HR Tech Stock Index - HRTA
HR Technology Stocks
Down 4.16%
S&P 500 +22.54%
Based on YTD Through Q3 2024 results
HOW HEALTHY IS THE HR TECH MARKET?
Welcome to the HR Tech Stock Index (HRTA), your essential resource for HR professionals, designed to track the financial health of the top HR technology companies through our unique index. The HR Tech Stock Index is comprised of public firms primarily focused on HR, payroll, recruitment, and performance management software solutions.
Why is it important to pay attention to the financial viability of HR technology vendors?
Why focus on HR tech vendor finances? It's simple: they play a critical role in managing your most vital asset – your people. From recruitment to engagement, HR tech drives business success. Monitoring vendor stock performance provides valuable insights. Falling stock prices may indicate trouble, impacting R&D and support function investments. Conversely, strong stock performance signals stability and innovation potential.
Additionally, it is important to note that many HR Tech vendors are private companies such as BambooHR, iSolved, Rippling, and UKG. Evaluating the financial viability of private companies is more challenging. Of course, when considering the right solution, financial viability is just one factor. Also, financial health can change over time and it is prudent to keep informed of your vendor's performance as part of your ongoing vendor risk assessments.
HR Tech Stock Index (HRTA) vs S&P 500
The HR Tech Stock Index is an equally weighted index of the stock prices of each of the 7 publicly traded HR Tech companies:
- ADP
- Ceridian
- Paychex
- Paycom
- Paycor
- Paylocity
- Workday
We use a comparison to the S&P 500 as a benchmark to compare the HR Tech Stock index to the performance of the broader market. The 7 companies included in the index have a total market capitalization of over $200B. The HR Technology industry is strong and thriving.
Disclaimer: This information is not intended to be investment advice. Seek a licensed professional for investment advice.
Note: If viewing on a mobile device - - turn your phone horizontally to see the HRTA performance graph.
HR Product Comparison -
At a Glance
Compare the top Small & Mid-Market HCM solutions on 20 different aspects of feature/functionality.
2024 Individual Company Performance
Insights: Q3 2024 saw a rebound for HR Tech companies. While the index's total return remains negative for 2024, HR Tech companies posted a positive 13% return for Q3. In fact, every company in the HR Tech index experienced a rebound during the quarter. Paylocity led the group with a 22.71% increase, pushing it to a 1.33% positive return for 2024. ADP and Paychex also performed well, likely due to their substantial and reliable dividends to investors. The worst-performing HR vendor was Paycor, which saw only a slight positive increase of 0.23% over Q2.
One likely reason for the rebound in HR Tech stock prices is the general expectation of an improved economic climate in 2025 and the end of the mass layoffs seen earlier in 2024. This recent improvement in HR Tech stock performance could be a leading indicator that investors and business leaders expect the U.S. economy to avoid a recession in 2025.
Note: Public HR Tech Companies rarely match the fiscal and calendar years. It may be confusing to see Q3 2024 results for one vendor and Q3 or Q4 results for others. It confuses us, too.
2024 Q3 Returns
ADP (ADP)
20.35%
ADP had a 9-month return through Q3 2024 return of 20.35%.
ADP paid a per-share dividend of $1.40 in Q3 2024.
Q4 2024 Results
(July 2024)
Revenues increased 7% to $19.2 billion for the year
Net earnings increased 10% to $3.8 billion for the year
ADP Q4 2024 Press Release
Dayforce (DAY)
(7.23%)
Dayforce (formerly Ceridian) had a 9-month return through Q3 2024 return of (7.23).
Dayforce does not pay a dividend.
Q2 2024 Results
(July 2024)
Revenue of $321.6 million, up 20%
Total revenue of $423.3 million, up 16%
Paychex (PAYX)
16.51%
Paychex had a 9-month return through Q3 2024 return of 16.51%.
Paychex paid a per-share dividend of $.98 in Q3 2024.
Q4 2024 Results
(June 2024)
Total revenue increased to $1.295 billion for the fourth quarter
Operating income grew to $481.8 million for the fourth quarter.
Paycom (PAYC)
(18.06%)
Paycor had a 9-month return through Q3 2024 return of (18.06%).
Paycor paid its first dividend on June 11, 2023. It paid Q3 2024 dividends of $.375.
Q2 2024 Results
(July 2024)
Second Quarter Revenues of $438 million, up 9% from the comparable prior year period
Second Quarter GAAP Net Income of $68 million, representing 16% of total revenues, or $1.20 per diluted share
Second Quarter Non-GAAP Net Income of $92 million, or $1.62 per diluted share
Paycor (PYCR)
(32.43%)
Paycor had a 9-month return through Q3 2024 return of (32.43%).
Paycom does not pay a dividend.
Q2 2024 Results
(Feb 2024)
Q2 Total revenues of $159.5 million, an increase of 20% year-over-year
Q2 Recurring revenue of $147.2 million, an increase of 18% year-over-year
Paylocity Holdings (PCTY)
1.33%
Paylocity had a 9-month return through Q3 2024 return of 1.33%
Paylocity does not pay a dividend.
Q2 2024 Results
(August 2024)
Q4 2024 Recurring & Other Revenue of $324.7 million, up 15% year-over-year
Q4 2024 Total Revenue of $357.3 million, up 16% year-over-year
Workday (WDAY)
(8.90%)
Workday had a 9-month return through Q3 2024 return of (8.90%).
Workday does not pay a dividend.
Q1 2025 Results
(May 2024)
Total revenues were $1.990 billion, an increase of 18.1% from the first quarter of fiscal 2024.
Subscription revenues were $1.815 billion, an increase of 18.8% from the same period last year.
2024 Performance from Jan 1st - Sept 30th, 2024. Performance returns are updated quarterly. HRTA is an equally weighted stock index. Dividend-paying stocks' performance are inclusive of dividends.
