(Reuters) - Paycom (NYSE:PAYC) forecast first-quarter revenue below market estimates on Wednesday as clients pull back spending on payroll and human capital management software products due to economic uncertainty, sending its shares down 5% in extended trading.
The payroll services provider also promoted former Chief Operating Officer Chris Thomas to jointly lead the company with Chad Richison as co-CEO.
The company projected revenue in the range of $494 million to $497 million for the quarter ending March 31, compared with the estimates of $500.5 million, as per LSEG data.
Paycom results contrast those of rival Automatic Data Processing (NASDAQ:ADP), which reported upbeat results on steady demand for its payroll services.
For the quarter ended Dec. 31, Paycom reported revenue of $434.6 million, exceeding expectations of $422.5 million.
Adjusted profit of $1.93 per share also came in above estimates of $1.78.
Paycom's adjusted gross margin came in at 83.3%, compared with 84.3% a year earlier.