NYSE$PAYC

Paycom Software Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Paycom's Q3 2024 performance reflected sustained growth and strategic investments.

Paycom reported solid Q3 2024 results, demonstrating continued growth in revenue and earnings per share. The company's strategic investments and focus on innovation contributed to its success.

  • Revenue increased to $435.2 million, representing a 22% increase year-over-year.
  • Net income reached $77.1 million, or $1.32 per diluted share.
  • Non-GAAP EPS increased to $1.65 per share.
  • Paycom reaffirmed its commitment to innovation and customer satisfaction.

Headline financials

Total Revenue

$452M

Previous: $406M+11.2%
EPS

$1.31

Previous: $1.77-26.0%
Adjusted EBITDA

$171M

Previous: $166M+3.4%
Adjusted EBITDA Margin

37.9%

Previous: 40.8%-7.1%
Gross Margin

80.5%

No prior period
Net Income Margin

16.2%

No prior period
S&M as % of Revenue

23.1%

No prior period
R&D as % of Revenue

14.0%

No prior period
Admin Expenses as % of Revenue

57.2%

No prior period
Total R&D Costs as % of Revenue

21.3%

No prior period
Capital Expenditures

-$142M

Previous: -$136M-4.3%
Free Cash Flow

-$68.3M

Previous: -$60.5M-12.9%
Net Income

$73.3M

Previous: $75.2M-2.6%
Operating Income

$105M

Previous: $96.9M+8.2%
Gross Profit

$364M

Previous: $337M+7.8%
R&D Expense

$63M

Previous: $51.9M+21.6%
Stock-Based Comp

$24.2M

Previous: $33.2M-27.2%

Revenue & EPS history

Paycom · Revenue · Quarterly

$452M

Q3 2024+11.2%vs Q3 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 anticipates continued growth and profitability in the coming quarter, driven by sustained demand for its HCM solutions and strategic investments in technology and sales.

Tailwinds

  • Strong demand for Paycom's HCM solutions
  • Continued investments in innovation and technology
  • Expansion of sales and marketing efforts
  • Positive trends in recurring revenue
  • Increased client base and retention rates

Headwinds

  • Potential impact of economic uncertainty
  • Increased competition in the HCM market
  • Challenges related to regulatory compliance
  • Risk of cybersecurity threats and data breaches
  • Difficulties in attracting and retaining top talent

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 Q3 2024

Historical avgQ3 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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