First Quarter Revenues of $199.9 million, up 30% from the prior year
period
First Quarter GAAP Net Income of $47.3 million, or $0.81 per diluted
share, up 15% from the prior year period
First Quarter Non-GAAP Net Income of $69.3 million, or $1.19 per
diluted share, up 24% from the prior year period
First Quarter Adjusted EBITDA of $103.3 million, up 28% from the
prior year period
First Quarter Cash from Operations of $80.4 million, an increase of
40% from the prior year period
Paycom Software, Inc. (“Paycom”) (NYSE: PAYC), a leading provider of
comprehensive, cloud-based human capital management software, today
announced its financial results for the quarter ended March 31, 2019.
“Our strong first quarter results were driven by our proprietary
software offering and focused sales efforts, positioning us well to
accomplish our performance objectives for 2019,” said Chad Richison,
Paycom’s founder and chief executive officer. “Employee usage of human
capital management (HCM) technology is the future of our industry. We
believe comprehensive HCM software that is easy to use can lead to
higher employee engagement, increased efficiencies, better job
satisfaction and higher employee retention. Our new Direct Data ExchangeTM
is a first-of-its-kind solution within the HCM industry that measures
the efficiency of the data collection process, further demonstrating the
additional value we are bringing to the market with our concentrated
employee usage strategy.”
Financial Highlights for the First Quarter of
2019
Total Revenues of $199.9 million represented a 30% increase
compared to total revenues of $153.9 million in the same period last
year. Recurring revenues of $196.9 million also increased 30% from the
comparable prior year period, and constituted 98% of total revenues.
GAAP Net Income was $47.3 million, or $0.81 per diluted share,
compared to GAAP net income of $41.2 million, or $0.70 per diluted
share, in the same period last year.
Non-GAAP Net Income1 was $69.3 million,
or $1.19 per diluted share, compared to $55.8 million, or $0.95 per
diluted share, in the same period last year.
Adjusted EBITDA1 was $103.3 million, compared
to $80.7 million in the same period last year.
Cash and Cash Equivalents were $91.3 million as of March 31,
2019, compared to $45.7 million as of December 31, 2018.
Total Debt, Net was $34.0 million as of March 31, 2019, compared
to $34.4 million as of December 31, 2018.
1 Adjusted EBITDA and non-GAAP net income are non-GAAP
financial measures. Please see the discussion below under the heading
"Use of Non-GAAP Financial Information" and the reconciliations at the
end of this release for additional information concerning these and
other non-GAAP financial measures.
Business Highlights
-
Paycom released its new Direct Data ExchangeTM for all
clients.
-
Paycom celebrated its fifth anniversary as a publicly-traded company
on the New York Stock Exchange in April.
-
Paycom broke ground on its new operations center in Grapevine, Texas
in April. The 14-acre campus should be completed in under two years
and is expected to eventually support approximately 1,000 jobs.
Financial Outlook
Paycom provides the following expected financial guidance for the
quarter ending June 30, 2019 and the year ending December 31, 2019:
Quarter Ending June 30, 2019
Total Revenues in the range of $162.5 million to $164.5 million.
Adjusted EBITDA in the range of $62.5 million to $64.5 million.
Year Ending December 31, 2019
Total Revenues in the range of $718.0 million to $720.0 million.
Adjusted EBITDA in the range of $296.0 million to $298.0 million.
We have not reconciled the forward-looking adjusted EBITDA ranges
presented above and discussed on the teleconference call to net income
because applicable information for future periods, on which this
reconciliation would be based, is not readily available due to
uncertainty regarding, and the potential variability of, depreciation
and amortization, interest expense, taxes, non-cash stock-based
compensation expense, change in fair value of our interest rate swap and
other items. Further, we have not reconciled the forward-looking
adjusted gross margin range discussed on the teleconference call to GAAP
gross margin because applicable information for future periods, on which
this reconciliation would be based, is not readily available due to
uncertainty regarding, and the potential variability of, cost of
revenues, including non-cash stock-based compensation expense.
