UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) Delaware 80-0957485 (State or other jurisdiction of incorporation or organization) 7501 W. Memorial Road Oklahoma City, Oklahoma 73142 (Address of principal executive offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION ...

Financial Data and Key Metrics - Q1 2023 revenue was $451.6 million, up 27.8% YoY [26] - Non-GAAP net income for Q1 2023 was $142.7 million, or $2.46 per diluted share, up 28.9% YoY [27] - Recurring revenue was $444.4 million, representing 98.4% of total revenue, growing 27.6% YoY [27] - Adjusted EBITDA for Q1 2023 was $220.5 million, or 48.8% of total revenue, compared to $170.1 million in Q1 2022 [42] - Cash and cash equivalents stood at $506 million, with total debt of $29 million [29] - Cash from operations increased by 24.6% to $146.1 million in Q1 2023 [29] - Average daily balance of client funds was $2.4 billion, up 10% YoY [29] Business Line Performance - BETI (Employee Self-Service Payroll) continues to drive strong client additions and is a key differentiator in the market [24] - Large organizations benefit from the single database solution, with 5% of the TAM currently addressed [25] - Global HCM product has expanded the TAM by 50%, with plans to roll out BETI internationally [25][50] Market Performance - The company is experiencing rapid growth at the upper end of its target market range [25] - Global HCM product is now available in 180 countries and 15 languages, targeting multinational clients [50][51] Company Strategy and Industry Competition - The company is focused on expanding its global footprint, with plans to build native payroll solutions in key international markets [50][51] - BETI is being developed for international markets, with 16-20 countries representing over 80% of the opportunity being prioritized [119] - The company is investing in R&D, with adjusted R&D costs of $55.2 million in Q1 2023, up from $42.9 million in the prior year [28] - The company is also investing in marketing, with adjusted sales and marketing expenses of $98.1 million in Q1 2023 [43] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's ability to continue delivering rapid organic revenue growth, high profit margins, and attractive cash flows [47] - The company is well-positioned to exceed its initial outlook for a solid Rule of 65 [39] - Management highlighted the strong demand for HCM solutions and the accelerating industry transformation to more efficient payroll processes [24] Other Important Information - The company announced a quarterly dividend program, with an annual rate of $1.50 per share, reflecting confidence in long-term growth opportunities [31][47] - The company has a $1.1 billion buyback authorization still in place, having returned nearly $600 million to stockholders through buybacks since 2016 [31] Q&A Session Summary Question: Global Initiative and Strategy - The company is expanding its global presence, with Global HCM now available in 180 countries and 15 languages [50][51] - BETI will be rolled out internationally, requiring operations in certain countries to process payroll [51] Question: M&A and Capital Allocation - The company is open to acquisitions, particularly for building out the payroll side internationally [53] - The dividend and buyback strategy will be balanced, with $1.1 billion still available for buybacks [131] Question: Sales and Marketing Expenses - Sales and marketing expenses increased significantly in Q1 2023 due to aggressive marketing campaigns and headcount additions [54][74] Question: Economic Outlook and Hiring - The company is seeing easier hiring conditions, especially for technical talent, compared to a tighter labor market a year ago [75] Question: Retention and Client Base - Retention rates remain strong, particularly for clients using BETI, with a retention rate better than 99% for BETI users [93] Question: Global HCM Impact on Margins - Global HCM is expected to have a similar margin profile to current clients, with some R&D costs associated with its development [64] Question: BETI Rollout and International Expansion - BETI will be rolled out in 16-20 key countries first, representing over 80% of the opportunity [119] - The company is building native payroll solutions in these countries, rather than relying on existing payroll systems [86] Question: Competitive Dynamics and Win Rates - The company is seeing strong win rates against legacy players, particularly with the value proposition of BETI [97] Question: Free Cash Flow and BETI Penetration - Free cash flow was strong in Q1 2023, with BETI penetration expected to drive further efficiency gains [171] Question: Tax Forms and Revenue Growth - Tax forms revenue is growing at a slower rate compared to other revenue streams, becoming a smaller portion of overall revenue [153] Question: Global HCM Adoption and Feedback - Some clients are already piloting Global HCM, with more expected to adopt it throughout the year [160] Question: Dividend Policy - The dividend is currently set at $1.50 annually, with potential adjustments in the future based on performance [174]

