Paycom Reports 2017 Q1 Earnings

From the press release:

First-ever quarter of more than $100 million in revenues

First Quarter Revenues of $119.5 million, up 33% from comparable prior year period

First Quarter GAAP Net Income of $26 million, or $0.43 per diluted share, up 38% from comparable prior year period

First Quarter Adjusted EBITDA of $47 million, up 42% from comparable prior year period

First Quarter non-GAAP Net Income of $28 million, or $0.47 per diluted share, up 43% from comparable prior year period

OKLAHOMA CITY–(BUSINESS WIRE)-- Paycom Software, Inc. (“Paycom”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended March 31, 2017.

“We continue to execute at high levels across our organization and as a result we are helping more companies than ever run their businesses more efficiently with our cloud-based payroll and human capital management solution," said Paycom’s founder and CEO, Chad Richison. "We hit a huge milestone with our quarterly revenue surpassing the $100 million mark, furthering our optimism for continued momentum and success throughout the year.”

Read the entire release at http://investors.paycom.com/press-releases/press-release-det…

Slightly raised revenue and EBITDA guidance for the full year. Total revenue is now projected to be in the range of $426.0 million to $428.0 million and adjusted EBITDA in the range of $117.0 million to $119.0 million.

Here’s the numbers:


Revenue (millions)	Q1		Q2		Q3		Q4			
2014									44.040
2015			55.222		48.973		55.340		65.118
2016			90.126		73.880		77.325		87.810
2017			119.508

EPS (non-GAAP)	        Q1		Q2		Q3		Q4	
2014									0.06	
2015			0.12		0.10		0.08		0.10
2016			0.33		0.21		0.15		0.18
2017			0.47

2017 Q1 Earnings Growth (Current):

Revenue Growth (millions)
2016 Q1 TTM Revenue = 259.557
2017 Q1 TTM Revenue = 358.523
YOY TTM Revenue Growth = 38%, previous quarter 46.5%

EPS Growth (non-GAAP)
2016 Q1 TTM Earnings = 0.61
2017 Q1 TTM Earnings = 1.01
YOY TTM EPS Growth = 65.5%, previous quarter 117.5%

P/E (Check Current Price) = 60.52/1.01 = 59.9

1YPEG = 59.9/65.5 = 0.91

Growth rate is slowing down and, because of the great price appreciation of the past quarter, the PE is higher than I had it at for the past two quarters. Just something to note.

Matt
Long PAYC
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Growth rate is slowing down and, because of the great price appreciation of the past quarter, the PE is higher than I had it at for the past two quarters. Just something to note.

Yeah, I was really hoping growth would at least hold at 35% or maybe even tick up again. I know they’ve added some salespeople…and they can’t be approaching their TAM or anything…

I guess if the revenue growth continues the downward trend, PAYC becomes less interesting. So what will it be?

  1. level off around 30% for several quarters
  2. re-accelerate at some point
  3. continue going down

Darn crystal ball is broken again.

Bear