Group 1 - Albert Anthony is a senior analyst with over 10 years of experience in investment banking, focusing on industry and company research [1] - The analyst has gained over 1 thousand followers on Seeking Alpha since 2023 and writes for various financial media platforms [1] - A new book titled "The Analyst: 6 Steps To Picking Stocks For Future Growth (2025 edition)" is set to launch, detailing a 6-step system for stock analysis [1] Group 2 - Albert Anthony has a background in IT analysis and transitioned to the financial sector during the remote-work era of 2020 [1] - The analyst has earned degrees and certificates from institutions such as Drew University and the Corporate Finance Institute [1] - The brand "Albert Anthony & Company" is a privately-held enterprise registered in Austin, Texas [1]

Financial Performance - Total revenue increased by 5% to $1,509 million in Q3 FY25 compared to $1,439 million in Q3 FY24[7] - Adjusted operating income increased by 9% to $708 million in Q3 FY25 compared to $650 million in Q3 FY24[7] - Adjusted diluted EPS increased by 8% to $1.49 in Q3 FY25 compared to $1.38 in Q3 FY24[7] - For the nine months ended February 28, 2025, total service revenue increased by 4% to $4,027.9 million[40] - Interest on funds held for clients decreased by 2% to $42.9 million for the three months ended February 28, 2025[40] Revenue Breakdown - Management Solutions revenue increased by 5% to $1,101 million in Q3 FY25 compared to $1,050 million in Q3 FY24[10] - PEO & Insurance Solutions revenue increased by 6% to $365 million in Q3 FY25 compared to $345 million in Q3 FY24[10] Acquisition of Paycor - Paychex announced a definitive agreement to acquire 100% of Paycor for $22.50 per share, reflecting approximately $4.1 billion of enterprise value[16] - The acquisition is expected to close in April 2025 and is expected to be accretive to adjusted diluted EPS in fiscal 2026[17,18] - Including Paycor, the company expects revenue growth of 10% to 12% in fiscal 4Q25, with a neutral impact to adjusted diluted EPS[17] Fiscal Year 2025 Outlook (Excluding Paycor) - Total revenue is expected to grow by 4.0% - 5.5% year-over-year[37] - Adjusted diluted EPS is expected to grow by 5% - 7% year-over-year[37]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ———————— Form 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 001-40640 PAYCOR HCM, INC. (Exact Name of Registrant as Specified in its Charter) (State ...

Group 1: Earnings Performance - Paycor HCM, Inc. reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.11 per share a year ago, representing an earnings surprise of 27.27% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Paycor HCM's revenues for the quarter ended December 2024 were $180.44 million, surpassing the Zacks Consensus Estimate by 1.87%, and up from $159.54 million year-over-year [2] Group 2: Stock Performance and Outlook - Paycor HCM shares have increased approximately 19.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.7% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $206.18 million, and for the current fiscal year, it is $0.56 on revenues of $730.88 million [7] Group 3: Industry Context - The Internet - Software industry, to which Paycor HCM belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Entered into a definitive agreement to be acquired by Paychex, Inc.Q2 Total revenues of $180.4 million, an increase of 13% year-over-year, while expanding operating marginsQ2 Recurring revenues of $167.4 million, an increase of 14% year-over-year CINCINNATI, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor” or the “Company”), a leading provider of human capital management (“HCM”) software, today announced financial results for the second quarter fiscal year 2025, which ended Decemb ...

