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Asia-Pacific Markets Mixed Amid Jefferies’ Analyst Adjustments and Indian Rupee Weakness
Stock Market News· 2025-10-13 04:08
Key TakeawaysJefferies has lowered its price target for Paycom Software Inc. (PAYC) to $225 from $250, reflecting a revised outlook for the payroll software provider.The firm also initiated a Buy rating for TransMedics Group Inc. (TMDX), setting a price target of $145, indicating confidence in the organ transplant technology company.The Indian Rupee opened weaker at 88.75 against the US Dollar, compared to its previous close of 88.68, continuing a trend of depreciation influenced by foreign fund outflows an ...
How Is Paycom Software’s Stock Performance Compared to Other Software Stocks?
Yahoo Finance· 2025-09-25 11:35
Company Overview - Paycom Software, Inc. is based in Oklahoma City and has a market capitalization of $12.7 billion, providing a cloud-based human capital management (HCM) platform for small to mid-sized businesses [1][2] - The company's SaaS solution integrates payroll, HR, talent management, and time tracking into a single platform, streamlining operations and eliminating the need for multiple systems [2] Stock Performance - Paycom's stock has experienced an 18.8% decline from its 52-week high of $267.76 and has decreased 7.5% over the past three months, underperforming the SPDR S&P Software & Services ETF's (XSW) 8.6% increase during the same period [3] - Year-to-date, Paycom's stock has risen 6.1%, while XSW has returned 6.7%. Over the past 52 weeks, PAYC shares have increased by 25.2%, slightly trailing the ETF's 26.1% rise [4] Recent Financial Results - On August 6, Paycom reported Q2 2025 results that exceeded expectations, with an adjusted EPS of $2.06 and revenue of $483.6 million. The company raised its full-year revenue guidance to $2.05–$2.06 billion and increased its core profit forecast to $872–$882 million [5] - Investor enthusiasm was bolstered by strong demand for Paycom's new AI-driven features, which enhance HR processes and employee management [5] Analyst Ratings - Paycom stock has a consensus rating of "Moderate Buy" from 19 analysts, with a mean price target of $250.71, indicating a potential upside of 15.3% from current market prices [6]
Humana initiated, Paycom upgraded: Wall Street's top analyst calls
Yahoo Finance· 2025-09-22 13:35
Upgrades Summary - TD Cowen upgraded Paycom (PAYC) to Buy from Hold with a price target of $258, increased from $246, citing positive indications from its 2025 human capital management survey and recent commentary on capex expectations [2] - Morgan Stanley upgraded Applied Materials (AMAT) to Overweight from Equal Weight with a price target of $209, up from $172, revising its 2026 wafer fab equipment sales forecast from up 5% year-over-year to up 10%, primarily in memory [2] - Morgan Stanley also upgraded Lam Research (LRCX) to Equal Weight from Underweight with a price target of $125, increased from $92 [2] - Evercore ISI upgraded Repligen (REGN) to Outperform from In Line with a price target of $155, up from $130, believing the bioprocessing solutions market is relatively insulated from macro headwinds and returning to high-single-digit growth [2] - Wells Fargo upgraded Brinker (EAT) to Overweight from Equal Weight with a price target of $175, up from $165, noting poor investor sentiment but highlighting turnaround momentum and undervaluation [2] - UBS upgraded FactSet (FDS) to Buy from Neutral with a price target of $425, down from $480, stating that the company's "sticky franchise" is underappreciated at current share levels [2]
Paycom Software, Inc. (PAYC) Presents At Citi's 2025 Global Technology, Media And Telecommunications Conference Transcript
Seeking Alpha· 2025-09-03 21:31
Question-and-Answer SessionChad, maybe we'll start with you. Just maybe take us through the transformation of Paycom over the past few years. And kind of maybe where are we on processing through some of the transition that you've been going through?Chad RichisonFounder, President, CEO & Chairman of the Board Yes. So I would say we started off, obviously, online. We developed all of our system ourselves. We developed a single database system, which means no matter it manages an employee from hire to retire. ...
