Why Paycom Software Inc (NYSE: PAYC) stock is under pressure

Free $100 Forex No-Deposit Bonus

Paycom Software Inc (NYSE: PAYC) stock fell over 5% in the pre-market session of Feb 6th, 2020 (as of 7:44 am GMT-5 ; Source: Google finance)  post the fourth quarter of FY 19. The company has ended the year with cash and cash equivalents of $134 million and total debt of $33 million. This debt was taken due to a financing of construction at the corporate headquarters. The company has generated the cash from operations of $47.8 million for the fourth quarter.

The company has reported the Non-GAAP net income for the fourth quarter of 2019 of $50.5 million versus $35.4 million in the prior year period.

PAYC in the fourth quarter of FY 19 has reported the adjusted earnings per share of 86 cents, while adjusted revenue growth of 29 percent to $193.41 million in the fourth quarter of FY 19. Within total revenues, recurring revenue was $190.2 million for the fourth quarter of 2019, which represents 98% of total revenues for the quarter and growing 28.5% from the comparable prior year period.

The company has posted the total adjusted gross profit for the fourth quarter of $165 million, which represents an adjusted gross margin of 85.3%, had expanded 100 basis points, compared to the prior year period. The company delivered the adjusted EBITDA of $78.6 million in the fourth quarter of 2019 or 40.6% of total revenues, compared to $57.5 million in the fourth quarter of 2018 or 38.2% of total revenues.

For 2020, the company’s target adjusted gross margin range is expected to remain strong at 85% to 86%. For fiscal year 2020, the company expects revenue to be in the range of $911 million to $913 million or approximately 24% year-over-year growth at the midpoint of the range. The company expects the adjusted EBITDA to be in the range of $384 million to $386 million, which represents an adjusted EBITDA margin of approximately 42% at the midpoint of the range. For the first quarter of 2020, the company expects the total revenues to be in the range of $240 million to $242 million, representing a growth rate over the comparable prior year period of approximately 21% at the midpoint of the range.

The company expects adjusted EBITDA for the first quarter to be in the range of $113 million to $115 million, representing an adjusted EBITDA margin of approximately 47% at the midpoint of the range.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.