Nov 25, 2025 12:03 PM Eastern Standard Time Oklahoma Sports Hall of Fame and Jim Thorpe Association Proudly Reveal the Paycom Jim Thorpe Award 2025 Finalists Share Paycom Jim Thorpe Award finalists announced OKLAHOMA CITY--(BUSINESS WIRE)--Today, Oklahoma Sports Hall of Fame (OSHOF) and Jim Thorpe Association is proud to release the finalists for the 2025 Paycom Jim Thorpe Award. This list includes the nation's three best defensive backs based on performance on the field, athletic ability and character. Tod ...

With a market cap of $9.3 billion, Oklahoma-based Paycom Software, Inc. (PAYC) is a prominent cloud-based human capital management (HCM) and payroll software provider that serves businesses of all sizes across the U.S. Its platform offers an end-to-end suite of HR solutions, including payroll, time and attendance, talent management, benefits, and employee self-service, built on a single database to streamline workflows and reduce administrative complexity. Shares of the software company have struggled to ...

Airbnb - Airbnb's management is focusing on integrating AI across its app to enhance user experience and service offerings, aiming for a fully AI-powered platform for trip planning and booking [2][3] - The company has launched an AI customer support assistant that has reduced the need for human agents by 15%, with plans to expand its capabilities to over 50 languages by 2026 [4][6] - AI search functionality is set to roll out in 2026, allowing users to interact with the app in a conversational manner to personalize their travel experiences [7][10] - Airbnb's approach to AI emphasizes real-world connections, aiming to attract users away from screens and towards authentic experiences [8][9] - The management believes that Airbnb's unique capabilities in travel will allow it to benefit more from AI compared to other travel companies, as it does not rely on standardized products [10][11] - The company is cautious about integrating with platforms like ChatGPT, preferring to maintain its unique brand identity and avoid being seen as a commodity [11][12] - Airbnb is delaying the introduction of an advertising business until after the successful implementation of AI search, indicating a strategic approach to new revenue streams [14][15] Arista Networks - Arista Networks is positioned to benefit from the growing demand for AI networking solutions, with a target of $2.75 billion in AI-related revenue for 2026 [19][20] - The company is actively involved in creating open ecosystems for AI networking, collaborating with major players like NVIDIA and Oracle [17][22] - Arista's Etherlink distributed switch fabric is designed to enhance the performance of AI accelerators, showcasing its strength in AI networking [16][19] - Management sees a significant market opportunity in AI build-outs, with a total addressable market exceeding $100 billion [20] - The company is experiencing strong demand for its networking solutions, particularly in large AI data center projects, and is involved in multiple AI accelerator projects [26][29] - Arista's management acknowledges the challenges of maintaining margins with cloud and AI customers but remains optimistic about overall growth [25][32] - The convergence of front-end and back-end networking is seen as advantageous for Arista, allowing it to offer comprehensive solutions across its infrastructure [34][35] Coupang - Coupang is focused on building its internal AI computing infrastructure to enhance operational efficiency and service quality [42] - The company is testing the potential for third-party usage of its AI infrastructure but is primarily concentrating on internal applications [42] - AI is delivering tangible benefits in areas such as demand forecasting and fulfillment automation, contributing to cost savings and improved customer satisfaction [42] Datadog - Datadog has seen strong revenue growth from AI native customers, with a notable increase in the number of companies spending significantly on its services [43][44] - The management is optimistic about the future growth of AI usage across various industries, indicating a broadening customer base [44] - Datadog's Bits AI agents are generating high customer interest, with positive feedback on their efficiency and effectiveness in operations [45][46]

Core Insights - Paycom Software (PAYC) was identified as significantly undervalued when trading at approximately $205 per share prior to its Q4 2024 earnings call [1] Company Analysis - The analyst has over 10 years of experience in the investment arena, starting as an analyst and progressing to a management role, indicating a strong background in financial analysis [1] - The analyst holds a master's degree in Analytics and a bachelor's degree in Accounting, suggesting a solid educational foundation for evaluating financial performance [1] Investment Perspective - There is a potential interest in initiating a long position in PAYC through stock or call options within the next 72 hours, indicating a bullish outlook on the company's future performance [2]

Core Insights - Paycom Software (PAYC) was identified as significantly undervalued when trading at approximately $205 per share prior to its Q4 2024 earnings call [1] Company Analysis - The analyst has a strong educational background with a master's degree in Analytics and a bachelor's degree in Accounting, contributing to a decade of experience in the investment sector [1] - The analyst has progressed from an analyst role to a management position, indicating a deep understanding of market dynamics and investment strategies [1] Investment Perspective - The analyst expresses a personal interest in dividend investing, suggesting a focus on long-term value and income generation from investments [1]

