HR Software Q3 Earnings: Paycor (NASDAQ:PYCR) Simply the Best

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 Q3. Today we are looking at the 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 weak Q3; on average, revenues beat analyst consensus estimates by 2.5% while next quarter's revenue guidance was 3.5% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but HR software stocks held their ground better than others, with share prices down 0.2% on average since the previous earnings results.

Best Q3: 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 $143.6 million, up 21.4% year on year, topping analyst expectations by 2.9%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but underwhelming revenue guidance for the next quarter.

“We had a strong start to the year driven by a continued healthy demand environment for our modern HCM solution that powers people and performance,” said Raul Villar, Jr., Chief Executive Officer of Paycor. Paycor Total Revenue

The stock is up 16% since the results and currently trades at $20.71.

Read our full report on Paycor here, it's free.



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 $1.26 billion, up 5.7% year on year, falling short of analyst expectations by 0.7%. It was a weak quarter for the company, with a miss of analysts' revenue estimates. Paychex Total Revenue

Paychex had the slowest revenue growth among its peers. The stock is down 3.9% since the results and currently trades at $122.83.

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

Weakest Q3: 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 $406.3 million, up 21.6% year on year, falling short of analyst expectations by 1.2%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Paycom had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 18.9% since the results and currently trades at $198.45.

Read our full analysis of Paycom's results here.

Ceridian (NYSE:CDAY)

Founded in 1992 as an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Ceridian (NYSE:CDAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.

Ceridian reported revenues of $377.5 million, up 19.6% year on year, surpassing analyst expectations by 2.2%. It was a mixed quarter for the company, with strong sales guidance for the next quarter but decelerating customer growth.

Ceridian pulled off the highest full-year guidance raise among its peers. The company added 74,000 customers to reach a total of 6.35 million. The stock is up 8.9% since the results and currently trades at $69.68.

Read our full, actionable report on Ceridian 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 $317.6 million, up 25.4% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and full-year.

The stock is down 6.9% since the results and currently trades at $159.9.

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

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The author has no position in any of the stocks mentioned