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Dec 31, 2021
Paycom Q4 2021 Earnings Report
Paycom delivered a strong Q4 2021, driven by outstanding execution and robust demand.
Key Takeaways
Paycom's Q4 2021 revenues reached $285.0 million, a 29.0% increase year-over-year. GAAP net income was $48.7 million, or $0.84 per diluted share, and adjusted EBITDA was $109.6 million.
Total revenues increased by 29.0% year-over-year to $285.0 million.
Recurring revenues grew by 29.2% to $280.0 million, representing 98.3% of total revenues.
GAAP net income was $48.7 million, or $0.84 per diluted share.
Adjusted EBITDA was $109.6 million.
Paycom
Paycom
Paycom Revenue by Segment
Forward Guidance
Paycom provides the following expected financial guidance for the quarter ending March 31, 2022 and the year ending December 31, 2022:
Positive Outlook
- Total Revenues in the range of $342 million to $344 million for the quarter ending March 31, 2022.
- Adjusted EBITDA in the range of $161 million to $163 million for the quarter ending March 31, 2022.
- Total Revenues in the range of $1.314 billion to $1.316 billion for the year ending December 31, 2022.
- Adjusted EBITDA in the range of $524 million to $526 million for the year ending December 31, 2022.
- Expect sales process to include a combination of virtual and in-person meetings.
Challenges Ahead
- Headcount fluctuations at clients impacts recurring revenue.
- Lower average interest rates had a negative effect on interest earned on funds held for clients.
- It is not possible at this time to estimate the full impact that the pandemic could continue to have on our business and results of operations.
- 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.
- Uncertainty regarding cost of revenues, including non-cash stock-based compensation expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income