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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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