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Investor Alert

press release

Nov. 2, 2021, 4:06 p.m. EDT

Paycom Software, Inc. Reports Third Quarter 2021 Results

Third Quarter Revenues of $256.2 million, up 30.4% from the comparable prior year periodThird Quarter GAAP Net Income of $30.4 million, representing 11.9% of total revenues, or $0.52 per diluted shareThird Quarter Non-GAAP Net Income of $53.6 million, or $0.92 per diluted shareThird Quarter Adjusted EBITDA of $89.7 million, representing 35.0% of total revenues

OKLAHOMA CITY, (BUSINESS WIRE) -- Paycom Software, Inc. (“Paycom,” “we” and “our”) /zigman2/quotes/208108773/composite PAYC -2.50% , a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended September 30, 2021.

“We delivered very strong third quarter results, which is a reflection of the investments we’ve made in product innovation, sales and marketing, and providing world-class service,” said Paycom’s founder and CEO, Chad Richison. “Paycom’s differentiated solutions and go-to-market strategy are resonating with businesses of all sizes across the country. We continue to aggressively reinvest into the business to maximize our growth opportunities.”

Financial Highlights for the Third Quarter of 2021

Total Revenues of $256.2 million represented a 30.4% increase compared to total revenues of $196.5 million in the same period last year. Recurring revenues of $251.3 million increased 30.4% from the comparable prior year period, and constituted 98.1% of total revenues.

GAAP Net Income was $30.4 million, or $0.52 per diluted share, compared to GAAP net income of $27.5 million, or $0.47 per diluted share, in the same period last year.

Non-GAAP Net Income1 was $53.6 million, or $0.92 per diluted share, compared to $40.6 million, or $0.70 per diluted share, in the same period last year.

Adjusted EBITDA1 was $89.7 million, compared to $67.5 million in the same period last year.

Cash and Cash Equivalents were $230.9 million as of September 30, 2021, compared to $151.7 million as of December 31, 2020.

Total Debt, Net was $29.6 million as of September 30, 2021, compared to $30.9 million as of December 31, 2020.

1 [] Adjusted EBITDA and non-GAAP net income are non-GAAP financial measures. Please see the discussion below under the heading "Use of Non-GAAP Financial Information" and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.

Financial Outlook

Paycom provides the following expected financial guidance for the quarter and year ending December 31, 2021:

Quarter Ending December 31, 2021:

Total Revenues in the range of $274.5 million to $276.5 million.

Adjusted EBITDA in the range of $103 million to $105 million.

Year Ending December 31, 2021:

Total Revenues in the range of $1.045 billion to $1.047 billion.

Adjusted EBITDA in the range of $413 million to $415 million.

We have not reconciled the forward-looking adjusted EBITDA ranges presented above and discussed on the teleconference call to net income, nor the forward-looking adjusted EBITDA margins and forward-looking non-GAAP effective income tax rate discussed on the teleconference call to comparable GAAP measures, because applicable information for future periods, on which these reconciliations would be based, are not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, change in fair value of our interest rate swap and other items. Further, we have not reconciled the forward-looking adjusted gross margin range discussed on the teleconference call to GAAP gross margin because applicable information for future periods, on which this reconciliation would be based, is not readily available due to uncertainty regarding, and the potential variability of, cost of revenues, including non-cash stock-based compensation expense. Accordingly, reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margins to net income margin, the forward-looking adjusted gross margin range to gross margin and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time without unreasonable effort. During the teleconference call, we also refer to a forward-looking estimate of our implied revenue growth plus adjusted EBITDA margin for 2021, or the “Rule of 60.” Because we are unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, we are unable to reconcile the “Rule of 60” to a comparable GAAP measure without unreasonable effort.

Impact of the COVID-19 Pandemic

During the third quarter of 2021, we transitioned the majority of our employees back to our offices, with a large contingent temporarily utilizing alternating schedules between work-from-home and on-site arrangements. We may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees and clients. Business continuity and safety will continue to guide our return-to-office plans. Although we currently have some insight with respect to the effects of the COVID-19 pandemic to date, it is not possible at this time to estimate the full impact that the crisis could continue to have on our business and results of operations.

