By Sam Boughedda
Investing.com — Paycom Software (NYSE:PAYC) shares climbed 5.2% after-hours Tuesday after reporting its fourth-quarter earnings beating analyst earnings and revenue expectations.
The online payroll and human resource technology provider announced earnings per share of $1.11 on revenue of $285 million. Analysts polled by Investing.com anticipated EPS of $1.08 on revenue of $276.63 million.
Oklahoma-based Paycom's revenue represented a 29% increase compared to the same period last year. Paycom also increased its annual revenue retention rate to a record 94% in 2021, up from 93% in the prior year.
Paycom commented that Covid-19 related challenges resulted in headcount fluctuations across its client base during the quarter.
“We delivered very strong results in 2021, reflecting outstanding execution and robust demand for Paycom’s differentiated solution,” said Paycom’s founder and CEO, Chad Richison.
"Employee usage strategy, where employees are now able to do their own payroll with Beti, helped deliver record annual revenue retention," he added.
The company sees Q1 revenue in the range of $342 million to $344 million, with adjusted EBITDA in the range of $161 million to $163 million. Analyst expectations were for $341 million of revenue in Q1.
Furthermore, revenue for 2022 is expected to be between $1.314 billion and $1.316 billion, with adjusted EBITDA coming in between $524 million and $526 million.