Paycom Software (PAYC) FY2021 results: revenue $1.1 billion, up 25.4% on the year

Paycom Software, Inc. (PAYC) reported revenue of $1.1 billion for fiscal 2021, the year ended 31 December 2021, up 25.4% on the year before. Net income was $196 million, up 36.6%, and diluted earnings per share $3.37. The figures are the company's own, from the 10-K it filed with the SEC on 17 February 2022.

Revenue

$1.1 billion

+25.4% on the year

FY2014FY2021

Operating margin

24.0%

22.1% a year earlier

FY2014FY2021

Net income

$196 million

+36.6% on the year

FY2014FY2021

Diluted EPS

$3.37

+37.0% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	1,056	841	738	+25.4%
Cost of revenue	162	124	110	+31.0%
Gross profit	894	718	628	+24.5%
Gross margin	84.7%	85.3%	85.1%
Research and development	118	90.2	73.1	+31.2%
Selling, general and administrative	640	532	402	+20.4%
Operating income	254	186	226	+36.2%
Operating margin	24.0%	22.1%	30.7%
Interest expense	n/a	0.0	0.9
Pre-tax income	256	186	226	+37.7%
Income tax	60.0	42.5	45.5	+41.2%
Effective tax rate	23.4%	22.8%	20.1%
Net income	196	143	181	+36.6%
Net margin	18.6%	17.0%	24.5%
Diluted EPS	$3.37	$2.46	$3.09	+37.0%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2021	FY2020	FY2019	On the year
Operating cash flow	319	227	224	+40.6%
Capital expenditure	121	94.1	92.9	+28.3%
Free cash flow	199	133	131	+49.3%
Free cash flow margin	18.8%	15.8%	17.8%
Cash from investing	-258	-118	-220
Cash from financing	166	-166	651
Depreciation and amortisation	67.2	53.4	42.2	+25.9%
Share-based compensation	97.5	90.1	47.3	+8.2%
Buybacks	n/a	52.0	n/a
Diluted shares, weighted	58m	58m	58m	-0.2%
Shares outstanding at period end	58m	58m	58m	+0.5%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	894	656	527	+36.3%
Debt	29.2	30.9	32.6	-5.6%
Operating lease liabilities	n/a	n/a	18.4
Other liabilities	2,292	1,921	1,909	+19.3%
Total liabilities and equity	3,215	2,608	2,487	+23.3%
Fixed assets	349	285	238	+22.3%
Goodwill	51.9	51.9	51.9	0.0%
Intangible assets	58.0	0.3	0.5	+18,090.6%
Cash and equivalents	278	152	134	+83.2%
Receivables	9.5	9.1	9.3	+3.9%
Inventory	1.1	1.2	1.2	-1.7%
Other assets	2,468	2,108	2,052	+17.0%
Total assets	3,215	2,608	2,487	+23.3%

10-K for the year ended 31 December 2021, filed 17 February 2022: the filing.