Sep 30, 2022

Paycom Q3 2022 Earnings Report

Reported a 30% increase in revenue, along with strong GAAP and non-GAAP net income and adjusted EBITDA.

Key Takeaways

Paycom Software, Inc. reported strong third-quarter results with a 30% increase in total revenues to $334 million. GAAP net income was $52 million, or $0.90 per diluted share, while non-GAAP net income was $73 million, or $1.27 per diluted share. Adjusted EBITDA reached $126 million, representing 38% of total revenues.

Total revenues increased by 30.4% compared to the same period last year, reaching $334.2 million.

Recurring revenues grew by 30.6% to $328.2 million, constituting 98.2% of total revenues.

GAAP Net Income was $52.2 million, or $0.90 per diluted share, compared to $30.4 million, or $0.52 per diluted share, in the same period last year.

Adjusted EBITDA was $126.0 million, compared to $89.7 million in the same period last year.

Total Revenue
$334M
Previous year: $256M
+30.4%
EPS
$1.27
Previous year: $0.92
+38.0%
Adjusted EBITDA
$126M
Previous year: $89.7M
+40.5%
Adj. EBITDA Margin
37.7%
Previous year: 35%
+7.7%
Gross Profit
$279M
Previous year: $214M
+30.7%
Cash and Equivalents
$317M
Previous year: $231M
+37.4%
Free Cash Flow
$43.4M
Previous year: $59.2M
-26.8%
Total Assets
$3.31B
Previous year: $4.22B
-21.4%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the quarter and the year ending December 31, 2022.

Positive Outlook

  • Total Revenues in the range of $366 million to $368 million for the quarter ending December 31, 2022.
  • Adjusted EBITDA in the range of $144 million to $146 million for the quarter ending December 31, 2022.
  • Total Revenues in the range of $1.371 billion to $1.373 billion for the year ending December 31, 2022.
  • Adjusted EBITDA in the range of $560 million to $562 million for the year ending December 31, 2022.