Paycom Q4 2024 Earnings Report

Key Takeaways

Paycom reported strong Q4 growth with a 13.63% YoY increase in revenue, driven by recurring revenue growth. Net income rose 38.89% YoY, and operating margin improved by 3.7 percentage points.

Total Revenue

$494M

Previous year: $435M

+13.6%

EPS

$2.32

Previous year: $1.93

+20.2%

Operating Margin

30.1%

Previous year: 26.4%

+14.0%

Adjusted EBITDA

$215M

Previous year: $177M

+21.7%

Adjusted EBITDA Margin

43.5%

Previous year: 40.6%

+7.1%

Gross Profit

$410M

Previous year: $360M

+13.9%

Cash and Equivalents

$402M

Previous year: $2.42B

-83.4%

Paycom Revenue

Paycom EPS

Paycom Revenue by Segment

Forward Guidance

Paycom expects revenue growth of approximately 8% in FY25, driven by recurring revenue and new client acquisitions. The company anticipates strong profitability with an adjusted EBITDA margin of 41%.

Positive Outlook

Projected revenue growth of 8% in FY25
Recurring revenue expected to grow by 9% YoY
Interest on client funds projected at $110 million
Expansion into new sales markets
Continued investment in automation and AI-driven solutions

Challenges Ahead

Lower revenue growth compared to prior years
Macroeconomic conditions may impact new client acquisitions
Increased competition in HCM software market
Potential impact of regulatory changes on payroll services
Rising costs associated with research and development

Revenue & Expenses

Visualization of income flow from segment revenue to net income