Q4 2024 Paycor HCM Inc Earnings Call Transcript
Key Points
- Paycor HCM Inc (PYCR) reported a strong revenue growth of 18% for the fourth quarter and 19% for the fiscal year.
- The company increased the average number of employees on its platform by 9% and the amount earned per employee per month (PEPM) by 6%.
- Significant expansion in adjusted operating income and free cash flow margins was achieved while strategically investing in the platform and customer experience.
- The sales team grew by 9% to 600 professionals, increasing sales coverage in the 50 largest US cities from 52% to 55%.
- Revenue from the talent suite increased nearly 40% for the fiscal year, validating the company's value proposition of empowering leaders to optimize and retain top talent.
- The US labor market growth has moderated, contributing less to revenue growth compared to historical highs.
- Gross profit margin decreased by 40 basis points for the quarter due to macro headwinds.
- Sales and marketing expenses were high, although they showed improvement year over year.
- The company faces ongoing macroeconomic uncertainties, including potential labor market headwinds and a declining rate environment.
- Embedded HCM revenue, while growing, remains a small portion of the overall portfolio and will take time to materially impact revenue.
Greetings, and welcome to the Paycor fourth-quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce you to your host, Rachel White, Vice President of Investor Relations. Thank you, Rachel. You may begin.
Good afternoon, and welcome to Paycor's earnings call for the fourth quarter and fiscal year 2024, which ended on June 30. On the call with me today are Raul Villar, Jr., Paycor's Chief Executive Officer; and Adam Ante, Paycor's Chief Financial Officer.
Our financial results can be found in our press release issued today, which is available on the Investor Relations section of website. Today's call is being recorded, and a replay will be available on our website following the conclusion of the call.
Statements made on this call include forward-looking statements related to our financial results, products, customer demand, operations, and other matters. These statements are subject to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
