Paycom Software, Inc. (PAYC) – Global expansion with strong financial performance

Paycom Software, Inc. (PAYC) (Q2FY23)

Stock Performance: Over the past year, Paycom’s stock price has decreased by 21.03%, which is a significant decline. The stock’s 52- week high is $374.04 and the 52-week low is $252.12. Over the last three months, the stock price has shown an upward trend, but it has given a negative return of -16.71%. This can be attributed to the secular trends, China’s economic woes, and Federal Reserve rate hikes.

Q2FY23 results: Q2 revenue was $401mn, a growth of 28% Y/Y. Recurring revenue was $394.5mn for Q2. GAAP Net income was $64.5mn or $1.11 per diluted share and non-GAAP Net income was $94.3mn or $1.26. Adjusted EBITDA was $119.6mn in Q2.

Guidance: For Q3FY23, Total revenue is expected to be in the range of $410mn and $412mn. Adjusted EBITDA is expected to be around $156mn- $158mn. For FY23, Total revenue is expected in the range of $1.715bn to $1.717bn and Adjusted EBITDA is expected in the range of $722mn to $724mn.

Highlights

Paycom’s marketing plan for 2022 has been performing well, delivering strong demo leads
throughout the year as they continue to aggressively spend on advertising.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10-Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 31

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