Paycom Business News

[BoulderSooner]

I came here to ask what is going on with Paycom? I follow the markets pretty closely but haven't kept an eye on PAYC stock in awhile. Thank god I didn't have any money in them. Are we about to see a ripple effect with layoffs, etc?

should not have any effect on personal

paycom reported 10-12% revenue growth for 2024 ... the market was expecting 20+% growth ..

so the stock price is moving down to reflect that .. (maybe overcorrecting today)

[DowntownMan]

should not have any effect on personal

paycom reported 10-12% revenue growth for 2024 ... the market was expecting 20+% growth ..

so the stock price is moving down to reflect that .. (maybe overcorrecting today)

Good buying opportunity for the stock. It was nearly 400 just in July.

[BoulderSooner]

Good buying opportunity for the stock. It was nearly 400 just in July.

i think i am leaning this way as well ..

i will likely but some options

[OKCRealtor]

Good buying opportunity for the stock. It was nearly 400 just in July.

I want too but I'm staying out. Holding too many bags already over the last couple years & certainly don't trust the market now lol.

[EdOkCounty]

Will be interesting to see full year results. Revenue growth was trending well above prior year but not as strong as originally planned. Their product is marketed as a tool that reduces payroll errors, and it does, but they generate a decent amount of revenue when their customers process extra payrolls beyond their scheduled payroll cycles. One of the solutions rolled out in 2021, Beti (Better Employee Transaction Interface), is an employee self-service tool that puts payroll responsibility on the employees. It may be too effective in some cases as it is resulting in cannibalization of off cycle revenue. The market analysts asked multiple questions about this situation in the 3rd Quarter earnings call. Paycom also appears to be seeking low hanging fruit with expansion into Canada and Mexico. Investors should keep an eye on customer retention as much as revenue growth.

[jedicurt]

Paycom also appears to be seeking low hanging fruit with expansion into Canada and Mexico.

this is actually not the case. one of the biggest reasons they were told by some very very large accounts, that they couldn't make the switch to paycom was because of out of country employees. and that once the system supported that, then it was possible for those companies to make the switch. now i am out of the loop these days on new customers so i don't know if any of those companies have now switched over, but i can tell you that the move into canada and mexico was not for just some low hanging fruit, but at the request of some mega corporations. and the thought was since they were making the system work for those countries anyways, why not also look at smaller companies in those markets, since it's just additional revenue.

[Teo9969]

Will be interesting to see full year results. Revenue growth was trending well above prior year but not as strong as originally planned. Their product is marketed as a tool that reduces payroll errors, and it does, but they generate a decent amount of revenue when their customers process extra payrolls beyond their scheduled payroll cycles. One of the solutions rolled out in 2021, Beti (Better Employee Transaction Interface), is an employee self-service tool that puts payroll responsibility on the employees. It may be too effective in some cases as it is resulting in cannibalization of off cycle revenue. The market analysts asked multiple questions about this situation in the 3rd Quarter earnings call. Paycom also appears to be seeking low hanging fruit with expansion into Canada and Mexico. Investors should keep an eye on customer retention as much as revenue growth.

Now that the % revenue growth guidance for next year is out of the bag from the Q3 earnings call, it's going to be interesting to see how client (revenue) retention is presented. If a client generated $X base and an additional $Y in off-cycle payroll fees, but the "cannabalization" referenced knocks majority of those $Y off, then the the revenue retention rate probably shouldn't stay at the 93%/94% that has been referenced in the last 3 years of EOY calls and if it does, a lot is going to have to be put on the table as to why.

I would think that how they talk through that is probably going to have a major impact on the stock price for the next few years. Chad is 4 or 5 years out from needing to hit $1,000.00 to get his massive award he was in the news for a few years back, pretty hard to see how that happens, but this might be the important earnings call to set the stage for that kind of rally/growth. Alternatively, the volume on the stock after Q3 earnings eclipsed 20% so without knowing how ownership changed there, Chad could also be under some fire in which case this earnings call is also super important.

The amount of law firms that jumped on the "file against Paycom for your losses" train was insane. It's 90% of what I saw on articles related to PAYC in my ETrade app the last few months.

[April in the Plaza]

Now that the % revenue growth guidance for next year is out of the bag from the Q3 earnings call, it's going to be interesting to see how client (revenue) retention is presented. If a client generated $X base and an additional $Y in off-cycle payroll fees, but the "cannabalization" referenced knocks majority of those $Y off, then the the revenue retention rate probably shouldn't stay at the 93%/94% that has been referenced in the last 3 years of EOY calls and if it does, a lot is going to have to be put on the table as to why.

