Paycom beats quarterly revenue estimates on strong payroll services demand
Oct 30 (Reuters) -Paycom Software PAYC.N beat Wall Street's quarterly revenue estimates on Wednesday due to higher demand for its employee management services in a robust job market.
Shares of the Oklahoma City-based company were up 6.3% in trading after the bell.
Cooling inflation and a strong job market are encouraging businesses to hire more, increasing the demand for workforce management solutions like those from Paycom.
Recently, Paycom has seen a rise in interest in its Beti service, which allows for self-service payroll and automation. In May, the company announced plans to expand Beti into Ireland.
The payroll processor reported revenue of $452 million for the third quarter ended Sept. 30, above analysts' average estimate of $447 million, according to data compiled by LSEG.
Paycom forecast current-quarter revenue in the range of $477 million to $484 million, compared with estimates of $483.1 million.
The company now sees fiscal 2024 revenue between $1.866 billion and $1.873 billion, compared to its prior projection of $1.860 billion to $1.875 billion. Analysts, on average, expect revenue of $1.87 billion.
Paycom's results come after rival Automatic Data Processing ADP.O raised its forecast for fiscal 2025 revenue growth, citing expected benefits from its recent acquisition of management services provider WorkForce Software.
Reporting by Juby Babu in Mexico City; Editing by Mohammed Safi Shamsi
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