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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.
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, 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.