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Paycom
🇺🇸 NYSE:PAYC
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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.

Total Revenue
$317M
Previous year: $242M
+30.9%
EPS
$1.26
Previous year: $0.97
+29.9%
Adjusted EBITDA
$120M
Previous year: $87M
+37.5%
Adjusted EBITDA margin
37.7%
Previous year: 35.9%
+5.0%
Gross margin
84.2%
Gross Profit
$267M
Previous year: $206M
+29.7%
Cash and Equivalents
$279M
Previous year: $202M
+37.9%
Free Cash Flow
$18.5M
Previous year: $19.6M
-5.6%
Total Assets
$4.89B
Previous year: $3.23B
+51.3%

Paycom

Paycom

Paycom Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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