  • The COVID-19 pandemic has resulted in, and may continue to result in, headcount fluctuations across our client base. Because we charge our clients on a per-employee basis for certain services we provide, headcount fluctuations at our clients impacts our recurring revenue. The negative effects on our client revenue of lower headcount resulting from the pandemic were more than offset by headcount additions from new clients and modestly improved headcount levels among our pre-pandemic client base throughout the third quarter of 2021. We expect that our recurring revenue in future periods will continue to be impacted by such headcount fluctuations.

  • Despite growth in the number of clients in our base and growth in our average funds held for clients balance, significantly lower average interest rates during the first nine months of 2021 as compared to the first nine months of 2020 had a negative effect on interest earned on funds held for clients and, consequently, recurring revenue growth in the three and nine months ended September 30, 2021.

  • Our solution allows clients to seamlessly manage and communicate with their remote workforces. In a work-from-home environment, our clients have recognized the benefits of our focus on employee usage, as well as the strengths and advantages of our single database solution.

  • While our sales force continues to conduct meetings with current and prospective clients virtually, as prospective clients begin to take meetings in-person, we expect our sales process would transition to include a combination of virtual and in-person meetings.

Use of Non-GAAP Financial Information

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including adjusted EBITDA, non-GAAP net income, adjusted gross profit, adjusted gross margin, adjusted sales and marketing expenses, adjusted total administrative expenses, adjusted research and development expenses, adjusted total research and development costs and “Rule of 60”. Management uses these non-GAAP financial measures as supplemental measures to review and assess the performance of our core business operations and for planning purposes. We define (i) adjusted EBITDA as net income plus interest expense, taxes, depreciation and amortization, non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and the change in fair value of our interest rate swap, (ii) non-GAAP net income as net income plus non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and the change in fair value of our interest rate swap, all of which are adjusted for the effect of income taxes, (iii) adjusted gross profit as gross profit plus applicable non-cash stock-based compensation expense, (iv) adjusted gross margin as gross profit plus applicable non-cash stock-based compensation expense, divided by total revenues, (v) each adjusted expense item as the GAAP expense amount less applicable non-cash stock-based compensation expense, (vi) adjusted total research and development costs as total research and development costs (including the capitalized portion) less applicable non-cash stock-based compensation (including the capitalized portion), (vii) adjusted EBITDA margin as adjusted EBITDA (calculated as described in clause (i)) divided by total revenues and (viii) “Rule of 60” as revenue growth (expressed as a percentage) plus adjusted EBITDA margin (calculated as described in clause (vii)). The non-GAAP financial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its financial and operational decision-making. We believe these metrics are useful to investors because they facilitate comparisons of our core business operations across periods on a consistent basis, as well as comparisons with the results of peer companies, many of which use similar non-GAAP financial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, repurchasing common stock and other purposes. Management believes that the non-GAAP measures presented in this press release and discussed on the related teleconference call, when viewed in combination with our results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our business and performance.

The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for net income, gross profit, gross margin, research and development expenses, sales and marketing expenses, administrative expenses and total research and development costs. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures of other companies and other companies may not calculate such measures in the same manner as we do.

Conference Call Details:

In conjunction with this announcement, Paycom will host a conference call today, November 2, 2021, at 5:00 p.m. Eastern time to discuss its financial results. To access this call, dial (833) 233-4461 (domestic) or (647) 689-4140 (international) and announce Paycom as the conference name to the operator. A live webcast as well as the replay of the conference call will be available on the Investor Relations page of Paycom’s website at investors.paycom.com. A replay of this conference call can also be accessed by dialing (800) 585-8367 (domestic) or (416) 621-4642 (international) until November 9, 2021. The replay passcode is 9493807.

About Paycom

As a leader in payroll and HR technology, Oklahoma City-based Paycom redefines the human capital management industry by allowing companies to effectively navigate a rapidly changing business environment. Its cloud-based software solution is based on a core system of record maintained in a single database for all human capital management functions, providing the functionality that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Paycom has the ability to serve businesses of all sizes and in every industry. As one of the leading human capital management providers, Paycom serves clients in all 50 states from offices across the country.

