Sep 30, 2020

Paycom Q3 2020 Earnings Report

Paycom reported strong third-quarter results, driven by increased demand for its differentiated solutions and strategic focus on product value proposition.

Key Takeaways

Paycom's Q3 2020 revenues reached $196.5 million, a 12.3% increase year-over-year. GAAP net income was $27.5 million, or $0.47 per diluted share, while non-GAAP net income was $40.6 million, or $0.70 per diluted share. Adjusted EBITDA was $67.5 million, representing 34.3% of total revenues.

Total revenues increased by 12.3% compared to the same period last year, reaching $196.5 million.

Recurring revenues grew by 12.4% year-over-year, accounting for 98.0% of total revenues.

GAAP net income was $27.5 million, or $0.47 per diluted share.

Adjusted EBITDA was $67.5 million, representing 34.3% of total revenues.

Total Revenue
$197M
Previous year: $175M
+12.3%
EPS
$0.7
Previous year: $0.7
+0.0%
Adjusted EBITDA
$67.5M
Previous year: $66.6M
+1.4%
Adjusted EBITDA margin
34.3%
Previous year: 38%
-9.7%
Gross Profit
$166M
Previous year: $149M
+11.4%
Cash and Equivalents
$156M
Previous year: $108M
+44.6%
Free Cash Flow
$45.8M
Previous year: $17.3M
+164.9%
Total Assets
$2.49B
Previous year: $1.59B
+56.1%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom anticipates revenues between $212.0 million and $214.0 million and adjusted EBITDA between $76.0 million and $78.0 million for the quarter ending December 31, 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income