Paycom Software Inc

PAYC: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$618.00	Lhgqdvw	Hnxtdbzbz

Paycom Earnings: Solid New Sales Momentum Offset by Continuing Revenue Cannibalization Woes

Emma Williams

Aug 1, 2024

Narrow-moat Paycom reported healthy second-quarter 2024 results that surpassed our top line and profitability expectations. The payroll and HCM software firm encouragingly reported new-sales momentum, pointing to a healthy demand environment, offset by persistent revenue cannibalization headwinds and slow conversion of remaining customers to the firm’s flagship self-service payroll solution, Beti. Amid these challenges, Paycom continues to invest in broadening the suite of automation-led modules, while pulling back on prior ambitions of converting every customer to Beti.

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