Dec 31, 2023

Paycom Q4 2023 Earnings Report

Paycom's Q4 2023 results exceeded expectations, driven by product innovation and employee engagement.

Key Takeaways

Paycom Software, Inc. reported Q4 2023 revenues of $434.6 million, a 17.3% increase year-over-year. GAAP net income was $81.8 million, or $1.43 per diluted share, while adjusted EBITDA reached $176.6 million.

Total revenues increased by 17.3% year-over-year to $434.6 million.

Recurring revenues grew by 17.4% year-over-year, representing 98.3% of total revenues.

GAAP net income was $81.8 million, or $1.43 per diluted share.

Adjusted EBITDA reached $176.6 million.

Total Revenue
$435M
Previous year: $371M
+17.3%
EPS
$1.93
Previous year: $1.73
+11.6%
Annual Revenue Retention
90%
Previous year: 93%
-3.2%
Adjusted EBITDA
$177M
Previous year: $164M
+7.7%
Adjusted EBITDA margin
40.6%
Previous year: 44.2%
-8.1%
Gross Profit
$360M
Previous year: $312M
+15.5%
Cash and Equivalents
$294M
Previous year: $401M
-26.6%
Free Cash Flow
$76.9M
Previous year: $87.8M
-12.4%
Total Assets
$4.2B
Previous year: $3.9B
+7.6%

Paycom

Paycom

Paycom Revenue by Segment

Forward Guidance

Paycom provides the following expected financial guidance for the quarter ending March 31, 2024 and the year ending December 31, 2024. Quarter Ending March 31, 2024: Total Revenues in the range of $494 million to $497 million. Adjusted EBITDA in the range of $218 million to $222 million. Year Ending December 31, 2024: Total Revenues in the range of $1.860 billion to $1.885 billion. Adjusted EBITDA in the range of $720 million to $730 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income