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Paycom Software, Inc. is a leading provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as Software-as-a-Service (SaaS) . The company's solution spans the entire employment lifecycle, offering functionalities such as talent acquisition, time and labor management, payroll, talent management, and human resources management applications . Paycom's software is designed to be user-friendly, enabling employees to self-manage their HCM activities in the cloud, which reduces administrative burdens on employers and enhances employee productivity .
- Payroll Applications - Provides comprehensive payroll solutions that are the primary revenue driver, facilitating efficient payroll processing and management.
- Talent Acquisition - Offers tools for recruiting and onboarding new employees, streamlining the hiring process.
- Time and Labor Management - Manages employee time tracking and labor allocation to optimize workforce productivity.
- Talent Management - Supports employee development and performance management to enhance workforce capabilities.
- Human Resources Management Applications - Delivers HR solutions that cover various aspects of employee management and compliance.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Chad Richison ExecutiveBoard | Co-Chief Executive Officer, President, and Chairman of the Board | None | Founder of Paycom, led the company to become a publicly traded entity and into the S&P 500, innovated industry-first solutions like Beti® and Direct Data Exchange®. | |
Amy Walker Executive | Executive Vice President of Sales | None | Nearly 14 years at Paycom, responsible for leading and managing sales organization. | |
Bob Foster Executive | Chief Financial Officer | None | Joined Paycom in 2022, became CFO in February 2025, previously CEO and Chairman of iiPay. | |
Bradley S. Smith Executive | Chief Information Officer | None | Over 30 years of IT experience, pivotal in leading Paycom's IT initiatives. | |
Christopher G. Thomas Executive | Co-Chief Executive Officer | None | Joined Paycom in 2018, held various leadership roles, became Co-CEO in 2024, focusing on operational aspects. | |
Jason D. Clark Executive | Chief Administrative Officer | Board member of Oklahoma State Chamber of Commerce, President of AASCIF | Former CEO of CompSource Mutual Insurance Company, joined Paycom's executive team in 2023. | |
Archana Vemulapalli Board | Director | Trustees Council of Penn Women, James Brister Society, Board of Advisors for the Global Good Fund | Over 23 years of technology leadership experience, currently Corporate VP at AMD. | |
Felicia Williams Board | Director | Board Member at Anywhere Real Estate Inc., Trustee at Cincinnati Children's Hospital | Over 30 years of corporate financial leadership, played a critical role at Macy's during the COVID-19 pandemic. | |
Frederick C. Peters II Board | Lead Director | Chairman and CEO of Community Financial Institutions Fund, Board Member of The Bryn Mawr Film Institute and The Foundation for Delaware County | Extensive financial expertise, former CEO of Bryn Mawr Bank Corporation. | |
J.C. Watts, Jr. Board | Director | President and CEO of Watts Partners, Board Member at Dillard's, Inc. | Former U.S. Representative, co-founded Watts Partners, extensive public service experience. | |
Joe Binz Board | Director | CFO at Atlassian Corporation | CFO at Atlassian, previously held roles at Microsoft and Intel. | |
Sharen J. Turney Board | Director | Chair of the Compensation Committee at Bread Financial Holdings, Director at University of Oklahoma Foundation | Former CEO of Victoria's Secret, extensive experience in high-growth and e-commerce companies. | |
Craig E. Boelte | Former Chief Financial Officer | None | Served as CFO since 2006, retired in February 2025. |
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Your revenue guidance for fiscal 2024 indicates approximately 10% year-over-year growth, which is a deceleration compared to previous years. What are the main factors contributing to this slower growth, and how do you plan to address them to return to higher growth rates?
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You have raised your adjusted EBITDA margin guidance to approximately 39% for the year. Can you provide more detail on the specific areas where you're achieving greater efficiencies and whether these improvements are sustainable long-term?
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With the completion of your fifth building and expectations for CapEx to be single digits as a percent of revenue next year, how will this reduction in capital expenditures impact your operations, and what are your plans for deploying the increased free cash flow?
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You mentioned focusing on client value achievement strategies to improve module utilization and ROI for clients. Can you provide specifics on the challenges you've faced in driving adoption of already-sold modules, and how you're addressing these to enhance client satisfaction and retention?
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Given the increased staffing in your sales teams and the highly competitive industry, what are the key differentiators in your sales strategy to capture market share from competitors, and how do you see the current economic environment impacting your ability to achieve your sales goals?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The market for HCM solutions is rapidly evolving, highly competitive and subject to changing technology, shifting client needs and frequent introduction of new products and services. Competitors range from small, regional firms to large, well-established international firms with multiple product offerings. Competitors offer HCM solutions that may overlap with one, several or all categories of the applications offered. | |
Cornerstone OnDemand, Inc. | Competitors provide HCM solutions by various means. Although certain providers continue to deliver legacy enterprise software, many now offer cloud-based solutions, resulting in increased competition for clients seeking the greater flexibility and access to information provided by cloud-based offerings. |
Dayforce, Inc. | The HCM industry has experienced an emergence of white label and embedded payroll offerings. |
Gusto, Inc. | Competition in the HCM solutions market is primarily based on service responsiveness, product quality and reputation, breadth of service, application offering and price. |
The importance of competition factors depends on the size of the business. Price tends to be the most important factor of competition for smaller businesses with fewer employees, while the scope of features and customization is more important to larger businesses. | |
Regardless of a company’s size, another important factor is the implementation experience, as all organizations are seeking a streamlined and simplified process. | |
Some principal competitors offer their products or services at a lower price, which has resulted in pricing pressures. | |
Some competitors offer different billing terms, which has resulted in pressures on billing terms. | |
If unable to maintain pricing levels and billing terms, operating results would be negatively impacted. | |
Pricing pressures and increased competition generally could hinder the ability to attract and retain clients and could result in reduced sales, reduced margins, losses or the failure of the solution to maintain widespread market acceptance. | |
People Center, Inc. d/b/a Rippling | Competitors offer HCM solutions that may overlap with one, several or all categories of the applications offered. |
Competitors provide HCM solutions by various means. Although certain providers continue to deliver legacy enterprise software, many now offer cloud-based solutions, resulting in increased competition for clients seeking the greater flexibility and access to information provided by cloud-based offerings. | |
The proliferation of white label offerings and products and technologies utilizing embedded payroll systems may adversely affect competitive position. | |
Ultimate Kronos Group | Some principal competitors offer their products or services at a lower price, which has resulted in pricing pressures. |
Some competitors offer different billing terms, which has resulted in pressures on billing terms. |
Recent press releases and 8-K filings for PAYC.
- Q1 2025 Results: Total revenue reached $531M (≈6% YoY) with GAAP net income of $139M, non-GAAP net income of $158M, and adjusted EBITDA of $253M at a 48% margin .
- Revised Full-Year Guidance: Revenue is expected between $2.023B and $2.038B, while adjusted EBITDA guidance has been raised to between $843M and $858M, reflecting strong recurring revenue and margin improvements .
- Product Innovation: Enhancements with products like GONE and Beti are driving improved client ROI, operational efficiencies, and international expansion, including entry into Europe .
- Annual Meeting Vote Results: Held on May 5, 2025, with over 50 million shares represented; included proposals for the election of two Class III directors, ratification of Grant Thornton LLP as independent auditor for 2025, and an advisory vote on executive compensation .
- CEO Chad Richison highlighted strong sales execution, automation investments, and expanding margins leading to an improved outlook for the year .
- The company continues its capital return initiatives through dividends and share repurchases .