■ □ Paycor. | wester Presentation Q1 FY'25 _ Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company's current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance and business. These statements may be preceded by, followed by or include the words ''anticipate,'' ''estimate,'' ''expect,'' ''project,'' ''plan,'' ''intend,'' ''believe,'' ''may,'' ''wil ...

Core Insights - Paycor HCM, Inc. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and showing an increase from $0.07 per share a year ago, resulting in a 25% earnings surprise [1] - The company achieved revenues of $167.48 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.20% and up from $143.59 million year-over-year [2] - Paycor HCM has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Paycor HCM's stock will largely depend on management's commentary during the earnings call and the sustainability of its immediate price movement based on the latest earnings numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $176.87 million, and for the current fiscal year, it is $0.53 on revenues of $725.75 million [7] Industry Context - The Internet - Software industry, to which Paycor HCM belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Performance - Q1 total revenues reached $167.5 million, marking a 17% year-over-year increase[1] - Q1 recurring revenues were $154.0 million, reflecting a 16% year-over-year growth[1] - Adjusted operating income for Q1 was $22.8 million, up 43% from $15.9 million in Q1 FY 2024, representing 14% of total revenues[3] - Net loss improved to $7.3 million from $20.6 million in Q1 FY 2024[4] - Adjusted free cash flow improved to ($22.2) million from ($40.0) million in Q1 FY 2024[4] - FY 2025 revenue guidance is set between $726.0 million and $733.0 million, indicating a 12% year-over-year increase at the top end[1] - Q2 revenue guidance is projected between $176.0 million and $178.0 million[8] - Adjusted operating income for FY 2025 is expected to be in the range of $127.0 million to $130.0 million[8] - Total revenues for September 2024 reached $167.476 million, a 16.6% increase from $143.588 million in September 2023[19] - Gross profit for the same period was $108.259 million, up from $92.210 million, reflecting a gross margin improvement[19] - The net loss for September 2024 was $7.284 million, significantly improved from a net loss of $20.596 million in September 2023[19] - The company reported a basic and diluted net loss per share of $0.04, an improvement from $0.12 in the prior year[19] - Adjusted Gross Profit for the three months ended September 30, 2024, was $110,657,000, compared to $95,180,000 for the same period in 2023, reflecting a year-over-year increase of 16.3%[22] - Adjusted Operating Income increased to $22,800,000 for the three months ended September 30, 2024, up from $15,920,000 in 2023, representing a growth of 43.3%[23] - Adjusted Net Income attributable to Paycor HCM, Inc. was $18,654,000 for the three months ended September 30, 2024, compared to $12,810,000 in 2023, marking an increase of 45.5%[25] - Adjusted Free Cash Flow improved to $(22,234,000) for the three months ended September 30, 2024, compared to $(40,007,000) in 2023, indicating a reduction in cash outflow[26] - Operating Margin improved to (8.5)% for the three months ended September 30, 2024, compared to (16.3)% in 2023, showing a significant reduction in operational losses[23] - The company reported a net loss before benefit for income taxes of $(13,722,000) for the three months ended September 30, 2024, an improvement from $(23,685,000) in 2023[25] Expenses and Liabilities - Operating expenses totaled $122.513 million, compared to $115.582 million, with research and development expenses increasing to $17.428 million from $14.055 million[19] - Total current assets decreased to $1.209 billion from $1.362 billion in the previous quarter[18] - Total liabilities decreased to $1.141 billion from $1.322 billion, indicating improved financial health[18] - Funds held for clients were $967.189 million, down from $1.109 billion in the previous quarter[18] - Research and Development expenses increased to $17,428,000 for the three months ended September 30, 2024, up from $14,055,000 in 2023, reflecting a growth of 23.1%[24] - Sales and Marketing expenses rose to $56,789,000 for the three months ended September 30, 2024, compared to $52,778,000 in 2023, an increase of 7.6%[24] Product Development - Launched Paycor Assistant, an AI-powered HR companion aimed at enhancing productivity[6] - Introduced the Paycor Integration Platform, providing pre-built connections to over 320 technology partners[7] Equity and Cash Position - Cash and cash equivalents at the end of the period were $97.618 million, down from $117.958 million at the end of June 2024[20] - The total stockholders' equity increased to $1.300 billion from $1.287 billion, reflecting a positive trend in equity position[18] - Adjusted Gross Profit Margin for the three months ended September 30, 2024, was 66.1%, slightly down from 66.3% in 2023[22] - Adjusted shares outstanding increased to 177,912,794 for the three months ended September 30, 2024, compared to 177,334,568 in 2023[25]

CINCINNATI, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) ("Paycor"), a leading provider of human capital management (HCM) software, today announced its top 5 placement in Sapient Insights Group's 27th Annual HR Systems Report for 2024-2025. This prestigious report highlights the 50 top-performing HR technology solutions based on vendor and customer feedback. Paycor earned multiple mid-market (defined by Sapient as having 500 – 4,999 employees) top 5 rankings in User Experience (UX) and ...

