Yahoo Finance HR Software Stocks Q1 Highlights: Paycor (NASDAQ:PYCR)
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 Q1. Today, we are looking at hr software stocks, starting with Paycor (NASDAQ:PYCR).
Modern HR software has two powerful benefits: cost savings and ease of use. For cost savings, businesses large and small much prefer the flexibility of cloud-based, web-browser-delivered software paid for on a subscription basis rather than the hassle and complexity of purchasing and managing on-premise enterprise software. On the usability side, the consumerization of business software creates seamless experiences whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy-to-use platform.
The 6 HR software stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 0.7%. while next quarter's revenue guidance was 0.5% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and HR software stocks have had a rough stretch, with share prices down 13.2% on average since the previous earnings results.
Paycor (NASDAQ:PYCR)
Found in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place.
Paycor reported revenues of $187 million, up 15.8% year on year, in line with analysts' expectations. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' billings estimates.
“We delivered another strong quarter as our differentiated HCM solution that powers people and performance continued to resonate in the market,” said Raul Villar, Jr., Chief Executive Officer of Paycor.
Paycor delivered the weakest full-year guidance update of the whole group. The stock is down 30% since the results and currently trades at $12.25.
Read our full report on Paycor here, it's free.
Best Q1: Dayforce (NYSE:DAY)
Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE:DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.
Dayforce reported revenues of $431.5 million, up 16.4% year on year, outperforming analysts' expectations by 1.3%. It was a solid quarter for the company, with accelerating customer growth and a significant improvement in its gross margin.
The stock is down 15.6% since the results and currently trades at $51.8.
Is now the time to buy Dayforce? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Paychex (NASDAQ:PAYX)
One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions.
Paychex reported revenues of $1.44 billion, up 4.2% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company. Revenue unfortunately missed analysts' expectations, although EPS beat. With regards to the full year, revenue guidance missed expectations.
Paychex had the weakest performance against analyst estimates in the group. The stock is up 0.2% since the results and currently trades at $121.81.
Read our full analysis of Paychex's results here.
Paycom (NYSE:PAYC)
Founded in 1998 as one of the first online payroll companies, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place.
Paycom reported revenues of $499.9 million, up 10.7% year on year, in line with analysts' expectations. It was a slower quarter for the company, with a decline in its gross margin.
The stock is down 22% since the results and currently trades at $145.25.
Read our full, actionable report on Paycom here, it's free.
Asure (NASDAQ:ASUR)
Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).
Asure reported revenues of $31.65 million, down 4.3% year on year, surpassing analysts' expectations by 2%. It was a slower quarter for the company, with a miss of analysts' billings estimates.
Asure delivered the biggest analyst estimates beat and highest full-year guidance raise, but had the slowest revenue growth among its peers. The stock is down 5.5% since the results and currently trades at $7.5.
Read our full, actionable report on Asure here, it's free.
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