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Investing.com -- Paycom Software (ETR:SOWGn), Inc. (NYSE:PAYC) reported better-than-expected first quarter results and raised its full-year guidance, sending shares up 2.2% in after-hours trading.
The cloud-based human capital management software provider posted adjusted earnings per share of $2.80, surpassing the analyst estimate of $2.57. Revenue for the quarter came in at $531 million, exceeding the consensus estimate of $525.88 million and representing a 6.1% increase YoY.
Paycom’s recurring and other revenues, which constituted 94.2% of total revenues, grew 7.3% to $500.0 million compared to the same period last year. The company’s adjusted EBITDA rose to $253.2 million, representing 48% of total revenues.
"We delivered strong results in the first quarter, led by our differentiated approach to automation, strong sales execution and operational efficiency gains," said Paycom founder, CEO and chairman, Chad Richison. "Our investments in automation, client ROI achievement and world-class service are paying off."
Looking ahead, Paycom raised its full-year 2025 revenue guidance to a range of $2.023 billion to $2.038 billion, representing YoY growth of approximately 8% at the midpoint. This outlook is slightly above the analyst consensus of $2.03 billion.
The company ended the quarter with $520.8 million in cash and cash equivalents, up from $402.0 million at the end of 2024. Paycom maintains a debt-free balance sheet, with total debt at $0 as of March 31, 2025.
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