NYSE$PAYC

Paycom Software Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Paycom's Q4 2022 results were released, showcasing revenue growth and strong profitability.

Paycom Software, Inc. reported Q4 2022 revenues of $370.6 million, a 30% increase year-over-year. GAAP net income was $80.0 million, or $1.38 per diluted share, while adjusted EBITDA was $163.9 million.

  • Total revenues increased by 30% year-over-year to $370.6 million.
  • Recurring revenues grew by 30% to $364.0 million, representing 98.2% of total revenues.
  • GAAP net income was $80.0 million, or $1.38 per diluted share.
  • Adjusted EBITDA reached $163.9 million.

Headline financials

Total Revenue

$371M

Previous: $285M+30.0%
EPS (adj)

$1.73

Previous: $1.11+55.9%
Adjusted EBITDA

$164M

Previous: $110M+49.6%
Adjusted EBITDA Margin

44.2%

Previous: 38.4%+15.1%
Gross Margin

84.1%

No prior period
Capital Expenditures

$40.6M

Previous: $34M+19.6%
Free Cash Flow

$87.8M

Previous: $55.8M+57.5%
Net Income

$80M

Previous: $48.7M+64.2%
Operating Income

$106M

Previous: $68.6M+54.2%
Gross Profit

$312M

Previous: $238M+30.6%
Cash & Equivalents

$401M

Previous: $278M+44.1%
Total Assets

$3.9B

Previous: $3.22B+21.4%
Stock-Based Comp

$24.1M

Previous: $21.1M+13.9%

Revenue & EPS history

Paycom · Revenue · Quarterly

$371M

Q4 2022+30%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Paycom · $364M total across 1 segment · Q4 2022

  • Recurring and other
    $364M+30.0%

Forward guidance

Paycom provides financial guidance for Q1 2023 and FY 2023.

Tailwinds

  • Q1 2023 Total Revenues are expected to be in the range of $443 million to $445 million.
  • Q1 2023 Adjusted EBITDA is expected to be in the range of $210 million to $212 million.
  • FY 2023 Total Revenues are expected to be in the range of $1.700 billion to $1.702 billion.
  • FY 2023 Adjusted EBITDA is expected to be in the range of $700 million to $702 million.
  • Company refers to a forward-looking estimate of our implied revenue growth rate plus adjusted EBITDA margin, or the “Rule of 65”.

Headwinds

  • The forward-looking adjusted EBITDA ranges presented have not been reconciled to net income.
  • The forward-looking adjusted EBITDA margins discussed have not been reconciled to comparable GAAP measures.
  • The forward looking non-GAAP effective income tax rate discussed on the teleconference call have not been reconciled to comparable GAAP measures.
  • The forward-looking adjusted gross margin discussed on the teleconference call have not been reconciled to GAAP gross margin.
  • Reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margins to net income margin, the forward-looking adjusted gross margin to gross margin, and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time 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 Q4 2022

Historical avgQ4 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

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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro