Business Wire | Aug 4, 2020 04:06PM EDT

Paycom Software, Inc. Reports Second Quarter 2020 Results

Aug. 04, 2020

OKLAHOMA CITY--(BUSINESS WIRE)--Aug. 04, 2020--Paycom Software, Inc. ("Paycom," "we" and "our") (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended June 30, 2020.

"The second quarter was very strong from a new business perspective, which positions Paycom very well to deliver long-term revenue growth and market share gains," said Paycom's founder and CEO, Chad Richison. "We are executing well in these challenging times and demand for our solutions has never been greater. I am very pleased with the performance of our deliberate investments in sales and marketing and product development, which continue to fuel the digital transformation of the Human Capital Management market."

Financial Highlights for the Second Quarter of 2020

Total Revenues of $181.6 million represented a 7% increase compared to total revenues of $169.3 million in the same period last year. Recurring revenues of $178.0 million also increased 7% from the comparable prior year period, and constituted 98% of total revenues.

GAAP Net Income was $28.6 million, or $0.49 per diluted share, compared to GAAP net income of $48.8 million, or $0.83 per diluted share, in the same period last year.

Non-GAAP Net Income1 was $35.9 million, or $0.62 per diluted share, compared to $43.7 million, or $0.75 per diluted share, in the same period last year.

Adjusted EBITDA1 was $61.2 million, compared to $69.4 million in the same period last year.

Cash and Cash Equivalents were $113.5 million as of June 30, 2020, compared to $133.7 million as of December 31, 2019.

Total Debt, Net was $31.8 million as of June 30, 2020, compared to $32.6 million as of December 31, 2019.

1Adjusted EBITDA and non-GAAP net income are non-GAAP financial measures. Please see the discussion below under the heading "Use of Non-GAAP Financial Information" and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.

Financial Outlook

Paycom provides the following expected financial guidance:

Quarter Ending September 30, 2020:

Total Revenues in the range of $191.0 million to $193.0 million.

Adjusted EBITDA in the range of $56.0 million to $58.0 million.

We have not reconciled the forward-looking adjusted EBITDA range presented above and discussed on the teleconference call to net income, nor the forward-looking adjusted EBITDA margin discussed on the teleconference call to net income margin, because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense, change in fair value of our interest rate swap and other items. Accordingly, reconciliations of the forward-looking adjusted EBITDA range to net income and forward-looking adjusted EBITDA margin to net income margin are not available at this time without unreasonable effort.

Impact of the COVID-19 Pandemic

During the second quarter of 2020, we maintained the work-from-home arrangements implemented in March for the safety of our employees, while simultaneously ensuring our clients continued to receive the same level of service they have come to expect from our dedicated, one-on-one customer service model. As of June 30, 2020, 96% of our employees were working remotely. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state or local authorities or that we determine are in the best interests of our employees and clients. Although we currently have some insight with respect to the shorter-term effects of the COVID-19 pandemic to date, it is not possible at this time to estimate the full impact that the crisis could continue to have on our business and results of operations.

* The COVID-19 pandemic has resulted in, and may continue to result in, headcount reductions across our client base. Because we charge our clients on a per-employee basis for certain services we provide, decreased headcount at our clients negatively impacted our recurring revenue in the second quarter of 2020, and we expect that our recurring revenue in future periods will continue to be negatively impacted by such headcount reductions until employment levels among our existing client base return to pre-pandemic levels. * Despite growth in the number of clients in our base, employee headcount reductions at our clients as well as clients electing to defer payment of their share of Social Security taxes under the CARES Act resulted in no growth in our average funds held for clients balance in the second quarter of 2020, relative to the second quarter of 2019. Significantly lower average interest rates in 2020 and, to a lesser extent, the lack of growth of our average funds held for clients balance, had a negative effect on interest earned on funds held for clients and, consequently, recurring revenue growth in the second quarter of 2020. * Our solution allows clients to seamlessly manage and communicate with their remote workforces. In the current work-from-home environment, our clients are recognizing the benefits of our focus on employee usage, as well as the strengths and advantages of our single database solution. * Our salesforce continues to conduct all meetings with current and prospective clients virtually. The shift from in-person to video conference and teleconference sales meetings represents a unique opportunity to meet virtually with a greater number of client prospects in a given day than through in-person meetings.

