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OKLAHOMA CITY - Paycom Software, Inc. (NYSE:PAYC), a $13.2 billion market cap company with impressive gross profit margins of 86%, announced on Wednesday the release of IWant, a command-driven AI engine designed to help users navigate and access information within the company’s human capital management platform.
The new tool allows employees and managers to retrieve data by using voice commands or typing questions. According to the company, IWant pulls information from Paycom’s single database system, which aims to eliminate issues related to duplicate or inconsistent data. InvestingPro analysis shows Paycom maintains strong financial health with robust cash flows and minimal debt exposure.
"IWant is the biggest release since our founding in 1998," said Chad Richison, Paycom founder and CEO, in a press release statement. "Command-driven automation marks the beginning of the future of all software." The company’s innovation strategy appears to be paying off, with revenue growing at nearly 10% over the last twelve months.
The AI engine is available to clients through Paycom’s mobile app and desktop login page. For employees, IWant provides information about time-off balances, 401(k) contributions, schedules, tax withholdings, and paycheck details. For management and HR teams, the tool offers data on coverage thresholds, time-off schedules, overdue trainings, and other workforce metrics.
Steve Boese, HR Technology Conference program co-chair, noted in the press release that Paycom’s single database "has strategically set them apart since day one, paving the way for continued breakthroughs like IWant."
Paycom Software, founded in 1998, provides cloud-based human capital management software for businesses in the U.S. and internationally. Trading at a P/E ratio of 33.5, the stock currently shows potential upside according to InvestingPro’s Fair Value model, which factors in multiple valuation metrics and growth indicators. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Paycom Software reported a modest top-line beat for the first quarter, with recurring revenue surpassing $500 million for the first time. The company also experienced a 10% year-over-year increase in adjusted EBITDA and an improvement in margins by 180 basis points. Analysts at KeyBanc have reiterated an Overweight rating on Paycom Software, expressing confidence that the company will exceed expectations in its second-quarter results. KeyBanc also raised the price target for Paycom to $285, highlighting recent investor meetings that showcased a surge in bookings due to improved sales strategies and increased customer retention.
TD Cowen analysts raised their price target for Paycom to $250, maintaining a Hold rating, following a meeting with Paycom’s CFO and Head of Investor Relations. They noted increased confidence in the company’s ability to meet its fiscal year 2025 guidance, citing opportunities for sales growth and improved retention rates. Stifel analysts also adjusted their price target to $215, acknowledging Paycom’s strong first-quarter performance and the positive impact of internal automation on financial results. TD Cowen previously raised the price target to $241, pointing to strong trends and a modest beat in financial performance, with expectations of a positive market response due to rising EBITDA and free cash flow estimates.
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