Q1 Financial and HR Software Stock Review: Zuora (NYSE:ZUO) vs. Competitors

When looking at first-quarter earnings for financial and HR software stocks, we looked at the best and worst performers for the quarter, including Zuora (NYSE:ZUO) and its peers.

Organizations are constantly looking to improve organizational efficiency, whether it’s financial planning, tax management, or payroll. Financial and HR software is taking advantage of the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based software delivered via a web browser and paid for via subscription, rather than the hassle and expense of purchasing and managing on-premises enterprise software.

The 15 financial and HR software stocks we track had a mixed Q1, with revenues beating analyst estimates by 1.4% on average, while revenue forecasts for the next quarter were in line with consensus. Stocks, especially growth stocks where cash flows are more important to the story in the long term, had a strong end to 2023. However, the start of 2024 has seen more volatile stock performance due to mixed inflation data, and financial and HR software stocks have had a tough time, with stocks down an average of 6.2% from their previous earnings results.

Zuora (NYSE:ZUO)

Founded in 2007, Zuora (NYSE:ZUO) offers a software-as-a-service platform that enables businesses to invoice and accept payments for recurring subscription products.

Zuora reported revenue of $109.8 million, up 6.5% year over year, in line with analyst expectations. Overall, it was a slower quarter for the company, with gross margin declining and billings falling short of analyst estimates.

“Our first quarter is a testament to the quality of our install base and our ability to drive strong expansion through innovation, including our recent acquisition of Togai,” said Tien Tzuo, founder and CEO of Zuora.

Since the report was released, the company’s shares have fallen 3.9% and are currently trading at $9.48.

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

Top Q1: Bill.com (NYSE:BILL)

Bill.com (NYSE:BILL) was founded in 2006 by René Lacerte after selling his previous payroll and accounting software company, PayCycle, to Intuit. It is a software-as-a-service platform designed to make it easier for small and medium-sized businesses to process payments and invoices.

Bill.com reported revenue of $323 million, up 18.5% year over year and beating analyst expectations by 5.6%. It was a very strong quarter for the company, with an impressive beat on analyst estimates for billings and an optimistic revenue outlook for the quarter.

While it had a great quarter compared to its peers, the market seems dissatisfied with the results, as the stock is down 17.4% since the report. It currently trades at $52.30.

Is It Time to Buy Bill.com? Get access to our full earnings analysis here, it’s free.

Weakest Q1: Global Business Travel (NYSE:GBTG)

Global Business Travel (NYSE:GBTG), a closely held subsidiary of American Express, is a comprehensive provider of travel and expense management services to corporations worldwide.

Global Business Travel reported revenue of $610 million, up 5.5% year over year and 2.3% below analyst expectations. It was a weak quarter for the company, with full-year revenue guidance falling short of analyst expectations.

Global Business Travel posted the weakest results vs. analyst estimates and the weakest full-year forecast update of the group. Interestingly, shares are up 8.1% since the results and are currently trading at $6.73.

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

Marquette (NASDAQ:MQ)

Founded in 2009 by CEO Jason Gardner, Marqeta (NASDAQ: MQ) is an innovative card issuer that enables businesses to issue and process virtual, physical and tokenized credit and debit cards.

Marqeta reported revenue of $118 million, down 45.7% year over year, in line with analyst expectations. Going forward, it was a very strong quarter for the company with an impressive beat on analyst estimates for total billings and a significant improvement in gross margin.

Marqeta had the slowest revenue growth among its peers. Shares are down 6.7% since the filing and are currently trading at $5.44.

Read our full, hands-on report on Marqeta here, it’s free.

BlackLine (NASDAQ:BL)

Founded in 2001 by software engineer Therese Tucker, one of the few women to take a company public, BlackLine (NASDAQ:BL) provides organizations with software to automate accounting and finance tasks.

BlackLine reported revenue of $157.5 million, up 13.3% year over year and beating analyst expectations by 1.5%. Looking back, it was a weak quarter for the company, with customer growth slowing and billings missing analyst estimates.

The company added 13 customers, bringing its total to 4,411. Since the report was released, the stock has fallen 20.9% and is currently trading at $47.82.

Read our full, hands-on report on BlackLine here, it’s free.

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