Use of Non-GAAP Financial Information

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including adjusted EBITDA, non-GAAP net income, adjusted gross profit, adjusted gross margin, adjusted sales and marketing expenses, adjusted total administrative expenses, adjusted research and development expenses and adjusted total research and development costs. Management uses these non-GAAP financial measures as supplemental measures to review and assess the performance of our core business operations and for planning purposes. We define (i) adjusted EBITDA as net income plus interest expense, taxes, depreciation and amortization, non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and the change in fair value of our interest rate swap, (ii) non-GAAP net income as net income plus non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and the change in fair value of our interest rate swap, all of which are adjusted for the effect of income taxes, (iii) adjusted gross profit as gross profit plus applicable non-cash stock-based compensation expense, (iv) adjusted gross margin as gross profit plus applicable non-cash stock-based compensation expense, divided by total revenues, (v) each adjusted expense item as the GAAP expense amount less applicable non-cash stock-based compensation expense, (vi) adjusted total research and development costs as total research and development costs (including the capitalized portion) less applicable non-cash stock-based compensation (including the capitalized portion) and (vii) adjusted EBITDA margin as adjusted EBITDA (calculated as described in clause (i)) divided by total revenues. The non-GAAP financial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its financial and operational decision-making. We believe these metrics are useful to investors because they facilitate comparisons of our core business operations across periods on a consistent basis, as well as comparisons with the results of peer companies, many of which use similar non-GAAP financial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, repurchasing common stock and other purposes. Management believes that the non-GAAP measures presented in this press release and discussed on the related teleconference call, when viewed in combination with our results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our business and performance.

The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for net income, gross profit, gross margin, research and development expenses, sales and marketing expenses, administrative expenses and total research and development costs. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures of other companies and other companies may not calculate such measures in the same manner as we do.

Conference Call Details:

In conjunction with this announcement, Paycom will host a conference call today, August 4, 2020, at 5:00 p.m. Eastern time to discuss its financial results. To access this call, dial (833) 233-4461 (domestic) or (647) 689-4140 (international) and announce Paycom as the conference name to the operator. A live webcast as well as the replay of the conference call will be available on the Investor Relations page of Paycom's website at investors.paycom.com. A replay of this conference call can also be accessed by dialing (800) 585-8367 (domestic) or (416) 621-4642 (international) until August 5, 2020. The replay passcode is 9419044.

About Paycom

As a leader in payroll and HR technology, Oklahoma City-based Paycom redefines the human capital management industry by allowing companies to effectively navigate a rapidly changing business environment. Its cloud-based software solution is based on a core system of record maintained in a single database for all human capital management functions, providing the functionality that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Paycom has the ability to serve businesses of all sizes and in every industry. As one of the leading human capital management providers, Paycom serves clients in all 50 states from offices across the country.

Forward-Looking Statements

Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that refer to Paycom's estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources, dividends and liquidity; trends, opportunities and risks affecting our business, industry and financial results; future expansion or growth plans and potential for future growth; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; our ability to attract and retain qualified employees and key personnel; future regulatory, judicial and legislative changes; how certain factors affecting our performance correlate to improvement or deterioration in the labor market; our plan to open additional sales offices and our ability to effectively execute such plan; the sufficiency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; the timeline for construction of our new Texas operations facility; our plans regarding our capital expenditures and investment activity as our business grows, including with respect to our new Texas operations facility and research and development; our plans to repurchase shares of our common stock through a stock repurchase plan; our expected income tax rate for future periods; and the impact of the novel coronavirus (COVID-19) pandemic on our business, results of operations, cash flows, financial condition and liquidity. In addition, forward-looking statements also consist of statements involving trend analyses and statements including such words as "anticipate," "believe," "could," "expect," "intend," "may," "might," "plan," "potential," "should," "will," "would," and similar expressions or the negative of such terms or other comparable terminology. These forward-looking statements speak only as of the date hereof and are subject to business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements as a result of the factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those discussed in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. We do not undertake any obligation to update or revise the forward-looking statements to reflect events or circumstances that exist after the date on which such statements were made, except to the extent required by law.

