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Paycom
🇺🇸 NYSE:PAYC
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Jun 30, 2021

Paycom Q2 2021 Earnings Report

Paycom's second quarter results demonstrated strengthened business fundamentals.

Key Takeaways

Paycom Software, Inc. reported a strong second quarter with revenues of $242.1 million, a 33.3% increase year-over-year. GAAP net income was $52.3 million, or $0.90 per diluted share, while non-GAAP net income was $56.5 million, or $0.97 per diluted share. Adjusted EBITDA was $87.0 million, representing 35.9% of total revenues.

Total revenues reached $242.1 million, a 33.3% increase compared to the previous year.

GAAP Net Income was $52.3 million, or $0.90 per diluted share.

Non-GAAP Net Income was $56.5 million, or $0.97 per diluted share.

Adjusted EBITDA was $87.0 million.

Total Revenue
$242M
Previous year: $182M
+33.3%
EPS
$0.97
Previous year: $0.62
+56.5%
Adjusted EBITDA
$87M
Previous year: $61.2M
+42.2%
Adjusted EBITDA margin
35.9%
Previous year: 33.7%
+6.5%
Gross Profit
$206M
Previous year: $152M
+35.3%
Cash and Equivalents
$202M
Previous year: $114M
+78.3%
Free Cash Flow
$19.6M
Previous year: -$1.25M
-1666.7%
Total Assets
$3.23B
Previous year: $1.92B
+68.3%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the quarter ending September 30, 2021 and the year ending December 31, 2021:

Positive Outlook

  • Total Revenues in the range of $249 million to $251 million for the quarter ending September 30, 2021.
  • Adjusted EBITDA in the range of $87 million to $89 million for the quarter ending September 30, 2021.
  • Total Revenues in the range of $1.036 billion to $1.038 billion for the year ending December 31, 2021.
  • Adjusted EBITDA in the range of $410 million to $412 million for the year ending December 31, 2021.
  • During the teleconference call, we also refer to a forward-looking estimate of our implied revenue growth plus adjusted EBITDA margin for 2021, or the “Rule of 60.”

Challenges Ahead

  • We have not reconciled the forward-looking adjusted EBITDA ranges presented above and discussed on the teleconference call to net income, nor the forward-looking adjusted EBITDA margins discussed on the teleconference call to comparable GAAP measures, because applicable information for future periods, on which these reconciliations would be based, are not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, change in fair value of our interest rate swap and other items.
  • Further, we have not reconciled the forward-looking adjusted gross margin range discussed on the teleconference call to GAAP gross margin because applicable information for future periods, on which this reconciliation would be based, is not readily available due to uncertainty regarding, and the potential variability of, cost of revenues, including non-cash stock-based compensation expense.
  • Accordingly, reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margins to net income margin and the forward-looking adjusted gross margin range to gross margin are not available at this time without unreasonable effort.
  • Because we are unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, we are unable to reconcile the “Rule of 60” to a comparable GAAP measure without unreasonable effort.
  • The COVID-19 pandemic has resulted in, and may continue to result in, headcount fluctuations across our client base.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Paycom