First Quarter 2024 Revenue: $500 million, up 11% from the prior year.
Recurring Revenue: $492 million, representing 98% of total revenues and growing 11% year-over-year.
GAAP Net Income: $247 million, or $4.37 per diluted share.
Non-GAAP Net Income: $147 million, or $2.59 per diluted share.
Adjusted EBITDA: Nearly $230 million, with a margin of 45.9%.
Stock Compensation Benefit: Included a one-time noncash benefit of $118 million related to the forfeiture of the 2020 CEO performance award.
Future Guidance
2024 Revenue Guidance: Expected to be in the range of $1.860 billion to $1.885 billion, approximately 11% year-over-year growth.
2024 Adjusted EBITDA Guidance: Expected to be in the range of $720 million to $730 million, representing a margin of about 39%.
Second Quarter 2024 Revenue: Expected to be between $434 million to $438 million.
Second Quarter 2024 Adjusted EBITDA: Expected to be between $151 million to $155 million, representing an adjusted EBITDA margin of approximately 35%.
Capital Expenditures: Estimated to be approximately 12% of revenues in 2024, with expectations to decline beginning in 2025.
Effective Tax Rate Guidance: Approximately 33% (GAAP) for Q2 and 22% for the full year 2024; non-GAAP effective tax rate estimated at 25%.
Trends, Market Conditions, Sentiment
Product Vision and Differentiators: Focused on eliminating redundant HR work, enhancing client ROI through automation, particularly with Beti for payroll.
Market Demand and Sales: Solid demand for Paycom’s solution; recent months have shown improved sales bookings.
International Expansion: Highlighted progress and momentum on the international front, with the launch of native payroll solutions in additional countries, including Ireland.
Competitive Landscape: Continued emphasis on the differentiated offering of Paycom against competitors, noting a low estimated saturation at about 5% of the total addressable market. Incremental growth domestically supported by expanding international capabilities.
Client Retention and Satisfaction: Initiatives aimed at increasing client ROI and satisfaction are paying off, with high DDX scores above 95% and recognition in customer service awards.
Market Conditions: No specific challenges cited regarding market saturation or demand slowdown; efforts are ongoing to ensure sales performance and capacity are aligned with market opportunities.
Notable Quotes
”Our product vision centers around eliminating redundant HR work, eliminating cost and allowing users to recoup valuable time in their day to add value to their organizations.” - Chad Richison
”We are leveraging AI and decisioning logic across our solution, adding more value and eliminating mundane nonrevenue-generating activities for our clients.” - Chad Richison
”We remain highly focused on our U.S. growth, as we still have only an estimated 5% of the total addressable market.” - Chad Richison
”We continue to focus our efforts on executing on our plan and building momentum. We have a differentiated product, an industry-leading value proposition, and a solid foundation to build upon.” - Craig Boelte
