Paycom Software Inc (PAYC, Financial), a leading provider of comprehensive, cloud-based human capital management software, announced its financial results for the quarter ended September 30, 2023, on October 31, 2023. The company reported solid revenue and earnings growth, with total revenues of $406.3 million, representing a 21.6% increase compared to the same period last year.
Financial Highlights
Paycom's GAAP net income for Q3 2023 was $75.2 million, or $1.30 per diluted share, compared to $52.2 million, or $0.90 per diluted share, in the same period last year. Non-GAAP net income was $102.4 million, or $1.77 per diluted share, compared to $73.4 million, or $1.27 per diluted share, in the same period last year. Adjusted EBITDA was $165.6 million, compared to $126.0 million in the same period last year.
The company's cash and cash equivalents were $484.0 million as of September 30, 2023, compared to $400.7 million as of December 31, 2022. During the quarter, Paycom paid $21.6 million in cash dividends and repurchased 263,824 shares of common stock for a total of $76.5 million.
Financial Outlook
For the quarter ending December 31, 2023, Paycom expects total revenues in the range of $420 million to $425 million and adjusted EBITDA in the range of $169 million to $174 million. For the year ending December 31, 2023, the company anticipates total revenues in the range of $1.679 billion to $1.684 billion and adjusted EBITDA in the range of $712 million to $717 million.
Company Performance Analysis
Paycom's strong Q3 2023 performance reflects its continued growth and solid fundamentals. The company's revenue growth was driven by a 21.5% increase in recurring revenues, which constituted 98.1% of total revenues. The significant rise in GAAP and non-GAAP net income, as well as adjusted EBITDA, demonstrates the company's ability to effectively manage its operations and generate substantial profits.
Important Financial Tables
Paycom's balance sheet as of September 30, 2023, shows a healthy financial position with total assets of $3.856 billion and total stockholders' equity of $1.421 billion. The company's cash and cash equivalents increased to $484.0 million from $400.7 million as of December 31, 2022.
The company's consolidated statement of comprehensive income for the three months ended September 30, 2023, shows a net income of $75.2 million, up from $52.2 million in the same period last year. Earnings per share (diluted) also increased to $1.30 from $0.90 in the same period last year.
Explore the complete 8-K earnings release (here) from Paycom Software Inc for further details.
