Paycom reported full-year revenues of $1,375 million, which represents a 30 percent increase year-over-year.
Paycom Software recently announced its financial results for the fourth quarter and for 2022.
“We delivered outstanding results in 2022, with accelerating revenue growth and strong margins, reflecting strong demand for our user-friendly solutions and attractive client return on investment,” said Chad Richison, Paycom’s founder, chairman and CEO. “Employees are doing their own payroll with Beti, and that’s what is best for the employee and the employer. In 2023, we will continue to invest in innovation around the employee experience and automation to deliver more value to our clients.”
Financial Highlights for the Fourth Quarter of 2022
Total Revenues of $370.6 million represented a 30.0% increase compared to total revenues of $285 million in the same period last year. Recurring revenues of $364 million increased 30.0% from the comparable prior year period and constituted 98.2% of total revenues.
GAAP Net Income was $80 million, or $1.38 per diluted share, compared to GAAP net income of $48.7 million, or $0.84 per diluted share, in the same period last year.
Non-GAAP Net Income1 was $100.2 million, or $1.73 per diluted share, compared to $64.4 million, or $1.11 per diluted share, in the same period last year.
Adjusted EBITDA1 was $163.9 million, compared to $109.6 million in the same period last year.
Cash and Cash Equivalents were $400.7 million as of Dec. 31, 2022, compared to $278 million as of Dec. 31, 2021.
Total Debt, Net was $29 million as of Dec. 31, 2022, compared to $29.2 million as of Dec. 31, 2021.
Financial Highlights for the Full Year 2022
Total Revenues of $1,375.2 million represented a 30.3% increase compared to total revenues of $1,055.5 million last year. Recurring revenues of $1,351.9 million increased 30.4% from last year and constituted 98.3% of total revenues.
GAAP Net Income was $281.4 million, or $4.84 per diluted share, compared to GAAP net income of $196 million, or $3.37 per diluted share, last year.
Non-GAAP Net Income1 was $357.2 million, or $6.14 per diluted share, compared to $260.4 million, or $4.48 per diluted share, last year.
Adjusted EBITDA1 was $579.7 million, compared to $419.3 million last year.
Business Highlights
Paycom earned a Top 25 ranking from Top Workplaces USA, and a Top Workplaces in Oklahoma award, its tenth-consecutive year on the list. Paycom was also named a Best Company for Women.
Total client count increased to 36,561 as of Dec. 31, 2022, up 8% from the prior year-end. On a parent company grouping basis, client count as of Dec. 31, 2022, increased to 19,081, up 8% from the prior year-end.
Annual revenue retention rate was 93% for the year ended Dec. 31, 2022.
Paycom stored data for over 6.5 million persons employed by its clients during the year ended Dec. 31, 2022, up 14% year-over-year.
Financial Outlook
Paycom provides the following expected financial guidance for the quarter ending March 31, 2023 and the year ending Dec. 31, 2023.
Quarter Ending March 31, 2023:
Total Revenues in the range of $443 million to $445 million.
Adjusted EBITDA in the range of $210 million to $212 million.
Year Ending Dec. 31, 2023:
Total Revenues in the range of $1.700 billion to $1.702 billion.
Adjusted EBITDA in the range of $700 million to $702 million.
