Cloud HCM software Paycom's Q3 revenue slightly beats estimates, driven by recurring sales growth

Paycom Software

05/11/2025 21:20

Overview

Paycom Q3 revenue grows 9% yr/yr, slightly beating analyst expectations

Adjusted EPS for Q3 missed analyst expectations

Company repurchased 1 mln shares, demonstrating commitment to shareholder value

Outlook

Paycom expects 2025 revenue between $2.045 bln and $2.055 bln

Company anticipates 2025 recurring revenue growth of approximately 10%

Paycom projects 2025 adjusted EBITDA between $872 mln and $882 mln

Result Drivers

RECURRING REVENUE GROWTH - Double-digit growth in recurring revenue driven by award-winning products Beti, GONE and IWant

AUTOMATION AND NAVIGATION - Focus on full-solution automation and command-driven navigation delivering ROI for clients

NAMING RIGHTS GAIN - Tax-adjusted gain from naming rights agreement modification contributed to net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$493.30 mln
$493.002 mln (18 Analysts)
Q3 Adjusted EPS
Miss
$1.94
$1.95 (18 Analysts)
Q3 EPS
$1.96
Q3 Adjusted Net Income
Slight Beat*
$110 mln
$109.86 mln (17 Analysts)
Q3 Net Income
$110.70 mln
Q3 Adjusted EBITDA
Beat
$194 mln
$191.92 mln (18 Analysts)
Q3 Operating Income
$112.60 mln
Q3 Pretax Profit
$152.80 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Paycom Software Inc is $240.00, about 24.2% above its November 4 closing price of $181.91

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw5PH0Xha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)