Core Insights - Paycom Software, Inc. (PAYC) stock has dropped over $70 or 30% in just three months, leading to a reassessment of its investment rating [1] Company Overview - The article discusses the recent performance of Paycom Software, highlighting a significant decline in stock value [1] Market Context - The analysis reflects on the broader market conditions affecting Paycom, indicating a need for investors to reconsider their positions [1]

Revenue Growth and Client Base - The company reported significant revenue growth, with a focus on expanding its client base and increasing recurring revenues through new applications and improved client usage [114]. - The average client size has increased significantly, with a target focus on organizations with 50 to 10,000 or more employees, presenting substantial revenue opportunities [116]. - The company plans to open additional sales offices to enhance market presence and leverage sales force productivity for attracting new clients [114]. - Recurring and other revenues increased by 10.6% to $466.5 million for the three months ended September 30, 2025, and by 9.9% to $1.4216 billion for the nine months ended September 30, 2025, compared to the same periods in 2024 [121]. - Total revenues for the three months ended September 30, 2025, were $493.3 million, a 9.1% increase from $451.9 million in 2024; for the nine months, total revenues rose 8.5% to $1.5074 billion from $1.3893 billion [121]. Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $112.6 million, a 7.3% increase from $104.9 million in 2024; for the nine months, operating income decreased by 15.6% to $410.1 million from $485.8 million [121]. - Sales and marketing expenses increased by 20.3% to $125.7 million for the three months ended September 30, 2025, and by 7.9% to $352.6 million for the nine months [127][128]. - Research and development expenses rose by 17.6% to $74.1 million for the three months ended September 30, 2025, and by 20.1% to $211.2 million for the nine months [129]. - General and administrative expenses increased by $1.3 million for the three months ended September 30, 2025, and by $115.2 million for the nine months, primarily due to a reversal of previously recognized stock-based compensation [132][133]. Net Income and Earnings - Net income for the three months ended September 30, 2025, was $110.7 million, a 51.1% increase from $73.3 million in 2024; for the nine months, net income decreased by 12.6% to $339.6 million from $388.4 million [121]. - For the three months ended September 30, 2025, net income was $110.7 million, compared to $73.3 million for the same period in 2024, representing a 50.5% increase [168]. - Adjusted EBITDA for the three months ended September 30, 2025, was $194.3 million, up from $171.3 million in 2024, reflecting a 13.9% growth [168]. - Non-GAAP net income for the three months ended September 30, 2025, was $109.6 million, compared to $93.4 million in 2024, indicating a 17.3% increase [169]. - Earnings per share (basic) for the three months ended September 30, 2025, was $1.97, compared to $1.31 in 2024, marking a 50.4% rise [169]. Cash Flow and Investments - Cash provided by operating activities increased by 29% to $482.8 million for the nine months ended September 30, 2025, compared to $373.5 million in 2024 [158]. - Cash used in investing activities saw a significant increase of 2065%, totaling $(659.2) million for the nine months ended September 30, 2025, primarily due to increased purchases of investments [158]. - Cash used in financing activities increased by 99% to $(2,168.2) million for the nine months ended September 30, 2025, driven by changes related to client funds obligations and increased stock repurchases [158]. - As of September 30, 2025, corporate cash and cash equivalents totaled $375.0 million, with funds held for clients amounting to $1.3 billion [170]. - The average daily balance of funds held for clients was $2.7 billion for the nine months ended September 30, 2025, compared to $2.4 billion in 2024 [124]. Tax and Financial Position - The effective income tax rate for the nine months ended September 30, 2025, was 26.2%, up from 21.9% in 2024, primarily due to a tax benefit related to a restricted stock award forfeiture [139]. - The company expects to meet its longer-term liquidity needs through cash flows from operations and financing arrangements [142]. - The recent tax code amendments allow for immediate deductions for domestic R&D expenditures, which are expected to positively impact cash flows in future periods [154]. - As of September 30, 2025, the company had $1.0 billion available under its Revolving Credit Facility, with no outstanding borrowings [140]. AI and Automation Initiatives - The company is investing heavily in automation and AI initiatives, which are expected to create efficiencies and reduce certain employee-related expenses [120]. - The introduction of the industry-first command-driven AI engine, IWant™, aims to enhance user experience by automating information retrieval about employee data [113]. - The company spent approximately $100 million on AI-focused capital expenditures from May 2025 through October 2025 to enhance data center capabilities [152]. Market Conditions and Competitive Landscape - The market for HCM software remains highly competitive, with ongoing pressures from new entrants and disruptive technologies impacting client retention and revenue growth [115]. - The company anticipates that its ability to develop and maintain client relationships will be crucial for expanding HCM spending among existing clients [109]. - Seasonal fluctuations in recurring revenues are expected, with higher revenues typically in the first and fourth quarters due to payroll tax filings and unscheduled payroll runs [119]. Other Financial Metrics - Other income increased significantly due to a $35.6 million gain from a naming rights agreement amendment, with total other income of $41.3 million for the three months ended September 30, 2025 [138]. - Depreciation and amortization expense increased by $3.8 million for the three months ended September 30, 2025, primarily due to technology development and fixed asset purchases [135]. - Non-cash stock-based compensation expense for the three months ended September 30, 2025, was $31.1 million, compared to $24.2 million in 2024, reflecting a 28.6% increase [169]. - Available-for-sale securities as of September 30, 2025, totaled $496.7 million, primarily consisting of U.S. treasury securities with original maturities of two years or less [170]. - A hypothetical increase or decrease in interest rates of 100 basis points would result in an approximately $21.5 million increase or decrease in interest earned on funds held for clients over the next 12 months [172]. - An immediate increase in interest rates of 100 basis points would have led to a $2.0 million reduction in the aggregate market value of available-for-sale securities as of September 30, 2025 [173].

