OKLAHOMA CITY – Paycom (NYSE:) Software Inc. (NYSE:PAYC) reported better-than-expected third-quarter earnings and gave a solid outlook, sending the company’s stock up 3.4% in after-hours trading.
The cloud-based human capital management software provider posted adjusted earnings of $1.67 per share, beating analysts’ estimates of $1.61. Revenue for the quarter was $451.9 million, beating the consensus estimate of $447 million and increasing 11.2% year over year.
Paycom’s recurring revenue, which represents 98.5% of total revenue, increased 11.6% compared to the prior year period to $445 million. The company’s adjusted EBITDA increased to $171.3 million, accounting for 38% of total revenue.
“We had a strong third quarter and continue to make significant progress toward fully automating our solutions,” said Chad Richison, Founder, CEO, and Chairman of Paycom. “We already have the most automated solution in the industry and will continue to deliver even stronger ROI to our clients.”
Looking ahead, Paycom provided guidance predicting fourth-quarter revenue of $477 million to $484 million. The company expects full-year 2024 sales to be in the range of $1.866 billion to $1.873 billion, in line with analyst estimates of $1.868 billion.
The company maintains 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 cash dividends of $21 million and repurchased 303,245 shares of its common stock for $44 million.
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