Wrapping up Q3 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including American Express Global Business Travel (NYSE: GBTG) 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 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 as they are up 1.8% on average since the latest earnings results.

American Express Global Business Travel (NYSE: GBTG)

Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE: GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.

American Express Global Business Travel reported revenues of $674 million, up 12.9% year on year. This print exceeded analysts’ expectations by 10%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue estimates and a decent beat of analysts’ EBITDA estimates.

American Express Global Business Travel pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.3% since reporting and currently trades at $7.93.

Is now the time to buy American Express Global Business Travel? Access our full analysis of the earnings results 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 an impressive beat of analysts’ EBITDA and total payment volume estimates.

The market seems happy with the results as the stock is up 7.4% since reporting. It currently trades at $4.81.

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

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, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and decelerating customer growth.

BlackLine delivered the slowest revenue growth in the group. The company lost 27 customers and ended up with a total of 4,424. The stock is flat since the results and currently trades at $56.75.

Read our full analysis of BlackLine’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 number was in line with analysts’ expectations. Zooming out, it was a slower quarter as it produced a slight miss of analysts’ EBITDA estimates.

The stock is down 10.2% since reporting and currently trades at $115.44.

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

Asure Software (NASDAQ: ASUR)

Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.

Asure Software reported revenues of $36.25 million, up 23.7% year on year. This result topped analysts’ expectations by 1.6%. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ billings estimates but full-year revenue guidance missing analysts’ expectations significantly.

Asure Software had the weakest full-year guidance update among its peers. The stock is up 9.1% since reporting and currently trades at $8.89.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.