Paycom Software (PAYC) 2025 Conference Transcript
2025-09-03 19:52
Paycom Software (PAYC) 2025 Conference Summary Company Overview - **Company**: Paycom Software (PAYC) - **Event**: Citi Global TMT Conference - **Date**: September 3, 2025 Key Points Transformation and Automation Strategy - Paycom has transitioned to a fully automated system, reducing the need for manual navigation by clients and employees [2][8] - The company utilizes a single database system that manages all employee-related processes from hiring to retirement, enhancing user experience and operational efficiency [2][3] - Automation tools like "Gone" and "iOne" have been implemented to streamline processes, reduce decision fatigue, and improve consistency in operations [5][6][8] AI Product Strategy - The newly launched AI assistant "iOne" is designed to provide comprehensive support across the entire system, differentiating itself from competitors by offering a single source of truth [12][14] - Feedback from clients indicates that iOne is perceived as transformational, significantly reducing the effort required for HR tasks [20][19] - The rollout of iOne exceeded expectations, with rapid adoption across clients, indicating strong market demand [20][21] Financial Performance and Investment - Paycom's operating margins have expanded despite headwinds from interest rates, attributed to a robust business model and effective automation strategies [11][36] - The company is investing heavily in AI capabilities, with CapEx expected to rise to around 15% this year due to AI investments, but projected to decrease to below 10% in subsequent years [36][37] - Paycom manages its own data centers, allowing for cost-effective scaling of AI operations compared to third-party solutions [33][32] Market Opportunities and Competitive Landscape - Paycom sees significant growth potential in acquiring new clients, especially given that its two largest competitors have a combined client base of 1.7 million compared to Paycom's 37,000 [78][71] - The company is focused on mid-market opportunities while also being pulled upmarket due to its automation capabilities [72][70] - Recent M&A activity in the HR payroll space is viewed as an opportunity for Paycom to attract clients seeking alternatives [62][63] Leadership and Organizational Changes - Recent leadership changes, including the promotion of long-term employees to key positions, are part of a normal evolution within the company [67][68] - The focus remains on enhancing product development and automation under the new leadership structure [68][69] Future Outlook - Paycom anticipates continued strong sales growth, with a positive outlook for the second half of the year and beyond [76][77] - The company aims to leverage its AI capabilities to enhance client engagement and drive additional revenue through upselling opportunities [82][81] - The long-term vision includes creating a fully automated system that handles all HR functions without client involvement, positioning Paycom as a leader in the industry [42][41] Additional Insights - The company emphasizes the importance of maintaining a human touch in client interactions while automating repetitive tasks [84] - Paycom's approach to automation is expected to lead to improved margins and operational efficiencies in the future [83][84]
Paycom Software: Expecting Continued Growth Acceleration Ahead
Seeking Alpha· 2025-08-21 13:44
Core Viewpoint - The investment outlook for Paycom Software, Inc. (NYSE: PAYC) is positive, driven by improving sales execution, enhanced user satisfaction, and international growth opportunities [1] Group 1: Business Performance - Paycom is experiencing improvements in sales execution, which is a critical factor for its growth [1] - User satisfaction has shown positive trends, indicating a strong customer base and potential for retention [1] - The company is focusing on international growth, which could expand its market reach and revenue streams [1] Group 2: Investment Strategy - The investment approach emphasizes long-term investments while also considering short-term opportunities to uncover alpha [1] - A bottom-up analysis is conducted to assess the fundamental strengths and weaknesses of individual companies [1] - The goal is to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]
Here's Why Paycom Software (PAYC) is a Strong Growth Stock
ZACKS· 2025-08-19 14:46
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style ...
Paycom: A Solid Investment in the HR Software Space?
The Motley Fool· 2025-08-13 23:00
Anand Chokkavelu, CFA has no position in any of the stocks mentioned. Lou Whiteman has no position in any of the stocks mentioned. Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Paycom Software. The Motley Fool has a disclosure policy. ...
Automation Tools Power Paycom Software's Q2 Recurring Revenue Gain
ZACKS· 2025-08-08 12:31
Core Insights - Paycom Software, Inc. (PAYC) reported a total revenue increase of 10.5% year over year to $483.6 million for Q2 2025, exceeding the Zacks Consensus Estimate of $472 million, primarily driven by a 12.2% rise in recurring revenues [1][9] Revenue Breakdown - Recurring revenues reached $455.1 million, accounting for 94% of total sales, and surpassed the model estimate of $445.5 million, largely due to the growing adoption of automation tools, Beti and GONE [2][9] Product Insights - Beti, a payroll management tool, has seen strong adoption, contributing to client satisfaction and retention, with some former clients returning due to its effectiveness [3][9] - GONE automates time-off requests and vacation tracking, enhancing operational efficiency and accuracy, which supports the increase in recurring revenues as more clients utilize these features [4][9] Future Outlook - Management anticipates that Beti and GONE will continue to be significant contributors to recurring revenue growth in the latter half of 2025, alongside the recent introduction of the new AI tool, IWant [5]
Paycom Software(PAYC) - 2025 Q2 - Quarterly Report
2025-08-07 20:10
