OKLAHOMA CITY - Paycom (NYSE:PAYC) Software, Inc. (NYSE:PAYC) reported better-than-expected third-quarter results and provided a solid outlook, sending its shares up 3.4% in after-hours trading.
The cloud-based human capital management software provider posted adjusted earnings per share of $1.67, surpassing the analyst estimate of $1.61. Revenue for the quarter came in at $451.9 million, beating the consensus estimate of $447 million and representing an 11.2% increase YoY.
Paycom's recurring revenue, which constituted 98.5% of total revenue, grew 11.6% to $445 million compared to the same period last year. The company's adjusted EBITDA rose to $171.3 million, representing 38% of total revenues.
"We posted solid third quarter results and continue to make significant progress toward full-solution automation," said Paycom founder, CEO and chairman, Chad Richison. "We already have the most automated solution in the industry and continue to deliver even stronger ROI to our clients."
Looking ahead, Paycom provided guidance for the fourth quarter, projecting revenue between $477 million and $484 million. For the full year 2024, the company expects revenue in the range of $1.866 billion to $1.873 billion, in line with analyst expectations of $1.868 billion.
The company maintained a strong balance sheet with cash and cash equivalents of $325.8 million as of September 30, 2024, and no debt. During the quarter, Paycom paid $21 million in cash dividends and repurchased 303,245 shares of common stock for $44 million.
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