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Form 8-K Paycom Software, Inc. For: May 03

May 3, 2022 4:06 PM EDT

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Exhibit 99.1

Paycom Software, Inc. Reports First Quarter 2022 Results

First Quarter Revenues of $354 million, up 30% from the comparable prior year period

First Quarter GAAP Net Income of $92 million, representing 26% of total revenues, or $1.58 per diluted share

First Quarter Non-GAAP Net Income of $111 million, or $1.90 per diluted share

First Quarter Adjusted EBITDA of $170 million, representing 48% of total revenues

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 ended March 31, 2022.  

 

“We opened the year with excellent results and strong sales momentum, which has me even more confident in our strategy,” said Paycom’s founder and CEO, Chad Richison. “Employee usage continues to drive our very strong revenue growth. Our go-to-market strategy and our messaging around easy-to-use, self-service solutions and automation are resonating.”

 

Financial Highlights for the First Quarter of 2022  

Total Revenues of $353.5 million represented a 29.9% increase compared to total revenues of $272.2 million in the same period last year. Recurring revenues of $348.2 million increased 30.0% from the comparable prior year period, and constituted 98.5% of total revenues.

GAAP Net Income was $91.9 million, or $1.58 per diluted share, compared to GAAP net income of $64.6 million, or $1.11 per diluted share, in the same period last year.  

Non-GAAP Net Income1 was $110.6 million, or $1.90 per diluted share, compared to $85.9 million, or $1.47 per diluted share, in the same period last year.

Adjusted EBITDA1 was $170.1 million, compared to $133.0 million in the same period last year.

Cash and Cash Equivalents were $360.6 million as of March 31, 2022, compared to $278.0 million as of December 31, 2021.  

Total Debt, Net was $28.7 million as of March 31, 2022, compared to $29.2 million as of December 31, 2021.  

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 ending June 30, 2022 and the year ending December 31, 2022:

 

Quarter Ending June 30, 2022:

 

Total Revenues in the range of $308 million to $310 million.

 

Adjusted EBITDA in the range of $111 million to $113 million.

 

Year Ending December 31, 2022:

 

Total Revenues in the range of $1.333 billion to $1.335 billion.

 

Adjusted EBITDA in the range of $533 million to $535 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, is 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 rate plus adjusted EBITDA margin, or the “Rule of 65.” 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 65” to a comparable GAAP measure without unreasonable effort.  


 

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, adjusted EBITDA margin and “Rule of 65”. 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, (viii) “Rule of 65” as revenue growth rate (expressed as a percentage) plus adjusted EBITDA margin (calculated as described in clause (vii)) and (ix) non-GAAP effective income tax rate as the provision for income taxes plus the income tax effect on non-GAAP adjustments divided by non-GAAP net income (calculated as described in clause (ii)) plus the provision for income taxes and the income tax effect on non-GAAP adjustments. 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, May 3, 2022, at 5:00 p.m. Eastern time to discuss its financial results. To access this call, dial (844) 200-6205 (domestic) or (929) 526-1599 (international) and provide 585033 as the access code. 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 (866) 813-9403 (domestic) or +44 (204) 525-0658 (international) until May 10, 2022. The replay passcode is 874934.

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 plans regarding our capital expenditures and investment activity as our business grows, including with respect to research and development and the expansion of our corporate headquarters and other facilities; 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)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

360,594

 

 

$

277,978

 

Accounts receivable

 

 

17,945

 

 

 

9,490

 

Prepaid expenses

 

 

28,588

 

 

 

23,729

 

Inventory

 

 

732

 

 

 

1,131

 

Income tax receivable

 

 

 

 

 

16,413

 

Deferred contract costs

 

 

82,074

 

 

 

76,724

 

Current assets before funds held for clients

 

 

489,933

 

 

 

405,465

 

Funds held for clients

 

 

3,944,363

 

 

 

1,846,573

 

Total current assets

 

 

4,434,296

 

 

 

2,252,038

 

Property and equipment, net

 

 

362,505

 

 

 

348,953

 

Intangible assets, net

 

 

56,999

 

 

 

58,028

 

Goodwill

 

 

51,889

 

 

 

51,889

 

Long-term deferred contract costs

 

 

493,530

 

 

 

461,852

 

Other assets

 

 

45,355

 

 

 

42,385

 

Total assets

 

$

5,444,574

 

 

$

3,215,145

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

12,192

 

 

$

5,772

 

Income tax payable

 

 

23,180

 

 

 

 

Accrued commissions and bonuses

 

 

12,048

 

 

 

22,357

 

Accrued payroll and vacation

 

 

42,838

 

 

 

34,259

 

Deferred revenue

 

 

17,135

 

 

 

