I walked into my office this week and noticed that my office manager was being given a presentation. My office manage said “just a payroll service”, you don’t need to be in this unless you want.
Hmmm, Paycom… I believe that I’ll sit in on this one.
So, we’ve evaluated ALL of the payroll services in the past couple of years. And switched twice, getting ok, but not greate results. We/I know what a good payroll service looks like.
I was quite impressed with Paycom. Very well designed and integrated. User friendly. Flexible. Technically sound. (I own a smallish medium sized tech company).
Compare it to hybrid cars. The ones that are adapted to hybrid (I.e. Honda Civic) are not nearly as sound as built from the ground up (Prius, Tesla).
Other payroll companies have adapted technology into their product. Paycom looks built from the ground up. And their Data Architech appears to have done his job well.
I spoke to the sales people about their companie’s sales. They’re continuing to grow revenues at a very fast pace. I’m bullish on this one.
Thanks for the ground floor sales info Bob. I have pretty high conviction for PAYC, right now its one of the few stocks that I want to buy more of, the rest Im just happy to hold what I’ve got (or sell to buy more PAYC).
Great to hear a customer view.
I so agree that built from scratch is better than dealing with legacy issues. I read a long time ago about electrification. The first factories were water powered, and therefore built in multistory buildings run with belts to transfer power from machine to machine. They changed the machines to run off electricity, but did not chance the layout and the factory’s workflow- imagine carrying parts upstairs… When new factories opened they were designed from scratch to be electric, and the layout was not cramped around a paddle wheel for power. They were more efficient…
We are seeing improvements as SAAS purpose built companies disrupt the legacy providers.
Am I reading right that PAYC’s P/E is over 120?? My interest has been sincerely piqued, but at such a high P/E, it’s tough to add more risk considering that I don’t think we really did a ‘correction’ just yet…