Forward-Looking Statements

Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that refer to Paycom’s estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources, dividends and liquidity; trends, opportunities and risks affecting our business, industry and financial results; future expansion or growth plans and potential for future growth; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; our ability to attract and retain qualified employees and key personnel; future regulatory, judicial and legislative changes; how certain factors affecting our performance correlate to improvement or deterioration in the labor market; our plan to open additional sales offices and our ability to effectively execute such plan; the sufficiency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; our ability to relocate our Texas operations facility within an expected timeframe; our plans regarding our capital expenditures and investment activity as our business grows, including with respect to our new Texas operations facility and research and development; the expected impact on our consolidated financial statements of new accounting pronouncements; our plans to repurchase shares of our common stock through a stock repurchase plan; our expected income tax rate for future periods; and the impact of the novel coronavirus (COVID-19) pandemic on our business, results of operations, cash flows, financial condition and liquidity. In addition, forward-looking statements also consist of statements involving trend analyses and statements including such words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “will,” “would,” and similar expressions or the negative of such terms or other comparable terminology. These forward-looking statements speak only as of the date hereof and are subject to business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements as a result of the factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those discussed in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. We do not undertake any obligation to update or revise the forward-looking statements to reflect events or circumstances that exist after the date on which such statements were made, except to the extent required by law.

Paycom Software, Inc.  
Unaudited Consolidated Balance Sheets  
(in thousands, except per share amounts)  
                 
