Paycom Software Delivers Yet Another Beat-and-Raise Quarter
Paycom Software (NYSE: PAYC) appears to have mastered the expectations game. In its third-quarter earnings report delivered on Halloween, the payroll and human capital management (HCM) software provider once again beat its own guidance as well as analyst estimates, and raised its full-year guidance for the third consecutive quarter. The company also announced a new potential revenue driver while seeing a nice jump in margins, making the future look as bright as ever for Paycom's continued growth.
The company continues to prioritize its top-line expansion, with a long-term target of 30% annual revenue growth. Propelled by new business wins, Paycom's quarterly revenue grew much more quickly than its operating expenses in the latest quarter, fueling large increases in the company's margin and bottom-line numbers. Adjusted EBITDA came in at $30.7 millionhttps://finance.yahoo.com/news/paycom-software-inc-reports-third-200500173.html, far above Paycom's guidance of $21 million to $23 million, as the company benefited from efficiencies in sales and marketing that helped moderate those expenses, and also capitalized a higher percentage of its R&D expenses than it typically does.
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Source: Fool.com
