Paycom Software (PAYC) FY2022 results: revenue $1.4 billion, up 30.3% on the year

Paycom Software, Inc. (PAYC) reported revenue of $1.4 billion for fiscal 2022, the year ended 31 December 2022, up 30.3% on the year before. Net income was $281 million, up 43.6%, and diluted earnings per share $4.84. The figures are the company's own, from the 10-K it filed with the SEC on 16 February 2023.

Revenue

$1.4 billion

+30.3% on the year

FY2015FY2022

Operating margin

27.5%

24.0% a year earlier

FY2015FY2022

Net income

$281 million

+43.6% on the year

FY2015FY2022

Diluted EPS

$4.84

+43.6% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	1,375	1,056	841	+30.3%
Cost of revenue	213	162	124	+31.4%
Gross profit	1,162	894	718	+30.1%
Gross margin	84.5%	84.7%	85.3%
Research and development	148	118	90.2	+25.3%
Selling, general and administrative	784	640	532	+22.5%
Operating income	379	254	186	+49.3%
Operating margin	27.5%	24.0%	22.1%
Interest expense	2.5	n/a	0.0
Pre-tax income	390	256	186	+52.2%
Income tax	108	60.0	42.5	+80.3%
Effective tax rate	27.8%	23.4%	22.8%
Net income	281	196	143	+43.6%
Net margin	20.5%	18.6%	17.0%
Diluted EPS	$4.84	$3.37	$2.46	+43.6%

$ 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	FY2022	FY2021	FY2020	On the year
Operating cash flow	365	319	227	+14.3%
Capital expenditure	133	121	94.1	+9.9%
Free cash flow	232	199	133	+17.0%
Free cash flow margin	16.9%	18.8%	15.8%
Cash from investing	-23.3	-258	-118
Cash from financing	255	166	-166	+53.6%
Depreciation and amortisation	92.7	67.2	53.4	+37.9%
Share-based compensation	94.9	97.5	90.1	-2.7%
Buybacks	94.7	n/a	52.0
Diluted shares, weighted	58m	58m	58m	-0.0%
Shares outstanding at period end	58m	58m	58m	-0.2%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	1,183	894	656	+32.3%
Debt	29.0	29.2	30.9	-0.5%
Other liabilities	2,691	2,292	1,921	+17.4%
Total liabilities and equity	3,903	3,215	2,608	+21.4%
Fixed assets	402	349	285	+15.3%
Goodwill	51.9	51.9	51.9	0.0%
Intangible assets	54.0	58.0	0.3	-6.9%
Securities held for sale or to maturity	195	n/a	n/a
Cash and equivalents	401	278	152	+44.2%
Receivables	22.8	9.5	9.1	+140.7%
Inventory	1.6	1.1	1.2	+42.1%
Other assets	2,774	2,468	2,108	+12.4%
Total assets	3,903	3,215	2,608	+21.4%

10-K for the year ended 31 December 2022, filed 16 February 2023: the filing.