Paycom Exceeds Q4 Sales Estimates, Misses Full-Year Guidance

Paycom (NYSE: PAYC), a provider of online payroll and HR software, announced Q4 CY2024 financial results that surpassed Wall Street's expectations in certain areas.

Q4 CY2024 Highlights:

* Revenue: $493.8 million, exceeding analyst estimates by 13.6% year-over-year.
* Adjusted EPS: $2.32, surpassing consensus estimates by 17.7%.
* Adjusted EBITDA: $214.9 million, exceeding analyst estimates by 14.2%.

Full-Year Guidance:

* Revenue guidance for fiscal year 2025: $2.03 billion, slightly below analyst estimates by 1.2% and indicating a 7.5% growth rate.
* EBITDA guidance for fiscal year 2025: $830 million, exceeding analyst estimates.

Company Overview:

* Paycom provides software solutions for SMBs to manage payroll and HR needs efficiently.
* Its HR software offers cost savings and ease of use through cloud-based delivery and a user-friendly platform.

Sales Growth:

* Paycom's sales have grown at a steady 21.3% compounded annual growth rate over the past three years.
* Its growth trajectory exceeds the industry average, indicating strong customer demand for its offerings.

Customer Acquisition:

* The company has a CAC payback period of 8.6 months, demonstrating its efficiency in acquiring new customers.
* This efficient customer acquisition strategy allows Paycom to invest in product development and expand its sales and marketing efforts.

Key Takeaways:

* Paycom exceeded analyst expectations in Q4 EBITDA.
* Full-year revenue guidance missed slightly.
* The company remains financially strong with a solid customer acquisition strategy.

Investment Considerations:

* While Q4 results were mixed, the full research report provides a deeper analysis of Paycom's long-term business quality and valuation to assist in investment decisions.