NYSE$PAYC
Paycom Software Inc · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Paycom reported strong Q4 2019 results with revenue growth and increased profitability.
Paycom's Q4 2019 revenues reached $193.4 million, a 29% increase year-over-year. GAAP net income was $45.4 million, or $0.78 per diluted share, while adjusted EBITDA was $78.6 million. The company's annual revenue retention rate increased to 93%.
- Total revenues increased by 29% compared to the same period last year.
- Recurring revenues increased by 29% and constituted 98% of total revenues.
- GAAP net income increased to $45.4 million, or $0.78 per diluted share.
- Adjusted EBITDA increased to $78.6 million.
Headline financials
Revenue & EPS history
Paycom · Revenue · Quarterly
$193M
Revenue by segment
Paycom · $190M total across 1 segment · Q4 2019
- Recurring and other$190M+28.5%100.0%
Forward guidance
Paycom provides the following expected financial guidance for the year ending December 31, 2020 and the quarter ending March 31, 2020: Year Ending December 31, 2020 Total Revenues in the range of $911 million to $913 million. Adjusted EBITDA in the range of $384 million to $386 million. Quarter Ending March 31, 2020(2) Total Revenues in the range of $240 million to $242 million. Adjusted EBITDA in the range of $113 million to $115 million.
Tailwinds
- Total Revenues in the range of $911 million to $913 million for the year ending December 31, 2020.
- Adjusted EBITDA in the range of $384 million to $386 million for the year ending December 31, 2020.
- Total Revenues in the range of $240 million to $242 million for the quarter ending March 31, 2020.
- Adjusted EBITDA in the range of $113 million to $115 million for the quarter ending March 31, 2020.
- In the year ending December 31, 2021, each quarter contains thirteen banking Wednesdays
Headwinds
- Paycom receives approximately half of its weekly recurring revenue on Wednesday.
- Because January 1, 2020 fell on a Wednesday, there are only twelve banking Wednesdays in the first quarter ending March 31, 2020 instead of the usual thirteen.
- In the third quarter ending September 30, 2020, there are fourteen banking Wednesdays instead of the usual thirteen.
- Paycom expects recurring revenue and, consequently, adjusted EBITDA, to be impacted by approximately a half week of recurring revenue and adjusted EBITDA in the first quarter of 2020
- The third quarter of 2020 will gain approximately one additional half week of recurring revenue and adjusted EBITDA.
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 Q4 2019
+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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