Paycom Reports 2017 Q4 Earnings

Investment Analysis Clubs Saul’s Investing Discussions
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For those who still follow, the earnings and revenue growth rates are slowing down ever so slightly, but the P/E is also coming down slowly (even though price is still going up). From the press release:

Fourth Quarter Revenues of $114.0 million, up 30% from comparable prior year period
Fourth Quarter GAAP Net Income of $12.9 million, or $0.22 per diluted share, up 49% from comparable prior year period
Fourth Quarter Adjusted EBITDA of $31.8 million, up 54% from comparable prior year period
Fourth Quarter non-GAAP Net Income of $16.8 million, or $0.29 per diluted share
Full Year 2017 Revenues of $433.0 million, up 32% from comparable prior year period
Full Year 2017 GAAP Net Income of $66.8 million, or $1.13 per diluted share, up 52% from comparable prior year period
Full Year 2017 Adjusted EBITDA of $137.0 million, up 45% from comparable prior year period
Full Year 2017 non-GAAP Net Income of $76.7 million, or $1.30 per diluted share

…

“I’m proud of our accomplishments in 2017 as we achieved our goals and achieved 32% revenue growth for the year,” said Paycom’s founder and CEO, Chad Richison. “Our profitable business model also allowed us to continue to return value to our stockholders, as we repurchased over 1.2 million shares in 2017.”

From http://investors.paycom.com/press-releases/press-release-det…

Here are the numbers I’ve got:


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			119.51		98.227		101.29		114.03

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		0.26		0.29		0.29

2017 Q4 Earnings Growth (Current):

Revenue Growth (millions)
2016 Q4 TTM Revenue = 329.141
2017 Q4 TTM Revenue = 433.06
YOY TTM Revenue Growth = 31.6%, previous quarter 32.8%

EPS Growth (non-GAAP)
2016 Q4 TTM Earnings = 0.87
2017 Q4 TTM Earnings = 1.31
YOY TTM EPS Growth = 50.6%, previous quarter 51.9%

P/E (Check Current Price) = 86.61/1.31 = 66.1

1YPEG = 66.1/50.6 = 1.31

Matt
Long PAYC
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/TMFCochrane/info.aspx

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Chartwise it did okay in the dip. It held right at the 50dma yesterday and only fell below it for a while today. Today it was up nicely on volume that greatly exceeded yesterday’s down vol - the big boys still have faith. Its breakout was at 86.20 recently and it is not back above that.

It is #1 in its IBD stock group and has very strong relative ratings…
klistRating
Composite Rating 99 Pass
EPS Rating 99 Pass
RS Rating 92 Pass
Group RS Rating A Pass
SMR Rating A Pass
Acc/Dis Rating B- Pass

I reacquired PAYC on the breakout recently and held it through this mess, currently down 2% but think it is still good from here.

http://stockcharts.com/freecharts/gallery.html?payc

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Paycom Software (PAYC) late Tuesday reported fourth-quarter results that beat the consensus estimates for revenue and earnings.

Paycom, a leader in cloud-based human resources management tools, reported revenue of $114 million, up 30% from the year-ago period and beating the consensus estimate of $113 million. It reported adjusted earnings of 29 cents, up 61% and beating the consensus estimate of 24 cents.

Paycom Software stock was down a fraction in after-hours trading on the stock market today. During the regular session Tuesday, it rose 3% to 86.61.

For the current quarter, Paycom estimates revenue in the range of $150 million to $152 million, in line with the consensus estimate of $151 million.

Paycom shares hit a record high of 93.61 on Jan. 23. The company came public in June 2014, pricing shares at 15 and was recently featured as an IBD Sector Leader.

Paycom ended the quarter with cash and equivalents of $46 million.

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Matt,

Thanks for the financial update on PAYC. It is one of my most profitable core holdings. 2017 was another solid year with 32% revenue growth and a 1.2 million share re-purchase.

Jim
Long PAYC