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36393 Paycom Software, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of approximately $371 million, up 30% year-over-year, bringing full year 2022 revenue to $1.375 billion, also up 30% year-over-year [2][28] - Fourth quarter adjusted EBITDA was $164 million, representing an adjusted EBITDA margin of 44%, with full year adjusted EBITDA at $580 million, representing an adjusted EBITDA margin of 42% [2][45] - GAAP net income for the fourth quarter was $80 million or $1.38 per diluted share, compared to $48.7 million or $0.84 per diluted share in the prior year [12][30] Business Line Data and Key Metrics Changes - The fastest-growing revenue segment came from clients with more than 2,000 employees, with revenue from this segment up 60% year-over-year [11][58] - Recurring revenue for the fourth quarter was $364 million, representing 98% of total revenues and growing 30% from the prior year [66] - Total adjusted gross profit for the fourth quarter was $312.5 million, with an adjusted gross margin of 84.3% [44] Market Data and Key Metrics Changes - The company ended 2022 with approximately 36,600 clients, representing an 8% growth compared to 2021 [66] - The total number of employee records increased by 14% year-over-year in 2022 to 6.5 million [66] Company Strategy and Development Direction - The company plans to continue investing in talent, marketing, innovation, customer service, and geographic expansion to meet strong demand [4] - The focus remains on employee experience and client ROI, with expectations for rapid profitable growth in 2023 [24][27] - The company is positioned to benefit from the trend of larger organizations simplifying their HCM needs, with only about 5% of the total addressable market currently penetrated [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum heading into 2023, with guidance for total revenues in the range of $1.7 billion to $1.702 billion, representing approximately 24% year-over-year growth [47] - The company anticipates adjusted EBITDA in the range of $700 million to $702 million for 2023, with an adjusted EBITDA margin of approximately 41% [47] - Management noted that the marketing strategy has been effective, driving high-quality demo leads and improving operating leverage [40] Other Important Information - The company repurchased approximately 365,000 shares for nearly $100 million in 2022, with $1.1 billion remaining in the buyback program [46][81] - The average daily balance of funds held on behalf of clients was approximately $2.1 billion in the fourth quarter of 2022 [31] Q&A Session Summary Question: What is the outlook for end demand given market nervousness? - Management indicated that they continue to see strong demand and that renewals came in at 93% [33] Question: Did the company buy back any stock in the quarter? - Management confirmed that no stock was bought back in the quarter, but $100 million was repurchased for the full year [81] Question: How is the company addressing the growth from existing clients versus new clients? - Management stated that growth is primarily driven by new logo adds, with a healthy upsell to current clients [17][60] Question: What is the expected impact of W2 revenue in Q1? - Management expects normalization in trends for W2 revenue due to improved hiring patterns [61] Question: How does the company view the retention rate among smaller clients? - Management noted that smaller clients are experiencing more churn, but retention remains strong at 93% overall [72][90] Question: What is the company's strategy regarding upmarket opportunities? - Management indicated a strategic focus on larger clients, with continued investments to support this shift [134]

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (405) 722-6900 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-36393 Paycom Software, Inc. (Exact name of registrant as specified in its charter) Delaware 80- ...

