Paycom Software (PAYC) Q4 FY2023 earnings: revenue $435 million, up 17.3% on the year

Paycom Software, Inc. (PAYC) reported revenue of $435 million for Q4 FY2023, the quarter ended 31 December 2023, up 17.3% on the same quarter a year earlier. Net income was $82 million, up 2.3% on the year, and diluted earnings per share $1.43. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2024.

Revenue$435 millionup 17.3%

Net income$82 millionup 2.3%

Diluted EPS$1.43

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	435	406	n/a	n/a
Cost of revenue	74.7	68.9	n/a	n/a
Gross profit	360	337	n/a	n/a
Gross margin	82.8%	83.0%	n/a
Research and development	55.3	51.9	n/a	n/a
Selling, general and administrative	253	240	n/a	n/a
Operating income	107	96.9	n/a	n/a
Operating margin	24.6%	23.8%	n/a
Interest expense	0.3	0.2	n/a	n/a
Pre-tax income	112	102	n/a	n/a
Income tax	30.2	26.8	n/a	n/a
Effective tax rate	26.9%	26.3%	n/a
Net income	81.8	75.2	n/a	n/a
Net margin	18.8%	18.5%	n/a
Diluted EPS	$1.43	$1.30	n/a	n/a

$ 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 and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	134	98.6	n/a	n/a
Capital expenditure	56.9	52.3	n/a	n/a
Free cash flow	77.6	46.3	n/a	n/a
Free cash flow margin	17.9%	11.4%	n/a
Cash from investing	-61.1	-52.3	n/a	n/a
Cash from financing	163	-203	n/a	n/a
Depreciation and amortisation	31.0	15.6	n/a	n/a
Share-based compensation	33.4	33.2	n/a	n/a
Dividends paid	n/a	21.6	n/a	n/a
Dividend per share	n/a	$0.38	n/a	n/a
Diluted shares, weighted	57m	58m	n/a	n/a
Shares outstanding at period end	57m	58m	n/a	n/a

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

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Shareholders' equity	1,303	1,421	n/a	n/a
Debt	0.0	29.0	n/a	n/a
Operating lease liabilities	56.7	n/a	n/a	n/a
Other liabilities	2,838	2,406	n/a	n/a
Total liabilities and equity	4,198	3,856	n/a	n/a
Fixed assets	498	468	n/a	n/a
Goodwill	51.9	51.9	n/a	n/a
Intangible assets	50.1	51.1	n/a	n/a
Securities held for sale or to maturity	199	197	n/a	n/a
Cash and equivalents	294	484	n/a	n/a
Receivables	16.4	15.5	n/a	n/a
Inventory	1.4	0.8	n/a	n/a
Other assets	3,087	2,587	n/a	n/a
Total assets	4,198	3,856	n/a	n/a

Questions

What was Paycom Software's revenue in Q4 FY2023?

Paycom Software (PAYC) reported revenue of $435 million for Q4 FY2023, the quarter ended 31 December 2023, up 17.3% on the same quarter a year earlier.

How much did Paycom Software earn in Q4 FY2023?

Net income for Q4 FY2023 was $82 million, up 2.3% on the year, and diluted earnings per share $1.43.

When did Paycom Software report Q4 FY2023 results?

Paycom Software filed its 10-K for the year that ended with the quarter on 15 February 2024; the fourth quarter is the year less the first three.

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024 * †	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	406	435	500	438	452	494	530	484	493	544	572	531
Cost of revenue	68.9	74.7	78.6	83.9	88.4	83.7	84.6	87.5	85.4	87.9	87.3	89.1
Gross profit	337	360	421	354	364	410	446	396	408	456	484	442
Gross margin	83%	83%	84%	81%	80%	83%	84%	82%	83%	84%	85%	83%
R&D	51.9	55.3	50.5	62.4	63.0	66.7	62.3	74.8	74.1	72.2	60.7	51.9
SG&A	240	253	135	258	259	262	261	284	295	299	274	274
Operating income	96.9	107	286	95.1	105	148	185	112	113	157	210	168
Operating margin	24%	25%	57%	22%	23%	30%	35%	23%	23%	29%	37%	32%
Interest expense	0.2	0.3	0.8	0.8	0.8	1.0	0.8	0.8	1.1	0.7	4.0	10.5
Pre-tax income	102	112	290	99.1	108	152	190	117	153	159	215	157
Tax rate	26%	27%	15%	31%	32%	25%	27%	24%	28%	28%	28%	32%
Net income	75.2	81.8	247	68.0	73.3	114	139	89.5	111	114	156	107
Net margin	19%	19%	49%	16%	16%	23%	26%	19%	22%	21%	27%	20%
Diluted EPS	$1.30	$1.43	$4.37	$1.20	$1.31	$2.02	$2.48	$1.58	$1.96	$2.07	$3.04	$2.34
Operating cash flow	98.6	134	149	132	92.8	160	182	122	178	196	214	214
Capital expenditure	52.3	56.9	47.7	45.6	48.2	51.4	37.7	61.7	98.0	73.5	31.2	23.7
Free cash flow	46.3	77.6	101	86.5	44.6	109	145	60.8	79.8	123	183	190
Buybacks	n/a	n/a	n/a	n/a	42.0	n/a	n/a	n/a	n/a	n/a	1,054	335
Dividends paid	21.6	n/a	21.2	21.2	21.3	21.1	21.1	21.8	21.2	20.7	17.7	17.8
Shares outstanding	58m	57m	57m	56m	56m	56m	56m	56m	55m	55m	47m	44m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	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 diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. 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.

Source

10-K for the period ended 31 December 2023, filed 15 February 2024, accession 0000950170-24-015863: the filing on EDGAR. All of Paycom Software, Inc.'s filings: EDGAR company page.

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