Paycom Software (PAYC) Q1 FY2022 earnings: revenue $354 million, up 29.9% on the year

Paycom Software, Inc. (PAYC) reported revenue of $354 million for Q1 FY2022, the quarter ended 31 March 2022, up 29.9% on the same quarter a year earlier as this quarter's filing gives it. Net income was $92 million, up 42.3% on the year as this quarter's filing gives it, and diluted earnings per share $1.58. The figures are the company's own, from the 10-Q it filed with the SEC on 5 May 2022.

Revenue

$354 million

+29.9% on the year · +24.0% on the quarter

Q2 FY2020Q1 FY2022

Operating margin

35.7%

34.7% a year earlier

Q2 FY2020Q1 FY2022

Net income

$92 million

+42.3% on the year · +88.8% on the quarter

Q2 FY2020Q1 FY2022

Diluted EPS

$1.58

+42.3% on the year · +88.1% on the quarter

Q2 FY2020Q1 FY2022

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q1 FY2022	Q4 FY2021	Q1 FY2021	On the quarter	On the year
Revenue	354	285	272	+24.0%	+29.9%
Cost of revenue	48.5	46.5	n/a	+4.2%
Gross profit	305	238	n/a	+27.9%
Gross margin	86.3%	83.7%	n/a
Research and development	31.6	34.4	n/a	-8.2%
Selling, general and administrative	179	170	n/a	+5.3%
Operating income	126	68.6	94.5	+84.0%	+33.6%
Operating margin	35.7%	24.1%	34.7%
Interest expense	0.2	n/a	n/a
Pre-tax income	127	70.0	n/a	+82.1%
Income tax	35.5	21.3	n/a	+66.7%
Effective tax rate	27.9%	30.4%	n/a
Net income	91.9	48.7	64.6	+88.8%	+42.3%
Net margin	26.0%	17.1%	n/a
Diluted EPS	$1.58	$0.84	$1.11	+88.1%	+42.3%

$ million except per share.

Fourth quarters are the year less the first three quarters. 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	Q1 FY2022	Q4 FY2021	Q1 FY2021	On the quarter	On the year
Operating cash flow	117	89.7	n/a	+30.7%
Capital expenditure	34.5	34.0	n/a	+1.5%
Free cash flow	82.8	55.8	n/a	+48.4%
Free cash flow margin	23.4%	19.6%	n/a
Cash from investing	-67.6	-194	n/a
Cash from financing	2,099	-1,118	n/a
Depreciation and amortisation	21.7	19.0	14.9	+14.2%	+45.2%
Share-based compensation	22.1	21.1	n/a	+4.3%
Diluted shares, weighted	58m	58m	58m	+0.0%	-0.3%
Shares outstanding at period end	58m	58m	58m	+0.0%	+0.5%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2022	Q4 FY2021	Q1 FY2021	On the quarter	On the year
Shareholders' equity	1,009	894	745	+12.9%	+35.4%
Debt	28.7	29.2	30.5	-1.5%	-5.7%
Other liabilities	4,407	2,292	n/a	+92.2%
Total liabilities and equity	5,445	3,215	n/a	+69.3%
Fixed assets	363	349	n/a	+3.9%
Goodwill	51.9	51.9	n/a	0.0%
Intangible assets	57.0	58.0	n/a	-1.8%
Securities held for sale or to maturity	344	n/a	n/a
Cash and equivalents	361	278	215	+29.7%	+67.6%
Receivables	17.9	9.5	n/a	+89.1%
Inventory	0.7	1.1	n/a	-35.3%
Other assets	4,250	2,468	n/a	+72.2%
Total assets	5,445	3,215	n/a	+69.3%

Questions

What was Paycom Software's revenue in Q1 FY2022?

Paycom Software (PAYC) reported revenue of $354 million for Q1 FY2022, the quarter ended 31 March 2022, up 29.9% on the same quarter a year earlier as the company restated it.

