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Dec 31, 2024
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.
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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