Full Year Revenues of $1,883 million, up 11% year-over-year
Full Year GAAP Net Income of $502 million, representing 27% of
total revenues, or $8.92 per diluted share
Full Year Adjusted EBITDA of $775 million, representing 41% of
total revenues
Fourth Quarter Revenues of $494 million, up 14%
year-over-year
Paycom Software, Inc. (“Paycom,” “we” and “our”) (NYSE: PAYC), a
leading provider of comprehensive, cloud-based human capital
management software, today announced its financial results for the
quarter and year ended December 31, 2024.
“Throughout the year we executed our plan of providing
world-class service, solution automation and client ROI
achievement, which empowered us to deliver better than expected
results to close out the year,” said Paycom founder, CEO and
chairman, Chad Richison. “Our solution remains the most automated
on the market and is delivering strong ROI for our clients. Our
automated value proposition and go-to-market strategy enabled our
salesforce to continue to set records as we welcomed new clients
onto our platform.”
Financial Highlights for the Fourth
Quarter of 2024
Total Revenues of $493.8 million represented a 13.6%
increase compared to total revenues of $434.6 million in the same
period last year. Recurring and other revenues of $464.8 million
increased 14.5% from the comparable prior year period and
constituted 94.1% of total revenues.
GAAP Net Income was $113.6 million, or $2.02 per diluted
share, compared to GAAP net income of $81.8 million, or $1.43 per
diluted share, in the same period last year.
Non-GAAP Net Income1 was $130.1 million, or $2.32 per
diluted share, compared to $110.2 million, or $1.93 per diluted
share, in the same period last year.
Adjusted EBITDA1 was $214.9 million, compared to $176.6
million in the same period last year.
Cash and Cash Equivalents were $402.0 million as of
December 31, 2024, compared to $294.0 million as of December 31,
2023. During the quarter ended December 31, 2024, Paycom paid $21.1
million in cash dividends and repurchased 31,824 shares of common
stock for $7.3 million, in the aggregate.
Total Debt was $0 as of December 31, 2024 and December
31, 2023.
Financial Highlights for the Full Year
2024
Total Revenues of $1,883.2 million represented a 11.2%
increase compared to total revenues of $1,693.7 million last year.
Recurring and other revenues of $1,758.3 million increased 10.9%
from last year and constituted 93.4% of total revenues.
GAAP Net Income was $502.0 million, or $8.92 per diluted
share, compared to GAAP net income of $340.8 million, or $5.88 per
diluted share, last year.
Non-GAAP Net Income1 was $462.0 million, or $8.21 per
diluted share, compared to $449.5 million, or $7.75 per diluted
share, last year.
Adjusted EBITDA1 was $775.4 million, compared to $719.3
million last year.
1Adjusted EBITDA, non-GAAP net income and non-GAAP net
income per diluted share are non-GAAP financial measures. Please
see the discussion below under the heading “Use of Non-GAAP
Financial Information” and the reconciliations at the end of this
release for additional information concerning these and other
non-GAAP financial measures.
Business Highlights
Paycom received several awards in 2024 including being named one
of the World’s Best Companies by Time magazine and a USA Today Top
Workplace USA winner, and earning a top HR Product of the Year
award for its automated time-off request tool, GONE®, by Human
Resource Executive magazine.
Client count on a parent company grouping basis, as of December
31, 2024, was 19,422, relatively flat compared to the prior
year.
Total client count as of December 31, 2024, on a taxpayer
identification number or client code basis, was 37,543, up 2% from
the prior year.
Annual revenue retention rate for the year ended December 31,
2024 was 90%, consistent with the prior year.
Paycom stored data for over 7.0 million persons employed by its
clients during the year ended December 31, 2024, up 3% from the
prior year.
In January 2025, Paycom opened three new sales offices located
in Raleigh, North Carolina; Los Angeles, California; and
Providence, Rhode Island.
Financial Outlook
Paycom provides the following expected financial guidance for
the year ending December 31, 2025.
Total revenue in the range of $2.015
billion to $2.035 billion, or approximately 8% at the midpoint.
Recurring and other revenue growth of
approximately 9% year over year.
