Paycom forecasts quarterly revenue below estimates as clients roll back spending

Paycom Software

31/07/2024 23:10

July 31 (Reuters) - Paycom Software  PAYC.N  on
Wednesday forecast third-quarter revenue below market estimates
while tightening the higher end of its annual forecast, as
clients reduce spending on payroll and human capital management
software products in response to economic uncertainty.
    Budget constraints in a sluggish economy have led
enterprises to reduce spending, negatively impacting demand for
Paycom's human resource and payroll services.
    Paycom forecast current-quarter revenue in the range of $444
million to $449 million, the midpoint of which is below analyst
estimates of $448.7 million, according to LSEG data.
    The company now expects 2024 revenue between $1.86 billion
and $1.87 billion, from its prior projection of $1.86 billion to
$1.88 billion. Analysts on average expect revenue of $1.87
billion, according to LSEG data.
    The payroll processor reported revenue of $437.5 million for
the second quarter ended June 30, above analysts' average
estimate of $436.4 million. 
    Adjusted earnings came in at $1.62 per share, the same as a
year ago.
    

 (Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)
 ((Juby.Babu@thomsonreuters.com;))