Paycom IPO hits snag | News OK (http://newsok.com/paycom-ipo-hits-snag/article/3954311)

I don't blame them. Tech has been getting hammered past week or so. Good to not put your stock for sale in the middle of a correction period.

Paycom goes public:


OKLAHOMA CITY – Paycom Software Inc. said late Monday its initial public offering of more than 6.6 million shares of its common stock will be priced at $15 per share. The shares start trading on the New York Stock Exchange on Tuesday under the symbol PAYC. An aggregate of about 4.6 million shares are being sold by the company and about 2 million are being sold by stockholders. According to a Paycom press release, the underwriters have a 30-day option to purchase nearly 1 million additional shares of common stock from the selling stockholders to cover any over allotments.

Paycom plans to use the net proceeds from the offering to repay outstanding indebtedness.

- Paycom goes public | The Journal Record (http://journalrecord.com/2014/04/14/paycom-goes-public-finance/)

Paycom grows revenue, hires more staff in Oklahoma City | News OK (http://newsok.com/paycom-grows-revenue-hires-more-staff-in-oklahoma-city/article/5142547)

OKCTalk - Paycom and Boeing to add a combined 1,323 new jobs over the next 3 years (http://www.okctalk.com/content.php?r=147-Paycom-and-Boeing)

Keep an eye on this growth company if you are into investing in local stocks. ( $ PAYC )

^ Agree...bought this stock right after issue and was bumpy at first and has since taken off. They are state of the art and seem to have the process down. Have a number of clients who use their services and think they are great.

^ Agree...bought this stock right after issue and was bumpy at first and has since taken off. They are state of the art and seem to have the process down. Have a number of clients who use their services and think they are great.

I enjoyed using their service.

I enjoyed using their service.

Do you no longer use it?

I enjoyed making 18% on their stock after-earnings :) But I also did not enjoy losing money on FIT after their blow-out earnings... This market is drunk.

Do you no longer use it?

I became salaried/changed companies since then.

We?re giving Paycom money to create jobs they were going to create anyway? | The Lost Ogle (http://www.thelostogle.com/2016/03/31/were-giving-paycom-money-to-create-jobs-they-were-going-to-create-anyway/#more-63232)

Wow Paycom popped today. But The thinking is going forward will see revenue decline since they charge per employee and lots of folks out of jobs lately. But first qtr was good:

What happened
Shares of Paycom Software (NYSE:PAYC) have popped today, up by 14% as of 1 p.m. EDT, after the company reported first-quarter earnings. The HR software specialist beat expectations for both the top and bottom lines but withdrew its 2020 guidance due to the COVID-19 pandemic.

So what
Revenue in the first quarter increased 21% to $242.2 million, easily topping the consensus estimate of $237.9 million. That all translated into adjusted net income of $77.9 million, or $1.33 per share. Analysts were looking for just $1.26 per share in adjusted profits. Adjusted EBITDA was $117.9 million, and Paycom finished the quarter with $181.8 million in cash and cash equivalents on the balance sheet.

My company uses paycom. they have a lot of features. my company only uses a fraction of what they have available.

from a user experience perspective: not wonderful, not terrible.

Paycom and J.C. Watts make national attention.

Have Paycom Software, Inc. (NYSE:PAYC) Insiders Been Selling Their Stock? | Nasdaq
https://www.google.com/amp/s/www.nasdaq.com/articles/have-paycom-software-inc.-nyse%253Apayc-insiders-been-selling-their-stock-2020-11-16%3famp

Interesting!

Paid by the employee covered by the software so they must be anticipating lower employment, more competition, higher costs under the next admin?

^^

That's a lot to unpack over 2 sales.

Interesting!

Paid by the employee covered by the software so they must be anticipating lower employment, more competition, higher costs under the next admin?

I'm guessing JC Watts sold the 1,000 shares at $386 per because he wanted some cash. Chad Richison probably sold his for over $100 million for estate purposes.

Interesting!

Paid by the employee covered by the software so they must be anticipating lower employment, more competition, higher costs under the next admin?

Full disclosure: Paycom EE here.

Most of the insiders and especially Chad have not sold a whole lot of stock since the IPO, even after additional grants. I'm assuming they were cashing out for personal reasons as opposed to a concern for the business. I imagine they were hedging against potential higher taxes as individuals.