Interest on funds held for clients of
approximately $110 million.
Adjusted EBITDA in the range of $820
million to $840 million, or approximately 41% at the midpoint.
We have not reconciled the forward-looking adjusted EBITDA
ranges and adjusted EBITDA margin presented above and discussed on
the teleconference call to net income, nor the forward-looking
non-GAAP effective income tax rate discussed on the teleconference
call to comparable GAAP measures, because applicable information
for future periods, on which these reconciliations would be based,
is not readily available due to uncertainty regarding, and the
potential variability of, depreciation and amortization, interest
expense, taxes, non-cash stock-based compensation expense and other
items. Accordingly, reconciliations of the forward-looking adjusted
EBITDA ranges to net income, the forward-looking adjusted EBITDA
margins to net income margin, and the forward-looking non-GAAP
effective income tax rate to the GAAP effective income tax rate are
not available at this time without unreasonable effort.
Use of Non-GAAP Financial
Information
To supplement our financial information presented in accordance
with generally accepted accounting principles in the United States
(“GAAP”), we present certain non-GAAP financial measures in this
press release and on the related teleconference call, including
adjusted EBITDA, non-GAAP net income, adjusted gross profit,
adjusted gross margin, adjusted sales and marketing expenses,
adjusted total administrative expenses, adjusted research and
development expenses, adjusted total research and development
costs, adjusted EBITDA margin and non-GAAP effective income tax
rate. Management uses these non-GAAP financial measures as
supplemental measures to review and assess the performance of our
core business operations and for planning purposes. We define (i)
adjusted EBITDA as net income plus interest expense, taxes,
depreciation and amortization, non-cash stock-based compensation
expense, certain transaction expenses that are not core to our
operations (if any) and any loss on the extinguishment of debt,
(ii) non-GAAP net income as net income plus non-cash stock-based
compensation expense, certain transaction expenses that are not
core to our operations (if any) and any loss on the extinguishment
of debt, all of which are adjusted for the effect of income taxes,
(iii) adjusted gross profit as gross profit plus applicable
non-cash stock-based compensation expense, (iv) adjusted gross
margin as gross profit plus applicable non-cash stock-based
compensation expense, divided by total revenues, (v) each adjusted
expense item as the GAAP expense amount less applicable non-cash
stock-based compensation expense, (vi) adjusted total research and
development costs as total research and development costs
(including the capitalized portion) less applicable non-cash
stock-based compensation (including the capitalized portion), (vii)
adjusted EBITDA margin as adjusted EBITDA (calculated as described
in clause (i)) divided by total revenues, (viii) non-GAAP effective
income tax rate as the provision for income taxes plus the income
tax effect on non-GAAP adjustments divided by non-GAAP net income
(calculated as described in clause (ii)) plus the provision for
income taxes and the income tax effect on non-GAAP adjustments,
(ix) free cash flow as net cash provided by operating activities
less purchases of intangible assets and purchases of property and
equipment (which we also refer to as “capital expenditures” or “cap
ex”), and (x) free cash flow margin as free cash flow (calculated
as described in clause (ix)) divided by total revenues. The
non-GAAP financial measures presented in this press release and
discussed on the related teleconference call provide investors with
greater transparency to the information used by management in its
financial and operational decision-making. We believe these metrics
are useful to investors because they facilitate comparisons of our
core business operations across periods on a consistent basis, as
well as comparisons with the results of peer companies, many of
which use similar non-GAAP financial measures to supplement results
under GAAP. In addition, adjusted EBITDA is a measure that provides
useful information to management about the amount of cash available
for reinvestment in our business, paying dividends, repurchasing
common stock and other purposes. Management believes that the
non-GAAP measures presented in this press release and discussed on
the related teleconference call, when viewed in combination with
our results prepared in accordance with GAAP, provide a more
complete understanding of the factors and trends affecting our
business and performance.