Accordingly, reconciliations of these adjusted EBITDA ranges to net
income and the adjusted gross margin ranges to gross margin are not
available at this time without unreasonable effort.
Use of Non-GAAP Financial Information
To supplement our financial information presented in accordance with
generally accepted accounting principles in the United States (“GAAP”),
we present certain non-GAAP financial measures in this press release and
on the related teleconference call, including adjusted EBITDA, non-GAAP
net income, adjusted gross profit, adjusted gross margin, adjusted sales
and marketing expenses, adjusted administrative expenses, adjusted
research and development expenses and adjusted research and development
costs. Management uses these non-GAAP financial measures as supplemental
measures to review and assess the performance of our core business
operations and for planning purposes. We define (i) adjusted EBITDA as
net income plus interest expense, taxes, depreciation and amortization,
non-cash stock-based compensation expense, certain transaction expenses
that are not core to our operations (if any) and the change in fair
value of our interest rate swap, (ii) non-GAAP net income as net income
plus non-cash stock-based compensation expense, certain transaction
expenses that are not core to our operations (if any) and the change in
fair value of our interest rate swap, all of which are adjusted for the
effect of income taxes, (iii) adjusted gross profit as gross profit plus
applicable non-cash stock-based compensation expense, (iv) adjusted
gross margin as gross profit plus applicable non-cash stock-based
compensation expense, divided by total revenues, (v) each adjusted
expense item as the GAAP expense amount less applicable non-cash
stock-based compensation expense and (vi) adjusted research and
development costs as total research and development costs (including the
capitalized portion) less applicable non-cash stock-based compensation
expense (including the capitalized portion). The non-GAAP financial
measures presented in this press release and discussed on the related
teleconference call provide investors with greater transparency to the
information used by management in its financial and operational
decision-making. We believe these metrics are useful to investors
because they facilitate comparisons of our core business operations
across periods on a consistent basis, as well as comparisons with the
results of peer companies, many of which use similar non-GAAP financial
measures to supplement results under GAAP. In addition, adjusted EBITDA
is a measure that provides useful information to management about the
amount of cash available for reinvestment in our business, repurchasing
common stock and other purposes. Management believes that the non-GAAP
measures presented in this press release and discussed on the related
teleconference call, when viewed in combination with our results
prepared in accordance with GAAP, provide a more complete understanding
of the factors and trends affecting our business and performance.
The non-GAAP financial measures presented in this press release and
discussed on the related teleconference call are not measures of
financial performance under GAAP and should not be considered a
substitute for net income, gross profit, research and development
expenses, sales and marketing expenses, administrative expenses and
research and development costs. Non-GAAP financial measures have
limitations as analytical tools, and when assessing our operating
performance, you should not consider these non-GAAP financial measures
in isolation, or as a substitute for the consolidated statements of
income data prepared in accordance with GAAP. The non-GAAP financial
measures that we present may not be comparable to similar titled
measures of other companies and other companies may not calculate such
measures in the same manner as we do.
Conference Call Details:
In conjunction with this announcement, Paycom will host a conference
call today, April 30, 2019, at 5:00 p.m. Eastern time to discuss its
financial results. To access this call, dial (866) 362-4443 (domestic)
or (412) 317-5229 (international) and announce Paycom as the conference
name to the operator. A live webcast as well as the replay of the
conference call will be available on the Investor Relations page of
Paycom’s website at investors.paycom.com.
A replay of this conference call can also be accessed by dialing (877)
344-7529 (domestic) or (412) 317-0088 (international) until May 7, 2019.
The replay passcode is 10130447.
About Paycom
As a leader in payroll and HR technology, Oklahoma City-based Paycom
redefines the human capital management industry by allowing companies to
effectively navigate a rapidly changing business environment. Its
cloud-based software solution is based on a core system of record
maintained in a single database for all human capital management
functions, providing the functionality that businesses need to manage
the complete employment lifecycle, from recruitment to retirement.
