Financial Data and Key Metrics Changes - Paycom reported Q4 2020 revenue of $221 million, a 14% increase compared to Q4 2019, and full-year revenue of $841 million, also up 14% year-over-year [10][22]. - Adjusted EBITDA for Q4 2020 was $84.2 million, representing 38.1% of total revenues, compared to 40.6% in Q4 2019 [27]. - The company maintained an annual revenue retention rate of 93% despite pandemic-related challenges [10]. Business Line Data and Key Metrics Changes - Recurring revenue for Q4 2020 was $216.7 million, accounting for 98% of total revenues, and grew 14% year-over-year [24]. - The total adjusted gross profit for Q4 was $188.9 million, with an adjusted gross margin of 85.5%, up 20 basis points from the prior year [24]. - Adjusted total administrative expenses for Q4 were $119.1 million, compared to $98.6 million in Q4 2019 [25]. Market Data and Key Metrics Changes - Paycom ended 2020 with approximately 31,000 clients, a growth rate of 17% compared to 2019 [23]. - The company has a market share of roughly 5% in a large and expanding Human Capital Management (HCM) Total Addressable Market (TAM) [12]. Company Strategy and Development Direction - Paycom aims to reach $1 billion in revenue in 2021, driven by the digital transformation in the HCM industry and a shift towards self-service solutions [8][9]. - The company plans to continue aggressive marketing investments to fuel future revenue growth [12][25]. - Paycom is focusing on expanding its product offerings, including the rollout of the Better Employee Transaction Interface (BETI) for payroll automation [15][96]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that Q1 2021 will be the last quarter impacted by the pandemic, with expectations for strong fundamental growth thereafter [35]. - The company remains focused on providing world-class service, developing new technologies, and increasing the number of new clients [20][21]. - Management noted that the pandemic revealed the strengths of their solutions compared to disparate systems in the market [19]. Other Important Information - Paycom's headcount increased by 12% year-over-year to approximately 4,200 employees, with a continued focus on hiring high-quality talent [17]. - The company repurchased approximately 433,000 shares for about $115 million in 2020, with $135 million remaining in its buyback program [31]. Q&A Session Summary Question: How does the company view linearity in Q2, Q3, and Q4? - Management indicated that guidance for Q2 through Q4 is consistent with historical guidance and does not include any assumptions about recovery in the back half of the year [40][41]. Question: What insights were gained from the inside sales model during the pandemic? - Management noted that the inside sales model was already in place and has proven effective, leading to efficiencies that will be maintained moving forward [44]. Question: How did the mix of new customers look in 2020? - The company added more customers in 2020 than in 2019, with success in both small and larger business segments [46][50]. Question: What is the outlook for retention rates in 2021? - Management expressed optimism about retention rates but does not provide specific guidance on this metric [86]. Question: Can you quantify the impact of fewer W-2s in Q1? - Management estimated a headwind of $6 million to $7 million in Q1 due to fewer forms filed as a result of reduced employee counts in affected industries [81][84].

Paycom Software, Inc. (NYSE:PAYC) Q3 2020 Earnings Conference Call November 4, 2020 5:00 PM ET Company Participants James Samford - Head of Investor Relations Chad Richison - President & Chief Executive Officer Craig Boelte - Chief Financial Officer | --- | |----------------------------------------| | | | Conference Call Participants | | Raimo Lenschow - Barclays | | Samad Samana - Jefferies | | Yao Chew - Credit Suisse | | Adam Borg - Stifel | | Mark Marcon - Baird | | Daniel Jester - Citi | | Brian Schwar ...

Paycom Software, Inc. (NYSE:PAYC) Q2 2020 Earnings Conference Call August 4, 2020 5:00 PM ET Company Participants James Samford - IR Chad Richison - President and CEO Craig Boelte - CFO Conference Call Participants Raimo Lenschow - Barclays Samad Samana - Jefferies Mark Marcon - Baird Brad Zelnick - Credit Suisse Daniel Jester - Citi Brian Schwartz - Oppenheimer Robert Simmons - RBC Capital Markets Arvind Ramnani - Piper Sandler Operator Ladies and gentlemen, thank you for standing by and welcome to the Pay ...

