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Paycom
🇺🇸 NYSE:PAYC
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Dec 31, 2022

Paycom Q4 2022 Earnings Report

Paycom's Q4 2022 results were released, showcasing revenue growth and strong profitability.

Key Takeaways

Paycom Software, Inc. reported Q4 2022 revenues of $370.6 million, a 30% increase year-over-year. GAAP net income was $80.0 million, or $1.38 per diluted share, while adjusted EBITDA was $163.9 million.

Total revenues increased by 30% year-over-year to $370.6 million.

Recurring revenues grew by 30% to $364.0 million, representing 98.2% of total revenues.

GAAP net income was $80.0 million, or $1.38 per diluted share.

Adjusted EBITDA reached $163.9 million.

Total Revenue
$371M
Previous year: $285M
+30.0%
EPS
$1.73
Previous year: $1.11
+55.9%
Annual Revenue Retention
93%
Previous year: 94%
-1.1%
Adjusted EBITDA
$164M
Previous year: $110M
+49.6%
Adjusted EBITDA margin
44.2%
Previous year: 38.4%
+15.1%
Gross Profit
$312M
Previous year: $238M
+30.6%
Cash and Equivalents
$401M
Previous year: $278M
+44.1%
Free Cash Flow
$87.8M
Previous year: $55.8M
+57.5%
Total Assets
$3.9B
Previous year: $3.22B
+21.4%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides financial guidance for Q1 2023 and FY 2023.

Positive Outlook

  • Q1 2023 Total Revenues are expected to be in the range of $443 million to $445 million.
  • Q1 2023 Adjusted EBITDA is expected to be in the range of $210 million to $212 million.
  • FY 2023 Total Revenues are expected to be in the range of $1.700 billion to $1.702 billion.
  • FY 2023 Adjusted EBITDA is expected to be in the range of $700 million to $702 million.
  • Company refers to a forward-looking estimate of our implied revenue growth rate plus adjusted EBITDA margin, or the “Rule of 65”.

Challenges Ahead

  • The forward-looking adjusted EBITDA ranges presented have not been reconciled to net income.
  • The forward-looking adjusted EBITDA margins discussed have not been reconciled to comparable GAAP measures.
  • The forward looking non-GAAP effective income tax rate discussed on the teleconference call have not been reconciled to comparable GAAP measures.
  • The forward-looking adjusted gross margin discussed on the teleconference call have not been reconciled to GAAP gross margin.
  • Reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margins to net income margin, the forward-looking adjusted gross margin to gross margin, and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Paycom