Paycom Software (NYSE: PAYC) reported Q4 EPS of $0.86, $0.09 better than the analyst estimate of $0.77. Revenue for the quarter came in at $193.4 million versus the consensus estimate of $190.33 million.

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.

“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.”

GUIDANCE:

Paycom Software sees Q1 2020 revenue of $240-242 million, versus the consensus of $248.06 million.

Paycom Software sees FY2020 revenue of $911-913 million, versus the consensus of $908.49 million.

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.
• Quarter Ending March 31, 2020(2)
  • Total Revenues in the range of $240 million to $242 million.
  • Adjusted EBITDA in the range of $113 million to $115 million.

For earnings history and earnings-related data on Paycom Software (PAYC) click here.