NYSE$PAYC
Paycom Software Inc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Reported excellent first quarter results with continued success onboarding new clients.
Paycom Software, Inc. reported first quarter revenues of $242.4 million, a 21% increase year-over-year. GAAP net income was $63.0 million, or $1.08 per diluted share, while adjusted EBITDA was $117.9 million, or 49% of total revenues.
- Total revenues of $242.4 million, a 21% increase compared to the same period last year.
- GAAP Net Income was $63.0 million, or $1.08 per diluted share.
- Adjusted EBITDA was $117.9 million.
- The company withdrew its previously issued full-year 2020 guidance due to macroeconomic uncertainties.
Headline financials
Revenue & EPS history
Paycom · Revenue · Quarterly
$242M
Revenue by segment
Paycom · $238M total across 1 segment · Q1 2020
- Recurring and other$238M+21.1%100.0%
Forward guidance
Paycom is withdrawing its previously issued full-year 2020 guidance in light of macroeconomic uncertainties, particularly unemployment, arising from the current COVID-19 crisis. The company plans to return to providing quarterly and full-year guidance once they have more visibility into the effects of the COVID-19 pandemic on the economy, specifically as unemployment numbers become more predictable.
Tailwinds
- Our solution allows clients to seamlessly manage and communicate with their remote workforces.
- Our solution allows clients to seamlessly manage and communicate with their remote workforces.
- We have temporarily halted business-related travel.
- We have temporarily halted business-related travel.
- Our large market opportunity, profitable recurring business and attractive value proposition will help us mitigate the impact of headcount reductions across our client base
Headwinds
- The COVID-19 pandemic has resulted in, and may continue to result in, headcount reductions across our client base.
- The COVID-19 pandemic has resulted in, and may continue to result in, headcount reductions across our client base.
- Significantly lower average interest rates in 2020, as well as slower growth in the average funds held for clients balance due to lower employee headcount at our clients and clients electing the Social Security tax deferral under the CARES Act, will have a negative effect on recurring revenue growth in future periods.
- Significantly lower average interest rates in 2020, as well as slower growth in the average funds held for clients balance due to lower employee headcount at our clients and clients electing the Social Security tax deferral under the CARES Act, will have a negative effect on recurring revenue growth in future periods.
- Paycom is withdrawing its previously issued full-year 2020 guidance in light of macroeconomic uncertainties, particularly unemployment, arising from the current COVID-19 crisis.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+1.4%
Avg return
Earnings day
+0.3%
Avg return
5 days after
+2.9%
Avg return
30 days after
60%
32 / 53 earnings
Positive
+22.1%
Q2 2018
Best reaction
-37.2%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +10.0% | +7.6% | +8.9% | |
| Q4 2025 | +1.8% | +3.0% | +5.9% | |
| Q3 2025 | -10.9% | -7.3% | -9.8% | |
| Q1 2025 | +9.1% | +13.8% | +16.2% | |
| Q4 2024 | +2.4% | +3.1% | +0.5% | |
| Q3 2024 | +1.2% | +10.6% | +11.0% | |
| Q2 2024 | +1.2% | -4.5% | -1.6% | |
| Q1 2024 | -11.3% | -7.2% | -22.7% | |
| Q4 2023 | -1.0% | -3.0% | -8.3% | |
| Q3 2023 | -37.2% | -33.8% | -24.3% | |
| Q2 2023 | -18.7% | -21.2% | -20.0% | |
| Q1 2023 | -1.3% | -8.4% | -5.5% | |
| Q4 2022 | -2.6% | -3.8% | -13.3% | |
| Q3 2022 | -8.5% | -11.5% | +0.1% | |
| Q2 2022 | +6.1% | +11.4% | +4.4% | |
| Q1 2022 | +12.1% | +0.9% | +3.5% | |
| Q4 2021 | +11.1% | +6.4% | -5.8% | |
| Q3 2021 | -6.3% | -7.7% | -19.7% | |
| Q2 2021 | +10.7% | +16.6% | +25.2% | |
| Q1 2021 | -10.0% | -13.5% | -15.7% | |
| Q4 2020 | -5.9% | -4.6% | -11.3% | |
| Q3 2020 | +1.1% | +9.7% | +18.4% | |
| Q2 2020 | +4.8% | +3.0% | -1.4% | |
| Q1 2020 | +19.4% | +6.9% | +27.0% | |
| Q4 2019 | -13.9% | -11.8% | -20.7% | |
| Q3 2019 | +1.9% | +2.5% | +33.8% | |
| Q2 2019 | +4.9% | +3.0% | +10.7% | |
| Q1 2019 | +1.7% | +4.5% | +5.6% | |
| Q4 2018 | +8.5% | +12.8% | +13.0% | |
| Q3 2018 | +1.1% | +1.0% | +6.1% | |
| Q2 2018 | +22.1% | +28.8% | +48.2% | |
| Q1 2018 | -8.6% | -6.1% | -7.7% | |
| Q4 2017 | +0.5% | -0.9% | +30.1% | |
| Q3 2017 | -3.5% | +0.2% | +2.3% | |
| Q2 2017 | -2.8% | -0.9% | +6.4% | |
| Q1 2017 | +4.2% | +6.5% | +10.5% | |
| Q4 2016 | +13.0% | +14.2% | +23.7% | |
| Q3 2016 | -15.5% | -16.9% | -17.6% | |
| Q2 2016 | +6.6% | +7.7% | +7.4% | |
| Q1 2016 | +2.8% | — | — | |
| Q4 2015 | -2.7% | — | — | |
| Q3 2015 | +17.3% | — | — | |
| Q2 2015 | +20.4% | — | — | |
| Q1 2015 | +12.8% | — | — | |
| Q4 2012 | -3.2% | — | — | |
| Q4 2014 | +5.7% | — | — | |
| Q3 2013 | +2.2% | — | — | |
| Q3 2014 | +19.6% | — | — | |
| Q2 2013 | +0.7% | — | — | |
| Q2 2014 | +9.0% | — | — | |
| Q1 2013 | -3.2% | — | — | |
| Q4 2013 | -3.2% | — | — | |
| Q1 2014 | -1.8% | — | — | |
| Q3 2012 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro