Paycom Software (PAYC) FY2023 results: revenue $1.7 billion, up 23.2% on the year

Paycom Software, Inc. (PAYC) reported revenue of $1.7 billion for fiscal 2023, the year ended 31 December 2023, up 23.2% on the year before. Net income was $341 million, up 21.1%, and diluted earnings per share $5.88. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2024.

Revenue

$1.7 billion

+23.2% on the year

FY2016FY2023

Operating margin

26.6%

27.5% a year earlier

FY2016FY2023

Net income

$341 million

+21.1% on the year

FY2016FY2023

Diluted EPS

$5.88

+21.5% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	1,694	1,375	1,056	+23.2%
Cost of revenue	276	213	162	+29.9%
Gross profit	1,417	1,162	894	+21.9%
Gross margin	83.7%	84.5%	84.7%
Research and development	199	148	118	+34.1%
Selling, general and administrative	966	784	640	+23.3%
Operating income	451	379	254	+19.2%
Operating margin	26.6%	27.5%	24.0%
Interest expense	1.9	2.5	n/a	-24.0%
Pre-tax income	472	390	256	+21.3%
Income tax	132	108	60.0	+21.6%
Effective tax rate	27.9%	27.8%	23.4%
Net income	341	281	196	+21.1%
Net margin	20.1%	20.5%	18.6%
Diluted EPS	$5.88	$4.84	$3.37	+21.5%

$ 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	FY2023	FY2022	FY2021	On the year
Operating cash flow	485	365	319	+32.8%
Capital expenditure	193	133	121	+45.2%
Free cash flow	292	232	199	+25.8%
Free cash flow margin	17.3%	16.9%	18.8%
Cash from investing	-197	-23.3	-258
Cash from financing	-275	255	166
Depreciation and amortisation	114	92.7	67.2	+22.9%
Share-based compensation	130	94.9	97.5	+36.8%
Buybacks	287	94.7	n/a	+202.8%
Dividends paid	64.8	n/a	n/a
Dividend per share	$0.38	n/a	n/a
Diluted shares, weighted	58m	58m	58m	-0.3%
Shares outstanding at period end	57m	58m	58m	-2.3%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,303	1,183	894	+10.2%
Debt	0.0	29.0	29.2
Operating lease liabilities	56.7	n/a	n/a
Other liabilities	2,838	2,691	2,292	+5.5%
Total liabilities and equity	4,198	3,903	3,215	+7.6%
Fixed assets	498	402	349	+23.8%
Goodwill	51.9	51.9	51.9	0.0%
Intangible assets	50.1	54.0	58.0	-7.2%
Securities held for sale or to maturity	199	195	n/a	+2.1%
Cash and equivalents	294	401	278	-26.6%
Receivables	16.4	22.8	9.5	-28.2%
Inventory	1.4	1.6	1.1	-12.9%
Other assets	3,087	2,774	2,468	+11.3%
Total assets	4,198	3,903	3,215	+7.6%

10-K for the year ended 31 December 2023, filed 15 February 2024: the filing.