Core Insights - The human resources software company has met earnings expectations for the third quarter [1] Financial Performance - The company reported earnings that align with market expectations, indicating stable financial performance [1]

Core Insights - Paycom's shares fell 13.3% after disappointing third-quarter earnings, despite meeting revenue expectations [1] - Adjusted earnings per share were $1.94, below the consensus estimate of $1.96, while revenue was $493.3 million, reflecting a 9.2% year-over-year growth [1] - The company reaffirmed its full-year revenue guidance, but investor sentiment was not positively impacted, indicating a desire for a stronger outlook [1] - Billings growth of 9.5% suggests increasing competition and challenges in sales momentum [1] Market Reaction - Paycom's stock is not very volatile, with only 7 moves greater than 5% in the past year, indicating significant market impact from the recent news [3] - The stock has decreased 19.8% year-to-date and is trading 39.2% below its 52-week high of $265.71 [5] - An investment of $1,000 in Paycom shares five years ago would now be worth $416.03, highlighting a significant decline in value [5]

Core Insights - Paycom Software, Inc. (PAYC) shares fell 8.5% after reporting lower-than-expected Q3 2025 results, with non-GAAP earnings of $1.94 per share, missing the Zacks Consensus Estimate of $1.96, although this represented a 16.2% year-over-year increase driven by higher revenues [1][10] Financial Performance - Paycom reported revenues of $493.3 million, exceeding the consensus estimate of $492.4 million, marking a 9.1% year-over-year increase due to sales momentum, international expansion, and AI integration [2][10] - Recurring revenues, which account for 94.6% of total revenues, rose 10.6% to $466.5 million, surpassing the estimate of $464.5 million [3] - Adjusted gross profits increased 11.9% year-over-year to $411.3 million, with the adjusted gross margin expanding by 210 basis points to 83.4% [4] - Adjusted EBITDA grew 13.4% year-over-year to $194.3 million, with the adjusted EBITDA margin improving from 37.9% to 39.4% [4][10] Cash Flow and Balance Sheet - As of September 30, 2025, Paycom had cash and cash equivalents of $375 million, down from $532.2 million in the previous quarter, and no debt [5] - In Q3, the company generated operating cash flow of approximately $177.8 million, paid $21.1 million in dividends, and repurchased $223.4 million of its common stock [6] - Paycom had $927 million remaining under its buyback authorization as of September 30, 2025, and declared a quarterly dividend of 37.5 cents per share payable on December 8, 2025 [7] Guidance - Paycom reiterated its 2025 revenue guidance, forecasting revenues between $2.045 billion and $2.055 billion, indicating an 8.9% year-over-year growth, with recurring revenues expected to grow 10% year-over-year [8] - The company maintains its adjusted EBITDA guidance for 2025 between $872 million and $882 million, translating to an approximate EBITDA margin of 43% at the midpoint [9][10]