Paycom has the ability to serve businesses of all sizes and in every
industry. As one of the leading human capital management providers,
Paycom serves clients in all 50 states from offices across the country.
Forward-Looking Statements
Certain statements in this press release are, and certain statements on
the related teleconference call may be, forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are any statements that refer to
Paycom’s estimated or anticipated results, other non-historical facts or
future events and include, but are not limited to, statements regarding
our business strategy; anticipated future operating results and
operating expenses, cash flows, capital resources, dividends and
liquidity; trends, opportunities and risks affecting our business,
industry and financial results; future expansion or growth plans and
potential for future growth; our ability to attract new clients to
purchase our solution; our ability to retain clients and induce them to
purchase additional applications; our ability to accurately forecast
future revenues and appropriately plan our expenses; market acceptance
of our solution and applications; our expectations regarding future
revenues generated by certain applications; the impact of future
regulatory, judicial, or legislative changes; how certain factors
affecting our performance correlate to improvement or deterioration in
the labor market; our plan to open additional sales offices and our
ability to effectively execute such plan; the sufficiency of our
existing cash and cash equivalents to meet our working capital and
capital expenditure needs over the next 12 months; the timeline for
construction of our new Texas operations facility; new job creation at
our Texas operations facility; our plans regarding our capital
expenditures and investment activity as our business grows; our expected
income tax rate for future periods; and our plans to purchase shares of
our common stock through a stock repurchase plan. In addition,
forward-looking statements also consist of statements involving trend
analyses and statements including such words as “anticipate,” “believe,”
“could,” “expect,” “may,” “might,” “plan,” “possible,” “potential,”
“project,” “should,” “would,” and similar expressions or the negative of
such terms or other comparable terminology. These forward-looking
statements speak only as of the date hereof and are subject to business
and economic risks. As such, our actual results could differ materially
from those set forth in the forward-looking statements as a result of
the factors discussed in our filings with the Securities and Exchange
Commission, including but not limited to those discussed in our most
recent Annual Report on Form 10-K. We do not undertake any obligation to
update or revise the forward-looking statements to reflect events or
circumstances that exist after the date on which such statements were
made, except to the extent required by law.
|
|
|
|
|
Paycom Software, Inc.
|
|
Consolidated Balance Sheets
|
|
(in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
|
December 31, 2018
|
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
91,307
|
|
|
|
$
|
45,718
|
|
|
Accounts receivable
|
|
|
|
3,835
|
|
|
|
|
3,414
|
|
|
Prepaid expenses
|
|
|
|
9,156
|
|
|
|
|
7,658
|
|
|
Inventory
|
|
|
|
910
|
|
|
|
|
797
|
|
|
Income tax receivable
|
|
|
|
—
|
|
|
|
|
3,962
|
|
|
Deferred contract costs
|
|
|
|
38,811
|
|
|
|
|
35,286
|
|
|
Current assets before funds held for clients
|
|
|
|
144,019
|
|
|
|
|
96,835
|
|
|
Funds held for clients
|
|
|
|
1,405,465
|
|
|
|
|
967,787
|
|
|
Total current assets
|
|
|
|
1,549,484
|
|
|
|
|
1,064,622
|
|
|
Property and equipment, net
|
|
|
|
187,511
|
|
|
|
|
