Paycom Reports Strong Q3 Results

OKLAHOMA CITY – Paycom (NYSE:PAYC) Software, Inc. reported better-than-expected third-quarter results, driving a 3.4% increase in shares during after-hours trading.

The cloud-based human capital management software provider posted adjusted earnings per share of $1.67, surpassing analyst estimates of $1.61. Revenue for the quarter was $451.9 million, beating the consensus estimate of $447 million and representing an 11.2% year-over-year increase.

Revenue Breakdown

Paycom's recurring revenue, which made up 98.5% of total revenue, grew 11.6% to $445 million compared to the same period last year. The company's adjusted EBITDA rose to $171.3 million, accounting for 38% of total revenues.

Chad Richison, Paycom's founder, CEO, and chairman, stated, "We posted solid third quarter results and continue to make significant progress toward full-solution automation. We already have the most automated solution in the industry and continue to deliver even stronger ROI to our clients."

Forward Guidance

Looking ahead, Paycom projections for the fourth quarter anticipate revenue between $477 million and $484 million. For the full year 2024, revenue is expected to range from $1.866 billion to $1.873 billion, aligning with analyst expectations of $1.868 billion.

Paycom maintains a robust balance sheet, boasting cash and cash equivalents of $325.8 million as of September 30, 2024, and no debt. During the quarter, Paycom disbursed $21 million in cash dividends and repurchased 303,245 shares of common stock for $44 million.

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