Paycom Software, Inc. (NYSE:PAYC) Q1 2020 Earnings Conference Call April 28, 2020 5:00 PM ET Company Participants James Samford - Investor Relations Chad Richison - President and Chief Executive Officer Craig Boelte - Chief Financial Officer Conference Call Participants Raimo Lenschow - Barclays Samad Samana - Jefferies Mark Murphy - JPMorgan Brad Reback - Stifel Mark Marcon - Baird Daniel Jester - Citi Brian Schwartz - Oppenheimer Alex Zukin - RBC Capital Markets Ryan MacDonald - Needham & Company Siti Pan ...

Paycom Software, Inc. (NYSE:PAYC) Q4 2019 Earnings Conference Call February 5, 2020 5:00 PM ET Company Participants James Samford - Investor Relations Chad Richison - President and Chief Executive Officer Craig Boelte - Chief Financial Officer Conference Call Participants Raimo Lenschow - Barclays Pinjalim Bora - JPMorgan Bhavin Shah - Credit Suisse Brad Reback - Stifel Mark Marcon - Baird Arvind Ramnani - KeyBanc Brian Schwartz - Oppenheimer Robert Simmons - RBC Daniel Jester - Citigroup Ryan MacDonald - N ...

Financial Data and Key Metrics Changes - Q3 2019 revenue was approximately $175 million, representing a growth of 31% year-over-year [11][22] - Adjusted EBITDA for Q3 was $66.6 million, with a margin expansion of roughly 1 percentage point to 38% [12][25] - GAAP net income for Q3 was $39.2 million, or $0.67 per diluted share, compared to $28.8 million, or $0.49 per diluted share in the prior year [26] - Non-GAAP net income for Q3 was $41.1 million, or $0.70 per diluted share, compared to $30.6 million, or $0.52 per diluted share in the prior year [28] Business Line Data and Key Metrics Changes - Recurring revenue for Q3 was $171.4 million, representing 98% of total revenues and growing 31% from the prior year [23] - Total adjusted gross profit for Q3 was $149.4 million, with an adjusted gross margin of 85.3% [23] Market Data and Key Metrics Changes - The company is seeing strong demand across the market, with a strong guide heading into Q4 [115] - Prospective clients are taking notice of the Direct Data Exchange (DDX), leading to increased leads from larger businesses [17][20] Company Strategy and Development Direction - The company is focused on employee usage as a fundamental aspect of the human capital management (HCM) industry, aiming to enhance employee engagement and productivity [13][14] - Innovations like DDX and Ask Here are designed to improve the employee-employer experience and drive sales growth [20][19] - The company is expanding its market presence and has opened new offices, including in New Orleans, to cover more of the total addressable market (TAM) [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's product strategy and high-performance culture, positioning it well for long-term growth [21] - The company is raising its full-year revenue growth guidance to approximately 30% year-over-year at the midpoint of the range [12][32] - Management noted that despite headwinds from interest rate reductions, the company continues to perform well [46][47] Other Important Information - The company ended the quarter with cash and cash equivalents of $108.1 million and total debt of $33.1 million [29] - The average daily balance of funds held on behalf of clients was approximately $1.1 billion [29] Q&A Session Summary Question: Can you expand on the impact of DDX on market positioning? - Management noted that DDX is attracting leads from larger clients, with one client achieving a DDX score of about 99% and making significant data changes [36] Question: What are the drivers behind the higher EBITDA margins? - Management indicated that increased efficiencies in general and administrative expenses and continued investment in R&D and sales and marketing are contributing to margin improvements [38] Question: What percentage of new clients are mandating employee usage? - Management stated that while they cannot provide an exact percentage, they are seeing increased DDX scores from new clients compared to previous quarters [44] Question: How is the competitive landscape evolving? - Management confirmed that win rates remain stable and that the usual competitors continue to be the primary focus [77] Question: What is the strategy for new product developments? - Management emphasized a focus on compliance, product enhancement, and innovation, with a commitment to not disclose products until they are ready for market [54] Question: How is the adoption of Ask Here progressing? - Management reported that about half of clients have enabled Ask Here, with positive initial feedback and expectations for increased adoption [96] Question: How does the company view cash deployment? - Management indicated that the priority is to invest in growth and R&D, with a buyback plan also in place [107]

