NYSE$PAYC

Paycom Software Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Paycom reported first quarter results with revenue up 11% year-over-year and GAAP net income representing 49% of total revenues.

Paycom's first quarter 2024 results showed a revenue increase of 10.7% to $499.9 million. GAAP net income was $247.2 million, or $4.37 per diluted share, while non-GAAP net income was $146.6 million, or $2.59 per diluted share. Adjusted EBITDA was $229.5 million.

  • Total revenues increased by 10.7% year-over-year, reaching $499.9 million.
  • GAAP net income was $247.2 million, or $4.37 per diluted share.
  • Non-GAAP net income was $146.6 million, or $2.59 per diluted share.
  • Adjusted EBITDA totaled $229.5 million.

Headline financials

Total Revenue

$500M

Previous: $452M+10.7%
EPS

$4.37

Previous: $2.46+77.6%
Adjusted EBITDA

$230M

Previous: $221M+4.1%
Adjusted EBITDA Margin

45.9%

Previous: 48.8%-5.9%
Gross Margin

84.3%

Previous: 85.6%-1.5%
Capital Expenditures

-$47.7M

Previous: -$40.6M-17.5%
Free Cash Flow

$199M

Previous: $78.7M+153.5%
Net Income

$247M

Previous: $119M+107.2%
Operating Income

$286M

Previous: $160M+78.2%
Gross Profit

$421M

Previous: $386M+9.0%
R&D Expense

$50.5M

No prior period
Stock-Based Comp

-$93.8M

Previous: $27.8M-437.1%

Revenue & EPS history

Paycom · Revenue · Quarterly

$500M

Q1 2024+10.7%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Paycom · $399M total across 1 segment · Q3 2023

  • Recurring and other
    $399M+21.5%

Forward guidance

Paycom provides financial guidance for the quarter ending June 30, 2024, and the year ending December 31, 2024.

Tailwinds

  • Total Revenues in the range of $434 million to $438 million for Q2 2024.
  • Adjusted EBITDA in the range of $151 million to $155 million for Q2 2024.
  • Total Revenues in the range of $1.860 billion to $1.885 billion for FY 2024.
  • Adjusted EBITDA in the range of $720 million to $730 million for FY 2024.
  • Focus on expanding solution automation capabilities.

Headwinds

  • Uncertainty regarding depreciation and amortization.
  • Uncertainty regarding interest expense.
  • Uncertainty regarding taxes.
  • Uncertainty regarding non-cash stock-based compensation expense.
  • Reconciliations of forward-looking adjusted EBITDA ranges to net income are not available at this time without unreasonable effort.

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 2024

Historical avgQ1 2024

+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

Earnings price reactions
QuarterReport dateReaction (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

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