Newspaper article THE JOURNAL RECORD

Paycom CEO Reflects on First Public Quarter

Newspaper article THE JOURNAL RECORD

Paycom CEO Reflects on First Public Quarter

Article excerpt

OKLAHOMA CITY - Chad Richison is breathing a little easier now that his company's first publicly reported quarter has passed with strong response from the market.

The employee-management software firm Paycom Software Inc. on Tuesday reported a net loss for the second quarter of $593,000, compared with net income of $360,000 for the same period a year earlier. But the company also had revenue of $33.3 million for the quarter, compared with analyst consensus estimates of $31.5 million, and the company's quarterly revenue was up about 39 percent on a year-over-year basis.

Since pricing its initial public offering of stock in April at $15 per share, the company saw its stock fall more than 12 percent. Following the revenue forecasts executives provided Tuesday, stock prices rallied Wednesday and closed on the New York Stock Exchange under the symbol PAYC at $13.83, up 10.73 from the previous day. And analysts at Barclays upped their price target on Paycom shares from $21 to $22 on Wednesday.

In Tuesday's earnings call, Richison said the company enjoyed accelerating growth in the second quarter. Annualized new recurring revenue, an estimate based on the first full month of revenue attributed to new clients, also increased significantly, he said. Paycom has 30 sales offices in 20 states and plans to open several more in the next two years to support more clients.

"We expect strong growth throughout the remainder of the year," he said Wednesday. "Definitely going public has helped us attract . …

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