CEO

Paycom Software

07/02/2024 22:36

Feb 7 (Reuters) - Paycom  PAYC.N  forecast first-quarter
revenue below market estimates on Wednesday as clients pull back
spending on payroll and human capital management software
products due to economic uncertainty, sending its shares down 5%
in extended trading.   
    The payroll services provider also promoted former Chief
Operating Officer Chris Thomas to jointly lead the company with
Chad Richison as co-CEO.
    The company projected revenue in the range of $494 million
to $497 million for the quarter ending March 31, compared with
the estimates of $500.5 million, as per LSEG data.    
    Paycom results contrast those of rival Automatic Data
Processing  ADP.O , which reported upbeat results on steady
demand for its payroll services. 
    For the quarter ended Dec. 31, Paycom reported revenue of
$434.6 million, exceeding expectations of $422.5 million. 
    Adjusted profit of $1.93 per share also came in above
estimates of $1.78.
    Paycom's adjusted gross margin came in at 83.3%, compared
with 84.3% a year earlier.

 (Reporting by Yamini Kalia in Bengaluru; Editing by Tasim Zahid
and Alan Barona)
 ((Yamini.Kalia@thomsonreuters.com;))