176,962
|
|
|
Goodwill
|
|
|
|
51,889
|
|
|
|
|
51,889
|
|
|
Long-term deferred contract costs
|
|
|
|
247,135
|
|
|
|
|
225,459
|
|
|
Other assets
|
|
|
|
26,809
|
|
|
|
|
2,994
|
|
|
Total assets
|
|
|
$
|
2,062,828
|
|
|
|
$
|
1,521,926
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
4,081
|
|
|
|
$
|
6,288
|
|
|
Income tax payable
|
|
|
|
3,526
|
|
|
|
|
—
|
|
|
Accrued commissions and bonuses
|
|
|
|
4,553
|
|
|
|
|
10,671
|
|
|
Accrued payroll and vacation
|
|
|
|
14,506
|
|
|
|
|
10,741
|
|
|
Deferred revenue
|
|
|
|
9,672
|
|
|
|
|
8,980
|
|
|
Current portion of long-term debt
|
|
|
|
1,775
|
|
|
|
|
1,775
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
40,132
|
|
|
|
|
22,440
|
|
|
Current liabilities before client funds obligation
|
|
|
|
78,245
|
|
|
|
|
60,895
|
|
|
Client funds obligation
|
|
|
|
1,405,465
|
|
|
|
|
967,787
|
|
|
Total current liabilities
|
|
|
|
1,483,710
|
|
|
|
|
1,028,682
|
|
|
Deferred income tax liabilities, net
|
|
|
|
73,928
|
|
|
|
|
70,206
|
|
|
Long-term deferred revenue
|
|
|
|
57,839
|
|
|
|
|
55,671
|
|
|
Net long-term debt, less current portion
|
|
|
|
32,179
|
|
|
|
|
32,614
|
|
|
Other long-term liabilities
|
|
|
|
16,619
|
|
|
|
|
—
|
|
|
Total long-term liabilities
|
|
|
|
180,565
|
|
|
|
|
158,491
|
|
|
Total liabilities
|
|
|
|
1,664,275
|
|
|
|
|
1,187,173
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock, $0.01 par value (100,000,000 shares authorized,
61,027,123 and 60,746,715 shares issued at March 31, 2019 and
December 31, 2018, respectively; 57,447,346 and 57,276,992 shares
outstanding at March 31, 2019 and December 31, 2018, respectively)
|
|
|
|
609
|
|
|
|
|
607
|
|
|
Additional paid-in capital
|
|
|
|
239,865
|
|
|
|
|
203,680
|
|
|
Retained earnings
|
|
|
|
442,872
|
|
|
|
|
395,590
|
|
|
Treasury stock, at cost (3,579,777 and 3,469,723 shares at March
31, 2019 and December 31, 2018, respectively)
|
|
|
|
(284,793
|
)
|
|
|
|
(265,124
|
)
|
|
Total stockholders' equity
|
|
|
|
398,553
|
|
|
|
|
334,753
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
2,062,828
|
|
|
|
$
|
1,521,926
|
|
|
|
|
|
|
Paycom Software, Inc.
|
|
Consolidated Statements of Income
|
|
(in thousands, except per share and share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
Revenues
|
|
|
|
|
|
|
|
Recurring
|
|
|
$
|
196,864
|
|
|
|
$
|
151,885
|
|
Implementation and other
|
|
|
|
3,079
|
|
|
|
|
2,031
|
|
Total revenues
|
|
|
|
199,943
|
|
|
|
|
153,916
|
|
Cost of revenues
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
24,776
|
|
|
|
|
20,568
|
|
Depreciation and amortization
|
|
|
|
4,542
|
|
|
|
|
3,037
|
|
Total cost of revenues
|
|
|
|
29,318
|
|
|
|
|
23,605
|
|
Administrative expenses
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
39,645
|
|
|
|
|
32,352
|
|
Research and development
|
|
|
|
18,489
|
|
|
|
|
11,250
|
|
General and administrative
|
|
|
|
45,198
|
|
|
|
|
32,657
|
|
Depreciation and amortization
|
|
|
|
4,805
|
|
|
|
|
3,032
|
|
Total administrative expenses
|
|
|
|
108,137
|
|
|
|
|
79,291
|
|
Total operating expenses
|
|
|
|
137,455
|
|
|
|
|
102,896
|
|
Operating income
|
|
|
|
62,488
|
|
|
|
|
51,020
|
|
Interest expense
|
|
|
|
(276
|
)
|
|
|
|
—
|
|
Other income, net
|
|
|
|
(100
|
)
|
|
|
|
1,030
|
|
Income before income taxes
|
|
|
|
62,112
|
|
|
|
|
52,050
|
|
Provision for income taxes
|
|
|
|
14,830
|
|
|
|
|
10,890
|
|
Net income
|
|
|
$
|
47,282
|
|
|
|
$
|
41,160
|
|
Earnings per share, basic
|
|
|
$
|
0.82
|
|
|
|
$
|
0.71
|
|
Earnings per share, diluted
|
|
|
$
|
0.81
|
|
|
|
$
|
0.70
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
57,357,490
|
|
|
|
|
57,793,023
|
|
Diluted
|
|
|
|
58,316,154
|
|
|
|
|
58,738,732
|
|
|
|
|
|
Paycom Software, Inc.