Like any business there's always concerns for what your competition is doing and how different headwinds affect you. Unemployment would have a larger effect but low interest rates also hurts. That being said, Paycom doesn't even have 10% of the marketshare and it's well established as a growth company with no indication of slowing that growth and settling at the current market share. I wouldn't assume that's in the cards probably ever, but for sure not in the cards anytime soon.

There's also the every looming question of how a company that doesn't even produce $1B in annual revenue is worth well over $20B. But the stock market is gonna stock market.

Paycom Software Sinks 37% as Analysts Downgrade the Stock After Revenue Cut, largest fall on the NASDAQ in 2023.

Reading about this it is cannibalization from their own product, Beti. I guess that is payroll correction done by the employee so it lowers billable hours that Paycom gets. Interesting.

I get why they lowered their expectations. As someone who uses Paycom, BETI helps a lot. And with that help, there are fewer items people call or need help from Paycom, which they would bill the customer for.

Short-term pain for long-term gain, I'd guess. Just a way where progress lowers revenue in the short term.

i mean BETI is an amazing product by them. yes, it drops billable hours to the customer, but once word gets out on how much time it can save a companies payroll people in fixing mistakes, makes paycom a much more interesting option for a payroll solution. yes, i think this is a situation where the market analyst are overreacting, because while in the short term hurts revenue projections, i think it will end up being what allows them to take on a much bigger share of the market in the long term.

I came here to ask what is going on with Paycom? I follow the markets pretty closely but haven't kept an eye on PAYC stock in awhile. Thank god I didn't have any money in them. Are we about to see a ripple effect with layoffs, etc?

I came here to ask what is going on with Paycom? I follow the markets pretty closely but haven't kept an eye on PAYC stock in awhile. Thank god I didn't have any money in them. Are we about to see a ripple effect with layoffs, etc?

i don't think so. i'm think it's all analyst overreaction. paycom said 2024 growth would be 10-12% which is still good growth, the analysts were for some reason thinking it should be 21%. and thus the sell off.

I came here to ask what is going on with Paycom? I follow the markets pretty closely but haven't kept an eye on PAYC stock in awhile. Thank god I didn't have any money in them. Are we about to see a ripple effect with layoffs, etc?

should not have any effect on personal

paycom reported 10-12% revenue growth for 2024 ... the market was expecting 20+% growth ..

so the stock price is moving down to reflect that .. (maybe overcorrecting today)

should not have any effect on personal

paycom reported 10-12% revenue growth for 2024 ... the market was expecting 20+% growth ..

so the stock price is moving down to reflect that .. (maybe overcorrecting today)

Good buying opportunity for the stock. It was nearly 400 just in July.

Good buying opportunity for the stock. It was nearly 400 just in July.

i think i am leaning this way as well ..

i will likely but some options

Good buying opportunity for the stock. It was nearly 400 just in July.

I want too but I'm staying out. Holding too many bags already over the last couple years & certainly don't trust the market now lol.

Will be interesting to see full year results. Revenue growth was trending well above prior year but not as strong as originally planned. Their product is marketed as a tool that reduces payroll errors, and it does, but they generate a decent amount of revenue when their customers process extra payrolls beyond their scheduled payroll cycles. One of the solutions rolled out in 2021, Beti (Better Employee Transaction Interface), is an employee self-service tool that puts payroll responsibility on the employees. It may be too effective in some cases as it is resulting in cannibalization of off cycle revenue. The market analysts asked multiple questions about this situation in the 3rd Quarter earnings call. Paycom also appears to be seeking low hanging fruit with expansion into Canada and Mexico. Investors should keep an eye on customer retention as much as revenue growth.

Paycom also appears to be seeking low hanging fruit with expansion into Canada and Mexico.

this is actually not the case. one of the biggest reasons they were told by some very very large accounts, that they couldn't make the switch to paycom was because of out of country employees. and that once the system supported that, then it was possible for those companies to make the switch. now i am out of the loop these days on new customers so i don't know if any of those companies have now switched over, but i can tell you that the move into canada and mexico was not for just some low hanging fruit, but at the request of some mega corporations. and the thought was since they were making the system work for those countries anyways, why not also look at smaller companies in those markets, since it's just additional revenue.

