Winners And Losers Of Q2: Workday (NASDAQ:WDAY) Vs The Rest Of The Finance and HR Software Stocks
- WDAY
- ORCL
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including Workday (NASDAQ:WDAY) 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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 0.8% below.
Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest earnings results.
Workday (NASDAQ:WDAY)
Born from the vision of PeopleSoft founders after Oracle’s hostile takeover of their previous company, Workday (NASDAQ:WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Workday reported revenues of $2.65 billion, up 12.8% year on year. This print exceeded analysts’ expectations by 0.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ billings estimates.
“We had a strong Q2, with AI driving more than 25% of our new ACV and more than 5,500 customers now using at least one of our organic agents,” said Aneel Bhusri, co-founder, CEO, and chair, Workday. “Because of Workday’s deterministic rails, customers can trust our agents with the work that matters, and you’re seeing that in the numbers.”
Interestingly, the stock is up 2.4% since reporting and currently trades at $198.20.
Is now the time to buy Workday? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $531.2 million, up 9.8% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with full-year EBITDA guidance exceeding analysts’ expectations and an impressive beat of analysts’ billings estimates.