    September 30, 2021     December 31, 2020  
Assets                
Current assets:                
Cash and cash equivalents   $ 230,926     $ 151,710  
Accounts receivable     13,004       9,130  
Prepaid expenses     26,643       17,854  
Inventory     866       1,151  
Income tax receivable     10,211       10,447  
Deferred contract costs     71,559       60,819  
Current assets before funds held for clients     353,209       251,111  
Funds held for clients     2,959,973       1,613,494  
Total current assets     3,313,182       1,864,605  
Property and equipment, net     329,296       285,218  
Intangible assets, net     59,057       319  
Goodwill     51,889       51,889  
Long-term deferred contract costs     430,761       371,357  
Other assets     33,853       34,524  
Total assets   $ 4,218,038     $ 2,607,912  
Liabilities and Stockholders’ Equity                
Current liabilities:                
Accounts payable   $ 9,441     $ 6,787  
Accrued commissions and bonuses     12,431       13,703  
Accrued payroll and vacation     36,138       24,529  
Deferred revenue     16,175       13,567  
Current portion of long-term debt     1,775       1,775  
Accrued expenses and other current liabilities     50,340       44,175  
Current liabilities before client funds obligation     126,300       104,536  
Client funds obligation     2,959,973       1,613,494  
Total current liabilities     3,086,273       1,718,030  
Deferred income tax liabilities, net     125,228       112,598  
Long-term deferred revenue     81,702       73,259  
Net long-term debt, less current portion     27,815       29,119  
Other long-term liabilities     71,679       19,263  
Total long-term liabilities     306,424       234,239  
Total liabilities     3,392,697       1,952,269  
Commitments and contingencies                
Stockholders’ equity:                
Common stock, $0.01 par value (100,000 shares authorized, 62,275 and 61,861 shares issued at September 30, 2021 and December 31, 2020, respectively; 57,997 and 57,739 shares outstanding at September 30, 2021 and December 31, 2020, respectively)     622       618  
Additional paid-in capital     441,479       357,908  
Retained earnings     866,892       719,619  
Treasury stock, at cost (4,278 and 4,122 shares at September 30, 2021 and December 31, 2020, respectively)     (483,652 )     (422,502 )
Total stockholders’ equity     825,341       655,643  
Total liabilities and stockholders’ equity   $ 4,218,038     $ 2,607,912  
Paycom Software, Inc.  
Unaudited Consolidated Statements of Income  
(in thousands, except per share amounts)  
    Three Months Ended September 30,     Nine Months Ended September 30,  
      2021       2020       2021       2020  
Revenues                                
Recurring   $ 251,306     $ 192,664     $ 756,665     $ 609,109  
Implementation and other     4,888       3,868       13,873       11,378  
Total revenues     256,194       196,532       770,538       620,487  
Cost of revenues                                
Operating expenses     34,766       24,278       92,612       71,651  
Depreciation and amortization     7,914       6,634       22,751       18,865  
Total cost of revenues     42,680       30,912       115,363       90,516  
Administrative expenses                                
Sales and marketing     69,745       62,146       200,485       173,228  
Research and development     31,077       21,772       84,012       65,171  
General and administrative     59,980       40,516       160,234       121,487  
Depreciation and amortization     9,407       7,150       25,503       20,209  
Total administrative expenses     170,209       131,584       470,234       380,095  
Total operating expenses     212,889       162,496       585,597       470,611  
Operating income     43,305       34,036       184,941       149,876  
Interest expense                       (19 )
Other income (expense), net     244       246       1,019       (522 )
Income before income taxes     43,549       34,282       185,960       149,335  
Provision for income taxes     13,170       6,800       38,687       30,249  
Net income   $ 30,379     $ 27,482     $ 147,273     $ 119,086  
Earnings per share, basic   $ 0.52     $ 0.48     $ 2.55     $ 2.07  
Earnings per share, diluted   $ 0.52     $ 0.47     $ 2.53     $ 2.04  
Weighted average shares outstanding:                                
Basic     57,935       57,603       57,843       57,609  
Diluted     58,190       58,171       58,192       58,312  
Paycom Software, Inc.  
Unaudited Consolidated Statements of Cash Flows  
(in thousands)  
    Nine Months Ended September 30,  
    2021     2020  
Cash flows from operating activities                
Net income   $ 147,273     $ 119,086  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     48,254       39,073  
Accretion of discount on available-for-sale securities     (276 )     (1,374 )
Non-cash marketing expense     618        
Loss on disposition of property and equipment     146        
Amortization of debt issuance costs     27       27  
Stock-based compensation expense     76,364       56,531  
Cash paid for derivative settlement     (558 )     (424 )
(Gain)/loss on derivative     (305 )     2,042  
Deferred income taxes, net     12,630       11,204  
Changes in operating assets and liabilities:                
Accounts receivable     (3,874 )     (3,057 )
Prepaid expenses     (8,789 )     (7,196 )
Inventory     97       32  
Other assets     671       (3,757 )
Deferred contract costs     (68,041 )     (56,922 )
Accounts payable     1,659       4,491  
Income taxes, net     236       (5,260 )
Accrued commissions and bonuses     (1,272 )     (4,403 )
Accrued payroll and vacation     11,609       12,853  
Deferred revenue     11,051       9,143  
Accrued expenses and other current liabilities     2,117       2,239  
Net cash provided by operating activities     229,637       174,328  
Cash flows from investing activities                
Purchase of short-term investments from funds held for clients     (170,760 )     (217,858 )
Proceeds from maturities of short-term investments from funds held for clients     195,000       93,593  
Purchases of intangible assets     (1,500 )      
Purchases of property and equipment     (86,718 )     (73,502 )
Net cash used in investing activities     (63,978 )     (197,767 )
Cash flows from financing activities                
Repurchases of common stock           (52,040 )
Withholding taxes paid related to net share settlements     (61,149 )     (26,099 )
Payments on long-term debt     (1,331 )     (1,331 )
Net change in client funds obligation     1,346,479       (140,421 )
Net cash provided by (used in) financing activities     1,283,999       (219,891 )
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents     1,449,658       (243,330 )
Cash, cash equivalents, restricted cash and restricted cash equivalents                
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period     1,585,275       1,641,854  
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period   $ 3,034,933     $ 1,398,524  
Paycom Software, Inc.  
Unaudited Consolidated Statements of Cash Flows, continued  
(in thousands)  
    Nine Months Ended September 30,  
    2021     2020  
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents                
Cash and cash equivalents   $ 230,926     $ 156,398  
Restricted cash included in funds held for clients     2,804,007       1,242,126  
Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period   $ 3,034,933     $ 1,398,524  
                 
                 
Supplemental disclosures of cash flow information:                
Non-cash investing and financing activities:                
Purchases of property and equipment, accrued but not paid   $ 5,994     $ 2,707  
Stock-based compensation for capitalized software   $ 5,108     $ 5,284  
Right of use assets obtained in exchange for operating lease liabilities $ 4,439 $ 9,323  
Paycom Software, Inc.
 