The non-GAAP financial measures presented in this press release
and discussed on the related teleconference call are not measures
of financial performance under GAAP and should not be considered a
substitute for net income, gross profit, gross margin, research and
development expenses, sales and marketing expenses, administrative
expenses, total research and development costs and GAAP effective
income tax rate. Non-GAAP financial measures have limitations as
analytical tools, and when assessing our operating performance, you
should not consider these non-GAAP financial measures in isolation,
or as a substitute for the consolidated statements of income data
prepared in accordance with GAAP. The non-GAAP financial measures
that we present may not be comparable to similarly titled measures
of other companies, and other companies may not calculate such
measures in the same manner as we do.
Conference Call Details
In conjunction with this announcement, Paycom will host a
conference call today, February 12, 2025, at 5:00 p.m. Eastern time
to discuss its financial results. To access this call, dial (833)
470-1428 (domestic) or (404) 975-4839 (international) and provide
269198 as the access code. A live webcast as well as the replay of
the conference call will be available on the Investor Relations
page of Paycom’s website at investors.paycom.com.
About Paycom
For over 25 years, Paycom Software, Inc. (NYSE: PAYC) has
simplified business and employees’ lives through easy-to-use HR and
payroll technology to empower transparency through direct access to
their data. From onboarding and benefits enrollment to talent
management and more, Paycom’s employee-first technology leverages
full-solution automation to streamline processes, drive
efficiencies and give employees power over their own HR
information, all in a single app. Paycom’s single database combines
all HR and payroll data in one place, providing a seamless and
accurate experience without the errors and inefficiencies
associated with integrating multiple systems. Recognized nationally
for its technology and workplace culture, Paycom serves businesses
of all sizes in the U.S. and internationally.
Financial Presentation
For the year ended December 31, 2024, we changed the
presentation of revenues on the consolidated statements of
comprehensive income to disaggregate interest on funds held for
clients and combine recurring and other revenues. Prior period
amounts have been conformed to this presentation. The change in
presentation of revenue did not have a material impact on
previously reported amounts or change total revenues.
In the fourth quarter of 2024, we adopted the presentation of
dollar amounts in millions, except amounts per share. As a result,
amounts presented for prior periods may differ immaterially from
previous filings and some amounts may not add due to rounding. All
percentages have been calculated using unrounded amounts.
Forward-Looking
Statements
Certain statements in this press release are, and certain
statements on the related teleconference call may be,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are any statements that refer to Paycom’s estimated or
anticipated results, other non-historical facts or future events
and include, but are not limited to, statements regarding our
business strategy; anticipated future operating results and
operating expenses, cash flows, capital resources, dividends and
liquidity; competition; trends, opportunities and risks affecting
our business, industry and financial results; future expansion or
growth plans and potential for future growth, including
internationally; our ability to attract new clients to purchase our
solution; our ability to retain clients and induce them to purchase
additional applications; our ability to accurately forecast future
revenues and appropriately plan our expenses; market acceptance of
our solution and applications; our expectations regarding future
revenues generated by certain applications; the return on
investment for users of our solution; our ability to attract and
retain qualified employees and key personnel; future regulatory,
judicial and legislative changes; how the performance of certain of
our offerings is sensitive to changes in the labor market; our plan
to open additional sales offices and our ability to effectively
execute such plan; the sufficiency of our existing cash and cash
equivalents to meet our working capital and capital expenditure
needs over the next 12 months; our plans regarding our capital
expenditures and investment activity as our business grows,
including with respect to research and development and the
expansion of our facilities; our plans to pay cash dividends; our
plans to repurchase shares of our common stock through a stock
repurchase plan; and our expected income tax rate for future
periods. In addition, forward-looking statements also consist of
statements involving trend analyses and statements including such
words as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “may,” “might,” “plan,” “potential,” “should,” “will,”
“would,” and similar expressions or the negative of such terms or
other comparable terminology. These forward-looking statements are
based only on information currently available to us, speak only as
of the date hereof and are subject to business and economic risks.
As such, our actual results could differ materially from those set
forth in the forward-looking statements as a result of the factors
discussed in our filings with the Securities and Exchange
Commission, including but not limited to those discussed in our
most recent Annual Report on Form 10-K. We do not undertake any
obligation to update or revise the forward-looking statements to
reflect events that occur or circumstances that exist after the
date on which such statements were made, except to the extent
required by law.
