Paycor Q4 Results Beat Earnings Estimates, Revenue Up 13.1% YoY
Highlights:
* Revenue: $180.4 million (surpassing analyst forecasts by $3.2 million)
* Adjusted EPS: $0.14 (21.3% above consensus estimates)
* Adjusted Operating Income: $31.79 million (exceeding expectations by $5.18 million)
* Operating Margin: Improved from -16.4% to 0.7%
* Free Cash Flow: $36.64 million (a significant growth from -$22.23 million)
* Billings: $181.2 million, representing a 13.4% YoY surge
Company Overview:
Paycor is a leading provider of cloud-based HR and payroll software for small and mid-sized businesses. With over 30 years of experience, Paycor has established itself as a trusted partner for companies seeking cost-effective and user-friendly solutions.
Sales Growth:
Paycor has consistently achieved strong sales growth, posting a 22.2% compounded annual growth rate (CAGR) over the past three years. This outperforms the industry average and demonstrates the company's ability to resonate with customer needs.
Billings:
Billings, a non-GAAP metric, amounted to $181.2 million in Q4. Over the past four quarters, Paycor's billings have grown by a steady 15.5% YoY, aligning with its revenue growth and indicating robust customer demand.
Customer Acquisition Efficiency:
Paycor has an efficient customer acquisition strategy, with a CAC payback period of 29 months. This short payback period suggests a strong return on investment and scalability for the company's sales and marketing efforts.
Recent Developments:
On January 7, 2025, Paycor announced a definitive agreement to be acquired by Paychex, Inc. in an all-cash transaction valued at approximately $4.1 billion.
Conclusion:
Paycor's Q4 results provide evidence of continued growth and operational efficiency. With strong revenue performance, improving margins, and a robust sales pipeline, Paycor is well-positioned for future success.