Paycom beats quarterly revenue estimates on strong payroll services demand

Paycom Software

30/10/2024 21:25

Oct 30 (Reuters) - Paycom Software  PAYC.N  beat Wall
Street's quarterly revenue estimates on Wednesday due to higher
demand for its employee management services in a robust job
market.
    Shares of the Oklahoma City-based company were up 6.3% in
trading after the bell.
    Cooling inflation and a strong job market are encouraging
businesses to hire more, increasing the demand for workforce
management solutions like those from Paycom.
    Recently, Paycom has seen a rise in interest in its Beti
service, which allows for self-service payroll and automation.
In May, the company announced plans to expand Beti into Ireland.
  
    The payroll processor reported revenue of $452 million for
the third quarter ended Sept. 30, above analysts' average
estimate of $447 million, according to data compiled by LSEG.
    Paycom forecast current-quarter revenue in the range of $477
million to $484 million, compared with estimates of $483.1
million.
    The company now sees fiscal 2024 revenue between $1.866
billion and $1.873 billion, compared to its prior projection of
$1.860 billion to $1.875 billion. Analysts, on average, expect
revenue of $1.87 billion.
    Paycom's results come after rival Automatic Data Processing
 ADP.O  raised its forecast for fiscal 2025 revenue growth,
citing expected benefits from its recent acquisition of
management services provider WorkForce Software.
    

 (Reporting by Juby Babu in Mexico City; Editing by Mohammed
Safi Shamsi)
 ((Juby.Babu@thomsonreuters.com;))