Core Insights - Paycor HCM, Inc. has elected Dru Armstrong to its Board of Directors, effective October 23, 2024, bringing extensive leadership experience in technology and fintech [1][2] - Armstrong's background in software-as-a-service (SaaS) and embedded technology aligns with Paycor's growth strategies, particularly in enhancing HCM offerings [1][2] - The appointment is expected to drive innovation and growth within Paycor, as Armstrong has a proven track record in scaling technology companies and fostering diverse workplaces [2][3] Company Overview - Paycor provides a comprehensive human capital management (HCM) platform that connects leaders to people, data, and expertise, aiming to enhance employee engagement and retention [3] - The platform offers tools for coaching, developing, and growing employees, along with insights into operational data through a unified HCM experience [3] - Paycor positions itself as a partner in achieving business results, providing expert guidance and consultation to organizations [3]

CINCINNATI, Oct. 16, 2024 (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 first quarter of fiscal year 2025, ended September 30, 2024, after the U.S. financial markets close on Wednesday, November 6, 2024. Paycor will host a conference call and webcast presentation on Wednesday, November 6, 2024 at 5:00 p.m. Eastern Time to discuss the company's financial results. To ...

He also leads the investing group IPO Edge , which offers actionable information on growth stocks through first-look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what's on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to ini ...

CINCINNATI, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) ("Paycor"), a leading provider of human capital management (HCM) software, today announced the promotion of Tiffany Sieve to Chief Marketing Officer (CMO). Sieve will play a pivotal role in accelerating the company's path to $1 billion in revenue by strengthening brand awareness, demand generation, product marketing, and customer retention through strategic communication channels. She also joins Paycor's Executive Committee, repor ...