16,277

 

Current portion of long-term debt

 

 

1,775

 

 

 

1,775

 

Accrued expenses and other current liabilities

 

 

57,260

 

 

 

63,397

 

Current liabilities before client funds obligation

 

 

166,428

 

 

 

143,837

 

Client funds obligation

 

 

3,946,103

 

 

 

1,846,573

 

Total current liabilities

 

 

4,112,531

 

 

 

1,990,410

 

Deferred income tax liabilities, net

 

 

134,769

 

 

 

145,504

 

Long-term deferred revenue

 

 

87,681

 

 

 

85,149

 

Net long-term debt, less current portion

 

 

26,945

 

 

 

27,380

 

Other long-term liabilities

 

 

73,628

 

 

 

72,988

 

Total long-term liabilities

 

 

323,023

 

 

 

331,021

 

Total liabilities

 

 

4,435,554

 

 

 

2,321,431

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value (100,000 shares authorized, 62,302 and 62,298 shares issued at March 31, 2022 and December 31, 2021, respectively; 58,015 and 58,012 shares outstanding at March 31, 2022 and December 31, 2021, respectively)

 

 

623

 

 

 

623

 

Additional paid-in capital

 

 

490,307

 

 

 

465,594

 

Retained earnings

 

 

1,007,509

 

 

 

915,579

 

Accumulated other comprehensive earnings (loss)

 

 

(1,119

)

 

 

 

Treasury stock, at cost (4,287 and 4,286 shares at March 31, 2022 and December 31, 2021, respectively)

 

 

(488,300

)

 

 

(488,082

)

Total stockholders' equity

 

 

1,009,020

 

 

 

893,714

 

Total liabilities and stockholders' equity

 

$

5,444,574

 

 

$

3,215,145

 



 

Paycom Software, Inc.

 

Unaudited Consolidated Statements of Comprehensive Income

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

2022

 

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

Recurring

 

$

348,164

 

 

$

267,774

 

Implementation and other

 

 

5,355

 

 

 

4,424

 

Total revenues

 

 

353,519

 

 

 

272,198

 

Cost of revenues

 

 

 

 

 

 

 

 

Operating expenses

 

 

38,492

 

 

 

29,073

 

Depreciation and amortization

 

 

9,992

 

 

 

7,200

 

Total cost of revenues

 

 

48,484

 

 

 

36,273

 

Administrative expenses

 

 

 

 

 

 

 

 

Sales and marketing

 

 

74,996

 

 

 

62,761

 

Research and development

 

 

31,605

 

 

 

24,711

 

General and administrative

 

 

60,504

 

 

 

46,191

 

Depreciation and amortization

 

 

11,663

 

 

 

7,716

 

Total administrative expenses

 

 

178,768

 

 

 

141,379

 

Total operating expenses

 

 

227,252

 

 

 

177,652

 

Operating income

 

 

126,267

 

 

 

94,546

 

Interest expense

 

 

(215

)

 

 

 

Other income (expense), net

 

 

1,412

 

 

 

629

 

Income before income taxes

 

 

127,464

 

 

 

95,175

 

Provision for income taxes

 

 

35,534

 

 

 

30,559

 

Net income

 

$

91,930

 

 

$

64,616

 

Earnings per share, basic

 

$

1.58

 

 

$

1.12

 

Earnings per share, diluted

 

$

1.58

 

 

$

1.11

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

58,014

 

 

 

57,740

 

Diluted

 

 

58,219

 

 

 

58,394

 

Comprehensive earnings (loss):

 

 

 

 

 

 

 

 

Net income

 

$

91,930

 

 

$

64,616

 

Unrealized net gains (losses) on available-for-sale securities

 

 

(1,522

)

 

 

 

Tax effect

 

 

403

 

 

 

 

Other comprehensive income (loss), net of tax

 

 

(1,119

)

 

 

 

Comprehensive earnings (loss)

 

$

90,811

 

 

$

64,616

 



 

Paycom Software, Inc.

 

Unaudited Consolidated Statements of Cash Flows

 

(in thousands)

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

91,930

 

 

$

64,616

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

21,655

 

 

 

14,916

 

Accretion of discount on available-for-sale securities

 

 

(303

)

 

 

(77

)

Non-cash marketing expense

 

 

437

 

 

 

 

Loss on disposition of property and equipment

 

 

 

 

 

132

 

Amortization of debt issuance costs

 

 

9

 

 

 

9

 

Stock-based compensation expense

 

 

22,055

 

 

 

23,581

 

Cash paid for derivative settlement

 

 

(174

)

 

 

(232

)

(Gain)/loss on derivative

 

 

(1,089

)

 

 

(424

)

Deferred income taxes, net

 