Paycom Software, Inc. (NYSE:PAYC) Q2 2019 Earnings Conference Call July 30, 2019 5:00 PM ET Company Participants James Samford - Head, IR Chad Richison - President & CEO Craig Boelte - CFO, Treasurer & Corporate Secretary Conference Call Participants Raimo Lenschow - Barclays Howard Ma - Jefferies Pinjalim Bora - JP Morgan Brad Reback - Stifel Brent Bracelin - KeyBanc Capital Markets Mark Marcon - Baird Brian Schwartz - Oppenheimer Shankar Subramanian - Bank of America Drew Kootman - Cantor Fitzgerald Opera ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2019 was approximately $200 million, representing a growth of 30% compared to the prior year period [9][17] - Adjusted EBITDA for the quarter was $103 million, reflecting a 52% margin [9][19] - GAAP net income for Q1 2019 was $47.3 million, or $0.81 per diluted share, compared to $41.2 million, or $0.70 per diluted share in the prior year [20] - Non-GAAP net income for Q1 2019 was $69.3 million, or $1.19 per diluted share, compared to $55.8 million, or $0.95 per diluted share in the prior year [21] - Cash and cash equivalents at the end of the quarter were $91.3 million, with total debt of $34 million [23] Business Line Data and Key Metrics Changes - Recurring revenue was $196.9 million for Q1 2019, representing 98% of total revenues and growing 30% from the prior year [17] - Total adjusted gross profit for Q1 was $173.5 million, with an adjusted gross margin of 87% [18] - Adjusted sales and marketing expenses for Q1 2019 were $37.1 million, compared to $30.4 million in the prior year [18] Market Data and Key Metrics Changes - The average daily balance of funds held on behalf of clients was approximately $1.2 billion in Q1 2019 [23] - The company anticipates total revenues for Q2 2019 in the range of $162.5 million to $164.5 million, representing a growth rate of approximately 47% at the midpoint [24] Company Strategy and Development Direction - The company is focused on expanding its sales organization and opening new offices to drive revenue growth [14][36] - The introduction of the direct data exchange is seen as a significant enhancement to the software offering, aimed at improving efficiency in data collection processes [11][30] - The company is committed to a strategy that emphasizes employee usage of its Human Capital Management (HCM) technology, which is believed to enhance engagement and retention [10][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong start to 2019 and raised guidance for the full year, anticipating total revenues of $718 million to $720 million [9][25] - The management highlighted the importance of employee engagement in driving ROI and competitive advantage in the HCM industry [10][32] - There is an expectation of continued strong performance and growth opportunities as the company leverages its innovative solutions [16][59] Other Important Information - The company broke ground on a new Operations Center in Grapevine, Texas, which is expected to create 1,000 jobs [13] - The company has repurchased more than 3.5 million shares at an average price of $79.56 since initiating its repurchase program [22] Q&A Session Summary Question: How will the direct data exchange be utilized in the sales process? - The direct data exchange acts as a health check for the system, showing clients how their data collection processes are performing and driving ROI [29] Question: What are the key initiatives in R&D? - The focus is on supporting the employee usage strategy, which is essential for attracting and retaining talent in the industry [31] Question: What are the plans for sales investments? - The company plans to mature existing offices and open new ones in under-penetrated cities to drive growth [36] Question: How is the company performing with upmarket customers? - The company continues to see strong client additions in the upper end of the market, with a focus on making it easier for clients to buy [38] Question: What insights can be shared about marketing campaigns? - Marketing efforts have shifted to target employee users, enhancing engagement and driving value for clients [40] Question: What are the implications of increased employee usage on gross margin? - Increased usage leads to greater proficiency, potentially allowing for additional capacity on the service side without additional costs [51] Question: How does the company view inefficiencies in HCM usage? - The company aims to eliminate inefficiencies by empowering employees to manage their own data, which enhances overall productivity [66][68] Question: What is the hiring plan for this year? - There have been no changes to the hiring goals despite the strong performance in Q1 [76]

Paycom Software, Inc. (NYSE:PAYC) Q4 2018 Earnings Conference Call February 5, 2019 5:00 PM ET Company Participants Chad Richison - Founder, Chairman, President & CEO Craig Boelte - CFO, Treasurer & Corporate Secretary Conference Call Participants Raimo Lenschow - Barclays Mark Marcon - R.W. Baird Pinjalim Bora - JPMorgan Brad Reback - Stifel Brian Schwartz - Oppenheimer Scott Berg - Needham Shankar Subramaniam - Bank of America Merrill Lynch Ross MacMillan - RBC Capital Markets Nandan Amladi - Guggenheim P ...