Paycom down after Q1 revenue forecast disappoints

Paycom Software

08/02/2024 16:09

** Shares of payroll processor Paycom Software  PAYC.N  down
1.8% to $196 after co forecasts Q1 revenue below estimates
    ** The forecast of $494 mln-$497 mln vs LSEG estimates of
$500.5 mln, reflects clients pulling back spending on payroll
and human capital management software products due to economic
uncertainty
    ** Anticipate negative reaction in shares due to mixed FY24
guidance and some uncertainty related to ability to close the
growth gap to peers & its margin trajectory persisting - TD
Cowen 
    ** Jefferies concerns center on another downtick in 
retention and seat growth, KPIs suggest PAYC remains in
turbulent air
    ** PAYC also promoted COO Chris Thomas to jointly lead with
Chad Richison as co-CEO
    ** For Q4, co beats revenue and profit estimates
    ** Stock fell 33.4% in 2023 and was down 3.7% YTD as of last
close
    
    

 (Reporting by Pranav Kashyap in Bengaluru)
 ((Pranav.Kashyap@thomsonreuters.com;))