NYSE$PAYC

Paycom Software Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Paycom's Q2 2020 financial results reflected a 7% increase in total revenues and strong performance in new business, positioning the company well for long-term growth.

Paycom reported a 7% increase in total revenues to $181.6 million for the second quarter of 2020. GAAP net income was $28.6 million, or $0.49 per diluted share, while non-GAAP net income was $35.9 million, or $0.62 per diluted share. Adjusted EBITDA was $61.2 million, representing 33.7% of total revenues.

  • Total revenues increased by 7% to $181.6 million compared to the same period last year.
  • Recurring revenues grew by 7% to $178.0 million, constituting 98% of total revenues.
  • GAAP net income was $28.6 million, or $0.49 per diluted share.
  • Adjusted EBITDA was $61.2 million, representing 33.7% of total revenues.

Headline financials

Total Revenue

$182M

Previous: $169M+7.2%
EPS (adj)

$0.62

Previous: $0.75-17.3%
Adjusted EBITDA

$61.2M

Previous: $69.4M-11.8%
Adjusted EBITDA Margin

33.7%

No prior period
Capital Expenditures

-$52.5M

Previous: -$34.7M-51.2%
Free Cash Flow

-$23.9M

Previous: $14.1M-269.8%
Net Income

$28.6M

Previous: $48.8M-41.4%
Operating Income

$26.6M

Previous: $52.9M-49.7%
Gross Profit

$152M

Previous: $144M+5.5%
Cash & Equivalents

$114M

Previous: $94.8M+19.7%
Total Assets

$1.92B

Previous: $1.83B+5.2%
Stock-Based Comp

$21.2M

Previous: $5.6M+279.1%

Revenue & EPS history

Paycom · Revenue · Quarterly

$182M

Q2 2020+7.2%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Paycom · $178M total across 1 segment · Q2 2020

  • Recurring and other
    $178M+7.2%

Forward guidance

Paycom expects total revenues in the range of $191.0 million to $193.0 million and adjusted EBITDA in the range of $56.0 million to $58.0 million for the quarter ending September 30, 2020.

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 Q2 2020

Historical avgQ2 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

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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