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$PAYC Earnings
Results:
- Revenue: $334M (+30% YoY)
- Gross Margin: 83.9%
- Net Income (GAAP): $52.2M (vs $30.4M Q3 2021)
- Net Income (Non-GAAP): $73.4M (vs $53.6M Q3 2021)
- EPS (GAAP): $0.90
- EPS (Non-GAAP): $1.27
- Adjusted EBITDA: $126M (vs $89.7M Q3 2021)
- Cash & Cash Equivalents: $317M (vs $278M Q3 2021)
- Raised Q4 and FY 2022 guidance
In going through the transcript, there is a heavy emphasis on self-service payroll and employee experience. This has been a theme since they released BETI, an employee self-service payroll system. Paycom's focus is to free up HR staff by empowering the employees to manage their own payroll. This attention to user experience and improving the efficiency of HR staff is going to be their path forward as they attempt to win customers from larger competitors.
Another takeaway was the fact that Richison reiterated the company's market penetration (~5%), noting that they have 33,8000 clients compared to a combined 1.7 million for their top two competitors. I'm not a big TAM person, but it does demonstrate that there is a massive market opportunity if Paycom is able to continue to execute.
Paycom earnings calls have been generally uneventful, which makes owning this company much easier. Another solid quarter in the books.
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