Financial Data and Key Metrics Changes - Second quarter revenue reached $438 million, up 9% year-over-year, and recurring revenue was $430 million, representing 98% of total revenues [13][14] - GAAP net income was $68 million, or $1.20 per diluted share, while non-GAAP net income was $92 million, or $1.62 per diluted share [14] - Adjusted EBITDA for the quarter was nearly $160 million, with a margin of 36.5%, exceeding expectations due to expense discipline [14][15] Business Line Data and Key Metrics Changes - The company reported a 24% increase in units sold in the second quarter compared to the same period last year, with year-to-date unit growth at approximately 15% [34][27] - The automation solutions, Beti and GONE, have shown significant client adoption, with clients reporting reduced payroll processing times and improved efficiency [7][9] Market Data and Key Metrics Changes - The average daily balance of funds held on behalf of clients was approximately $2.4 billion, up 8% year-over-year [15] - The company has expanded its international presence, with Beti now available in Canada, Mexico, Ireland, and the UK, contributing to new client acquisitions [11][11] Company Strategy and Development Direction - The company is focused on enhancing client ROI through product innovation and automation, aiming to solidify its position as a leader in the industry [5][10] - Investments in AI and automation are expected to drive long-term value for clients and shareholders [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10% revenue growth and a 39% adjusted EBITDA margin for fiscal 2024, narrowing revenue guidance to $1.86 billion to $1.875 billion [17][18] - The company plans to continue opportunistic stock buybacks, having repurchased approximately 790,000 shares for $120 million during the quarter [15][16] Other Important Information - The CFO announced plans to retire within the next 9 to 12 months, after nearly 19 years with the company [13] - The company has increased its buyback authorization to $1.5 billion, extending it for another two years [16] Q&A Session Summary Question: Perception of Beti in Installed Base - Management noted that new clients are increasingly adopting Beti, leading to significant reductions in payroll processing times for existing clients [19][20] Question: Sales Hiring Cadence - The company is better staffed in sales than in recent years, with a focus on unit growth and sales skills development [21][22] Question: Guidance Outlook Changes - The narrowing of guidance was attributed to increased visibility and the timing of various initiatives [24][25] Question: Sales Performance and Unit Growth - The company reported a 24% increase in units sold in the second quarter compared to the previous year, with strong July starts indicating continued momentum [33][34] Question: Impact of Payroll Runs on Guidance - Management confirmed that factors affecting payroll run opportunities remain consistent, with confidence in sales and service organizations [36][37] Question: Beti Adoption Update - Beti adoption continues to rise, with new clients starting with higher usage rates than before [42][43] Question: Float Revenue and Fed Fund Rate Assumptions - The company is considering extending the duration of its float revenue investments in light of potential rate cuts [64] Question: Competitive Landscape for New Client Wins - The company continues to compete with established players in the industry, maintaining a consistent approach to client acquisition [66][67]

Paycom Software (PAYC) is scheduled to report second-quarter 2024 results after market close on Jul 31. PAYC projects revenues between $434 million and $438 million for the second quarter. The Zacks Consensus Estimate for revenues is pegged at $436.2 million, indicating an increase of 8.7% year over year. The consensus mark for earnings is pegged at $1.58 per share, suggesting a 2.5% decline from the prior-year quarter. Paycom estimates adjusted EBITDA in the range of $151-$155 million in the quarter to be ...

The earnings report, which is expected to be released on July 31, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Does Earnings Surprise History Hold Any Clue? Bottom Line While management's discussion of business conditions on the earnings call will mo ...

TROY, Mich., July 17, 2024 /PRNewswire/ -- The Editorial Advisory and Securities Review Committee of BetterInvesting Magazine today announced Paycom Software Inc. (NYSE: PAYC) as its "Stock to Study" and Lamb Weston Holdings Inc. (NYSE: LW) as its "Undervalued Stock" in the October 2024 issue for investors' informational and educational use. "Given the market's record breaking highs, the Committee reminds investors to evaluate the fundamentals of individual companies in order to select stocks wisely, and al ...

Shares of Paycom Software (PAYC) have gained 2.5% over the past four weeks to close the last trading session at $144.48, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $180.62 indicates a potential upside of 25%. The mean estimate comprises 13 short-term price targets with a standard deviation of $32.66. While the lowest estimate of $145 indicates a 0.4% increase from the curre ...

Paycom Software is a leading provider of cloud-based human capital management software, including for HR and payroll. It's a mid-cap company with a market cap of $8.1 billion. Zero Debt and Plenty of Cash Paycom Software gave full year sales guidance of a range of $1.86 to $1.885 billion. The Zacks Consensus is looking for $1.87 billion, which is sales growth of 10.2%. Image Source: Zacks Investment Research Image Source: Zacks Investment Research On May 1, 2024, Paycom Software reported its first quarter 2 ...

Investment Thesis - Paycom is rated as a strong buy due to its innovative cloud-based human capital management solutions that streamline multiple services into one platform, providing significant value to enterprises [11][31]. Competitive Landscape - Paycom has a competitive edge over major players like Automatic Data Processing and Paychex by offering a more advanced, cloud-based solution that integrates various HR processes [11][19]. - The company has a high customer retention rate of approximately 91%, indicating strong satisfaction with its services [7]. Financial Performance - Paycom has achieved a revenue growth CAGR of 31% over the past decade, with recent growth rates above 17% [3]. - Earnings per share (EPS) have grown at a CAGR of 27% over the past five years, supported by share buybacks and a strong balance sheet with zero debt [4]. - Free cash flow (FCF) has grown at a 14% CAGR over the past five years, with expectations for continued double-digit growth as the customer base expands [13]. Valuation - The estimated fair value of Paycom is $218.65, suggesting significant upside potential from the current share price [8]. - Despite strong fundamentals, the stock is trading at low valuations compared to historical levels, which may reflect market mispricing due to growth concerns [23]. Growth Catalysts - The introduction of BETI (Better Employee Transaction Interface) is expected to drive strong sales and improve efficiency, with two-thirds of the customer base already adopting this feature [29]. - Paycom is expanding internationally, having launched its payroll product in the UK, Canada, and Mexico, with plans for further expansion [28]. Market Opportunity - The human capital management industry is projected to grow at a near double-digit CAGR over the next five years, with a significant portion of companies still using offline solutions, presenting a large total addressable market (TAM) for Paycom [27]. - The integration of AI into Paycom's offerings is anticipated to enhance productivity and attract more customers [27].

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Paycom Software (PAYC) , which belongs to the Zacks Internet - Software industry. When looking at the last two reports, this maker of human-resources and payroll software has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 7.51%, on average, in the last two quarters. For the last reported quarter, Paycom came out ...

The S&P 500 returned an average of 184% during past bull markets, and it realized those returns over roughly 64 months. If the current bull market aligns with the historical average, the index will advance 131% over the next 44 months. But even if those gains fail to materialize, investors have good reason to believe the stock market will soar in the long run. Shopify: A leader in retail e-commerce software that is gaining momentum in wholesale Notably, management said B2B gross merchandise volume rose 130% ...

While 11% revenue growth isn't terrible, it's a far cry from what Paycom investors are used to. Excluding the early pandemic when layoffs and furloughs were the norm, Paycom has historically managed a revenue growth rate of 30% or higher. This highly profitable software company is finally trading at an attractive valuation. Since the stock peaked in late 2021, payroll and human resources software provider Paycom (PAYC 1.02%) has been a disaster for investors. Shares are down a whopping 74% from that all-tim ...