)

Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises.

Paylocity reported revenues of $357.3 million, up 15.8% year on year. This number beat analysts’ expectations by 2.1%. Aside from that, it was a weak quarter with underwhelming revenue guidance for the next quarter.

Paylocity had the weakest full-year guidance update among its peers. The stock is up 9.3% since reporting and currently trades at $161.99.

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

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