Shares of Paycom Software, Inc (NYSE:PAYC), a provider of human capital management software, jumped 16% as of 10:45 a.m. EDT on Wednesday. Investors can credit the gain to the release of better-than-expected earnings.
Here's a look at the key numbers from the company's second-quarter:
- Revenue jumped 31% to $128.8 million. This figure was above the top end of management's guidance range. It was also comfortably ahead of the $124.3 million that Wall Street had predicted.
- Margin improvements and stock buybacks allowed earnings per share to surge 69% to $0.59. That was far ahead of the $0.48 that analysts were expecting.
Management also shared bullish guidance for the third quarter:
- Revenue is expected to land between $129 million and $131 million. This represents growth of 28% at the midpoint. It's also comfortably ahead of the $127.4 million that Wall Street was expecting.
- Adjusted EBITDA is expected to come in between $45.5 million and $47.5 million. This represents growth of 52%.
If all of that wasn't enough, the company also boosted its full-year revenue guidance by $9 million and increased its full-year adjusted EBITDA guidance by $18 million.
Here's a look at what these updated numbers imply for the full year:
|Metric||2018 Updated Guidance||2017 Actual||Change at Midpoint|
|Revenue||$554 million to $556 million||$433 million||28%|
|Adjusted EBITDA||$231 million to $233 million||$137 million||69%|
Overall, it was a flawless report, so it's no surprise to see shares popping today in response.
Paycom's results continue to provide that its all-encompassing human capital management solution is winning over customers left and right. With plenty of room left for expansion and a winning business model in place, this happy shareholder is smiling from ear-to-ear today.