|
|
Consolidated Statements of Cash Flows
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
47,282
|
|
|
|
$
|
41,160
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
9,347
|
|
|
|
|
6,069
|
|
|
Accretion of discounts on available-for-sale securities
|
|
|
|
(165
|
)
|
|
|
|
(177
|
)
|
|
Amortization of debt issuance costs
|
|
|
|
9
|
|
|
|
|
6
|
|
|
Stock-based compensation expense
|
|
|
|
31,071
|
|
|
|
|
23,222
|
|
|
Cash paid for derivative settlement
|
|
|
|
(1
|
)
|
|
|
|
(79
|
)
|
|
(Gain)/loss on derivative
|
|
|
|
540
|
|
|
|
|
(738
|
)
|
|
Deferred income taxes, net
|
|
|
|
3,722
|
|
|
|
|
4,272
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(421
|
)
|
|
|
|
(774
|
)
|
|
Prepaid expenses
|
|
|
|
(1,498
|
)
|
|
|
|
(2,019
|
)
|
|
Inventory
|
|
|
|
(11
|
)
|
|
|
|
(193
|
)
|
|
Other assets
|
|
|
|
(702
|
)
|
|
|
|
(565
|
)
|
|
Deferred contract costs
|
|
|
|
(23,414
|
)
|
|
|
|
(17,712
|
)
|
|
Accounts payable
|
|
|
|
(1,251
|
)
|
|
|
|
(710
|
)
|
|
Income taxes, net
|
|
|
|
7,488
|
|
|
|
|
4,013
|
|
|
Accrued commissions and bonuses
|
|
|
|
(6,118
|
)
|
|
|
|
(6,980
|
)
|
|
Accrued payroll and vacation
|
|
|
|
3,765
|
|
|
|
|
4,307
|
|
|
Deferred revenue
|
|
|
|
2,860
|
|
|
|
|
2,153
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
7,923
|
|
|
|
|
2,232
|
|
|
Net cash provided by operating activities
|
|
|
|
80,426
|
|
|
|
|
57,487
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchase of short-term investments from funds held for clients
|
|
|
|
(16,800
|
)
|
|
|
|
(67,632
|
)
|
|
Proceeds from maturities of short-term investments from funds held
for clients
|
|
|
|
14,500
|
|
|
|
|
22,500
|
|
|
Net change in funds held for clients
|
|
|
|
(435,213
|
)
|
|
|
|
39,350
|
|
|
Purchases of property and equipment
|
|
|
|
(14,889
|
)
|
|
|
|
(18,708
|
)
|
|
Net cash used in investing activities
|
|
|
|
(452,402
|
)
|
|
|
|
(24,490
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Repurchases of common stock
|
|
|
|
—
|
|
|
|
|
(4,999
|
)
|
|
Withholding taxes paid related to net share settlement
|
|
|
|
(19,669
|
)
|
|
|
|
(11,871
|
)
|
|
Payments on long-term debt
|
|
|
|
(444
|
)
|
|
|
|
—
|
|
|
Net change in client funds obligation
|
|
|
|
437,678
|
|
|
|
|
5,959
|
|
|
Payment of debt issuance costs
|
|
|
|
—
|
|
|
|
|
(42
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
|
417,565
|
|
|
|
|
(10,953
|
)
|
|
Increase in cash and cash equivalents
|
|
|
|
45,589
|
|
|
|
|
22,044
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
45,718
|
|
|
|
|
46,077
|
|
|
End of period
|
|
|
$
|
91,307
|
|
|
|
$
|
68,121
|
|
|
|
|
|
|
Paycom Software, Inc.
