Paycom Reports 2017 Q1 Earnings

Investment Analysis Clubs Saul’s Investing Discussions
1

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
MasterCard (MA), Nestle (NSRGY), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx

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2

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