Paycom Software Inc. shares were set to shed nearly a third of their value, based on Tuesday’s after-hours action, as the company, which makes payroll and human-resources software, came up short with its outlook.
Further, Paycom expects 10% to 12% revenue growth in 2024. Analysts had previously been modeling a 21% rise.“Our guidance for the next 15 months assumes the impact from the strategic revenue decisions we are and will be making,” Chief Financial Officer Craig Boelte said on the earnings call, calling the initial 2024 expectations “prudent.”
Jefferies analyst Samad Samana titled his initial note to clients, “Everyone’s Shell-Shocked, Not Just You,” though he stuck with a buy rating. Paycom’s third-quarter revenue clocked in at $406.3 million, above the $334.2 million that the company recorded a year before. The FactSet consensus was for $411.2 million.