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Jun 30, 2022
Paycom Q2 2022 Earnings Report
Paycom's Q2 2022 results showcased strong financial performance, with revenue growth and profitability.
Key Takeaways
Paycom reported strong second-quarter results, with total revenues of $317 million, a 31% increase year-over-year. GAAP net income was $57 million, or $0.99 per diluted share, while non-GAAP net income reached $73 million, or $1.26 per diluted share. Adjusted EBITDA was $120 million, representing 38% of total revenues.
Total revenues reached $317 million, up 31% year-over-year.
Recurring revenues increased by 31.1% and constituted 98.3% of total revenues.
GAAP net income was $57 million, or $0.99 per diluted share.
Adjusted EBITDA was $120 million, representing 38% of total revenues.
Paycom
Paycom
Paycom Revenue by Segment
Revenue by Segment
Recurring and Other Revenues Revenue
CapyFin.com Forward Guidance
Paycom provided financial guidance for the quarter ending September 30, 2022, and the year ending December 31, 2022.
Positive Outlook
- Total Revenues in the range of $327 million to $329 million for the quarter ending September 30, 2022.
- Adjusted EBITDA in the range of $117 million to $119 million for the quarter ending September 30, 2022.
- Total Revenues in the range of $1.354 billion to $1.356 billion for the year ending December 31, 2022.
- Adjusted EBITDA in the range of $546 million to $548 million for the year ending December 31, 2022.
- Management refers to a forward-looking estimate of implied revenue growth rate plus adjusted EBITDA margin, or the “Rule of 65.”
Challenges Ahead
- The forward-looking adjusted EBITDA ranges presented above have not been reconciled to net income.
- The forward-looking adjusted EBITDA margins discussed on the teleconference call have not been reconciled to net income margin.
- Applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, change in fair value of our interest rate swap and other items.
- The forward-looking adjusted gross margin range discussed on the teleconference call has not been reconciled to GAAP gross margin.
- Because management is unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, they are unable to reconcile the “Rule of 65” to a comparable GAAP measure without unreasonable effort.