Paycom Software Stock Fair Value – PAYCOM SOFTWARE Reports Record-Breaking USD 80 Million in Revenue for FY2022 Q4

Earnings Overview

PAYCOM SOFTWARE ($NYSE:PAYC) reported total revenue of USD 80.0 million for their FY2022 fourth quarter, a 64.2% increase from the same period in the prior year. Net income for Q4 also saw an impressive increase, rising to USD 370.6 million, a 30.0% improvement on the previous year. These results were announced on December 31, 2022.

Transcripts Simplified

Paycom reported total revenues of $370.6 million for the fourth quarter of 2022, representing growth of 30% from the comparable prior year period. 98% of total revenues were recurring revenues. There were 36,600 clients at the end of the year, an 8% increase from 2021. The annual revenue retention rate was 93%, with adjusted gross profit at $312.5 million and adjusted gross margin at 84.3%. Adjusted sales and marketing expenses were $87.3 million, representing 23.5% of total revenues.

Adjusted R&D expenses were $36.6 million, or 9.9% of total revenues. Adjusted EBITDA was $163.9 million, or 44.2% of total revenues, and GAAP net income was $80 million, or $1.38 per diluted share. For the full year 2022, GAAP net income was $281.4 million, or $4.84 per diluted share, up 44% year-over-year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Paycom Software. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Paycom Software. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Paycom Software. More…

Key Ratios Snapshot

Some of the financial key ratios for Paycom Software are shown below. More…

Price History

Tuesday saw an impressive performance from PAYCOM SOFTWARE as the company reported record-breaking revenues of USD 80 million for the fourth quarter of fiscal year 2022. This was a 4.5% increase from their previous closing price of $329.7, with their stock opening at $328.4 and closing at $344.5. The unprecedented success of PAYCOM SOFTWARE in this quarter is attributed to their innovative and innovative software solutions, which have seen a remarkable amount of growth and adoption in the market. The company has also seen their customer base expand significantly over the past year, with strong customer engagement and loyalty. This helped them to achieve their record-breaking performance, despite the challenging economic climate.

The company’s software products have been praised by industry experts for their ease of use, robustness and reliability. This has enabled them to build a loyal customer base who have consistently come back for more services, leading to the current success of the company. The company is well-positioned to continue its success into the future and is expected to reach even greater heights in the near future. Live Quote…

Analysis – Paycom Software Stock Fair Value

GoodWhale recently conducted an analysis of PAYCOM SOFTWARE‘s financials. After thorough examination of the company’s balance sheet, income statement, and cash flow statement, our proprietary Valuation Line was used to determine the fair value of PAYCOM SOFTWARE’s share. Our findings showed that the fair value of the company’s stock is around $463.9. Interestingly, the current trading price of PAYCOM SOFTWARE’s stock is $344.5, revealing that the stock is undervalued by 25.7%. This could present an attractive buying opportunity for investors. More…

Peers

The competition in the human capital management software market is heating up. Paycom Software Inc is going up against some big names such as Paylocity Holding Corp, Workday Inc, and Ramco Systems Ltd. While each company has its own strengths and weaknesses, it seems that Paycom is gaining ground in the competition.

– Paylocity Holding Corp ($NASDAQ:PCTY)

Paylocity Holding Corporation provides cloud-based payroll and human capital management solutions in the United States. The company’s solutions include Paylocity Web Pay, a cloud-based payroll solution that offers a suite of tools to manage an employee’s payroll needs; Paylocity Web HR, an online human resource information management solution; Talent Management, a recruiting and performance management solution; and Paylocity Performance, a cloud-based employee performance management solution.

– Workday Inc ($NASDAQ:WDAY)

Workday Inc is a leading provider of enterprise cloud applications for finance and human resources. The company has a market cap of 38.27B as of 2022 and a return on equity of -1.84%. Workday Inc provides a suite of financial and human resources applications that are designed to help organizations manage their finances and workforce more effectively. The company’s products are used by organizations of all sizes, from small businesses to large enterprises. Workday Inc’s products are delivered through a cloud-based model, which allows organizations to access the applications from anywhere in the world and pay for only the resources they use.

– Ramco Systems Ltd ($BSE:532370)

Ramco Systems is a global enterprise software company specializing in enterprise resource planning (ERP), enterprise asset management (EAM), and aircraft maintenance, repair, and overhaul (MRO) software. The company has a market cap of 7.82 billion as of 2022 and a return on equity of -11.06%. The company’s products are used by organizations in a variety of industries, including aerospace and defense, automotive, construction and engineering, manufacturing, and logistics.

Summary

Paycom Software saw a major jump in total revenue and net income in Q4 of FY2022 compared to the previous year, with total revenue increasing 64.2% and net income rising 30.0%. As a result, the stock price rose noticeably on the same day. For investors, this is a positive sign that suggests long-term growth potential.

Paycom has established itself as a reliable and profitable company, and it looks like it will continue this trend in the coming years. With a strong track record of performance, Paycom Software is an attractive investment opportunity.