First Quarter Revenues of $452 million, up 28% from the comparable prior year period

First Quarter GAAP Net Income of $119 million, representing 26% of total revenues, or $2.06 per diluted share

First Quarter Non-GAAP Net Income of $143 million, of $2.46 per diluted share

First Quarter Adjusted EBITDA of $221 million, representing 49% of total revenues

Paycom Software, Inc. (“Paycom,” “we” and “our”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended March 31, 2023.

“Results for the first quarter of 2023 were excellent, with robust revenue growth from new clients and expanding margins, as demand for automation and our easy-to-use HCM solutions continues to increase,” said Paycom’s founder, chairman and CEO, Chad Richison. “Our unique value proposition, particularly with Beti where employees do their own payroll, continues to resonate with clients and their employees.”

Financial Highlights for the First Quarter of 2023

Total Revenues of $451.6 million represented a 27.8% increase compared to total revenues of $353.5 million in the same period last year. Recurring revenues of $444.4 million increased 27.6% from the comparable prior year period, and constituted 98.4% of total revenues.

GAAP Net Income was $119.3 million, or $2.06 per diluted share, compared to GAAP net income of $91.9 million, or $1.58 per diluted share, in the same period last year.

Non-GAAP Net Income¹was $142.7 million, or $2.46 per diluted share, compared to $110.6 million, or $1.90 per diluted share, in the same period last year.

Adjusted EBITDA¹ was $220.5 million, compared to $170.1 million in the same period last year.

Cash and Cash Equivalents were $505.6 million as of March 31, 2023, compared to $400.7 million as of December 31, 2022.

Total Debt was $29.0 million as of March 31, 2023 and December 31, 2022.

¹ Adjusted EBITDA and non-GAAP net income are non-GAAP financial measures. Please see the discussion below under the heading "Use of Non-GAAP Financial Information" and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.

Financial Outlook

Paycom provides the following expected financial guidance for the quarter ending June 30, 2023 and the year ending December 31, 2023.

Quarter Ending June 30, 2023:

Total Revenues in the range of $397 million to $399 million.

Adjusted EBITDA in the range of $152 million to $154 million.

Year Ending December 31, 2023:

Total Revenues in the range of $1.713 billion to $1.715 billion.

Adjusted EBITDA in the range of $717 million to $719 million.

We have not reconciled the forward-looking adjusted EBITDA ranges presented above and discussed on the teleconference call to net income, nor the forward-looking adjusted EBITDA margins and forward looking non-GAAP effective income tax rate discussed on the teleconference call to comparable GAAP measures, because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense and other items.

Source: Paycom Software, Inc.