Paycom Software Inc (NYSE: PAYC) stock lost over 1.4% on May 1st, 2019 (As of 11:14 am GMT-4; Source: Google finance) despite a decent performance
Non-GAAP net income for the first quarter of 2019 was $69.3 million based on approximately 58 million shares versus $55.8 million in the prior year period. PAYC ended the quarter with cash and cash equivalent of $91.3 million and total debt of $34 million.
PAYC in the first quarter of FY 19 has reported the adjusted earnings per share of $1.19, and adjusted revenue growth of 30 percent to $199.9 million in the first quarter of FY 19.
The revenue growth is primarily driven by new business wins. Within total revenues, recurring revenue was a $196.9 million for the first quarter of 2019, which represents 98% of total revenues for the first quarter and growing 30% from the comparable prior year period.
The company reported the total adjusted gross profit for the first quarter of $173.5 million, which means an adjusted gross margin of 87%. Total adjusted administrative expenses were $80 million for the quarter as compared to $58.7 million in the first quarter of 2018. Adjusted sales and marketing expense for the first quarter of 2019 was of $37.1 million as compared to $30.4 million in the first quarter of 2018. Adjusted EBITDA was $103.3 million or 52% of total revenues in the first quarter of 2019 compared to $80.7 million or 52% of total revenues in the first quarter of 2018.
During the first quarter, PAYC had released the new direct data exchange for all Paycom clients, which is a highly differentiated enhancement to the overall software offering. It’s a first-of-its-kind solution within the HCM industry that measures the efficiency of the data collection process. Further, in early April, PAYC broke ground on the new Operations Center in Grapevine, Texas.
For the second quarter of 2019, PAYC expect total revenues to be in the range of $162.5 million to $164.5 million.
For the full year 2019, PAYC anticipate that the adjusted gross margin will be within a range of 83% to 85%. For fiscal 2019, PAYC has raised the revenue guidance to a range of $718 million to $720 million.