NYSE$PAYC
Paycom Software Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Paycom's Q2 2022 results showcased strong financial performance, with revenue growth and profitability.
Paycom reported strong second-quarter results, with total revenues of $317 million, a 31% increase year-over-year. GAAP net income was $57 million, or $0.99 per diluted share, while non-GAAP net income reached $73 million, or $1.26 per diluted share. Adjusted EBITDA was $120 million, representing 38% of total revenues.
- Total revenues reached $317 million, up 31% year-over-year.
- Recurring revenues increased by 31.1% and constituted 98.3% of total revenues.
- GAAP net income was $57 million, or $0.99 per diluted share.
- Adjusted EBITDA was $120 million, representing 38% of total revenues.
Headline financials
Revenue & EPS history
Paycom · Revenue · Quarterly
$317M
Revenue by segment
Paycom · $312M total across 1 segment · Q2 2022
- Recurring and other$312M+31.1%100.0%
Forward guidance
Paycom provided financial guidance for the quarter ending September 30, 2022, and the year ending December 31, 2022.
Tailwinds
- Total Revenues in the range of $327 million to $329 million for the quarter ending September 30, 2022.
- Adjusted EBITDA in the range of $117 million to $119 million for the quarter ending September 30, 2022.
- Total Revenues in the range of $1.354 billion to $1.356 billion for the year ending December 31, 2022.
- Adjusted EBITDA in the range of $546 million to $548 million for the year ending December 31, 2022.
- Management refers to a forward-looking estimate of implied revenue growth rate plus adjusted EBITDA margin, or the “Rule of 65.”
Headwinds
- The forward-looking adjusted EBITDA ranges presented above have not been reconciled to net income.
- The forward-looking adjusted EBITDA margins discussed on the teleconference call have not been reconciled to net income margin.
- Applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, change in fair value of our interest rate swap and other items.
- The forward-looking adjusted gross margin range discussed on the teleconference call has not been reconciled to GAAP gross margin.
- Because management is unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, they are unable to reconcile the “Rule of 65” to a comparable GAAP measure 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 Q2 2022
+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 | — | — | — |
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