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Net income to adjusted EBITDA:                                
Net income   $ 30,379     $ 27,482     $ 147,273     $ 119,086  
Interest expense                       19  
Provision for income taxes     13,170       6,800       38,687       30,249  
Depreciation and amortization     17,321       13,784       48,254       39,074  
EBITDA     60,870       48,066       234,214       188,428  
Non-cash stock-based compensation expense     28,991       19,502       76,364       56,531  
Change in fair value of interest rate swap     (158 )     (88 )     (863 )     1,618  
Adjusted EBITDA   $ 89,703     $ 67,480     $ 309,715     $ 246,577  
Net income margin     11.9 %     14.0 %     19.1 %     19.2 %
Adjusted EBITDA margin     35.0 %     34.3 %     40.2 %     39.7 %
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Net income to non-GAAP net income:                                
Net income   $ 30,379     $ 27,482     $ 147,273     $ 119,086  
Non-cash stock-based compensation expense     28,991       19,502       76,364       56,531  
Change in fair value of interest rate swap     (158 )     (88 )     (863 )     1,618  
Income tax effect on non-GAAP adjustments     (5,626 )     (6,332 )     (26,798 )     (22,802 )
Non-GAAP net income   $ 53,586     $ 40,564     $ 195,976     $ 154,433  
                                 
Weighted average shares outstanding:                                
Basic     57,935       57,603       57,843       57,609  
Diluted     58,190       58,171       58,192       58,312  
                                 
Earnings per share, basic   $ 0.52     $ 0.48     $ 2.55     $ 2.07  
Earnings per share, diluted   $ 0.52     $ 0.47     $ 2.53     $ 2.04  
Non-GAAP net income per share, basic   $ 0.92     $ 0.70     $ 3.39     $ 2.68  
Non-GAAP net income per share, diluted   $ 0.92     $ 0.70     $ 3.37     $ 2.65  
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Earnings per share to non-GAAP net income per share, basic:                                
Earnings per share, basic   $ 0.52     $ 0.48     $ 2.55     $ 2.07  
Non-cash stock-based compensation expense     0.50       0.34       1.32       0.98  
Change in fair value of interest rate swap                 (0.01 )     0.03  
Income tax effect on non-GAAP adjustments     (0.10 )     (0.12 )     (0.47 )     (0.40 )
Non-GAAP net income per share, basic   $ 0.92     $ 0.70     $ 3.39     $ 2.68  
                                 
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Earnings per share to non-GAAP net income per share, diluted:                                
Earnings per share, diluted   $ 0.52     $ 0.47     $ 2.53     $ 2.04  
Non-cash stock-based compensation expense     0.50       0.34       1.31       0.97  
Change in fair value of interest rate swap                 (0.01 )     0.03  
Income tax effect on non-GAAP adjustments     (0.10 )     (0.11 )     (0.46 )     (0.39 )
Non-GAAP net income per share, diluted   $ 0.92     $ 0.70     $ 3.37     $ 2.65  
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Adjusted gross profit:                                
Total revenues   $ 256,194     $ 196,532     $ 770,538     $ 620,487  
Less: Total cost of revenues     (42,680 )     (30,912 )     (115,363 )     (90,516 )
Total gross profit     213,514       165,620       655,175       529,971  
Plus: Non-cash stock-based compensation expense     1,256       1,227       3,381       4,158  
Total adjusted gross profit   $ 214,770     $ 166,847     $ 658,556     $ 534,129  
Gross margin     83.3 %     84.3 %     85.0 %     85.4 %
Adjusted gross margin     83.8 %     84.9 %     85.5 %     86.1 %
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Adjusted sales and marketing expenses:                                
Sales and marketing expenses   $ 69,745     $ 62,146     $ 200,485     $ 173,228  
Less: Non-cash stock-based compensation expense     (3,417 )     (3,829 )     (10,567 )     (10,795 )
Adjusted sales and marketing expenses   $ 66,328     $ 58,317     $ 189,918     $ 162,433  
                                 