Paycom Software, Inc.

Unaudited Consolidated Balance Sheets

(in thousands, except per share amounts)

June 30, 2020 December 31, 2019

Assets

Current assets:

Cash and cash equivalents $ 113,518 $ 133,667

Accounts receivable 9,295 9,298

Prepaid expenses 24,987 13,561

Inventory 1,376 1,158

Income tax receivable 4,324 4,020

Deferred contract costs 53,023 46,618

Current assets before funds held for clients 206,523 208,322

Funds held for clients 1,033,535 1,662,778

Total current assets 1,240,058 1,871,100

Property and equipment, net 266,831 238,458

Goodwill 51,889 51,889

Long-term deferred contract costs 328,380 292,134

Other assets 34,342 33,336

Total assets $ 1,921,500 $ 2,486,917

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 3,667 $ 5,051

Accrued commissions and bonuses 6,539 12,343

Accrued payroll and vacation 18,949 14,870

Deferred revenue 12,273 11,105

Current portion of long-term debt 1,775 1,775

Accrued expenses and other current 40,513 45,600 liabilities

Current liabilities before client funds 83,716 90,744 obligation

Client funds obligation 1,033,535 1,662,778

Total current liabilities 1,117,251 1,753,522

Deferred income tax liabilities, net 98,536 91,217

Long-term deferred revenue 68,614 65,139

Net long-term debt, less current portion 29,989 30,858

Other long-term liabilities 21,257 19,553

Total long-term liabilities 218,396 206,767

Total liabilities 1,335,647 1,960,289

Commitments and contingencies

Stockholders' equity:

Common stock, $0.01 par value (100,000 sharesauthorized, 61,613 and 61,350 shares issuedat June 30, 2020 and December 31, 2019, 616 613 respectively; 57,588 and 57,660 sharesoutstanding at June 30, 2020 and December 31,2019, respectively)

Additional paid-in capital 300,408 257,501

Retained earnings 667,770 576,166

Treasury stock, at cost (4,025 and 3,689shares at June 30, 2020 and December 31, (382,941 ) (307,652 )2019, respectively)

Total stockholders' equity 585,853 526,628

Total liabilities and stockholders' equity $ 1,921,500 $ 2,486,917

Paycom Software, Inc.

Unaudited Consolidated Statements of Income

(in thousands, except per share amounts)

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Revenues

Recurring $ 177,950 $ 165,998 $ 416,445 $ 362,862

Implementation and other 3,637 3,315 7,510 6,394

Total revenues 181,587 169,313 423,955 369,256

Cost of revenues

Operating expenses 23,257 20,289 47,373 45,065

Depreciation and 6,301 4,950 12,231 9,492 amortization

Total cost of revenues 29,558 25,239 59,604 54,557

Administrative expenses

Sales and marketing 56,064 41,575 111,082 81,220

Research and development 21,778 16,775 43,399 35,264

General and administrative 40,837 27,460 80,971 72,658

Depreciation and 6,774 5,378 13,059 10,183 amortization

Total administrative 125,453 91,188 248,511 199,325 expenses

Total operating expenses 155,011 116,427 308,115 253,882

Operating income 26,576 52,886 115,840 115,374

Interest expense (3 ) (258 ) (19 ) (534 )

