PAYC competitive advantage

Bert discusses this (and so much more) in an article that was published today. Here’s a teaser:

What is Paycom’s secret sauce? It is delivering a product to a very specific set of users that is tailored to their specific requirements at a cost that is attractive and affordable. Hiding in plain sight can be as much of a secret sauce as a technology that can be copied. The focus on the mid-market has been why the company has been able to fly below the radar of the large companies in the space and it also explains the company’s profitability when compared to much larger vendors in this space.

Do Oracle, Workday or SAP have more “advanced” HCM solutions? Of course they do. But not all organizations need or can afford to pay for those solutions and for them, Paycom has a set of products that fills their requirements at a reasonable cost.

He also discusses the recent 20% drop and why it happened.

And he answers some questions we’ve been asking:

Will changes in the ACA negatively impact the revenues Paycom gets from the sector? I do not know but I doubt it will be the case. How large might the exposure be? Obviously, that is not knowable either. I do believe that what has apparently have been investor concerns regarding the ACA and changes to its structure as they might impact Paycom have been rather overdone. It seems likely that there will continue to be some species of ACA and some reporting requirements in the future.

…and here’s the link: http://seekingalpha.com/article/4024074-paycom-study-stealth…

For my part, especially after reading Bert’s article, I think what the market is expecting from PAYC next quarter and in 2017 certainly seems achievable, dare I say beatable.

Bear

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