Sep 30, 2023

Paycom Q3 2023 Earnings Report

Reported strong third quarter fundamentals with solid revenue and earnings growth.

Key Takeaways

Paycom Software, Inc. reported a revenue of $406.3 million for the third quarter of 2023, representing a 21.6% increase compared to the same period last year. GAAP net income was $75.2 million, or $1.30 per diluted share, while non-GAAP net income was $102.4 million, or $1.77 per diluted share. Adjusted EBITDA was $165.6 million.

Total revenues reached $406.3 million, a 21.6% increase year-over-year.

Recurring revenues were $398.8 million, comprising 98.1% of total revenues.

GAAP net income amounted to $75.2 million, or $1.30 per diluted share.

Adjusted EBITDA totaled $165.6 million.

Total Revenue
$406M
Previous year: $334M
+21.6%
EPS
$1.77
Previous year: $1.27
+39.4%
Adjusted EBITDA
$166M
Previous year: $126M
+31.4%
Adjusted EBITDA margin
40.8%
Previous year: 37.7%
+8.2%
Gross Profit
$337M
Previous year: $279M
+20.9%
Cash and Equivalents
$484M
Previous year: $317M
+52.6%
Free Cash Flow
$46.3M
Previous year: $43.4M
+6.7%
Total Assets
$3.86B
Previous year: $3.31B
+16.3%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the quarter and the year ending December 31, 2023. Quarter Ending December 31, 2023: Total Revenues in the range of $420 million to $425 million. Adjusted EBITDA in the range of $169 million to $174 million. Year Ending December 31, 2023: Total Revenues in the range of $1.679 billion to $1.684 billion. Adjusted EBITDA in the range of $712 million to $717 million.

Positive Outlook

  • Total Revenues in the range of $420 million to $425 million for the quarter ending December 31, 2023.
  • Adjusted EBITDA in the range of $169 million to $174 million for the quarter ending December 31, 2023.
  • Total Revenues in the range of $1.679 billion to $1.684 billion for the year ending December 31, 2023.
  • Adjusted EBITDA in the range of $712 million to $717 million for the year ending December 31, 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income