Latest news with #RenéLacerte
Yahoo
14 hours ago
- Business
- Yahoo
Q1 Earnings Highlights: Bill.com (NYSE:BILL) Vs The Rest Of The Finance and HR Software Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how finance and hr software stocks fared in Q1, starting with (NYSE:BILL). 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 satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.4% while next quarter's revenue guidance was 1.2% below. Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results. Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses. reported revenues of $358.2 million, up 10.9% year on year. This print exceeded analysts' expectations by 0.8%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EBITDA estimates. The stock is down 4.1% since reporting and currently trades at $45.59. We think is a good business, but is it a buy today? Read our full report here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $133.5 million, up 17% year on year, outperforming analysts' expectations by 5%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates. Flywire delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2% since reporting. It currently trades at $10.25. Is now the time to buy Flywire? Access our full analysis of the earnings results here, it's free. Holding close ties to American Express, Global Business Travel (NYSE:GBTG) is a comprehensive travel and expense management services provider to corporations worldwide. Global Business Travel reported revenues of $621 million, up 1.8% year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts' expectations. Global Business Travel delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 3.6% since the results and currently trades at $6.64. Read our full analysis of Global Business Travel's results here. 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 $454.5 million, up 13.3% year on year. This print beat analysts' expectations by 2.9%. It was a very strong quarter as it also put up an impressive beat of analysts' EBITDA estimates. The stock is down 4.2% since reporting and currently trades at $186.12. Read our full, actionable report on Paylocity here, it's free. Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations. Workiva reported revenues of $206.3 million, up 17.4% year on year. This result surpassed analysts' expectations by 1.1%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts' EBITDA estimates but EPS guidance for next quarter missing analysts' expectations. The company added 24 enterprise customers paying more than $100,000 annually to reach a total of 2,079. The stock is down 6.4% since reporting and currently trades at $69.55. Read our full, actionable report on Workiva here, it's free. 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 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Bill.com (BILL): Buy, Sell, or Hold Post Q1 Earnings?
has gotten torched over the last six months - since November 2024, its stock price has dropped 52.2% to $44.40 per share. This might have investors contemplating their next move. Following the drawdown, is this a buying opportunity for BILL? Find out in our full research report, it's free. Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. billings punched in at $358.2 million in Q1, and over the last four quarters, its year-on-year growth averaged 15.3%. This performance was solid, indicating robust customer demand. The cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. is extremely efficient at acquiring new customers, and its CAC payback period checked in at 12.6 months this quarter. The company's rapid sales cycles stem from its strong brand reputation and self-serve model, where it can onboard many small customers with little to no oversight. These dynamics give more resources to pursue new product initiatives so it can potentially move up market and serve enterprise clients, which can provide a second leg of growth. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Over the next year, analysts predict cash conversion will fall. Their consensus estimates imply its free cash flow margin of 22.3% for the last 12 months will decrease to 16.3%. merits more than compensate for its flaws. After the recent drawdown, the stock trades at 2.9× forward price-to-sales (or $44.40 per share). Is now the right time to buy? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Bill.com (NYSE:BILL) Beats Q1 Sales Targets But Quarterly Revenue Guidance Significantly Misses Expectations
Payments and billing software maker (NYSE:BILL) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 10.9% year on year to $358.2 million. On the other hand, next quarter's revenue guidance of $375.5 million was less impressive, coming in 1.8% below analysts' estimates. Its non-GAAP profit of $0.62 per share was 65.8% above analysts' consensus estimates. Is now the time to buy Find out in our full research report. Revenue: $358.2 million vs analyst estimates of $355.4 million (10.9% year-on-year growth, 0.8% beat) Adjusted EPS: $0.62 vs analyst estimates of $0.37 (65.8% beat) Adjusted Operating Income: $53.3 million vs analyst estimates of $41.32 million (14.9% margin, 29% beat) Revenue Guidance for Q2 CY2025 is $375.5 million at the midpoint, below analyst estimates of $382.3 million Management raised its full-year Adjusted EPS guidance to $2.08 at the midpoint, a 8.1% increase Operating Margin: -8.1%, in line with the same quarter last year Free Cash Flow Margin: 25.3%, up from 19.8% in the previous quarter Customers: 488,600 Market Capitalization: $4.73 billion Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, grew its sales at an exceptional 39.9% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis. This quarter, reported year-on-year revenue growth of 10.9%, and its $358.2 million