Overview

* Paycom Q3 revenue grows 9% yr/yr, slightly beating analyst expectations

* Adjusted EPS for Q3 missed analyst expectations

* Company repurchased 1 mln shares, demonstrating commitment to shareholder value

Outlook

* Paycom expects 2025 revenue between $2.045 bln and $2.055 bln

* Company anticipates 2025 recurring revenue growth of approximately 10%

* Paycom projects 2025 adjusted EBITDA between $872 mln and $882 mln

Result Drivers

* RECURRING REVENUE GROWTH - Double-digit growth in recurring revenue driven by award-winning products Beti, GONE and IWant

* AUTOMATION AND NAVIGATION - Focus on full-solution automation and command-driven navigation delivering ROI for clients

* NAMING RIGHTS GAIN - Tax-adjusted gain from naming rights agreement modification contributed to net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $493.30 $493.002

Revenue Beat* mln mln (18

Analysts

)

Q3 Miss $1.94 $1.95

Adjusted (18

EPS Analysts

)

Q3 EPS $1.96

Q3 Slight $110 mln $109.86

Adjusted Beat* mln (17

Net Analysts

Income )

Q3 Net $110.70

Income mln

Q3 Beat $194 mln $191.92

Adjusted mln (18

EBITDA Analysts

)

Q3 $112.60

Operatin mln

g Income

Q3 $152.80

Pretax mln

Profit

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Paycom Software Inc ( PAYC ) is $240.00, about 24.2% above its November 4 closing price of $181.91

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)