|
|
Reconciliations of GAAP to non-GAAP Financial Measures
|
|
(in thousands, except share and per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
Net income to adjusted EBITDA:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
47,282
|
|
|
$
|
41,160
|
|
|
Interest expense
|
|
|
|
276
|
|
|
|
—
|
|
|
Provision for income taxes
|
|
|
|
14,830
|
|
|
|
10,890
|
|
|
Depreciation and amortization
|
|
|
|
9,347
|
|
|
|
6,069
|
|
|
EBITDA
|
|
|
|
71,735
|
|
|
|
58,119
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
31,071
|
|
|
|
23,438
|
|
|
Change in fair value of interest rate swap
|
|
|
|
539
|
|
|
|
(817
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
103,345
|
|
|
$
|
80,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Net income to non-GAAP net income:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
47,282
|
|
|
|
$
|
41,160
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
31,071
|
|
|
|
|
23,438
|
|
|
Change in fair value of interest rate swap
|
|
|
|
539
|
|
|
|
|
(817
|
)
|
|
Income tax effect on non-GAAP adjustments
|
|
|
|
(9,642
|
)
|
|
|
|
(8,013
|
)
|
|
Non-GAAP net income
|
|
|
$
|
69,250
|
|
|
|
$
|
55,768
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
57,357,490
|
|
|
|
|
57,793,023
|
|
|
Diluted
|
|
|
|
58,316,154
|
|
|
|
|
58,738,732
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
|
|
|
$
|
0.82
|
|
|
|
$
|
0.71
|
|
|
Earnings per share, diluted
|
|
|
$
|
0.81
|
|
|
|
$
|
0.70
|
|
|
Non-GAAP net income per share, basic
|
|
|
$
|
1.21
|
|
|
|
$
|
0.96
|
|
|
Non-GAAP net income per share, diluted
|
|
|
$
|
1.19
|
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Earnings per share to non-GAAP net income per share, basic:
|
|
|
|
|
|
|
|
Earnings per share, basic
|
|
|
$
|
0.82
|
|
|
|
$
|
0.71
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
0.54
|
|
|
|
|
0.40
|
|
|
Change in fair value of interest rate swap
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
Income tax effect on non-GAAP adjustments
|
|
|
|
(0.16
|
)
|
|
|
|
(0.14
|
)
|
|
Non-GAAP net income per share, basic
|
|
|
$
|
1.21
|
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Earnings per share to non-GAAP net income per share, diluted:
|
|
|
|
|
|
|
|
Earnings per share, diluted
|
|
|
$
|
0.81
|
|
|
|
$
|
0.70
|
|
|
Non-cash stock-based compensation expense
|
|
|
|
0.53
|
|
|
|
|
0.40
|
|
|
Change in fair value of interest rate swap
|
|
|
|
0.01
|
|
|
|
|
(0.01
|
)
|
|
Income tax effect on non-GAAP adjustments
|
|
|
|
(0.16
|
)
|
|
|
|
(0.14
|
)
|
|
Non-GAAP net income per share, diluted
|
|
|
$
|
1.19
|
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Adjusted gross profit:
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
199,943
|
|
|
|
$
|
153,916
|
|
|
Less: Total cost of revenues
|
|
|
|
(29,318
|
)
|
|
|
|
(23,605
|
)
|
|
Total gross profit
|
|
|
|
170,625
|
|
|
|
|
130,311
|
|
|
Plus: Non-cash stock-based compensation expense
|
|
|
|
2,896
|
|
|
|
|
2,868
|
|
|
Total adjusted gross profit
|
|
|
$
|
173,521
|
|
|
|
$
|
133,179
|
|
|
Total gross margin
|
|
|
|
85.3
|
%
|
|
|
|
84.7
|
%
|
|
Total adjusted gross margin
|
|
|
|
86.8
|
%
|
|
|
|
86.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Adjusted sales and marketing expenses:
|
|