[Second Quarter Fiscal Year 2025 Overview](index=1&type=section&id=Second%20Quarter%20Fiscal%20Year%202025%20Overview) Paycor's second quarter of fiscal year 2025 saw significant financial growth and a pending acquisition by Paychex, Inc [2.1 Key Financial Highlights (Q2 FY2025)](index=1&type=section&id=2.1%20Key%20Financial%20Highlights%20%28Q2%20FY2025%29) Paycor achieved significant financial growth and improved profitability in Q2 FY2025, with double-digit increases in total and recurring revenue, substantial rises in operating income and adjusted operating income, a significant reduction in net loss, and strong adjusted free cash flow growth Key Financial Data for Q2 FY2025 | Adjusted Free Cash Flow* (USD in millions) | Q2 FY2025 | Q2 FY2024 | % Change | | :--------------------------------------- | :-------- | :-------- | :------- | | Adjusted Free Cash Flow* | 28.5 | 14.8 | 92.6% | [2.2 Pending Merger with Paychex, Inc.](index=1&type=section&id=2.2%20Pending%20Merger%20with%20Paychex%2C%20Inc.) Paycor announced a definitive agreement to be acquired by Paychex, Inc. in an all-cash transaction valued at approximately $4.1 billion or $22.50 per share, with the transaction unanimously approved by the board and majority shareholders, expected to close in H1 2025, after which Paycor will become a wholly-owned subsidiary of Paychex and delist from Nasdaq; consequently, the company has suspended FY2025 financial guidance and canceled its earnings call - Paycor has agreed to be acquired by Paychex, Inc. in an all-cash transaction valued at approximately **$4.1 billion**, or **$22.50 per share**[4](index=4&type=chunk) - The per-share merger consideration represents a premium of approximately **19%** over the 30-day volume-weighted average trading price as of January 3, 2025, the unaffected trading day[4](index=4&type=chunk) - The merger agreement has been unanimously approved by the company's board of directors and a majority of outstanding common stock shareholders, with completion expected in the first half of calendar year 2025[4](index=4&type=chunk) - Due to the pending transaction, the company will not hold an earnings conference call, has suspended its FY2025 financial guidance, and will not provide Q3 2025 financial guidance[5](index=5&type=chunk) [Company Information & Disclosures](index=2&type=section&id=Company%20Information%20%26%20Disclosures) This section provides essential information about Paycor, including its business model, forward-looking statements, and explanations of non-GAAP financial measures [3.1 About Paycor](index=2&type=section&id=3.1%20About%20Paycor) Paycor is a leading Human Capital Management (HCM) software provider, offering HR, payroll, and talent platforms designed to connect leaders with employees, data, and expertise, providing tools to enhance employee engagement and retention, and delivering a unified HCM experience for business outcomes - Paycor offers HR, payroll, and talent platforms that connect leaders with employees, data, and expertise[10](index=10&type=chunk) - The company provides tools to help leaders coach, develop, and retain employees, thereby increasing engagement and retention[10](index=10&type=chunk) - Paycor delivers a unified HCM experience that seamlessly connects with other mission-critical technologies, offering unprecedented insights into operational data[10](index=10&type=chunk) [3.2 Forward-Looking Statements](index=2&type=section&id=3.2%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding the company's future operating results, financial condition, business outlook, strategic plans, and objectives, which are subject to various risks, uncertainties, and assumptions, including those related to the Paychex merger, such as failure to complete the transaction, termination of the agreement, potential litigation, business restrictions, and operational risks like cybersecurity, sales team performance, customer satisfaction, AI development, and macroeconomic conditions - Forward-looking statements cover future operating results, financial condition, business outlook, strategies, and plans, identified by words such as "anticipate," "estimate," and "expect"[11](index=11&type=chunk) - Key risks include the merger not being completed in a timely manner or at all, termination of the merger agreement, potential litigation, business restrictions during the merger period, and failure to realize the anticipated benefits of the merger[12](index=12&type=chunk) - Other risks include effectively managing growth, data security breaches, sales team expansion and retention, customer satisfaction, payment timing, future acquisitions, retention of key executives, product innovation, AI development, talent attraction and retention, software operations, and macroeconomic conditions[12](index=12&type=chunk) [3.3 Explanation of Non-GAAP Financial Measures](index=2&type=section&id=3.3%20Non-GAAP%20Financial%20Measures%20Explanation) To supplement GAAP financial information, Paycor provides non-GAAP financial measures such as adjusted gross profit, adjusted operating income, adjusted net income, and adjusted free cash flow, which management believes are useful for evaluating core operating performance and trends, and for providing consistency with historical performance and comparisons to peer companies; the company defines each non-GAAP measure and emphasizes they are not GAAP substitutes and may not be comparable - The company provides non-GAAP financial measures including adjusted gross profit, operating income, sales and marketing expenses, general and administrative expenses, research and development expenses, net income, net income per share, free cash flow, and their respective margins[13](index=13&type=chunk) - Management believes these non-GAAP measures are useful for evaluating core operating performance and trends, developing budgets and operating plans, and providing consistency with historical performance and comparisons to peer companies[13](index=13&type=chunk) - Non-GAAP financial measures are not measures of GAAP financial performance, should not be considered as substitutes, and may not be comparable to similar measures used by other companies[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Paycor's condensed consolidated financial statements, including the balance sheets, statements of operations, and cash flows, highlighting key financial positions and performance over the reporting periods [4.1 Condensed Consolidated Balance Sheets](index=4&type=section&id=4.1%20Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2024, Paycor's total assets were $2,830,202 thousand, an increase from June 30, 2024, driven by a significant rise in funds held for clients, which contributed to growth in total current assets; total liabilities and stockholders' equity also increased accordingly Key Data from Condensed Consolidated Balance Sheets (USD in thousands) | Item | December 31, 2024 | June 30, 2024 | Change | | :----------------------- | :---------------- | :------------ | :------- | | Total Stockholders' Equity | 1,309,018 | 1,286,926 | +22,092 | [4.2 Condensed Consolidated Statements of Operations](index=5&type=section&id=4.2%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three and six months ended December 31, 2024, Paycor achieved significant growth in both total and recurring revenue, successfully transitioning from an operating loss to an operating income and substantially reducing its net loss, demonstrating a notable improvement in profitability Key Data from Condensed Consolidated Statements of Operations (USD in thousands) | Item | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | % Change / Improvement | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | % Change / Improvement | | :--------------------------------- | :------------------------------ | :------------------------------ | :--------------------- | :---------------------------- | :---------------------------- | :--------------------- | | Basic and Diluted Net Loss Per Share | (0.01) | (0.15) | 93.3% Improvement | (0.05) | (0.26) | 80.8% Improvement | [4.3 Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=4.