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Paycom stock slips after Q2 earnings beat, but Q3 guidance disappoints

Aug. 01, 2023 4:15 PM ETPaycom Software, Inc. (PAYC)By: Liz Kiesche, SA News Editor23 Comments
Finance and money technology background concept of business prosperity and asset

Ralf Hahn

Paycom Software (NYSE:PAYC) stock fell 5.6% in Tuesday after-hours trading after it indicated Q3 revenue and adjusted EBITDA could fall below the Wall Street consensus.

Q3 revenue is expected to be $410M-$412M vs. $412.0M consensus with adjusted EBITDA of $156M-$158M, vs. Visible Alpha consensus of $156.7M.

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Comments (23)

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I am 99.99999% confidence this stock will be $600 by 2025....
@Buy_stock_goes_lower I’m long as well but a $600 price tag is way beyond my expectations
If we have recession and people lose jobs it will be very bad for the company. Cutting guidance, what does that say to you?
@ding dong Maybe you are right... It can go down to $200. But don't sell it when it goes it down.
Seems like an over-reaction. Very sticky recurring revenue business model and still growing well above the market organically. Highly profitable and plenty of Free Cash Flow. The only thing I can see is it looks like they are building cash potentially in preparation of doing a bif acquisition. Might be worth picking up some PCTY just in case
How on earth this has traded at a 20B market cap with less than 500m in profit is baffling
@monster94 First: it is quarterly revenue. Second: the company is low in debt and still a strong grower. Currently people are going crazy on companies who are not even making money and who are high in debt… in my opinion the valuation is not cheap but ok for such a high performing company.
@Nstone384 Firstly I do mean profit. As the net profit is around 400M. Revenue growth is good, but it does not justify such a massive premium. If you think it’s a good investment, the dip is here!
@monster94 I added more to my position so yes, I got my dip.
another swath of chasers properly burned.
Solid. The more it drops, the more I buy. It is the future dividend growth stock :-)
@Senopta same here. I bought an entry position in May and the stock price ran away. Today was the day to buy again. Still thinking about buying even more but the price most likely won‘t run like it did. in June and July
Looks like a modest beat with in line guidance
@rammbler65 Exactly. I guess the hope was potential upside with raised guidance. That idea is out the window.
James Melvin profile picture
Consistent 20+% grower. Buy and hold compounder at its best in a boring industry
Confoundedinterest profile picture
Hoping for a drop back into the $200’s, would love to add further.
Guidance was closer to being in-line than anything. Good quarter, long term winner, might take a little breather.

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