I would think that how they talk through that is probably going to have a major impact on the stock price for the next few years. Chad is 4 or 5 years out from needing to hit $1,000.00 to get his massive award he was in the news for a few years back, pretty hard to see how that happens, but this might be the important earnings call to set the stage for that kind of rally/growth. Alternatively, the volume on the stock after Q3 earnings eclipsed 20% so without knowing how ownership changed there, Chad could also be under some fire in which case this earnings call is also super important.

The amount of law firms that jumped on the "file against Paycom for your losses" train was insane. It's 90% of what I saw on articles related to PAYC in my ETrade app the last few months.

Chad definitely sounds a bit scared/concerned in the recently leaked staff meeting. But I'm wondering if he was cool with the idea of the leak? Definitely confirms for investors that his give-a-**** level is still pretty high. Whether Kanban and Agile will be a magic bullet for PAYC in 2024 is a different question, of course.

https://thelostogle.com/2024/01/18/s...lems-at-paycom

https://www.youtube.com/watch?v=11YRTZIr--k

[Teo9969]

Chad definitely sounds a bit scared/concerned in the recently leaked staff meeting. But I'm wondering if he was cool with the idea of the leak? Definitely confirms for investors that his give-a-**** level is still pretty high. Whether Kanban and Agile will be a magic bullet for PAYC in 2024 is a different question, of course.

https://thelostogle.com/2024/01/18/s...lems-at-paycom

https://www.youtube.com/watch?v=11YRTZIr--k

Meh... definitely some exaggeration from lostogle. Interesting meeting content for people who are on the inside or otherwise know about Paycom, but definitely not "big problems". This sounds more to me like a CEO trying to reach his $750M stock grant rather than someone worried about their job.

The company still prints money with a strong balance sheet so it is not in need of a magic bullet overall.

[Mballard85]

So now they have a CO-CEO, I can't imagine this is a massive positive for Chad. I know it'll be spun that way, but this is a demotion for him. Seems like there is starting to be some loss of belief in him as the leader.

[BoulderSooner]

Seems like there is starting to be some loss of belief in him as the leader.

lol

[Mballard85]

lol

I get that it's a crazy statement, but you don't just appoint a Co-CEO. Something is going on, speaking to people that work at Paycom, they were not upset by it.

[Anonymous.]

Some C-suite changeups went down this week.

A co-chief executive of Paycom Software has left the company as three new leaders join the C-suite.

The human-capital-management software company said in a filing Friday that Christopher Thomas has resigned from his position as co-CEO for personal reasons.

His counterpart, Chad Richison, will continue to serve the company as chief executive.

The departure was disclosed on the same day that Paycom announced it had promoted Randy Peck, a 20-year company veteran who most recently served as a strategic adviser, to chief operating officer.

Paycom has also promoted Jennifer Kraszewski, senior executive vice president of human resources, to the role of chief human resources officer and Matt Paque, its general counsel, to chief legal officer.

Richison, who also serves as board chairman, said the refreshed leadership team should help Paycom elevate its culture and client experience.

https://www.marketwatch.com/story/pa...?mod=investing

[jedicurt]

the stock is down to as low as it has been since January 2019...

[Teo9969]

the stock is down to as low as it has been since January 2019...

P/E Ratio and Net Profit Margin are now 19.4x & 49.45% respectively

ADP's is 26.9x & 22.55%
Paychex is 25.8x & 34.64%
Paylocity is 42.3x & 21.26%

Paycom's profit margin is still absurdly higher than its competitors and yet valued way worse against earnings than competitors.

I never understood $500 stock price and I didn't understand even $200 stock price back in 2019, but the idea of a company this profitable being cheapest in its market segment is mind blowing.


In other news Oklahoma lost a Billionaire today (at least in terms of stock valuation...probably can make up the rest of that in personal assets)

[Dob Hooligan]

Anyone have any idea why the Oklahoman ran a feature about how Paycom doubled their workforce and expanded their headquarters since the pandemic started, today? Is there some news on the way?

[Mballard85]

Anyone have any idea why the Oklahoman ran a feature about how Paycom doubled their workforce and expanded their headquarters since the pandemic started, today? Is there some news on the way?

They've hired a lot of people, they are constantly hiring from what I understand. They have made a few business expansions and more on the horizion that will need support. They've not stopped expanding their headquarters over the past decade from what I can remember.

[PhiAlpha]

Anyone have any idea why the Oklahoman ran a feature about how Paycom doubled their workforce and expanded their headquarters since the pandemic started, today? Is there some news on the way?

Slow news day?

[VeggieMeat]

Anyone have any idea why the Oklahoman ran a feature about how Paycom doubled their workforce and expanded their headquarters since the pandemic started, today? Is there some news on the way?

CEO's been selling stock?

Oklahoman received a press release and attached a byline?

[Dob Hooligan]

Slow news day?

That's my guess. Just wondering if there was anything more behind it?