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Paycom
🇺🇸 NYSE:PAYC
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•
Dec 31, 2019

Paycom Q4 2019 Earnings Report

Paycom reported strong Q4 2019 results with revenue growth and increased profitability.

Key Takeaways

Paycom's Q4 2019 revenues reached $193.4 million, a 29% increase year-over-year. GAAP net income was $45.4 million, or $0.78 per diluted share, while adjusted EBITDA was $78.6 million. The company's annual revenue retention rate increased to 93%.

Total revenues increased by 29% compared to the same period last year.

Recurring revenues increased by 29% and constituted 98% of total revenues.

GAAP net income increased to $45.4 million, or $0.78 per diluted share.

Adjusted EBITDA increased to $78.6 million.

Total Revenue
$193M
Previous year: $150M
+28.7%
EPS
$0.86
Previous year: $0.61
+41.0%
Adjusted EBITDA
$78.6M
Previous year: $57.5M
+36.7%
Adj. EBITDA Margin
40.6%
Gross Margin
85.1%
Gross Profit
$165M
Previous year: $126M
+30.4%
Cash and Equivalents
$134M
Previous year: $45.7M
+192.4%
Free Cash Flow
$26M
Previous year: $23.3M
+11.4%
Total Assets
$2.49B
Previous year: $1.52B
+63.4%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the year ending December 31, 2020 and the quarter ending March 31, 2020: Year Ending December 31, 2020 Total Revenues in the range of $911 million to $913 million. Adjusted EBITDA in the range of $384 million to $386 million. Quarter Ending March 31, 2020(2) Total Revenues in the range of $240 million to $242 million. Adjusted EBITDA in the range of $113 million to $115 million.

Positive Outlook

  • Total Revenues in the range of $911 million to $913 million for the year ending December 31, 2020.
  • Adjusted EBITDA in the range of $384 million to $386 million for the year ending December 31, 2020.
  • Total Revenues in the range of $240 million to $242 million for the quarter ending March 31, 2020.
  • Adjusted EBITDA in the range of $113 million to $115 million for the quarter ending March 31, 2020.
  • In the year ending December 31, 2021, each quarter contains thirteen banking Wednesdays

Challenges Ahead

  • Paycom receives approximately half of its weekly recurring revenue on Wednesday.
  • Because January 1, 2020 fell on a Wednesday, there are only twelve banking Wednesdays in the first quarter ending March 31, 2020 instead of the usual thirteen.
  • In the third quarter ending September 30, 2020, there are fourteen banking Wednesdays instead of the usual thirteen.
  • Paycom expects recurring revenue and, consequently, adjusted EBITDA, to be impacted by approximately a half week of recurring revenue and adjusted EBITDA in the first quarter of 2020
  • The third quarter of 2020 will gain approximately one additional half week of recurring revenue and adjusted EBITDA.

Company Overview

Full financial data and analysis

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