Total revenues   $ 256,194     $ 196,532     $ 770,538     $ 620,487  
Sales and marketing expenses as a % of revenues     27.2 %     31.6 %     26.0 %     27.9 %
Adjusted sales and marketing expenses as a % of revenues     25.9 %     29.7 %     24.6 %     26.2 %
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Adjusted total administrative expenses:                                
Total administrative expenses   $ 170,209     $ 131,584     $ 470,234     $ 380,095  
Less: Non-cash stock-based compensation expense     (27,735 )     (18,275 )     (72,983 )     (52,373 )
Adjusted total administrative expenses   $ 142,474     $ 113,309     $ 397,251     $ 327,722  
                                 
Total revenues   $ 256,194     $ 196,532     $ 770,538     $ 620,487  
Total administrative expenses as a % of revenues     66.4 %     67.0 %     61.0 %     61.3 %
Adjusted total administrative expenses as a % of revenues     55.6 %     57.7 %     51.6 %     52.8 %
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Adjusted research and development expenses:                                
Research and development expenses   $ 31,077     $ 21,772     $ 84,012     $ 65,171  
Less: Non-cash stock-based compensation expense     (1,827 )     (2,115 )     (5,394 )     (7,270 )
Adjusted research and development expenses   $ 29,250     $ 19,657     $ 78,618     $ 57,901  
                                 
Total revenues   $ 256,194     $ 196,532     $ 770,538     $ 620,487  
Research and development expenses as a % of revenues     12.1 %     11.1 %     10.9 %     10.5 %
Adjusted research and development expenses as a % of revenues     11.4 %     10.0 %     10.2 %     9.3 %
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Total research and development costs:                                
Capitalized research and development costs   $ 13,157     $ 11,727     $ 39,160     $ 32,448  
Research and development expenses     31,077       21,772       84,012       65,171  
Total research and development costs   $ 44,234     $ 33,499     $ 123,172     $ 97,619  
                                 
Total revenues   $ 256,194     $ 196,532     $ 770,538     $ 620,487  
Total research and development costs as a % of revenues     17.3 %     17.0 %     16.0 %     15.7 %
                                 
Adjusted total research and development costs:                                
Total research and development costs   $ 44,234     $ 33,499     $ 123,172     $ 97,619  
Less: Capitalized non-cash stock-based compensation     (1,757 )     (1,566 )     (5,108 )     (5,284 )
Less: Non-cash stock-based compensation expense     (1,827 )     (2,115 )     (5,394 )     (7,270 )
Adjusted total research and development costs   $ 40,650     $ 29,818     $ 112,670     $ 85,065  
                                 
Total revenues   $ 256,194     $ 196,532     $ 770,538     $ 620,487  
Adjusted total research and development costs as a % of revenues 15.9 % 15.2 % 14.6 % 13.7 %
Paycom Software, Inc.
 
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2021     2020     2021     2020  
Non-cash stock-based compensation expense:                                
Operating expenses   $ 1,256     $ 1,227     $ 3,381     $ 4,158  
Sales and marketing     3,417       3,829       10,567       10,795  
Research and development     1,827       2,115       5,394       7,270  
General and administrative     22,491       12,331       57,022       34,308  
Total non-cash stock-based compensation expense   $ 28,991     $ 19,502     $ 76,364     $ 56,531  

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211102006018/en/

SOURCE: Paycom Software, Inc.

Paycom Software, Inc.
Investor Relations Contact:
James Samford, 800-580-4505
investors@paycom.com

COMTEX_396243741/2456/2021-11-02T16:05:32

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Volume: 873,213
Jan. 14, 2022 4:04p
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113.33
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Rev. per Employee
$235,060
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