Wed, Sep. 16, 12:50 PM
- Paycom (NYSE:PAYC) is selling 4.5M shares (over 7% of outstanding shares) on behalf of investment firm WCAS, company execs, and other holders at $37.95, 6.5% below yesterday's close. The underwriter (Barclays) has a 675K-share overallotment option.
- The announcement comes after Paycom closed within a dollar of a 52-week high of $41.58.
Wed, Sep. 16, 9:12 AM
Fri, May 15, 12:45 PM
Fri, May 15, 9:13 AM
Thu, May 14, 4:59 PM
- Investment firm WCAS, Paycom (NYSE:PAYC) executive officers, and other shareholders are collectively selling 8M shares (14% of outstanding shares). The offering has been priced in a $36.00-$36.50 range, well below a Thursday close of $39.24.
- Paycom has fallen to $37.34 AH. The offering comes a week after the cloud HR software jumped in response to a Q1 beat and solid guidance.
Fri, Apr. 17, 1:46 PM
- Cloud IT service management software leader ServiceNow is down 14.5% after providing soft guidance (thanks in part to forex) to go with a Q1 beat. Many high-beta enterprise tech names are off sharply amid a 1.5% drop for the Nasdaq.
- In addition to Salesforce and Workday (previous), cloud software firms posting big losses include NetSuite (N -4.8%), Constant Contact (CTCT -3.3%), InContact (SAAS -3.9%), Paycom (PAYC -3.6%), Ultimate Software (ULTI -3.6%), and Textura (TXTR -3.7%). NetSuite reports on April 23, Ultimate Software on April 28, Constant Contact on April 30, and Paycom on May 6.
- Big data/analytics software plays have also been hit hard. Tableau (DATA -6.3%), Splunk (SPLK -5.2%), Hortonworks (HDP -6%), and Varonis (VRNS -4.3%) are all off sharply. Though its growth rates and multiples are similar to those of many analytics software firms, ServiceNow generally isn't seen as an analytics play. This morning, D.A. Davidson launched coverage on Tableau and Splunk at Buy, and Hortonworks at Neutral.
- Tableau, which surged yesterday following bullish Stifel and William Blair coverage launches, reports on May 7. Stifel praised Tableau's "superior product performance and simplified user experience," data discovery market lead, international growth potential (less than 25% of license revenue is from outside of North America), and ability to capitalize on "free demo downloads by front-line information workers evangelizing [Tableau's] product." William Blair stated its survey work "indicates that the perceived value of Tableau exceeds that of other self-service [business intelligence] vendors."
- Pac Crest hiked its Splunk target to $82 yesterday after attending a user conference. "[T]he economic value derived from expanding Splunk implementations ... into new areas like security intelligence, compliance and real-time capacity planning results in cost avoidance that can far overshadow the historical pricing objections to Splunk. This is a significant change in customer behavior and pricing perception ... It was clear that the appetite of existing Splunk users to find new use cases remains fierce..."
Nov. 5, 2014, 12:49 PM
Sep. 19, 2014, 11:23 AM
- SAP (SAP -3.9%) investors have a case of sticker shock after the company agreed to pay $8.3B (to be financed through a credit facility) to buy cloud travel/expense management software leader Concur Technologies. The acquisition price is equal to 9.6x Concur's estimated FY15 (ends Sep. '15) sales.
- On the other hand, enterprise cloud software names are rallying on hopes of fresh deal activity. CRM +1.5%. N +2.7%. NOW +2.6%. PAYC +5%. ULTI +2.2%. JIVE +1.8%. DWRE +1.8%. MKTO +1.7%.
- SAP CEO Bill McDermott proclaims combining Concur's products with Ariba's cloud procurement/B2B marketplace offerings and Fieldglass' cloud labor-management software will help his company redefine "how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment."
- McDermott also praises Concur's corporate travel ecosystem, which includes Hertz, Delta, Expedia, Sabre, and many others, and sees an opportunity to create real-time travel collaboration tools running on SAP's Hana in-memory database. SAP notes only 30% of Concur customers are currently SAP clients, yielding plenty of cross-selling opportunities.
Apr. 15, 2014, 9:53 AM
- After pricing its 6.6M-share IPO at $15 (well below an $18-$20 range), Paycom Software (PAYC) opened at $17.90 and is now at $16.02, up 6.8%.
- The provider of cloud talent management/HR software has an $806M valuation (7.5x trailing sales). It raised $69M by selling 4.6M new shares, and sold another 2M on behalf of existing holders.
- Prospectus, IPO preview
- Previous: Paycom's IPO filing/2013 results
Mar. 19, 2014, 10:53 AM
- Another week, another strong cloud software IPO. After pricing its 7.045M-share IPO at $17 (above an expected range of $14-$16), Paylocity (PCTY) opened at $31 and is currently at $27.40, up 61%.
- The cloud HR/payroll software vendor sports a market cap of $1.34B, or 17x FY13 (ended June '13) sales. Paylocity's first-day showing could bode well cloud HR software firm Paycom's (PAYC) upcoming IPO.
- Prospectus, IPO preview
PAYC vs. ETF Alternatives
Paycom Software Inc is a provider of cloud-based HCM software solution delivered as Software-as-a-Services. It provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement.
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