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OKLAHOMA CITY - Paycom Software (ETR:SOWGn), Inc. (NYSE:PAYC) reported fourth-quarter earnings that beat analyst expectations, but shares fell 3.3% in after-hours trading due to disappointing forward guidance.
The cloud-based human capital management software provider posted adjusted earnings per share of $2.32, surpassing the analyst consensus of $1.97. Revenue for the quarter came in at $493.8 million, up 13.6% year-over-year and above estimates of $481.16 million.
However, Paycom’s outlook for fiscal year 2025 fell short of Wall Street projections. The company expects revenue between $2.015 billion and $2.035 billion, compared to the consensus estimate of $2.05 billion.
"Throughout the year we executed our plan of providing world-class service, solution automation and client ROI achievement, which empowered us to deliver better than expected results to close out the year," said Chad Richison, Paycom’s founder, CEO and chairman.
For the full year 2024, Paycom reported total revenues of $1.88 billion, an 11.2% increase from 2023. Adjusted EBITDA was $775.4 million, representing 41% of total revenues.
The company’s client count on a parent company grouping basis was relatively flat YoY at 19,422 as of December 31, 2024. Annual revenue retention rate for 2024 remained consistent with the prior year at 90%.
Despite the earnings beat, investors appeared focused on the softer-than-expected guidance, sending shares down in extended trading. Paycom will hold a conference call to discuss the results in more detail.
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