Cybersecurity and Data Protection - The company faces significant cybersecurity risks, including potential breaches that could compromise sensitive client data and harm its reputation[111]. - The company’s cybersecurity insurance may be inadequate to cover potential losses from breaches, which could lead to significant liabilities[113]. - Compliance with privacy and data protection laws could result in increased costs and potential fines, impacting the company's financial condition and reputation[157]. - The regulatory framework for privacy issues is rapidly evolving, with numerous state-level consumer privacy laws enacted, including California's CCPA and Virginia's new privacy statute[154][156]. - The California Privacy Rights Act (CPRA) went into effect in 2023, expanding upon the CCPA, and new data privacy statutes are set to take effect in multiple states later this year[156]. Business Operations and Growth - The company operates three fully redundant data centers in Oklahoma and Texas, which are critical for providing its SaaS solutions[115]. - The company is experiencing rapid growth in headcount and operations, which has placed significant demands on management and resources[134]. - The company is expanding its operations internationally, which involves regulatory, economic, and political risks that differ from those in the United States[138]. - The company must continue to expand its sales force to grow its client base and revenues, which may be constrained by the availability of qualified personnel[135]. - The company may pursue acquisitions to enhance its applications and capabilities, but lacks experience in integrating acquired businesses, which could disrupt operations[149]. Competition and Market Position - The company competes with major players in the HCM software market, including Automatic Data Processing, Oracle, and Workday, which may exert pricing pressures[123]. - The company’s annual revenue retention rate is influenced by client satisfaction, pricing, and competition, with fluctuations expected due to various factors[125]. - The company’s ability to innovate and develop new applications is crucial for maintaining competitiveness in a rapidly evolving market[120]. - The company’s applications must continuously adapt to technological changes to remain marketable and competitive[119]. - The company may face challenges in attracting larger clients due to demands for customized features and longer sales cycles[129]. Financial Risks and Conditions - The company maintains a consolidated interest coverage ratio requirement of at least 3.0 to 1.0 and a leverage ratio not exceeding 3.5 to 1.0, which may restrict business operations and financing activities[179]. - The company’s dividend payments are subject to financial results and the availability of statutory surplus, which may lead to changes in its recently adopted dividend policy[194]. - Adverse economic conditions, such as increased unemployment and inflation, could negatively impact the company’s business and financial condition[196]. - The company collects and remits client funds to taxing authorities, and any loss of access to these funds could adversely impact its cash position and results of operations[197]. - A prolonged government shutdown may affect clients' ability to make timely payments, potentially impacting the company's operations and financial condition[198]. Legal and Regulatory Compliance - Changes in laws and regulations could materially affect the company's business, increasing costs and complicating the introduction of new applications[150]. - Regulatory scrutiny regarding anti-money laundering (AML) compliance could limit business activities and result in civil and criminal penalties[161]. - Compliance with employment-related laws and regulations could substantially increase the cost of doing business and expose the company to legal risks[167]. - The background check business is heavily regulated, with compliance costs potentially increasing due to evolving laws, which could adversely affect revenue and profitability[170]. - New "ban the box" and "fair chance" hiring laws may limit the use of criminal history in hiring decisions, impacting demand for background screening services[171]. Intellectual Property and Litigation - The company is dependent on its intellectual property for competitive advantage, and failure to protect these rights could impair its business[142]. - The company is subject to potential litigation regarding intellectual property infringement, which could result in costly legal battles and operational disruptions[144]. Financial Reporting and Accounting - Internal control over financial reporting is crucial; weaknesses could lead to material misstatements and loss of investor confidence[183]. - Changes in accounting principles could significantly affect reported financial results, impacting the interpretation of transactions[188]. - Future financial results may fluctuate significantly due to various uncontrollable factors, making it difficult to predict performance accurately[174]. Market and Investment Risks - The company’s investments are subject to market risk due to changes in interest rates, which may affect future investment income[324]. - A hypothetical increase or decrease in interest rates of 100 basis points would result in an approximately $19.2 million increase or decrease, respectively, in interest earned on funds held for clients over the ensuing 12-month period[325]. - An immediate increase in interest rates of 100 basis points would have resulted in a $0.5 million reduction in the aggregate market value of the company's fixed rate securities as of December 31, 2023[326]. - The company’s available-for-sale securities totaled $198.6 million, primarily consisting of U.S. treasury securities and certificates of deposit[323]. - As of December 31, 2023, the company recorded $51.9 million in goodwill and $50.1 million in other intangible assets, which may be subject to impairment charges affecting financial results[181].

Paycom Software (PAYC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this maker of human-resources and payroll software have returned -3% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Internet - Software industry, to which Paycom belongs, has gained 15.5% over this period. Now the key question is: Where could the stock be headed in ...

Paycom Software, Inc.’s (PAYC) total revenues for recently reported fourth-quarter 2023 results surged 19.4% year over year to $434.6 million and surpassed the Zacks Consensus Estimate of $422.6 million. The robust top-line performance was mainly driven by a 17.4% increase in Recurring revenues.Fourth-quarter Recurring revenues of $427.3 million represented 98.3% of total sales and came ahead of our model estimate of $414.8 million. The company’s sustained focus on expanding its product portfolio and global ...

Paycom Software (PAYC) ended 2023 on a strong note by delivering solid fourth-quarter results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year.The online payroll and human resource technology provider reported non-GAAP earnings of $1.93 per share in the fourth quarter, beating the Zacks Consensus Estimate of $1.78. The bottom line improved 11.56% from $1.73 per share reported in the year-ago quarter.In the fourth quarter of 2023, Paycom reported reven ...

Paycom Software, Inc. (NYSE:PAYC) Q4 2023 Earnings Call Transcript February 7, 2024 5:00 PM ET Company Participants James Samford - Head of IR Chad Richison - President & Co-CEO Chris Thomas - Co-CEO Craig Boelte - CFO Conference Call Participants Raimo Lenschow - Barclays Samad Samana - Jefferies Mark Marcon - Baird Brian Schwartz - Oppenheimer Joshua Reilly - Needham Steve Enders - Citi Kevin Veigh - UBS Siti Panigrahi - Mizuho Jared Levine - TD Cowen Jason Celino - KeyBanc Arvind Ramnani - Piper Sandler ...

Paycom Software (PAYC) came out with quarterly earnings of $1.93 per share, beating the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $1.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.43%. A quarter ago, it was expected that this maker of human-resources and payroll software would post earnings of $1.62 per share when it actually produced earnings of $1.77, delivering a surprise of 9.26%.Over ...

OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (NYSE:PAYC) (“Paycom”), a leading provider of comprehensive, cloud-based human capital management software, announced it will expand its product offerings and geographic reach into the United Kingdom. This latest inroad includes access to Beti®, an industry-first solution that empowers employees to do their own payroll. The U.K. launch will be Paycom’s first foray outside North America and the first new international market in 2024. This expansion fol ...

OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (“Paycom”) (NYSE:PAYC), a leading provider of comprehensive, cloud-based human capital management software, announced today that its Board of Directors declared a cash dividend in the amount of $0.375 per share of common stock, to be paid on March 18, 2024, to all stockholders of record as of the close of business on March 4, 2024. About Paycom For 25 years, Paycom Software, Inc. (NYSE:PAYC) has simplified businesses and the lives of their employees th ...

The market expects Paycom Software (PAYC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numb ...

Paycom Software (PAYC) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this maker of human-resources and payroll software have returned -4.4%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Internet - Software industry, which Paycom falls in, has gained 7.6%. The key question now is: What could b ...