|
|
|
|
|
|
Sales and marketing expenses
|
|
|
$
|
39,645
|
|
|
|
$
|
32,352
|
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(2,583
|
)
|
|
|
|
(1,907
|
)
|
|
Total adjusted sales and marketing expenses
|
|
|
$
|
37,062
|
|
|
|
$
|
30,445
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
199,943
|
|
|
|
$
|
153,916
|
|
|
Total adjusted sales and marketing expenses as a % of revenues
|
|
|
|
18.5
|
%
|
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Adjusted administrative expenses:
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
$
|
108,137
|
|
|
|
$
|
79,291
|
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(28,175
|
)
|
|
|
|
(20,570
|
)
|
|
Total adjusted administrative expenses
|
|
|
$
|
79,962
|
|
|
|
$
|
58,721
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
199,943
|
|
|
|
$
|
153,916
|
|
|
Total adjusted administrative expenses as a % of revenues
|
|
|
|
40.0
|
%
|
|
|
|
38.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Adjusted research and development expenses:
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
$
|
18,489
|
|
|
|
$
|
11,250
|
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(3,046
|
)
|
|
|
|
(2,247
|
)
|
|
Total adjusted research and development expenses
|
|
|
$
|
15,443
|
|
|
|
$
|
9,003
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
199,943
|
|
|
|
$
|
153,916
|
|
|
Total adjusted research and development expenses as a % of revenues
|
|
|
|
7.7
|
%
|
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2019
|
|
|
|
|
2018
|
|
|
Total research and development costs:
|
|
|
|
|
|
|
|
Capitalized research and development costs
|
|
|
$
|
8,940
|
|
|
|
$
|
6,638
|
|
|
Research and development expenses
|
|
|
|
18,489
|
|
|
|
|
11,250
|
|
|
Total research and development costs
|
|
|
$
|
27,429
|
|
|
|
$
|
17,888
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
199,943
|
|
|
|
$
|
153,916
|
|
|
Total research and development costs as a % of revenues
|
|
|
|
13.7
|
%
|
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
Total adjusted research and development costs:
|
|
|
|
|
|
|
|
Total research and development costs
|
|
|
$
|
27,429
|
|
|
|
$
|
17,888
|
|
|
Less: Capitalized non-cash stock-based compensation
|
|
|
|
(3,329
|
)
|
|
|
|
(2,539
|
)
|
|
Less: Non-cash stock-based compensation expense
|
|
|
|
(3,046
|
)
|
|
|
|
(2,247
|
)
|
|
Total adjusted research and development costs
|
|
|
$
|
21,054
|
|
|
|
$
|
13,102
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
199,943
|
|
|
|
$
|
153,916
|
|
|
Total adjusted research and development costs as a % of revenues
|
|
|
|
10.5
|
%
|
|
|
|
8.5
|
%
|
|
|
|
|
|
Paycom Software, Inc.
|
|
Breakout of Non-Cash Stock-Based Compensation Expense
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
Non-cash stock-based compensation expense:
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
$
|
2,896
|
|
|
$
|
2,868
|
|
Sales and marketing
|
|
|
|
2,583
|
|
|
|
1,907
|
|
Research and development
|
|
|
|
3,046
|
|
|
|
2,247
|
|
General and administrative
|
|
|
|
22,546
|
|
|
|
16,416
|
|
Total non-cash stock-based compensation expense
|
|
|
$
|
31,071
|
|
|
$
|
23,438
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190430006040/en/
Copyright Business Wire 2019