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Paycom (PAYC) Q4 Earnings & Revenues Beat Estimates, Up Y/Y
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Paycom Software (PAYC - Free Report) reported better-than-anticipated fourth-quarter 2021 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate.
The online payroll and human resource technology provider reported non-GAAP earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1.08 per share. The bottom line improved 32.1% from 84 cents per share reported in the year-ago quarter.
For the fourth quarter of 2021, the company reported revenues of $285 million, beating the consensus mark of $275.8 million and improving 29% year over year. This year-over-year upside was primarily driven by the new client additions and continued focus on cross-selling to the existing clients.
Paycom Software, Inc. Price, Consensus and EPS Surprise
Paycom’s recurring revenues (representing 98.3% of total revenues) improved 29.2% to $280 million in the fourth quarter.
The adjusted gross profit climbed 26.8% from the year-ago period to $239.7 million. However, the adjusted gross margin contracted 140 basis points (bps) on a year-on-year basis to 84.1%, primarily on the workforce returning to offices and aggressive hiring.
Paycom’s adjusted EBITDA increased 30.2% year over year to $109.6 million. Adjusted EBITDA margin expanded 30 bps to 38.4%.
Balance Sheet & Cash Flow
Paycom exited the fourth quarter with cash and cash equivalents of $278 million compared with $230.9 million recorded in the previous quarter.
The company’s balance sheet comprises net long-term debt of $29.2 million compared with the previous quarter’s $27.8 million.
During the full-year 2021, it generated an operating cash flow of $319.4 million.
Full-Year Highlights
Paycom reported revenues of $1.06 billion in full-year 2021, up 25.4% year over year. Recurring revenues grew 25.5% to $1.04 billion.
Non-GAAP diluted earnings were $4.48 per share, indicating a surge of 28.4% year over year.
For the full-year 2021, adjusted EBITDA (accounting for 39.7% of revenues) increased 26.8% year over year to $419.3 million. Adjusted EBITDA margin expanded 40 bps to 39.7%.
Guidance
Paycom forecast 2022 revenues between $1.314 billion and $1.316 billion. The adjusted EBITDA is projected to be $524-$526 million.
For the first quarter of 2022, Paycom estimates revenues between $342 million and $344 million. Management projects an adjusted EBITDA of $161-$163 million.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 29.1% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have gained 6.4% in the past year.
The Zacks Consensus Estimate for Axcelis Technologies first-quarter 2022 earnings has been revised upward by a penny to 87 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 4.1% to $3.55 per share in the last 60 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 74.4% in the past year.
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Paycom (PAYC) Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Paycom Software (PAYC - Free Report) reported better-than-anticipated fourth-quarter 2021 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate.
The online payroll and human resource technology provider reported non-GAAP earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1.08 per share. The bottom line improved 32.1% from 84 cents per share reported in the year-ago quarter.
For the fourth quarter of 2021, the company reported revenues of $285 million, beating the consensus mark of $275.8 million and improving 29% year over year. This year-over-year upside was primarily driven by the new client additions and continued focus on cross-selling to the existing clients.
Paycom Software, Inc. Price, Consensus and EPS Surprise
Paycom Software, Inc. price-consensus-eps-surprise-chart | Paycom Software, Inc. Quote
Quarter in Detail
Paycom’s recurring revenues (representing 98.3% of total revenues) improved 29.2% to $280 million in the fourth quarter.
The adjusted gross profit climbed 26.8% from the year-ago period to $239.7 million. However, the adjusted gross margin contracted 140 basis points (bps) on a year-on-year basis to 84.1%, primarily on the workforce returning to offices and aggressive hiring.
Paycom’s adjusted EBITDA increased 30.2% year over year to $109.6 million. Adjusted EBITDA margin expanded 30 bps to 38.4%.
Balance Sheet & Cash Flow
Paycom exited the fourth quarter with cash and cash equivalents of $278 million compared with $230.9 million recorded in the previous quarter.
The company’s balance sheet comprises net long-term debt of $29.2 million compared with the previous quarter’s $27.8 million.
During the full-year 2021, it generated an operating cash flow of $319.4 million.
Full-Year Highlights
Paycom reported revenues of $1.06 billion in full-year 2021, up 25.4% year over year. Recurring revenues grew 25.5% to $1.04 billion.
Non-GAAP diluted earnings were $4.48 per share, indicating a surge of 28.4% year over year.
For the full-year 2021, adjusted EBITDA (accounting for 39.7% of revenues) increased 26.8% year over year to $419.3 million. Adjusted EBITDA margin expanded 40 bps to 39.7%.
Guidance
Paycom forecast 2022 revenues between $1.314 billion and $1.316 billion. The adjusted EBITDA is projected to be $524-$526 million.
For the first quarter of 2022, Paycom estimates revenues between $342 million and $344 million. Management projects an adjusted EBITDA of $161-$163 million.
Zacks Rank & Key Picks
Paycom currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 29.1% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have gained 6.4% in the past year.
The Zacks Consensus Estimate for Axcelis Technologies first-quarter 2022 earnings has been revised upward by a penny to 87 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 4.1% to $3.55 per share in the last 60 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 74.4% in the past year.