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended December 31, 2024, Paycor's cash flow from operating activities significantly improved from $37 thousand in the prior-year period to $28,749 thousand, while cash outflows from investing activities decreased, and financing activities remained strong, primarily driven by net changes in client fund obligations; total cash and cash equivalents and funds held for clients at period-end increased Key Data from Condensed Consolidated Statements of Cash Flows (USD in thousands) | Item | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | Change | | :------------------------------------------------------------------------ | :---------------------------- | :---------------------------- | :------- | | Cash, Cash Equivalents, Restricted Cash and Short-Term Investments, and Funds Held for Clients, End of Period | 1,122,970 | 1,067,729 | +55,241 | [Reconciliations of Non-GAAP Measures](index=8&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of Paycor's non-GAAP financial measures to their most directly comparable GAAP counterparts, including adjusted gross profit, operating income, operating expenses, net income, and free cash flow [5.1 Adjusted Gross Profit and Margin](index=8&type=section&id=5.1%20Adjusted%20Gross%20Profit%20and%20Margin) Paycor's adjusted gross profit increased for both Q2 FY2025 and the six-month period, reflecting core profitability after excluding non-cash items like amortization of intangible assets and stock-based compensation expense; despite a slight decrease, the adjusted gross margin remained at a high level Adjusted Gross Profit and Margin (USD in thousands) | Item | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | Change | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | Change | | :---------------------- | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | Adjusted Gross Margin | 67.1% | 67.4% | -0.3 pp | 66.6% | 66.8% | -0.2 pp | [5.2 Adjusted Operating Income and Margin](index=8&type=section&id=5.2%20Adjusted%20Operating%20Income%20and%20Margin) Paycor's adjusted operating income significantly increased for both Q2 FY2025 and the six-month period, with a notable improvement in adjusted operating margin, primarily due to the exclusion of non-recurring or non-cash items such as amortization of intangible assets, stock-based compensation expense, lease exit costs, and professional fees related to the Paychex merger Adjusted Operating Income and Margin (USD in thousands) | Item | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | Change | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | Change | | :------------------------ | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | Adjusted Operating Margin | 17.6% | 14.6% | +3.0 pp | 15.7% | 12.9% | +2.8 pp | - Adjustments for the three and six months ended December 31, 2024, include **$1.7 million** in professional fees related to the Paychex merger, as well as professional, consulting, and other fees related to strategic initiatives[29](index=29&type=chunk) [5.3 Adjusted Operating Expenses](index=9&type=section&id=5.3%20Adjusted%20Operating%20Expenses) Paycor's adjusted sales and marketing, general and administrative, and research and development expenses varied for both Q2 FY2025 and the six-month period, with adjusted general and administrative expenses notably decreasing due to the exclusion of amortization of intangible assets, stock-based compensation expense, and corporate adjustments Adjusted Operating Expenses (USD in thousands) | Item | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | % Change | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | % Change | | :---------------------------------- | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | Adjusted Research and Development Expenses | 15,563 | 13,195 | +17.9% | 30,799 | 25,320 | +21.6% | - Corporate adjustments include professional fees related to the Paychex merger and professional, consulting, and other fees related to strategic initiatives[31](index=31&type=chunk) [5.4 Adjusted Net Income and Adjusted Net Income Per Share](index=9&type=section&id=5.4%20Adjusted%20Net%20Income%20and%20Per%20Share) Paycor's adjusted net income and adjusted net income per share significantly increased for both Q2 FY2025 and the six-month period, benefiting from the exclusion of non-GAAP adjustments such as amortization of intangible assets, stock-based compensation expense, gain/loss on lease exit, and professional fees related to the Paychex merger, along with the application of an adjusted effective income tax rate Adjusted Net Income and Adjusted Net Income Per Share (USD in thousands) | Item | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | % Change | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | % Change | | :------------------------ | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | Adjusted Shares Outstanding | 180,681,049 | 177,740,047 | +1.7% | 179,772,462 | 177,537,308 | +1.3% | - The tax impact of non-GAAP adjusted pre-tax income is calculated using an adjusted effective income tax rate of **23.0%**[34](index=34&type=chunk) - Adjusted shares outstanding are based on the if-converted method and include potentially dilutive securities excluded from GAAP diluted net income per share calculations[35](index=35&type=chunk) [5.5 Adjusted Free Cash Flow and Free Cash Flow Margin](index=10&type=section&id=5.5%20Adjusted%20Free%20Cash%20Flow%20and%20Margin) Paycor's adjusted free cash flow significantly increased in Q2 FY2025 from $14.8 million to $28.5 million, with a notable improvement in adjusted free cash flow margin; for the six-month period, adjusted free cash flow also turned positive from negative, indicating a substantial improvement in the company's cash generation capability Adjusted Free Cash Flow and Free Cash Flow Margin (USD in thousands) | Item | Three Months Ended Dec 31, 2024 | Three Months Ended Dec 31, 2023 | Change | Six Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2023 | Change | | :------------------------------ | :------------------------------ | :------------------------------ | :------- | :---------------------------- | :---------------------------- | :------- | | Adjusted Free Cash Flow Margin | 15.8% | 9.3% | +6.5 pp | 1.8% | (8.3)% | +10.1 pp | - Corporate adjustments include contingent consideration and professional, consulting, and other fees related to strategic initiatives[39](index=39&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) This section provides contact details for Paycor's investor relations and media relations departments [6.1 Investor and Media Relations](index=3&type=section&id=6.1%20Investor%20and%20Media%20Relations) This section provides contact information for Paycor's investor relations and media relations, including contact names, phone numbers, and email addresses - Investor Relations contact: Rachel White, Phone: **513-954-7388**, Email: **IR@paycor.com**[16](index=16&type=chunk) - Media Relations contact: Carly Pennekamp, Phone: **513-954-7282**, Email: **PR@paycor.com**[16](index=16&type=chunk)

