Paycom Software (NYSE: PAYC) reported Q1 EPS of $1.47, $0.05 better than the analyst estimate of $1.42. Revenue for the quarter came in at $272.2 million versus the consensus estimate of $271.41 million.

Financial Highlights for the First Quarter of 2021

• Total Revenues of $272.2 million represented a 12.3% increase compared to total revenues of $242.4 million in the same period last year. Recurring revenues of $267.8 million increased 12.3% from the comparable prior year period, and constituted 98.4% of total revenues.
• GAAP Net Income was $64.6 million, or $1.11 per diluted share, compared to GAAP net income of $63.0 million, or $1.08 per diluted share, in the same period last year.
• Non-GAAP Net Income1 was $85.9 million, or $1.47 per diluted share, compared to $77.9 million, or $1.33 per diluted share, in the same period last year.
• Adjusted EBITDA1 was $133.0 million, compared to $117.9 million in the same period last year.
• Cash and Cash Equivalents were $215.1 million as of March 31, 2021, compared to $151.7 million as of December 31, 2020.
• Total Debt, Net was $30.5 million as of March 31, 2021, compared to $30.9 million as of December 31, 2020.

“Our momentum continued with robust first quarter results. Beginning with the second quarter, cleaner year-over-year comparisons will provide a better reflection of our strong revenue growth profile,” said Paycom’s founder and CEO, Chad Richison. “The digital transformation has accelerated the need for employees to have easy and direct access to their data the same way they do with every other software product in their life. Paycom uses its single database solution to leverage employee usage patterns for the benefit of both the employer and the employee. With less than 5% market share, I believe we are very well positioned for sustained long-term growth.”

GUIDANCE:

Paycom Software sees Q2 2021 revenue of $231-233 million, versus the consensus of $226.98 million.

Paycom Software sees FY2021 revenue of $1.017-1.019 billion, versus the consensus of $1.01 billion.

Paycom provides the following expected financial guidance for the quarter ending June 30, 2021 and the year ending December 31, 2021:

• Quarter Ending June 30, 2021:
  • Total Revenues in the range of $231 million to $233 million.
  • Adjusted EBITDA in the range of $80 million to $82 million.
• Year Ending December 31, 2021:
  • Total Revenues in the range of $1.017 billion to $1.019 billion.
  • Adjusted EBITDA in the range of $400 million to $402 million.

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