Overall, Paycom (PAYC -0.71%) posted a strong first quarter in its most recent earnings report. Fool.com contributor Brian Withers highlights how the company is thriving in this video clip from "3 Minute Stock Updates" on Motley Fool Live, recorded on July 6.
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Brian Withers: Management raised the full-year guidance to 26% year over year and the company is doubling down on something that it calls BETI, B-E-T-I which stands for Better Employee Transaction Interface, which allows the employees of Paycom's customers to make corrections to their own personal data, including like vacation and time-cards, things like that.
In the first year, this has been widely adopted and 10,000 customers have adopted the interface close to 30% of their overall customers. You notice some of the concerns down on the bottom, the macroeconomic environment, and management's commentary on Salesforce (CRM -1.10%). Those were in the earnings slide when we covered earnings for "Backstage Pass."
But when the earnings call came out, Chad Richison provided some commentary on that, which those may not be as big of concerns as maybe originally thought. The CEO and founder mentioned that tight labor markets encouraged companies to automate some processes to improve overall productivity and Paycom, with its BETI interface certainly is one way to do that.
As well Paycom has human resource management modules across the entire life-cycle, including hiring, retention, termination, etc., and it's expanding new offices in new cities and those sales teams are actually generating higher-than-expected results. Pretty positive quarter for the company. You can see the stock has waffled a bit over the coming months but essentially has stayed flat to where it was at the time of earnings so the future looks bright for Paycom.
