Mar 31, 2024

Paycom Q1 2024 Earnings Report

Paycom reported first quarter results with revenue up 11% year-over-year and GAAP net income representing 49% of total revenues.

Key Takeaways

Paycom's first quarter 2024 results showed a revenue increase of 10.7% to $499.9 million. GAAP net income was $247.2 million, or $4.37 per diluted share, while non-GAAP net income was $146.6 million, or $2.59 per diluted share. Adjusted EBITDA was $229.5 million.

Total revenues increased by 10.7% year-over-year, reaching $499.9 million.

GAAP net income was $247.2 million, or $4.37 per diluted share.

Non-GAAP net income was $146.6 million, or $2.59 per diluted share.

Adjusted EBITDA totaled $229.5 million.

Total Revenue
$500M
Previous year: $452M
+10.7%
EPS
$2.59
Previous year: $2.46
+5.3%
Adjusted EBITDA
$230M
Previous year: $221M
+4.1%
Adj. EBITDA Margin
45.9%
Previous year: 48.8%
-5.9%
Gross Margin
84.3%
Previous year: 85.6%
-1.5%
Gross Profit
$388M
Previous year: $386M
+0.5%
Cash and Equivalents
$371M
Previous year: $506M
-26.6%
Free Cash Flow
$101M
Previous year: $105M
-4.3%
Total Assets
$4.73B
Previous year: $4.24B
+11.6%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides financial guidance for the quarter ending June 30, 2024, and the year ending December 31, 2024.

Positive Outlook

  • Total Revenues in the range of $434 million to $438 million for Q2 2024.
  • Adjusted EBITDA in the range of $151 million to $155 million for Q2 2024.
  • Total Revenues in the range of $1.860 billion to $1.885 billion for FY 2024.
  • Adjusted EBITDA in the range of $720 million to $730 million for FY 2024.
  • Focus on expanding solution automation capabilities.

Challenges Ahead

  • Uncertainty regarding depreciation and amortization.
  • Uncertainty regarding interest expense.
  • Uncertainty regarding taxes.
  • Uncertainty regarding non-cash stock-based compensation expense.
  • Reconciliations of forward-looking adjusted EBITDA ranges to net income are not available at this time without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income