Shares of software-as-a-service provider Paycom Software (NYSE:PAYC) were up by more than 10% on Wednesday after reporting second-quarter earnings that beat analysts' expectations. As of 3:01 p.m. EDT, the stock was up 10.7%.
Paycom released its Q2 results after the closing bell Tuesday. Earnings per share came in at $0.97, which was better than the $0.83 analysts had been expecting.
Revenue rose 33.3% year over year to $242 million for the quarter. The SaaS company, which provides payroll software and human capital management (HCM) solutions for businesses, has been getting a nice boost from the U.S. economic recovery. The more that hiring and employment numbers pick up, the more demand there will likely be for Paycom's services.
Investors were probably also happy that Paycom raised its full-year revenue guidance to a range of $1.036 billion to $1.038 billion. At the end of last quarter, management was guiding for $1.017 billion to $1.019 billion in 2021 revenue.
Paycom Software has been a wonderful stock to own over the last five years -- it's up more than 600% during that time span. If the company keeps putting up strong results like these, investors can expect the stock price's upward trend to continue.