Paycom Software, Inc.
Unaudited Consolidated Balance
Sheets
(in millions, except per share
amounts)
December 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
402.0
$
294.0
Accounts receivable
39.2
16.4
Prepaid expenses
44.4
37.6
Inventory
1.4
1.4
Income tax receivable
11.9
18.4
Deferred contract costs
140.4
118.2
Current assets before funds held for
clients
639.3
486.0
Funds held for clients
3,665.5
2,327.4
Total current assets
4,304.8
2,813.4
Property and equipment, net
561.4
498.2
Intangible assets, net
46.2
50.1
Goodwill
51.9
51.9
Long-term deferred contract costs
783.6
680.3
Operating lease right-of-use assets
80.6
73.8
Other assets
31.4
29.8
Total assets
$
5,859.9
$
4,197.5
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
23.9
$
13.9
Accrued commissions and bonuses
33.0
30.5
Accrued payroll and vacation
59.0
56.1
Deferred revenue
30.0
22.8
Operating lease liabilities
20.4
19.2
Accrued expenses and other current
liabilities
74.8
64.0
Current liabilities before client funds
obligation
241.1
206.5
Client funds obligation
3,665.7
2,328.1
Total current liabilities
3,906.8
2,534.6
Deferred income tax liabilities, net
149.7
143.8
Long-term deferred revenue
114.6
107.7
Long-term operating lease liabilities
63.0
56.7
Other long-term liabilities
49.9
51.7
Total long-term liabilities
377.2
359.9
Total liabilities
4,284.0
2,894.5
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value (100 shares
authorized, 63.0 and 62.7 shares issued at December 31, 2024 and
December 31, 2023, respectively; 55.9 and 56.5 shares outstanding
at December 31, 2024 and December 31, 2023, respectively)
0.6
0.6
Additional paid-in capital
724.8
724.4
Retained earnings
1,887.5
1,470.0
Accumulated other comprehensive earnings
(loss)
(0.6
)
(1.0
)
Treasury stock, at cost (7.1 and 6.1
shares at December 31, 2024 and December 31, 2023,
respectively)
(1,036.4
)
(891.0
)
Total stockholders’ equity
1,575.9
1,303.0
Total liabilities and stockholders’
equity
$
5,859.9
$
4,197.5
Paycom Software, Inc.
Unaudited Consolidated
Statements of Comprehensive Income
(in millions, except per share
amounts)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Revenues
Recurring and other
$
464.8
$
406.1
$
1,758.3
$
1,585.7
Interest on funds held for clients
29.0
28.5
124.9
108.0
Total revenues
493.8
434.6
1,883.2
1,693.7
Cost of revenues
Operating expenses
65.3
60.4
267.4
223.7
Depreciation and amortization
18.3
14.3
67.2
52.6
Total cost of revenues
83.6
74.7
334.6
276.3
Administrative expenses
Sales and marketing
107.5
106.4
434.4
417.6
Research and development
66.7
55.3
242.6
199.0
General and administrative
66.0
74.8
158.6
288.1
Depreciation and amortization
21.5
16.7
78.7
61.4
Total administrative expenses
261.7
253.2
914.3
966.1
Total operating expenses
345.3
327.9
1,248.9
1,242.4
Operating income
148.5
106.7
634.3
451.3
Interest expense
(1.0
)
(0.3
)
(3.4
)
(1.9
)
Other income (expense), net
4.0
5.5
18.1
23.0
Income before income taxes
151.5
111.9
649.0
472.4
Provision for income taxes
37.9
30.1
147.0
131.6
Net income
$
113.6
$
81.8
$
502.0
$
340.8
Earnings per share, basic
$
2.03
$
1.43
$
8.93
$
5.91
Earnings per share, diluted
$
2.02
$
1.43
$
8.92
$
5.88
Weighted average shares
outstanding:
Basic
55.9
57.2
56.2
57.7
Diluted
56.2
57.2
56.3
58.0
Comprehensive earnings:
Net income
$
113.6
$
81.8
$
502.0
$
340.8
Unrealized net gains (losses) on
available-for-sale securities
(0.3
)
1.5
1.0
3.5
Tax effect
(0.2
)
(0.4
)
(0.6
)
(0.8
)
Other comprehensive income (loss), net of
tax
(0.5
)
1.1
0.4
2.7
Comprehensive earnings:
$
113.1
$
82.9
$
502.4
$
343.5
Paycom Software, Inc.