How much did Paycom Software earn in Q1 FY2022?

Net income for Q1 FY2022 was $92 million, up 42.3% on the year, and diluted earnings per share $1.58.

When did Paycom Software report Q1 FY2022 results?

Paycom Software filed its 10-Q for the quarter ended 31 March 2022 with the SEC on 5 May 2022.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024 * †	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	285	354	317	334	371	452	401	406	435	500	438	452	494	530	484	493	544	572	531	544
Cost of revenue	46.5	48.5	50.1	55.1	59.1	65.2	67.4	68.9	74.7	78.6	83.9	88.4	83.7	84.6	87.5	85.4	87.9	87.3	89.1	87.2
Gross profit	238	305	267	279	312	386	334	337	360	421	354	364	410	446	396	408	456	484	442	457
Gross margin	84%	86%	84%	84%	84%	86%	83%	83%	83%	84%	81%	80%	83%	84%	82%	83%	84%	85%	83%	84%
R&D	34.4	31.6	36.8	40.4	39.6	42.7	49.1	51.9	55.3	50.5	62.4	63.0	66.7	62.3	74.8	74.1	72.2	60.7	51.9	38.5
SG&A	170	179	195	205	206	226	246	240	253	135	258	259	262	261	284	295	299	274	274	261
Operating income	68.6	126	72.3	74.3	106	160	87.3	96.9	107	286	95.1	105	148	185	112	113	157	210	168	196
Operating margin	24%	36%	23%	22%	29%	36%	22%	24%	25%	57%	22%	23%	30%	35%	23%	23%	29%	37%	32%	36%
Interest expense	n/a	0.2	0.4	1.0	0.9	0.8	0.6	0.2	0.3	0.8	0.8	0.8	1.0	0.8	0.8	1.1	0.7	4.0	10.5	11.7
Pre-tax income	70.0	127	72.8	75.3	114	166	92.8	102	112	290	99.1	108	152	190	117	153	159	215	157	185
Tax rate	30%	28%	21%	31%	30%	28%	31%	26%	27%	15%	31%	32%	25%	27%	24%	28%	28%	28%	32%	28%
Net income	48.7	91.9	57.4	52.2	80.0	119	64.5	75.2	81.8	247	68.0	73.3	114	139	89.5	111	114	156	107	133
Net margin	17%	26%	18%	16%	22%	26%	16%	19%	19%	49%	16%	16%	23%	26%	19%	22%	21%	27%	20%	24%
Diluted EPS	$0.84	$1.58	$0.99	$0.90	$1.38	$2.06	$1.11	$1.30	$1.43	$4.37	$1.20	$1.31	$2.02	$2.48	$1.58	$1.96	$2.07	$3.04	$2.34	$2.99
Operating cash flow	89.7	117	51.7	67.7	128	146	106	98.6	134	149	132	92.8	160	182	122	178	196	214	214	186
Capital expenditure	34.0	34.5	33.2	24.3	40.6	40.6	42.8	52.3	56.9	47.7	45.6	48.2	51.4	37.7	61.7	98.0	73.5	31.2	23.7	22.5
Free cash flow	55.8	82.8	18.5	43.4	87.8	105	63.1	46.3	77.6	101	86.5	44.6	109	145	60.8	79.8	123	183	190	164
Buybacks	n/a	n/a	n/a	0.0	n/a	n/a	n/a	n/a	n/a	n/a	n/a	42.0	n/a	n/a	n/a	n/a	n/a	1,054	335	1.2
Dividends paid	n/a	n/a	n/a	n/a	n/a	n/a	n/a	21.6	n/a	21.2	21.2	21.3	21.1	21.1	21.8	21.2	20.7	17.7	17.8	16.7
Shares outstanding	58m	58m	58m	58m	58m	58m	58m	58m	57m	57m	56m	56m	56m	56m	56m	55m	55m	47m	44m	44m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS 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 the share count are as they are. 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2022, filed 5 May 2022: the filing.