Anticipated Highlights from Paycom Software's Q1 2025 Financial Statement Release
Ready to dive into the latest with Paycom Software, Inc. (PAYC)? Here's a lowdown on the cloud-based HCM solution provider.
Based in Oklahoma City, Oklahoma, Paycom Software is a key player in the HCM scene, catering to small to mid-sized companies with its cloud-based solutions. With a market cap of a staggering $12.7 billion, it offers a range of data analytical software to manage the employment life cycle, from recruitment to retirement.
The spotlight is on PAYC as it prepares to announce its first-quarter earnings for 2025 on May 7, following market close.
Analysts predict a profitable dip, with expectations of a $2.16 per share profit. This figure represents a steep 49.2% drop from last year's $4.25 per share. Surprisingly, Paycom has consistently surpassed the consensus estimates in the last four quarters.
For the fiscal year, expectations are slightly more optimistic, with analysts projecting EPS of $6.99. Still, this figure marks a 18.9% decline from fiscal 2024's EPS of $8.62. However, a promising rise to $7.99 is expected in the next fiscal year, reflecting an impressive 14.3% year-over-year growth.
Over the past 52 weeks, PAYC's shares have flourished, notching up 20.2%, surpassing the S&P 500's 8.2% gains. Simultaneously, it outperformed the Technology Select Sector SPDR Fund's 3.7% uptick over the same period.
The secret to Paycom's success lies in its innovative AI-powered products, such as Beti and GONE. These tools have been delivering substantial productivity gains for clients, with the AI agent launched six months ago significantly reducing service tickets and boosting response rates. Paycom's focus on automation sets it apart, offering cost savings and increased productivity for clients. Moreover, the company boasts an impressive CAC payback period of 8.6 months, indicating strong product offerings and a robust brand reputation.
Paycom's latest financial report, shared on Feb 12, saw shares surge by over 1% after beating Wall Street expectations for both EPS and revenue. The adjusted EPS of $2.32 surpassed the projected $1.99, while revenue came in at $493.8 million, beating forecasts of $481.1 million. For the full year, Paycom expects revenue in the range of $2.02 billion to $2.04 billion.
Wall Street's view on PAYC is somewhat reserved, with a majority of analysts advising a "Hold" rating. Nevertheless, with a Street-high price target of $250, the potential upside remains significant, estimated at 10.7%.
[Sources: 1, 2, 3, 4, 5]
- Paycom Software, based in Oklahoma City, Oklahoma, has a market cap of $12.7 billion and offers analytical software for business finance, including HCM solutions that cater to small to mid-sized companies.
- In 2025, Paycom Software (PAYC) is expected to announce its first-quarter earnings on May 7, with analysts predicting a profitable dip, anticipating a $2.16 per share profit.
- For the fiscal year, analysts project EPS of $6.99 for Paycom, reflecting a 18.9% decline from fiscal 2024's EPS of $8.62, but an impressive 14.3% year-over-year growth is expected in the next fiscal year.
- Paycom's innovative AI-powered products, such as Beti and GONE, have been driving productivity gains for clients and setting the company apart in the technology sector, boasting a CAC payback period of 8.6 months.