 

(10,332

)

 

 

2,738

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(8,455

)

 

 

(10,662

)

Prepaid expenses

 

 

(4,859

)

 

 

(6,255

)

Inventory

 

 

124

 

 

 

(125

)

Other assets

 

 

(2,970

)

 

 

559

 

Deferred contract costs

 

 

(36,261

)

 

 

(26,575

)

Accounts payable

 

 

5,406

 

 

 

803

 

Income taxes, net

 

 

39,593

 

 

 

23,424

 

Accrued commissions and bonuses

 

 

(10,309

)

 

 

(6,922

)

Accrued payroll and vacation

 

 

8,579

 

 

 

8,105

 

Deferred revenue

 

 

3,390

 

 

 

2,167

 

Accrued expenses and other current liabilities

 

 

(1,195

)

 

 

(321

)

Net cash provided by operating activities

 

 

117,231

 

 

 

89,457

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of investments from funds held for clients

 

 

(169,152

)

 

 

(47,215

)

Proceeds from investments from funds held for clients

 

 

136,000

 

 

 

80,000

 

Purchases of property and equipment

 

 

(34,474

)

 

 

(25,330

)

Net cash provided by (used in) investing activities

 

 

(67,626

)

 

 

7,455

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Withholding taxes paid related to net share settlements

 

 

(218

)

 

 

(377

)

Payments on long-term debt

 

 

(444

)

 

 

(444

)

Net change in client funds obligation

 

 

2,099,530

 

 

 

686,190

 

Net cash provided by (used in) financing activities

 

 

2,098,868

 

 

 

685,369

 

Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

2,148,473

 

 

 

782,281

 

Cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

 

 

 

 

 

 

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

 

 

1,812,691

 

 

 

1,585,275

 

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

 

$

3,961,164

 

 

$

2,367,556

 



 

Paycom Software, Inc.

 

Unaudited Consolidated Statements of Cash Flows

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

360,594

 

 

$

215,093

 

Restricted cash included in funds held for clients

 

 

3,600,570

 

 

 

2,152,463

 

Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

 

$

3,961,164

 

 

$

2,367,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment, accrued but not paid

 

$

5,394

 

 

$

6,217

 

Stock-based compensation for capitalized software

 

$

1,891

 

 

$

1,456

 

Right of use assets obtained in exchange for operating lease liabilities

 

$

4,146

 

 

$

541

 

 



 

 

Paycom Software, Inc.

Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures

(in thousands, except per share amounts)

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net income to adjusted EBITDA:

 

 

 

 

 

 

 

 

Net income

 

$

91,930

 

 

$

64,616

 

Interest expense

 

 

215

 

 

 

 

Provision for income taxes

 

 

35,534

 

 

 

30,559

 

Depreciation and amortization

 

 

21,655

 

 

 

14,916

 

EBITDA

 

 

149,334

 

 

 

110,091

 

Non-cash stock-based compensation expense

 

 

22,055

 

 

 

23,581

 

Change in fair value of interest rate swap

 

 

(1,263

)

 

 

(656

)

Adjusted EBITDA

 

$

170,126

 

 

$

133,016

 

Net income margin

 

 

26.0

%

 

 

23.7

%

Adjusted EBITDA margin

 

 

48.1

%

 

 

48.9

%

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net income to non-GAAP net income:

 

 

 

 

 

 

 

 

Net income

 

$

91,930

 

 

$

64,616

 

Non-cash stock-based compensation expense

 

 

22,055

 

 

 

23,581

 

Change in fair value of interest rate swap

 

 

(1,263

)

 

 

(656

)

Income tax effect on non-GAAP adjustments

 

 

(2,074

)

 

 

(1,633

)

Non-GAAP net income

 

$

110,648

 

 

$

85,908

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

58,014

 

 

 

57,740

 

Diluted

 

 

58,219

 

 

 

58,394

 

 

 

 

 

 

 

 

 

 

Earnings per share, basic

 

$

1.58

 

 

$

1.12

 

Earnings per share, diluted

 

$

1.58

 

 

$

1.11

 

Non-GAAP net income per share, basic

 

$

1.91

 

 

$

1.49

 

Non-GAAP net income per share, diluted

 

$

1.90

 

 

$

1.47

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Earnings per share to non-GAAP net income per share, basic:

 

 

 

 

 

 

 

 

Earnings per share, basic

 

$

1.58

 

 

$

1.12

 

Non-cash stock-based compensation expense

 

 

0.38

 

 

 

0.41

 

Change in fair value of interest rate swap

 

 

(0.02

)

 

 

(0.01

)

Income tax effect on non-GAAP adjustments

 

 

(0.03

)

 

 

(0.03

)

