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Cloud HR software vendor Paycom files for $100M IPO

  • Paycom Software, a developer of cloud-based talent management, payroll, and HR management software, has filed for a $100M IPO under the symbol PAYC. Barclays, JPMorgan, Pac Crest, Stifel, and Canaccord are underwriting.
  • Paycom argues its apps are differentiated in part by their ability to leverage an integrated platform that eliminates redundant data entry and the need to access multiple databases.
  • The company claims to have 10K+ clients, with none accounting for more than 0.5% of revenue. Rivals include cloud HR software leader Workday, smaller vendors Cornerstone OnDemand and Ultimate Software, and enterprise software giants SAP and Oracle (both have made acquisitions in this space).
  • Paycom had 2013 revenue of $107.6M (+40% Y/Y), and net income of $5.4M. Sales/marketing spend equaled 40% of revenue, and the company's deferred revenue balance totaled $12.6M at the end of 2013.
  • Given how peers have performed lately, investor interest could be strong.
  • Prospectus
Comments (2)
  • HRIS Guy
    , contributor
    Comments (2) | Send Message
     
    Curious as to whether Workday, Ultimate and Cornerstone actually consider Paycom to be a rival.
    11 Mar, 03:38 PM Reply Like
  • Rchilli
    , contributor
    Comment (1) | Send Message
     
    Looks interesting !
    13 Mar, 08:56 AM Reply Like
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