Financial Data and Key Metrics Changes - The company reported Q3 2022 revenue of approximately $334 million, representing a 30% year-over-year growth, driven by strong recurring revenue growth from new business sales [8][13] - Recurring revenue for Q3 was $328.2 million, accounting for 98% of total revenues and growing 31% year-over-year [13] - Adjusted EBITDA for Q3 was $126 million, or 37.7% of total revenues, compared to $89.7 million or 35% in the prior year, reflecting a 270 basis points year-over-year margin expansion [15] - GAAP net income for Q3 was $52.2 million, or $0.90 per diluted share, compared to $30.4 million, or $0.52 per diluted share in the prior year [16] - The company ended the quarter with cash and cash equivalents of approximately $317 million and total debt of $29 million [17] Business Line Data and Key Metrics Changes - The focus on high-quality revenue growth has resulted in strong adjusted gross profit of $280.5 million for Q3, with an adjusted gross margin of 83.9% [13] - Adjusted sales and marketing expenses were $85.8 million, or 25.7% of revenues, slightly down from 25.9% in the prior year [14] Market Data and Key Metrics Changes - The company has a total addressable market (TAM) where it currently holds only 5%, indicating significant growth potential as it competes against larger competitors [24] - The demand for self-service solutions, particularly the BETI payroll system, continues to grow, with nearly half of the clients adopting it [9][55] Company Strategy and Development Direction - The company is focused on a differentiated product strategy centered around employee experience and self-service payroll, which is expected to drive future growth [11][20] - The go-to-market strategy includes 54 outside sales teams and a strong marketing campaign to enhance brand awareness and lead generation [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the hiring market remains tight, but there has been some softening, which has not significantly impacted the company's performance [24] - The company raised its full-year 2022 revenue guidance to a range of $1.371 billion to $1.373 billion, reflecting confidence in continued growth [18] Other Important Information - The company is experiencing strong organic lead referrals from employees, which is enhancing its market penetration [10] - The management emphasized the importance of employee self-service in payroll, which is becoming a key differentiator in the market [9][55] Q&A Session All Questions and Answers Question: Market conditions and demand - The management discussed the current hiring market, indicating a slight softening but still strong demand for their services, with significant opportunities for efficiency improvements [24] Question: Operating cash flow - Management explained that the lower operating cash flow was primarily due to timing issues and additional tax payments in Q3 [26] Question: Fourth quarter guidance - The management expressed confidence in a strong seasonal uplift for Q4, driven by new client conversions and rate increases [29] Question: Hiring and retention changes - Management reported no noticeable changes in hiring or retention at customer companies, indicating stability in their client base [32] Question: Competitive landscape - The management noted that they continue to face the same competitors as they move upmarket, with no significant changes in the competitive landscape [49] Question: Marketing effectiveness - Management highlighted the success of their brand marketing program, which has shifted focus to emphasize employee self-service payroll [51] Question: BETI adoption and performance - Management reported that about 50% of current clients are using BETI, with increasing adoption rates as clients become more familiar with the product [55] Question: Module pricing and inflation - Management confirmed that BETI pricing is nominal compared to other modules, and any future pricing adjustments would be based on the ROI delivered to clients [58] Question: New logo growth - Management indicated that new logos were the primary source of upside in their performance, reflecting the effectiveness of their differentiated strategy [85]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from ______ to ______ Commission File Number: 001-36393 Paycom Software, Inc. (Exact name of registrant as specified in its charter) Delaware 80-0957485 (State or ot ...

Financial Data and Key Metrics Changes - The company reported Q2 2022 revenue of approximately $317 million, representing a 31% year-over-year increase, driven by strong recurring revenue from new business sales [9][17] - Recurring revenue for Q2 was $311.5 million, accounting for 98% of total revenues and also growing 31% year-over-year [18] - Adjusted EBITDA for Q2 was $119.6 million, or 37.7% of total revenues, compared to $87 million or 35.9% in the prior year [21] - GAAP net income for Q2 was $57.4 million, or $0.99 per diluted share, up from $52.3 million or $0.90 per diluted share in the prior year [22] - The company ended the quarter with cash and cash equivalents of approximately $279 million and total debt of $29 million [23] Business Line Data and Key Metrics Changes - The company continues to see strong demand for self-service payroll and automation solutions, particularly through its product Beti, which has been adopted by over 13,000 clients, nearly 40% of the client base [12][70] - The marketing efforts have resulted in strong demo leads and brand recognition, particularly from larger clients, contributing to higher average revenue per client [13] Market Data and Key Metrics Changes - The company estimates it has roughly half of the country covered geographically but only about 5% of a large and growing Total Addressable Market (TAM), indicating significant growth potential [14][28] - The average daily balance of funds held on behalf of clients was approximately $2 billion in Q2 2022 [23] Company Strategy and Development Direction - The company is focused on increasing employee usage of its platform, particularly through Beti, which is seen as the future of payroll [10][12] - The strategy includes aggressive marketing and sales efforts to penetrate deeper into target geographies and expand market share [14][28] - The company raised its full-year 2022 revenue guidance to a range of $1.354 billion to $1.356 billion, reflecting strong demand trends [26] Management's Comments on Operating Environment and Future Outlook - Management noted that while hiring has become somewhat easier, it remains an employee's market with many jobs unfilled [31] - The company does not anticipate significant changes in demand due to macroeconomic factors, as it has historically weathered various economic cycles [42][78] - Management expressed confidence in the company's ability to continue growing, even in the face of potential economic challenges [78] Other Important Information - The company repurchased approximately 360,000 shares for a total of roughly $100 million during Q2 2022, with a remaining buyback authorization of $550 million [25] - The company plans to continue investing aggressively in marketing and advertising through the remainder of 2022 [20] Q&A Session Summary Question: What changes are being seen in end demand or customer behavior? - Management indicated that there are no significant changes in demand, and the employment market remains competitive [31] Question: How do interest rate changes impact future numbers? - For every 25 basis points increase in the Fed funds rate, the company expects about $5 million in annualized interest income [32] Question: Are deal cycles and close rates changing? - Management reported that close rates are improving, with more interest in initial calls leading to second calls [36] Question: What is the impact of employment levels on overall growth? - Historically, normal fluctuations in unemployment have not significantly impacted the company, except during the pandemic [42] Question: How are larger clients impacting lead generation? - The average size of new clients is increasing, and many leads are coming from employees of companies that have previously used the company's services [47] Question: What is the growth composition from existing clients versus new clients? - The majority of revenue growth comes from new client wins, although there are opportunities to upsell existing clients [88]