Non-GAAP net income per share, basic

 

$

1.91

 

 

$

1.49

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Earnings per share to non-GAAP net income per share, diluted:

 

 

 

 

 

 

 

 

Earnings per share, diluted

 

$

1.58

 

 

$

1.11

 

Non-cash stock-based compensation expense

 

 

0.38

 

 

 

0.40

 

Change in fair value of interest rate swap

 

 

(0.02

)

 

 

(0.01

)

Income tax effect on non-GAAP adjustments

 

 

(0.04

)

 

 

(0.03

)

Non-GAAP net income per share, diluted

 

$

1.90

 

 

$

1.47

 

 


 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Adjusted gross profit:

 

 

 

 

 

 

 

 

Total revenues

 

$

353,519

 

 

$

272,198

 

Less: Total cost of revenues

 

 

(48,484

)

 

 

(36,273

)

Total gross profit

 

 

305,035

 

 

 

235,925

 

Plus: Non-cash stock-based compensation expense

 

 

982

 

 

 

995

 

Total adjusted gross profit

 

$

306,017

 

 

$

236,920

 

Gross margin

 

 

86.3

%

 

 

86.7

%

Adjusted gross margin

 

 

86.6

%

 

 

87.0

%

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Adjusted sales and marketing expenses:

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

$

74,996

 

 

$

62,761

 

Less: Non-cash stock-based compensation expense

 

 

(2,877

)

 

 

(3,511

)

Adjusted sales and marketing expenses

 

$

72,119

 

 

$

59,250

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

353,519

 

 

$

272,198

 

Sales and marketing expenses as a % of revenues

 

 

21.2

%

 

 

23.1

%

Adjusted sales and marketing expenses as a % of revenues

 

 

20.4

%

 

 

21.8

%

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Adjusted total administrative expenses:

 

 

 

 

 

 

 

 

Total administrative expenses

 

$

178,768

 

 

$

141,379

 

Less: Non-cash stock-based compensation expense

 

 

(21,073

)

 

 

(22,586

)

Adjusted total administrative expenses

 

$

157,695

 

 

$

118,793

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

353,519

 

 

$

272,198

 

Total administrative expenses as a % of revenues

 

 

50.5

%

 

 

52.0

%

Adjusted total administrative expenses as a % of revenues

 

 

44.6

%

 

 

43.6

%

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Adjusted research and development expenses:

 

 

 

 

 

 

 

 

Research and development expenses

 

$

31,605

 

 

$

24,711

 

Less: Non-cash stock-based compensation expense

 

 

(2,219

)

 

 

(1,567

)

Adjusted research and development expenses

 

$

29,386

 

 

$

23,144

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

353,519

 

 

$

272,198

 

Research and development expenses as a % of revenues

 

 

8.9

%

 

 

9.1

%

Adjusted research and development expenses as a % of revenues

 

 

8.3

%

 

 

8.5

%

 


 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Total research and development costs:

 

 

 

 

 

 

 

 

Capitalized research and development costs

 

$

15,400

 

 

$

12,295

 

Research and development expenses

 

 

31,605

 

 

 

24,711

 

Total research and development costs

 

$

47,005

 

 

$

37,006

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

353,519

 

 

$

272,198

 

Total research and development costs as a % of revenues

 

 

13.3

%

 

 

13.6

%

 

 

 

 

 

 

 

 

 

Adjusted total research and development costs:

 

 

 

 

 

 

 

 

Total research and development costs

 

$

47,005

 

 

$

37,006

 

Less: Capitalized non-cash stock-based compensation

 

 

(1,891

)

 

 

(1,456

)

Less: Non-cash stock-based compensation expense

 

 

(2,219

)

 

 

(1,567

)

Adjusted total research and development costs

 

$

42,895

 

 

$

33,983

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

353,519

 

 

$

272,198

 

Adjusted total research and development costs as a % of revenues

 

 

12.1

%

 

 

12.5

%

 

 

 

Paycom Software, Inc.

Unaudited Components of Non-Cash Stock-Based Compensation Expense

(in thousands)

 

 

  

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Non-cash stock-based compensation expense:

 

 

 

 

 

 

 

 

Operating expenses

 

$

982

 

 

$

995

 

Sales and marketing

 

 

2,877

 

 

 

3,511

 

Research and development

 

 

2,219

 

 

 

1,567

 

General and administrative

 

 

15,977

 

 

 

17,508

 

Total non-cash stock-based compensation expense

 

$

22,055

 

 

$

23,581

 

 

 

 

 

 

Contact

Paycom Software, Inc.

Investor Relations Contact:

James Samford, 800-580-4505 [email protected]  

Source: Paycom Software, Inc.

 

 



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