Unaudited Consolidated
Statements of Cash Flows
(in millions)
Year Ended December
31,
2024
2023
Cash flows from operating
activities
Net income
$
502.0
$
340.8
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
145.9
113.9
Accretion of discount on
available-for-sale securities
(0.1
)
(0.5
)
Non-cash marketing expense
1.6
1.7
Amortization of debt issuance costs
1.1
1.2
Stock-based compensation expense
(22.9
)
129.8
Loss on extinguishment of debt
—
1.2
Deferred income taxes, net
5.8
2.6
Other
(0.5
)
0.1
Changes in operating assets and
liabilities:
Accounts receivable
(22.8
)
6.4
Prepaid expenses
(6.7
)
(6.6
)
Inventory
—
0.2
Other assets
(2.7
)
(9.6
)
Deferred contract costs
(120.0
)
(127.7
)
Accounts payable
9.1
(5.2
)
Income taxes, net
6.5
(12.8
)
Accrued commissions and bonuses
2.5
2.1
Accrued payroll and vacation
2.9
11.1
Deferred revenue
14.1
13.1
Net change in operating right-of-use
assets and operating lease liabilities
0.7
1.0
Accrued expenses and other current
liabilities
17.4
22.2
Net cash provided by operating
activities
533.9
485.0
Cash flows from investing
activities
Purchases of investments from funds held
for clients
(24.9
)
(25.0
)
Proceeds from investments from funds held
for clients
200.0
25.0
Purchases of intangible assets
(4.4
)
(4.2
)
Purchases of property and equipment
(192.9
)
(192.6
)
Proceeds from sale of property and
equipment
—
0.1
Net cash used in investing activities
(22.2
)
(196.7
)
Cash flows from financing
activities
Repurchases of common stock
(122.8
)
(286.6
)
Withholding taxes paid related to net
share settlements
(21.7
)
(13.9
)
Payments on long-term debt
—
(29.0
)
Dividends paid
(84.8
)
(64.8
)
Net change in client funds obligation
1,337.6
120.4
Payment of debt issuance costs
—
(0.7
)
Net cash provided by (used in) financing
activities
1,108.3
(274.6
)
Increase in cash, cash equivalents,
restricted cash and restricted cash equivalents
1,620.0
13.7
Cash, cash equivalents, restricted cash
and restricted cash equivalents
Cash, cash equivalents, restricted cash
and restricted cash equivalents, beginning of period
2,422.8
2,409.1
Cash, cash equivalents, restricted cash
and restricted cash equivalents, end of period
$
4,042.8
$
2,422.8
Paycom Software, Inc.
Unaudited Consolidated
Statements of Cash Flows, continued
(in millions)
Year Ended December
31,
2024
2023
Reconciliation of cash, cash
equivalents, restricted cash and restricted cash
equivalents
Cash and cash equivalents
$
402.0
$
294.0
Restricted cash included in funds held for
clients
3,640.8
2,128.8
Total cash, cash equivalents, restricted
cash and restricted cash equivalents, end of period
$
4,042.8
$
2,422.8
Supplemental disclosures of cash flow
information:
Cash paid for interest, net of amounts
capitalized
$
2.0
$
1.0
Cash paid for income taxes
$
136.9
$
139.9
Non-cash investing and financing
activities:
Purchases of property and equipment,
accrued but not paid
$
3.9
$
9.0
Stock-based compensation for capitalized
software
$
17.5
$
14.7
Right of use assets obtained in exchange
for operating lease liabilities
$
25.1
$
50.3
Paycom Software, Inc.
