NYSE$PAYC

Paycom Software Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong revenue growth and margin expansion driven by increasing demand for its differentiated HR and payroll solution.

Paycom Software, Inc. announced its financial results for the quarter ended June 30, 2023, with total revenues of $401 million, a 27% increase from the prior year period. GAAP net income was $65 million, or $1.11 per diluted share, while non-GAAP net income was $94 million, or $1.62 per diluted share. Adjusted EBITDA was $157 million, representing 39% of total revenues.

  • Total revenues of $401.1 million, a 26.6% increase compared to the same period last year.
  • Recurring revenues of $394.5 million, a 26.6% increase year-over-year, constituting 98.4% of total revenues.
  • GAAP net income was $64.5 million, or $1.11 per diluted share, compared to $57.4 million, or $0.99 per diluted share, in the same period last year.
  • Adjusted EBITDA was $156.6 million, compared to $119.6 million in the same period last year.

Headline financials

Total Revenue

$401M

Previous: $317M+26.6%
EPS (adj)

$1.62

Previous: $1.26+28.6%
Adjusted EBITDA

$157M

Previous: $120M+30.9%
Adjusted EBITDA Margin

39.0%

Previous: 37.7%+3.4%
Capital Expenditures

-$83.4M

Previous: -$67.7M-23.2%
Free Cash Flow

-$18.9M

Previous: -$10.4M-82.4%
Net Income

$64.5M

Previous: $57.4M+12.5%
Operating Income

$87.3M

Previous: $72.3M+20.7%
Gross Profit

$334M

Previous: $267M+25.1%
Cash & Equivalents

$537M

Previous: $279M+92.3%
Total Assets

$3.95B

Previous: $4.89B-19.2%
Stock-Based Comp

$35.4M

Previous: $24.3M+45.7%

Revenue & EPS history

Paycom · Revenue · Quarterly

$401M

Q2 2023+26.6%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Paycom · $395M total across 1 segment · Q2 2023

  • Recurring and other
    $395M+26.6%

Forward guidance

Paycom provides the following expected financial guidance for the quarter ending September 30, 2023 and the year ending December 31, 2023.

Tailwinds

  • Total Revenues in the range of $410 million to $412 million for the quarter ending September 30, 2023.
  • Adjusted EBITDA in the range of $156 million to $158 million for the quarter ending September 30, 2023.
  • Total Revenues in the range of $1.715 billion to $1.717 billion for the year ending December 31, 2023.
  • Adjusted EBITDA in the range of $722 million to $724 million for the year ending December 31, 2023.

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 2023

Historical avgQ2 2023

+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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