[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements (balance sheets, income, equity, cash flows) and detailed accounting notes [Unaudited Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | Total assets | $4,031.2 | $5,859.9 | | Total liabilities | $2,229.3 | $4,284.0 | | Total stockholders' equity | $1,801.9 | $1,575.9 | | Funds held for clients | $1,616.9 | $3,665.5 | | Client funds obligation | $1,616.9 | $3,665.7 | - Total assets decreased from **$5,859.9 million** at December 31, 2024, to **$4,031.2 million** at June 30, 2025, primarily driven by a significant reduction in funds held for clients[9](index=9&type=chunk) [Unaudited Consolidated Statements of Comprehensive Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income Highlights (in millions, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $483.6 | $437.5 | $1,014.1 | $937.4 | | Operating income | $112.3 | $95.1 | $297.5 | $381.0 | | Net income | $89.5 | $68.0 | $228.9 | $315.2 | | Earnings per share, diluted | $1.58 | $1.20 | $4.06 | $5.57 | - Net income increased by **31.6%** for the three months ended June 30, 2025, but decreased by **27.4%** for the six months ended June 30, 2025, due to a prior year stock-based compensation reversal[11](index=11&type=chunk) [Unaudited Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Stockholders' Equity (in millions) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Net income | $228.9 | $315.2 | | Stock-based compensation | $77.1 | $(57.2) | | Dividends declared | $(43.0) | $(41.6) | | Repurchases of common stock | $(37.7) | $(93.6) | | Total stockholders' equity (end of period) | $1,801.9 | $1,426.5 | - Stockholders' equity increased from **$1,575.9 million** to **$1,801.9 million**, driven by net income and stock-based compensation, partially offset by dividends and stock repurchases[9](index=9&type=chunk)[14](index=14&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $305.0 | $280.7 | | Net cash (used in) provided by investing activities | $(565.2) | $71.7 | | Net cash used in financing activities | $(2,129.5) | $(160.4) | | (Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | $(2,389.7) | $192.0 | | Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $1,653.1 | $2,614.7 | - Cash used in investing activities significantly increased to **$(565.2) million** from **$71.7 million**, primarily due to increased purchases of investments from client funds[16](index=16&type=chunk)[159](index=159&type=chunk) - Cash used in financing activities dramatically increased to **$(2,129.5) million** from **$(160.4) million**, mainly due to a large change in client funds obligation[16](index=16&type=chunk)[160](index=160&type=chunk) [Notes to the Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) [Note 1. Organization and Description of Business](index=8&type=section&id=Note%201.%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) Paycom Software, Inc. provides a comprehensive, cloud-based human capital management (HCM) solution as SaaS - Paycom is a leading provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as Software-as-a-Service (SaaS)[21](index=21&type=chunk) - The solution manages the complete employment lifecycle, from recruitment to retirement, using a single database for all HCM functions[22](index=22&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=8&type=section&id=Note%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Outlines key accounting policies, including consolidation of Paycom National Trust Bank, revenue presentation changes, and segment reporting adoption - The company consolidated Paycom National Trust Bank, its wholly owned subsidiary, which now holds substantially all client payroll and related funds, effective 2024[25](index=25&type=chunk) - Revenue presentation changed in 2024 to disaggregate interest on funds held for clients and combine recurring and other revenues, with prior periods reclassified[26](index=26&type=chunk) - The company adopted ASU 2023-07 (Segment Reporting) retrospectively on December 31, 2024, expanding disclosure requirements for reportable segment expenses[28](index=28&type=chunk) - Revenues are seasonal, with higher recurring revenues expected in the first and fourth quarters due to payroll tax filings and unscheduled payroll runs (bonuses)[32](index=32&type=chunk) - The company operates in a single operating and reporting segment, with the CEO assessing performance at the consolidated level[33](index=33&type=chunk) - As of June 30, 2025, **$1.44 billion** remained available for repurchases under the stock repurchase plan, which expires on August 15, 2026[38](index=38&type=chunk) [Note 3. Revenue Recognition](index=12&type=section&id=Note%203.%20REVENUE%20RECOGNITION) Details the company's revenue recognition policies, including recurring revenues, implementation fees, and deferred revenue balances - Substantially all revenues are derived from contracts with clients, recognized when control of goods or services is transferred[43](index=43&type=chunk) - Recurring revenues come from various HCM applications, with performance obligations generally satisfied over time during each client's payroll period[44](index=44&type=chunk)[45](index=45&type=chunk) - Nonrefundable implementation fees are deferred and recognized ratably over a 10-year estimated client life, representing a material right for renewal[49](index=49&type=chunk) Deferred Revenue Balances (in millions) | Period | Balance, beginning of period | Recognition of revenue | Contract balance, net | Balance, end of period | | :-------------------------- | :--------------------------- | :--------------------- | :-------------------- | :------------------- | | Three Months Ended June 30, 2025 | $148.7 | $(12.0) | $13.0 | $149.7 | | Three Months Ended June 30, 2024 | $137.0 | $(10.3) | $15.6 | $142.4 | | Six Months Ended June 30, 2025 | $144.6 | $(21.4) | $26.5 | $149.7 | | Six Months Ended June 30, 2024 | $130.5 | $(16.0) | $27.9 | $142.4 | - The company capitalizes incremental costs of obtaining and fulfilling contracts, amortizing them over the estimated 10-year client relationship life[53](index=53&type=chunk) [Note 4. Property and Equipment](index=16&type=section&id=Note%204.%20PROPERTY%20AND%20EQUIPMENT) Provides a breakdown of property and equipment, net, including capitalized software development costs and depreciation expenses Property and Equipment, Net (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :------------------ | | Software and capitalized software development costs | $567.5 | $497.2 | | Buildings | $279.1 | $275.6 | | Computer equipment | $241.1 | $203.2 | |