Financial Performance and Revenue Growth - Paycor HCM surpassed $600 million in annual revenue in fiscal year 2024[19] - Paycor HCM surpassed $500 million in annual revenue in fiscal year 2023[19] - Paycor HCM surpassed $400 million in annual revenue in fiscal year 2022[19] - Paycor HCM surpassed $300 million in annual revenue in fiscal year 2020[19] - The company incurred losses of $55.5 million and $104.7 million in fiscal years 2024 and 2023, respectively, and expects to continue incurring losses in the foreseeable future[153] - The company's revenues are seasonal, with higher revenue and margins in the third quarter due to the processing of payroll forms such as Form W-2, Form 1099, and Form 1095[60] - The company's financial results may fluctuate due to factors such as customer acquisition, market maturation, pricing changes, and economic conditions[147][151] Product Development and Innovation - The company launched a generative AI Analytics Digital Assistant in fiscal year 2024[19] - The company released Expense Management and launched the Paycor Developer Portal in fiscal year 2022[19] - The company's HCM suite includes a comprehensive set of tools such as HR, payroll, talent acquisition, talent management, benefits administration, and workforce management[37][38] - The company's platform offers real-time payroll processing, robust analytics, and predictive insights to help SMBs make data-driven decisions[37][38] - The company's Paycor Wallet allows employees to access up to 50% of their earned wages early and manage bill payments through the Paycor Visa Payroll Card[43] - The company's Developer Portal enables seamless integration and data syncing between HR and third-party systems using powerful APIs[43] - The company's COR Leadership Framework and Dashboard provide real-time insights and tools to transform frontline managers into effective leaders[43] - The company's platform is designed to address industry-specific needs in verticals such as manufacturing, healthcare, restaurants, and professional services[38][41] - The company's Paycor Smart Sourcing is an AI-driven recruiting software that reduces time to fill critical roles and emphasizes diverse candidates, supporting DE&I strategies[46] - The company's GUIDE implementation model ensures a seamless transition to its products, with GUIDE Elite offering extended implementation support of six weeks to six months for larger customers[58] - The company's personalized support model includes omni-channel support, a self-service support center, live chat, and dedicated Customer Success Managers for larger customers[59] Acquisitions and Partnerships - Paycor HCM acquired Talenya Ltd., an AI-driven talent sourcing and recruiting solution, in fiscal year 2023[19] - The company entered into a 16-year partnership with the Cincinnati Bengals, securing naming rights to Paycor Stadium in fiscal year 2023[19] - Paycor HCM launched GUIDE Elite implementation and acquired 7Geese talent management software in fiscal year 2021[19] - The company acquired Talenya Ltd. in October 2022 and Verb, Inc. in May 2023 to enhance its AI-driven talent sourcing and micro-learning capabilities[41] Market Opportunity and Customer Base - The company estimates its current annual recurring market opportunity at $40 billion in the U.S., with potential growth as the number of SMBs increases and the product portfolio expands[40] - The company has over 30,000 customers as of June 30, 2024, representing a small percentage of the U.S. HCM and payroll solutions market[41] - The company serves approximately 49,400 clients from over 30,000 parent customers, with more than 2,673,000 active employees on its platform as of June 30, 2024[51] - The company increased its sales coverage in the 50 largest U.S. cities from 52% to 55% in the fiscal year[41] Research and Development - Research and development expenses were $61.4 million and $54.3 million for the fiscal years ended June 30, 2024 and 2023, respectively, with capitalized R&D costs of $48.3 million and $40.0 million for the same periods[57] - The company's success depends on its ability to innovate and deliver high-quality, technologically advanced products and services, with significant investments in R&D to enhance existing products and introduce new ones[130] - The company is increasingly incorporating AI and machine learning into its solutions, which presents risks related to regulatory compliance, ethical use, and potential reputational harm[134][135] Workforce and Culture - The company employs approximately 2,900 associates as of June 30, 2024, with the majority working virtually and less than 5% residing internationally[73] - Paycor's workforce consists of 53.0% female and 47.0% male employees, with ethnic diversity including 7.1% Asian, 10.9% Black or African American, and 6.3% Hispanic or Latinx[83] - Paycor expanded family leave benefits to include Elder Caregiver Leave, Sabbatical Program Leave, Military Support Leave, and Enhanced Bereavement Leave[77] - Paycor provides a one-time, new hire equity grant to all eligible associates, which vests over time to align associate interests with stockholder objectives[77] - Paycor's DE&I strategy focuses on increasing diversity in leadership at middle and executive levels, improving frontline associate training, and enhancing supplier diversity programs[80] - Paycor's Enterprise Learning and Development team offers skilling opportunities through classes, workshops, and leadership programs, with tuition and certification reimbursement available[78] - Paycor's Community Impact Fund, a 501(c)(3) charitable investment account, provides grants to philanthropic organizations supported by associates[85] - Paycor has been awarded Top Workplaces USA for four consecutive years (2021-2024) and received 10 workplace culture honors in 2024, including Regional Top Workplace and nine culture excellence awards[74] Risk Factors and Challenges - The company's risk factors include potential data breaches, dependency on third-party security measures, and challenges in attracting and retaining qualified personnel[92][93][94] - Paycor faces risks related to cyber-attacks, including ransomware and phishing, which could compromise customer data and result in significant liabilities[98][99] - The company relies on third-party cloud services (Microsoft Azure and Amazon Web Services) and contractors, which exposes it to potential data security risks and unauthorized access to customer and employee data[105] - Past data security incidents have not materially impacted the company's business, but future breaches could lead to reputational damage, customer loss, regulatory fines, and lawsuits[101] - A cyber-attack or IT system breach could result in significant costs, including expenses to rectify the breach, claims from customers, lost revenue, and increased cybersecurity insurance costs[102][103] - The company's ability to monitor third-party service providers' data security is limited, and breaches in their systems could lead to reputational harm or litigation[106][107] - The company's growth depends on expanding and retaining a qualified direct sales team, with