Jason John

Jason John asked about Paycom's strategy to accelerate new logo acquisition and maintain double-digit recurring growth beyond FY2025, given its less than 5% market penetration. He also inquired about the greatest white space opportunities across modules, customer segments, or verticals. Additionally, he asked if the FY2025 free cash flow outlook still holds, given the AI-related CapEx investments are largely completed in Q3.

Answer

Chad Richison, President and CEO, identified new logo acquisition as the biggest opportunity, emphasizing efforts to streamline value for prospects, enhance sales skills, and deliver on product promises. He expressed confidence in the work done to set up future growth. Mr. Richison confirmed that the AI-related CapEx investments were largely completed in Q3, which was the peak quarter for such spending, and no major CapEx opportunities are expected for the next couple of years, implying the free cash flow outlook remains on track.

Jason John asked about strategies to accelerate new logo acquisition and maintain double-digit recurring growth beyond FY25, identifying the greatest white space opportunities across modules, customer segments, or verticals. He also inquired if the FY25 free cash flow outlook still holds, given the AI-related CapEx investments were largely completed in Q3, implying Q3 was the peak CapEx quarter.

Answer

Chad Richison, President and CEO of Paycom Software, identified new logo additions as the biggest opportunity, focusing on streamlining value perception for prospects, enhancing client value, and improving sales skills and product delivery. He confirmed that there are no major CapEx opportunities expected for next year or the year after, implying Q3 was indeed the peak CapEx quarter.