Exhibit 99.1

 

Paycom Software, Inc. Reports Fourth Quarter and Year-End 2019 Results

Full Year Revenues of $737.7 million, up 30% from the prior year

Full Year GAAP Net Income of $180.6 million, or 24% of total revenues, or $3.09 per diluted share

Full Year Adjusted EBITDA of $317.9 million, or 43% of total revenues

Fourth Quarter Revenues of $193.4 million, up 29% from the prior year period

 

OKLAHOMA CITY – (BUSINESS WIRE) – Paycom Software, Inc. (“Paycom”, “we,” and “our”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter and year ended December 31, 2019.  

“2019 was another exceptional year for Paycom. We strengthened our position in the human capital management industry with new product innovations, unparalleled service and an unrelenting focus on adding value for our clients,” said Paycom’s founder and CEO, Chad Richison. “Our differentiated product strategy is driving rapid revenue growth, and high employee usage is driving higher annual revenue retention. Based on the strong momentum we are seeing, we believe we are well positioned to deliver an enviable combination of high revenue growth and high margins for years to come.”

Financial Highlights for the Fourth Quarter of 2019  

Total Revenues of $193.4 million represented a 29% increase compared to total revenues of $150.3 million in the same period last year. Recurring revenues of $190.2 million increased 29% from the comparable prior year period, and constituted 98% of total revenues.

GAAP Net Income was $45.4 million, or $0.78 per diluted share, compared to GAAP net income of $31.4 million, or $0.54 per diluted share, in the same period last year.  

Non-GAAP Net Income(1) was $50.5 million, or $0.86 per diluted share, compared to $35.4 million, or $0.61 per diluted share, in the same period last year.

Adjusted EBITDA(1) was $78.6 million, compared to $57.5 million in the same period last year.

Cash and Cash Equivalents were $133.7 million as of December 31, 2019, compared to $45.7 million as of December 31, 2018.  

Total Debt, Net was $32.6 million as of December 31, 2019, compared to $34.4 million as of December 31, 2018.

 

Financial Highlights for the Full Year 2019  

Total Revenues of $737.7 million represented a 30% increase compared to total revenues of $566.3 million last year. Recurring revenues of $724.4 million increased 30% from the prior year, and constituted 98% of total revenues.

GAAP Net Income was $180.6 million, or $3.09 per diluted share, compared to GAAP net income of $137.1 million, or $2.34 per diluted share, last year.  

Non-GAAP Net Income(1) was $204.6 million, or $3.50 per diluted share, compared to $156.6 million, or $2.67 per diluted share last year.

Adjusted EBITDA(1) was $317.9 million, compared to $240.9 million last year.

(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.

Business Highlights

 

Paycom increased its annual revenue retention rate to 93%, up from 92% in 2018 and 91% for each of the preceding six years.

 

Paycom introduced several differentiated new products including Direct Data ExchangeTM (an industry first), Ask HereTM and Manager on-the-GoTM, all of which focus on greater employee usage and efficiency.

 

Paycom earned Best Places to Work in the U.S. honors from Glassdoor for 2020, and the Wall Street Journal listed Paycom as one of the Best Managed Companies in the U.S.

 

Paycom was included in the S&P 500 index on January 28, 2020.

Financial Outlook  

Paycom provides the following expected financial guidance for the year ending December 31, 2020 and the quarter ending March 31, 2020:

Year Ending December 31, 2020

Total Revenues in the range of $911 million to $913 million.

Adjusted EBITDA in the range of $384 million to $386 million.


The following information was filed by Paycom Software, Inc. (PAYC) on Wednesday, February 5, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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