Mar 31, 2023

Paycom Q1 2023 Earnings Report

Reported excellent first quarter results with robust revenue growth driven by new clients and expanding margins.

Key Takeaways

Paycom Software, Inc. reported strong financial results for the first quarter of 2023. Total revenues reached $451.6 million, a 27.8% increase compared to the same period last year. GAAP net income was $119.3 million, or $2.06 per diluted share, while non-GAAP net income was $142.7 million, or $2.46 per diluted share. Adjusted EBITDA was $220.5 million, representing 49% of total revenues.

Total revenues increased by 27.8% year-over-year, reaching $451.6 million.

GAAP net income was $119.3 million, or $2.06 per diluted share.

Non-GAAP net income was $142.7 million, or $2.46 per diluted share.

Adjusted EBITDA reached $220.5 million, representing 49% of total revenues.

Total Revenue
$452M
Previous year: $354M
+27.8%
EPS
$2.46
Previous year: $1.9
+29.5%
Adjusted EBITDA
$221M
Previous year: $170M
+29.6%
Adjusted EBITDA margin
48.8%
Previous year: 48.1%
+1.5%
Gross margin
85.6%
Gross Profit
$386M
Previous year: $305M
+26.7%
Cash and Equivalents
$506M
Previous year: $361M
+40.2%
Free Cash Flow
$105M
Previous year: $82.8M
+27.5%
Total Assets
$4.24B
Previous year: $5.44B
-22.1%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the quarter ending June 30, 2023 and the year ending December 31, 2023. Quarter Ending June 30, 2023: Total Revenues in the range of $397 million to $399 million. Adjusted EBITDA in the range of $152 million to $154 million. Year Ending December 31, 2023: Total Revenues in the range of $1.713 billion to $1.715 billion. Adjusted EBITDA in the range of $717 million to $719 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income