Paycor HCM, Inc. (PYCR) is scheduled to report second-quarter fiscal 2025 results on Feb. 5, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.PYCR expects second-quarter fiscal 2025 revenues to be between $176 million and $178 million. The Zacks Consensus Estimate for revenues is pegged at $177.2 million, indicating a 11.2% year-over-year decline.The consensus mark for earnings is pinned at 11 cents per share, which remained unchanged over the past 60 days. The figur ...

All-in-one solution fully integrates with PDI Enterprise to simplify workforce management and optimize productivityATLANTA, Jan. 22, 2025 /PRNewswire/ -- Convenience retail and wholesale petroleum operators face increasing demands with labor management, prompting the need for more efficient solutions to streamline workforce planning, processes, and execution. After an extensive assessment of leading solutions that would best fit the complex needs of the industry, PDI Technologies has announced entry into th ...

CINCINNATI, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced that it will release financial results for the second quarter of fiscal year 2025, ended December 31, 2024, after the U.S. financial markets close on Wednesday, February 5, 2025. In light of the definitive agreement to be acquired by Paychex announced on January 7, 2025, Paycor will not host an earnings conference call or webcast to discuss ...

Company Overview - Paycor HCM, Inc. (PYCR) shares increased by 23.3% to $22.86 in the last trading session, contrasting with a 3.4% loss over the past four weeks [1] - The company is experiencing strong demand for its modern HCM solutions, expanded partnerships, increased product offerings, and improved operational efficiency, leading to significant revenue growth and margin expansion [1] Earnings Expectations - Paycor HCM is expected to report quarterly earnings of $0.11 per share, unchanged from the same quarter last year, with revenues projected at $177.11 million, reflecting an 11% increase year-over-year [2] - The consensus EPS estimate for Paycor HCM has been revised 1% higher in the last 30 days, indicating a positive trend that typically correlates with price appreciation [3] Industry Comparison - Paycor HCM is part of the Zacks Internet - Software industry, where another company, Palo Alto Networks (PANW), saw a 2.1% decline in its last trading session and has returned -9.7% over the past month [3] - Palo Alto's consensus EPS estimate has increased by 0.6% over the past month to $0.76, representing a 4.1% change compared to the previous year [4]