Will be interesting to see full year results. Revenue growth was trending well above prior year but not as strong as originally planned. Their product is marketed as a tool that reduces payroll errors, and it does, but they generate a decent amount of revenue when their customers process extra payrolls beyond their scheduled payroll cycles. One of the solutions rolled out in 2021, Beti (Better Employee Transaction Interface), is an employee self-service tool that puts payroll responsibility on the employees. It may be too effective in some cases as it is resulting in cannibalization of off cycle revenue. The market analysts asked multiple questions about this situation in the 3rd Quarter earnings call. Paycom also appears to be seeking low hanging fruit with expansion into Canada and Mexico. Investors should keep an eye on customer retention as much as revenue growth.

Now that the % revenue growth guidance for next year is out of the bag from the Q3 earnings call, it's going to be interesting to see how client (revenue) retention is presented. If a client generated $X base and an additional $Y in off-cycle payroll fees, but the "cannabalization" referenced knocks majority of those $Y off, then the the revenue retention rate probably shouldn't stay at the 93%/94% that has been referenced in the last 3 years of EOY calls and if it does, a lot is going to have to be put on the table as to why.

I would think that how they talk through that is probably going to have a major impact on the stock price for the next few years. Chad is 4 or 5 years out from needing to hit $1,000.00 to get his massive award he was in the news for a few years back, pretty hard to see how that happens, but this might be the important earnings call to set the stage for that kind of rally/growth. Alternatively, the volume on the stock after Q3 earnings eclipsed 20% so without knowing how ownership changed there, Chad could also be under some fire in which case this earnings call is also super important.

The amount of law firms that jumped on the "file against Paycom for your losses" train was insane. It's 90% of what I saw on articles related to PAYC in my ETrade app the last few months.

Now that the % revenue growth guidance for next year is out of the bag from the Q3 earnings call, it's going to be interesting to see how client (revenue) retention is presented. If a client generated $X base and an additional $Y in off-cycle payroll fees, but the "cannabalization" referenced knocks majority of those $Y off, then the the revenue retention rate probably shouldn't stay at the 93%/94% that has been referenced in the last 3 years of EOY calls and if it does, a lot is going to have to be put on the table as to why.

I would think that how they talk through that is probably going to have a major impact on the stock price for the next few years. Chad is 4 or 5 years out from needing to hit $1,000.00 to get his massive award he was in the news for a few years back, pretty hard to see how that happens, but this might be the important earnings call to set the stage for that kind of rally/growth. Alternatively, the volume on the stock after Q3 earnings eclipsed 20% so without knowing how ownership changed there, Chad could also be under some fire in which case this earnings call is also super important.

The amount of law firms that jumped on the "file against Paycom for your losses" train was insane. It's 90% of what I saw on articles related to PAYC in my ETrade app the last few months.

Chad definitely sounds a bit scared/concerned in the recently leaked staff meeting. But I'm wondering if he was cool with the idea of the leak? Definitely confirms for investors that his give-a-**** level is still pretty high. Whether Kanban and Agile will be a magic bullet for PAYC in 2024 is a different question, of course.

https://thelostogle.com/2024/01/18/secretly-recorded-staff-meeting-reveals-big-problems-at-paycom

https://www.youtube.com/watch?v=11YRTZIr--k

Chad definitely sounds a bit scared/concerned in the recently leaked staff meeting. But I'm wondering if he was cool with the idea of the leak? Definitely confirms for investors that his give-a-**** level is still pretty high. Whether Kanban and Agile will be a magic bullet for PAYC in 2024 is a different question, of course.

https://thelostogle.com/2024/01/18/secretly-recorded-staff-meeting-reveals-big-problems-at-paycom

https://www.youtube.com/watch?v=11YRTZIr--k

Meh... definitely some exaggeration from lostogle. Interesting meeting content for people who are on the inside or otherwise know about Paycom, but definitely not "big problems". This sounds more to me like a CEO trying to reach his $750M stock grant rather than someone worried about their job.

The company still prints money with a strong balance sheet so it is not in need of a magic bullet overall.

So now they have a CO-CEO, I can't imagine this is a massive positive for Chad. I know it'll be spun that way, but this is a demotion for him. Seems like there is starting to be some loss of belief in him as the leader.

Seems like there is starting to be some loss of belief in him as the leader.

lol

lol

I get that it's a crazy statement, but you don't just appoint a Co-CEO. Something is going on, speaking to people that work at Paycom, they were not upset by it.