Let’s dig into the relative performance of BlackLine (NASDAQ: BL) and its peers as we unravel the now-completed Q3 finance and hr software earnings season.

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 13 finance and HR software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q3: BlackLine (NASDAQ: BL)

Born from the vision to eliminate tedious manual spreadsheet work for accountants, BlackLine (NASDAQ: BL) provides cloud-based software that automates and streamlines financial close, intercompany accounting, and invoice-to-cash processes for accounting departments.

BlackLine reported revenues of $178.3 million, up 7.5% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and decelerating customer growth.

“BlackLine’s third-quarter results, with increasing revenue growth, solid margins, and strong free cash flow, demonstrate that our focus on improved execution is taking hold,” said Owen Ryan, CEO of BlackLine.

BlackLine delivered the slowest revenue growth of the whole group. The company lost 27 customers and ended up with a total of 4,424. Interestingly, the stock is up 2.2% since reporting and currently trades at $58.08.

Read our full report on BlackLine here, it’s free for active Edge members.

Best Q3: Marqeta (NASDAQ: MQ)

Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ: MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions.

Marqeta reported revenues of $163.3 million, up 27.6% year on year, outperforming analysts’ expectations by 9.7%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ total payment volume estimates.

The market seems happy with the results as the stock is up 5.2% since reporting. It currently trades at $4.72.

Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it’s free for active Edge members.

Dayforce (NYSE: DAY)

Rebranded from Ceridian in January 2024 to highlight its flagship product, Dayforce (NYSE: DAY) provides cloud-based software that helps organizations manage their entire employee lifecycle, including HR, payroll, workforce management, benefits, and talent development.

Dayforce reported revenues of $481.6 million, up 9.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a miss of analysts’ billings estimates.

Dayforce delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.1% since the results and currently trades at $69.11.

Read our full analysis of Dayforce’s results here.

Paychex (NASDAQ: PAYX)

Once known as the go-to service for small business payroll needs, Paychex (NASDAQ: PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.

Paychex reported revenues of $1.54 billion, up 16.8% year on year. This print met analysts’ expectations. Aside from that, it was a slower quarter as it produced a slight miss of analysts’ EBITDA estimates.

The stock is down 13.1% since reporting and currently trades at $111.75.

Read our full, actionable report on Paychex here, it’s free for active Edge members.

Paylocity (NASDAQ: PCTY)

Operating in a field where companies traditionally juggled multiple disconnected systems, Paylocity (NASDAQ: PCTY) provides cloud-based human capital management and payroll software solutions that help businesses manage their workforce and HR processes.

Paylocity reported revenues of $408.2 million, up 12.5% year on year. This number topped analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

The stock is up 4.7% since reporting and currently trades at $145.84.

Read our full, actionable report on Paylocity here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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