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Mar 31, 2021
Paycom Q1 2021 Earnings Report
Reported first quarter results with revenue up 12.3% from the comparable prior year period.
Key Takeaways
Paycom Software, Inc. reported financial results for the quarter ended March 31, 2021, with total revenues of $272.2 million, a 12.3% increase compared to the same period last year. GAAP net income was $64.6 million, or $1.11 per diluted share, while non-GAAP net income was $85.9 million, or $1.47 per diluted share. Adjusted EBITDA was $133.0 million.
Total revenues reached $272.2 million, a 12.3% increase year-over-year.
GAAP Net Income was $64.6 million, or $1.11 per diluted share.
Non-GAAP Net Income was $85.9 million, or $1.47 per diluted share.
Adjusted EBITDA was $133.0 million.
Paycom
Paycom
Paycom Revenue by Segment
Revenue by Segment
Recurring and Other Revenues Revenue
CapyFin.com Forward Guidance
Paycom provides the following expected financial guidance for the quarter ending June 30, 2021 and the year ending December 31, 2021:
Positive Outlook
- Total Revenues in the range of $231 million to $233 million for the quarter ending June 30, 2021.
- Adjusted EBITDA in the range of $80 million to $82 million for the quarter ending June 30, 2021.
- Total Revenues in the range of $1.017 billion to $1.019 billion for the year ending December 31, 2021.
- Adjusted EBITDA in the range of $400 million to $402 million for the year ending December 31, 2021.
- Cleaner year-over-year comparisons will provide a better reflection of our strong revenue growth profile
Challenges Ahead
- The COVID-19 pandemic has resulted in, and may continue to result in, headcount reductions across our client base.
- Decreased headcount at our clients negatively impacted our recurring revenue in the first quarter of 2021, and we expect that our recurring revenue in future periods will continue to be negatively impacted by such headcount reductions until employment levels among our client base at the onset of the pandemic return to pre-pandemic levels.
- Significantly lower average interest rates in the first quarter of 2021 as compared to the majority of the first quarter of 2020 had a negative effect on interest earned on funds held for clients and, consequently, recurring revenue growth in the first quarter of 2021.
- It is not possible at this time to estimate the full impact that the crisis could continue to have on our business and results of operations.
- We have not reconciled the forward-looking adjusted EBITDA ranges presented above and discussed on the teleconference call to net income