Unaudited Reconciliations of
GAAP to Non-GAAP Financial Measures
(in millions, except per share
amounts)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income to adjusted EBITDA:
Net income
$
113.6
$
81.8
$
502.0
$
340.8
Interest expense
1.0
0.3
3.4
1.9
Provision for income taxes
37.9
30.1
147.0
131.6
Depreciation and amortization
39.8
31.0
145.9
114.0
EBITDA
192.3
143.2
798.3
588.3
Non-cash stock-based compensation
expense
22.6
33.4
(22.9
)
129.8
Loss on extinguishment of debt
—
—
—
1.2
Adjusted EBITDA
$
214.9
$
176.6
$
775.4
$
719.3
Net income margin
23.0
%
18.8
%
26.7
%
20.1
%
Adjusted EBITDA margin
43.5
%
40.6
%
41.2
%
42.5
%
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income to non-GAAP net
income:
Net income
$
113.6
$
81.8
$
502.0
$
340.8
Non-cash stock-based compensation
expense
22.6
33.4
(22.9
)
129.8
Loss on extinguishment of debt
—
—
—
1.2
Income tax effect on non-GAAP
adjustments
(6.1
)
(5.0
)
(17.1
)
(22.3
)
Non-GAAP net income
$
130.1
$
110.2
$
462.0
$
449.5
Weighted average shares outstanding:
Basic
55.9
57.2
56.2
57.7
Diluted
56.2
57.2
56.3
58.0
Earnings per share, basic
$
2.03
$
1.43
$
8.93
$
5.91
Earnings per share, diluted
$
2.02
$
1.43
$
8.92
$
5.88
Non-GAAP net income per share, basic
$
2.33
$
1.93
$
8.22
$
7.79
Non-GAAP net income per share, diluted
$
2.32
$
1.93
$
8.21
$
7.75
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Earnings per share to non-GAAP net
income per share, basic:
Earnings per share, basic
$
2.03
$
1.43
$
8.93
$
5.91
Non-cash stock-based compensation
expense
0.41
0.58
(0.41
)
2.25
Loss on extinguishment of debt
—
—
—
0.02
Income tax effect on non-GAAP
adjustments
(0.11
)
(0.08
)
(0.30
)
(0.39
)
Non-GAAP net income per share, basic
$
2.33
$
1.93
$
8.22
$
7.79
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Earnings per share to non-GAAP net
income per share, diluted:
Earnings per share, diluted
$
2.02
$
1.43
$
8.92
$
5.88
Non-cash stock-based compensation
expense
0.40
0.58
(0.41
)
2.24
Loss on extinguishment of debt
—
—
—
0.02
Income tax effect on non-GAAP
adjustments
(0.10
)
(0.08
)
(0.30
)
(0.39
)
Non-GAAP net income per share, diluted
$
2.32
$
1.93
$
8.21
$
7.75
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Adjusted gross profit:
Total revenues
$
493.8
$
434.6
$
1,883.2
$
1,693.7
Less: Total cost of revenues
(83.6
)
(74.7
)
(334.6
)
(276.3
)
Total gross profit
410.2
359.9
1,548.6
1,417.4
Plus: Non-cash stock-based compensation
expense
2.4
2.0
13.5
10.6
Total adjusted gross profit
$
412.6
$
361.9
$
1,562.1
$
1,428.0
Gross margin
83.1
%
82.8
%
82.2
%
83.7
%
Adjusted gross margin
83.6
%
83.3
%
83.0
%
84.3
%
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Adjusted sales and marketing
expenses:
Sales and marketing expenses
$
107.5
$
106.4
$
434.4
$
417.6
Less: Non-cash stock-based compensation
expense
(5.4
)
(5.5
)
(19.0
)
(23.9
)
Adjusted sales and marketing expenses
$
102.1
$
100.9
$
415.4
$
393.7
Total revenues
$
493.8
$
434.6
$
1,883.2
$
1,693.7
Sales and marketing expenses as a % of
revenues
21.8
%
24.5
%
23.1
%
24.7
%
Adjusted sales and marketing expenses as a
% of revenues
20.7
%
23.2
%
22.1
%
23.2
%
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Adjusted total administrative
expenses:
Total administrative expenses
$
261.7
$
253.2
$
914.3
$
966.1
Less: Non-cash stock-based compensation
expense
(20.2
)
(31.4
)
36.4
(119.2
)
Adjusted total administrative expenses
$
241.5
$
221.8
$
950.7
$
846.9
Total revenues
$
493.8
$
434.6
