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Paycom
🇺🇸 NYSE:PAYC
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Mar 31, 2022

Paycom Q1 2022 Earnings Report

Reported first quarter results with revenue up 30% and adjusted EBITDA representing 48% of total revenues.

Key Takeaways

Paycom Software, Inc. announced its financial results for the quarter ended March 31, 2022, with total revenues of $353.5 million, a 29.9% increase compared to the same period last year. GAAP Net Income was $91.9 million, or $1.58 per diluted share, while Non-GAAP Net Income was $110.6 million, or $1.90 per diluted share. Adjusted EBITDA was $170.1 million.

Total revenues increased by 29.9% year-over-year to $353.5 million.

Recurring revenues grew by 30.0% year-over-year, comprising 98.5% of total revenues.

GAAP Net Income was $91.9 million, or $1.58 per diluted share.

Adjusted EBITDA reached $170.1 million, representing 48% of total revenues.

Total Revenue
$354M
Previous year: $272M
+29.9%
EPS
$1.9
Previous year: $1.47
+29.3%
Adjusted EBITDA
$170M
Previous year: $133M
+27.9%
Adjusted EBITDA margin
48.1%
Previous year: 48.9%
-1.6%
Gross Profit
$305M
Previous year: $236M
+29.3%
Cash and Equivalents
$361M
Previous year: $215M
+67.6%
Free Cash Flow
$82.8M
Previous year: $64.1M
+29.1%
Total Assets
$5.44B
Previous year: $3.41B
+59.8%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the quarter ending June 30, 2022 and the year ending December 31, 2022:

Positive Outlook

  • Total Revenues in the range of $308 million to $310 million for the quarter ending June 30, 2022.
  • Adjusted EBITDA in the range of $111 million to $113 million for the quarter ending June 30, 2022.
  • Total Revenues in the range of $1.333 billion to $1.335 billion for the year ending December 31, 2022.
  • Adjusted EBITDA in the range of $533 million to $535 million for the year ending December 31, 2022.
  • The company expects revenue growth rate plus adjusted EBITDA margin, or the “Rule of 65”.

Challenges Ahead

  • Forward-looking adjusted EBITDA ranges, margins, and non-GAAP effective income tax rate have not been reconciled to net income due to uncertainty regarding depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, and change in fair value of interest rate swap.
  • Forward-looking adjusted gross margin range has not been reconciled to GAAP gross margin due to uncertainty regarding cost of revenues, including non-cash stock-based compensation expense.
  • 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 range 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.
  • The company is unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort.
  • The company is unable to reconcile the “Rule of 65” to a comparable GAAP measure without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Paycom