challenges in recruiting, training, and maintaining productivity[108][109][110] - Customer dissatisfaction with implementation, user experience, or customer service could harm the company's reputation, retention, and ability to attract new customers[111][112] - Defects or errors in the company's applications could lead to client loss, delayed market acceptance, termination of service agreements, and increased costs[113][114][115] - The company's payroll processing application involves significant financial risks, including potential defaults by customers and disputes over payment transactions[116][117][118] - Future acquisitions may divert management's attention, incur unanticipated costs, and result in integration challenges, potentially harming the company's operating results[119][120][121][122][123] - The company's reliance on key executives and senior leaders means that their loss could adversely affect the business[126] - The company's business could be adversely affected by the loss of key executives, as it lacks employment agreements with most of its executive officers[127] - The company's market position could be undermined by rapid technological changes, new product introductions by competitors, and evolving industry standards[129][132] - The company's payroll and HCM software may contain defects or errors, which could damage its reputation and result in claims or liability[141][142] - The company's ability to attract and retain qualified personnel, particularly software developers and IT staff, is critical to its future success[139] - The company's third fiscal quarter typically sees higher new customer acquisition due to the preference for starting payroll or HCM solutions at the beginning of the calendar year[152] Competition and Market Dynamics - The company faces intense competition in the HCM and payroll solutions market, with competitors potentially offering superior products or achieving greater market acceptance[162][163][164] - Competitors include major players like Automatic Data Processing, Paychex, Paycom Software, Paylocity Holding Corp., and Ultimate Software Group[167] - Negative macroeconomic conditions, including labor shortages, inflation, and elevated interest rates, could adversely affect the company and its customers[171] - An economic downturn or recession could lead to declines in revenues, profitability, and cash flows due to lower customer demand and increased pricing pressures[172] Technology and Infrastructure - The company's technology is based on a multi-tenant SaaS framework, leveraging a hybrid cloud configuration with Microsoft Azure and Amazon Web Services[49] - The company's platform is designed with security as a top consideration, employing a defense-in-depth strategy and maintaining NACHA certification and SOC 1 and SOC 2 examinations[50] - The SaaS delivery model is critical to the company's operations, with data centers located in Lebanon, Ohio, and Lombard, Illinois, and reliance on Microsoft Azure and Amazon Web Services[174] - Potential service interruptions could result from human error, cyber-attacks, natural disasters, or other unforeseen events, impacting customer access and data integrity[176][177] - Third-party providers, such as Microsoft Azure, have experienced service interruptions and performance degradation, which could harm the company's business[178] Legal and Regulatory Compliance - The company relies on intellectual property protection, and failure to adequately protect proprietary rights could impair its competitive advantage and lead to costly litigation[179][180][181] - The company faces potential lawsuits for alleged infringement of third-party intellectual property rights, which could result in significant expenses, damages, or modifications to products[183] - Changes in tax, benefits, and other laws may require significant modifications to the company's products, potentially reducing revenues and incurring substantial expenses[185] - The company is subject to regulatory oversight by the Consumer Financial Protection Bureau and state-level agencies, which could impact product offerings and compliance costs[186] - Failure to update products to comply with new laws could result in fines, penalties, and reputational damage, adversely affecting the company's financial condition[187] - The company is currently involved in three lawsuits related to the Illinois Biometric Information Privacy Act (IBIPA), with potential for substantial monetary damages[192] - Compliance with the California Consumer Privacy Act (CCPA) and General Data Protection Regulation (GDPR) may require significant modifications to data processing practices and policies, increasing costs[191][193] - The company's reliance on third-party providers for compliance with regulatory changes introduces risks of delays or failures in product updates[185] - Privacy concerns and evolving regulations may reduce the effectiveness of the company's applications and inhibit market adoption[196] - The company may face increased costs and liability due to adverse interpretations or changes in tax laws, potentially impacting customer retention and acquisition[201] - The company is exposed to litigation risks, including product liability claims, which could result in substantial costs and divert management attention[203] - The company is subject to the Foreign Corrupt Practices Act and similar laws prohibiting improper payments to government officials and politicians[205] - Compliance with economic sanctions and embargo programs administered by the Office of Foreign Assets Control is required[205] - Anti-money laundering laws, including The Bank Secrecy Act of 1970, apply to some of the company's businesses[205] - Expansion of international operations may increase risks related to compliance with foreign laws on sanctions, anti-corruption, and anti-money laundering[205] - Violations of applicable laws could result in regulatory enforcement actions and significant civil and criminal penalties[205] Financial and Operational Risks - Corporate investments and client funds are subject to market, interest rate, credit, and liquidity risks, which could adversely impact the business[157][158] - Total goodwill recorded as of June 30, 2024 is $766.7 million, with other intangible assets at $171.5 million[156] - The company relies heavily on third-party relationships for financial and operational functionality, and disruptions in these relationships could negatively impact its business[146] - The company's growth strategy relies on expanding relationships with third-party partners, which are non-exclusive and could be influenced by competitors[97]

CINCINNATI, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) ("Paycor"), a leading provider of human capital management (HCM) software, today announced the release of Paycor Compensation Management, a collaborative solution purpose-built for leaders who want to streamline compensation planning while engaging and retaining employees. The solution significantly reduces timeconsuming, error-prone manual work and helps leaders motivate employees with pay transparency and Total Reward statements ...