$
1,883.2
$
1,693.7
Total administrative expenses as a % of
revenues
53.0
%
58.3
%
48.6
%
57.0
%
Adjusted total administrative expenses as
a % of revenues
48.9
%
51.0
%
50.5
%
50.0
%
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Adjusted research and development
expenses:
Research and development expenses
$
66.7
$
55.3
$
242.6
$
199.0
Less: Non-cash stock-based compensation
expense
(5.6
)
(4.8
)
(26.3
)
(22.3
)
Adjusted research and development
expenses
$
61.1
$
50.5
$
216.3
$
176.7
Total revenues
$
493.8
$
434.6
$
1,883.2
$
1,693.7
Research and development expenses as a %
of revenues
13.5
%
12.7
%
12.9
%
11.7
%
Adjusted research and development expenses
as a % of revenues
12.4
%
11.6
%
11.5
%
10.4
%
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Total research and development
costs:
Capitalized research and development
costs
$
31.3
$
25.9
$
125.7
$
96.7
Research and development expenses
66.7
55.3
242.6
199.0
Total research and development costs
$
98.0
$
81.2
$
368.3
$
295.7
Total revenues
$
493.8
$
434.6
$
1,883.2
$
1,693.7
Total research and development costs as a
% of revenues
19.8
%
18.7
%
19.6
%
17.5
%
Adjusted total research and development
costs:
Total research and development costs
$
98.0
$
81.2
$
368.3
$
295.7
Less: Capitalized non-cash stock-based
compensation
(3.7
)
(3.1
)
(17.5
)
(14.6
)
Less: Non-cash stock-based compensation
expense
(5.6
)
(4.8
)
(26.3
)
(22.3
)
Adjusted total research and development
costs
$
88.7
$
73.3
$
324.5
$
258.8
Total revenues
$
493.8
$
434.6
$
1,883.2
$
1,693.7
Adjusted total research and development
costs as a % of revenues
18.0
%
16.9
%
17.2
%
15.3
%
Year Ended December
31,
2024
2023
Free cash flow and free cash flow
margin:
Net cash provided by operating
activities
$
533.9
$
485.0
Purchases of property and equipment
(192.9
)
(192.6
)
Purchases of intangible assets
(4.4
)
(4.2
)
Free cash flow
$
336.6
$
288.2
Operating cash flow margin
28.4
%
28.6
%
Free cash flow margin
17.9
%
17.0
%
Paycom Software, Inc.
Unaudited Components of
Non-Cash Stock-Based Compensation Expense
(in millions)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Non-cash stock-based compensation
expense:
Operating expenses
$
2.4
$
2.0
$
13.5
$
10.6
Sales and marketing
5.4
5.5
19.0
23.9
Research and development
5.6
4.8
26.3
22.3
General and administrative
9.2
21.1
(81.7
)
73.0
Total non-cash stock-based compensation
expense
$
22.6
$
33.4
$
(22.9
)
$
129.8
Paycom Software, Inc. Unaudited
Revenue by Quarter (in millions)
For the year ended December 31, 2024, we changed the
presentation of revenues on the consolidated statements of
comprehensive income to disaggregate interest on funds held for
clients and combine recurring and other revenues. The table below
provides 2024 quarterly revenue amounts conforming to this
presentation. The change in presentation of revenue did not have a
material impact on previously reported amounts or change total
revenues.
Three Months Ended
Year Ended
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
December 31, 2024
Revenues
Recurring and other
$
466.0
$
405.5
$
421.8
$
464.8
$
1,758.3
Interest on funds held for clients
33.9
32.0
30.1
29.0
124.9
Total revenues
$
499.9
$
437.5
$
451.9
$
493.8
$
1,883.2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250212714495/en/
Paycom Software, Inc. Investor Relations Contact: James Samford,
800-580-4505 investors@paycom.com
Paycom Software (NYSE:PAYC)
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