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-36393 Paycom Software, Inc. (Registrant's telephone number, including area code) Securities registered pursuant to ...

Financial Data and Key Metrics Changes - The company reported Q1 2022 revenue of approximately $354 million, representing a 30% year-over-year growth, exceeding expectations [8][16] - Recurring revenue was $348.2 million, accounting for 98% of total revenues and also growing 30% year-over-year [17] - Adjusted EBITDA was $170.1 million, or 48.1% of total revenues, compared to $133 million or 48.9% in the prior year [19] - GAAP net income for Q1 was $91.9 million, or $1.58 per diluted share, compared to $64.6 million, or $1.11 per diluted share in the prior year [20] - The company ended the quarter with cash and cash equivalents of approximately $361 million and total debt of $29 million [21] Business Line Data and Key Metrics Changes - Employee usage of self-service solutions is increasing, with over a quarter of clients implementing Beti, the advanced payroll experience [9][10] - The marketing plan is performing well, delivering strong demo leads and brand recognition, contributing to rapid revenue growth [11] Market Data and Key Metrics Changes - The company has only captured approximately 5% of a large and growing Total Addressable Market (TAM), indicating significant growth potential [14][24] - The company expects total revenues for Q2 2022 in the range of $308 million to $310 million, representing approximately 28% growth year-over-year [23] Company Strategy and Development Direction - The company is focused on innovation and expanding its market share, with a strong emphasis on employee usage and self-service technology [9][12] - The company plans to continue investing aggressively in marketing and advertising throughout 2022 to drive growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market demand for their solutions and the success in expanding market share despite macroeconomic uncertainties [24][74] - The company believes that tight labor markets drive the need for efficient technology solutions, which positions them well for continued growth [73] Other Important Information - The company has a deep pipeline of projects and continues to innovate its products to deliver more value to clients [19][64] - Management acknowledged the recent leadership transition and expressed confidence in the new leadership's ability to drive growth [88] Q&A Session Summary Question: Concerns about European market impact - Management noted that their focus is on the domestic market and that they are not significantly affected by European issues, maintaining strong growth despite macro challenges [29] Question: Momentum in different customer segments - Management highlighted success in penetrating the market above the 1,000 employee mark, driven by the deployment of self-service technology [30] Question: Impact of higher interest rates - Management indicated that recent interest rate increases would take time to impact their financials, but they are monitoring the situation closely [31] Question: New office staffing and guidance - All new offices are open and producing revenue, although full maturity takes about two years [33] Question: Competitive landscape and retention rates - Management stated that they are not seeing significant changes in competitor retention rates and remain focused on capturing market share [81] Question: Product innovation and future plans - Management confirmed ongoing product development and enhancements, with a focus on increasing client engagement and satisfaction [64][86] Question: Client employment base stability - Management noted that client employment levels have remained stable, which is crucial for their business growth [67] Question: Salesforce growth and retention - Management reported improved sales retention rates, attributed to better performance and quicker advancement of sales reps [68] Question: Competitive environment and innovation - Management emphasized their leadership in innovation and the importance of continuing to meet employee expectations for technology [102]