of revenue exceeded Wall Street's estimates by 0.8%. Company management is currently guiding for a 9.3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 12.6% over the next 12 months, a deceleration versus the last three years. Still, this projection is above average for the sector and suggests the market is baking in some success for its newer products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. is extremely efficient at acquiring new customers, and its CAC payback period checked in at 11.6 months this quarter. The company's rapid sales cycles stem from its strong brand reputation and self-serve model, where it can onboard many small customers with little to no oversight. These dynamics give more resources to pursue new product initiatives so it can potentially move up market and serve enterprise clients, which can provide a second leg of growth. We were impressed by optimistic EPS guidance for next quarter, which blew past analysts' expectations. We were also glad its full-year EPS guidance trumped Wall Street's estimates. On the other hand, its revenue guidance for next quarter missed significantly and its full-year revenue guidance was in line with Wall Street's estimates. Overall, this print was mixed but still had some key positives. Investors were likely hoping for more, and shares traded down 2.2% to $46.50 immediately after reporting. Should you buy the stock or not? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
2 Cash-Producing Stocks Worth Your Attention and 1 to Ignore
A company that generates cash isn't automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. Keeping that in mind, here are two cash-producing companies that reinvest wisely to drive long-term success and one that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 22.7% With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE:MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail. Why Are We Cautious About MTD? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Projected sales growth of 3.4% for the next 12 months suggests sluggish demand Static adjusted operating margin over the last two years shows it couldn't become more efficient Mettler-Toledo is trading at $1,100 per share, or 25.3x forward P/E. Read our free research report to see why you should think twice about including MTD in your portfolio, it's free. Trailing 12-Month Free Cash Flow Margin: 20.9% Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses. Why Could BILL Be a Winner? Winning new contracts that can potentially increase in value as its billings growth has averaged 17.6% over the last year Prominent and differentiated software culminates in a best-in-class gross margin of 85.1% Operating margin improvement of 12.7 percentage points over the last year demonstrates its ability to scale efficiently stock price of $46.99 implies a valuation ratio of 3.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it's free. Trailing 12-Month Free Cash Flow Margin: 4.1% Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer. Why Are We Positive On TSCO? Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations Forecasted revenue growth of 5.6% for the next 12 months indicates its momentum over the last six years is sustainable Industry-leading 35.2% return on capital demonstrates management's skill in finding high-return investments At $50.49 per share, Tractor Supply trades at 23x forward P/E. Is now a good time to buy? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
Yahoo
02-05-2025
- Business
- Yahoo
1 Cash-Heavy Stock to Research Further and 2 to Steer Clear Of
Companies with more cash than debt can be financially resilient, but that doesn't mean they're all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers. Just because a business has cash doesn't mean it's a good investment. Luckily, StockStory is here to help you separate the winners from the losers. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two best left off your watchlist. Net Cash Position: $99.12 million (58% of Market Cap) Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games. Why Do We Avoid MYPS? Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years Poor expense management has led to operating losses Incremental sales over the last four years were much less profitable as its earnings per share fell by 41.4% annually while its revenue grew PlayStudios is trading at $1.28 per share, or 2.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including MYPS in your portfolio, it's free. Net Cash Position: $19.66 million (4.1% of Market Cap) A trailblazer in the avocado industry, Calavo Growers (NASDAQ:CVGW) is a pioneering California-based provider of high-quality avocados and other fresh food products. Why Does CVGW Worry Us? Sales tumbled by 14.7% annually over the last three years, showing consumer trends are working against its favor Revenue base of $688.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale Gross margin of 10.6% is below its competitors, leaving less money to invest in areas like marketing and production facilities At $27.02 per share, Calavo trades at 15.8x forward P/E. Check out our free in-depth research report to learn more about why CVGW doesn't pass our bar. Net Cash Position: $435.7 million (9.4% of Market Cap) Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, (NYSE:BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses. Why Could BILL Be a Winner? Average billings growth of 17.6% over the last year enhances its liquidity and shows there is steady demand for its products Prominent and differentiated software culminates in a best-in-class gross margin of 85.1% Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient stock price of $45.25 implies a valuation ratio of 3.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