Other income (expense), 162 (263 ) (768 ) (363 )net

Income before income taxes 26,735 52,365 115,053 114,477

Provision for income taxes (1,854 ) 3,603 23,449 18,433

Net income $ 28,589 $ 48,762 $ 91,604 $ 96,044

Earnings per share, basic $ 0.50 $ 0.85 $ 1.59 $ 1.67

Earnings per share, $ 0.49 $ 0.83 $ 1.57 $ 1.64 diluted

Weighted average shares outstanding:

Basic 57,568 57,569 57,611 57,464

Diluted 58,237 58,410 58,363 58,396

Paycom Software, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

Six Months Ended June 30,

2020 2019

Cash flows from operating activities

Net income $ 91,604 $ 96,044

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 25,290 19,675

Accretion of discount on available-for-sale (974 ) (367 )securities

Amortization of debt issuance costs 19 17

Stock-based compensation expense 37,029 36,668

Cash paid for derivative settlement (233 ) (3 )

Loss on derivative 1,939 1,376

Deferred income taxes, net 7,319 9,436

Changes in operating assets and liabilities:

Accounts receivable 3 564

Prepaid expenses (11,426 ) (3,607 )

Inventory (433 ) (248 )

Other assets (1,113 ) (2,479 )

Deferred contract costs (40,488 ) (37,591 )

Accounts payable (1,017 ) (1,284 )

Income taxes, net (304 ) (6,654 )

Accrued commissions and bonuses (5,804 ) (2,771 )

Accrued payroll and vacation 4,079 819

Deferred revenue 4,643 5,353

Accrued expenses and other current liabilities (2,621 ) 7,820

Net cash provided by operating activities 107,512 122,768

Cash flows from investing activities

Purchase of short-term investments from funds (207,878 ) (46,425 )held for clients

Proceeds from maturities of short-term 70,343 34,200 investments from funds held for clients

Purchases of property and equipment (52,458 ) (34,705 )

Net cash used in investing activities (189,993 ) (46,930 )

Cash flows from financing activities

Repurchases of common stock (52,040 ) -

Withholding taxes paid related to net share (23,249 ) (38,429 )settlements

Payments on long-term debt (888 ) (888 )

Net change in client funds obligation (629,243 ) 159,021

Payment of debt issuance costs - (16 )

Net cash (used in) provided by financing (705,420 ) 119,688 activities

(Decrease) increase in cash, cash equivalents, (787,901 ) 195,526 restricted cash and restricted cash equivalents

Cash, cash equivalents, restricted cash and restricted cash equivalents

Cash, cash equivalents, restricted cash andrestricted cash equivalents, beginning of 1,641,854 986,464 period

Cash, cash equivalents, restricted cash and $ 853,953 $ 1,181,990 restricted cash equivalents, end of period

Six Months Ended June 30,

2020 2019

Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents

Cash and cash equivalents $ 113,518 $ 94,814

Restricted cash included in funds held for 740,435 1,087,176 clients

Total cash, cash equivalents, restricted cash and $ 853,953 $ 1,181,990 restricted cash equivalents, end of period



Supplemental disclosures of cash flow information:

Non-cash investing and financing activities:

Purchases of property and equipment, accrued but $ 4,832 $ 1,967 not paid

Stock-based compensation for capitalized software $ 3,718 $ 3,953

Right of use assets obtained in exchange for $ 5,124 $ 7,966 operating lease liabilities

Paycom Software, Inc.

Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures

(in thousands, except per share amounts)

Three Months Ended Six Months Ended June June 30, 30,

2020 2019 2020 2019

Net income to adjusted EBITDA:

Net income $ 28,589 $ 48,762 $ 91,604 $ 96,044

Interest expense 3 258 19 534

Provision for income taxes (1,854 ) 3,603 23,449 18,433

Depreciation and 13,075 10,328 25,290 19,675 amortization

EBITDA 39,813 62,951 140,362 134,686

Non-cash stock-based 21,218 5,597 37,029 36,668 compensation expense

Change in fair value of 131 833 1,706 1,372 interest rate swap

Adjusted EBITDA $ 61,162 $ 69,381 $ 179,097 $ 172,726

Net income margin 15.7 % 28.8 % 21.6 % 26.0 %

Adjusted EBITDA margin 33.7 % 41.0 % 42.2 % 46.8 %

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Net income to non-GAAP net income:

Net income $ 28,589 $ 48,762 $ 91,604 $ 96,044

Non-cash stock-based 21,218 5,597 37,029 36,668 compensation expense

Change in fair value of 131 833 1,706 1,372 interest rate swap

Income tax effect on (13,997 ) (11,457 ) (16,470 ) (21,099 )non-GAAP adjustments

Non-GAAP net income $ 35,941 $ 43,735 $ 113,869 $ 112,985

Earnings per share, $ 0.50 $ 0.85 $ 1.59 $ 1.67 basic

Earnings per share, $ 0.49 $ 0.83 $ 1.57 $ 1.64 diluted

Non-GAAP net income per $ 0.62 $ 0.76 $ 1.98 $ 1.97 share, basic

Non-GAAP net income per $ 0.62 $ 0.75 $ 1.95 $ 1.93 share, diluted

Weighted average shares outstanding:

Basic 57,568 57,569 57,611 57,464

Diluted 58,237 58,410 58,363 58,396

Three Months Ended Six Months Ended June 30, June 30,

2020 2019 2020 2019

Earnings per share to non-GAAP net income per share, basic:

Earnings per share, basic $ 0.50 $ 0.85 $ 1.59 $ 1.67

Non-cash stock-based 0.37 0.10 0.64 0.64 compensation expense

Change in fair value of - 0.01 0.03 0.02 interest rate swap

Income tax effect on non-GAAP (0.25 ) (0.20 ) (0.28 ) (0.36 ) adjustments

Non-GAAP net income per share, $ 0.62 $ 0.76 $ 1.98 $ 1.97 basic



Three Months Ended Six Months Ended June 30, June 30,

2020 2019 2020 2019

Earnings per share to non-GAAP net income per share, diluted:

Earnings per share, diluted $ 0.49 $ 0.83 $ 1.57 $ 1.64

Non-cash stock-based 0.36 0.10 0.63 0.63 compensation expense

Change in fair value of interest - 0.01 0.03 0.02 rate swap

Income tax effect on non-GAAP (0.23 ) (0.19 ) (0.28 ) (0.36 )adjustments

Non-GAAP net income per share, $ 0.62 $ 0.75 $ 1.95 $ 1.93 diluted

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Adjusted gross profit:

Total revenues $ 181,587 $ 169,313 $ 423,955 $ 369,256

Less: Total cost of (29,558 ) (25,239 ) (59,604 ) (54,557 )revenues

Total gross profit 152,029 144,074 364,351 314,699

Plus: Non-cashstock-based compensation 1,733 309 2,931 3,205 expense

Total adjusted gross $ 153,762 $ 144,383 $ 367,282 $ 317,904 profit

Gross margin 83.7 % 85.1 % 85.9 % 85.2 %

Adjusted gross margin 84.7 % 85.3 % 86.6 % 86.1 %

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Adjusted sales and marketing expenses:

Sales and marketing $ 56,064 $ 41,575 $ 111,082 $ 81,220 expenses

Less: Non-cashstock-based (3,801 ) (2,526 ) (6,966 ) (5,109 )compensation expense

Adjusted sales and $ 52,263 $ 39,049 $ 104,116 $ 76,111 marketing expenses



Total revenues $ 181,587 $ 169,313 $ 423,955 $ 369,256

Sales and marketingexpenses as a % of 30.9 % 24.6 % 26.2 % 22.0 %revenues

Adjusted sales andmarketing expenses as a 28.8 % 23.1 % 24.6 % 20.6 %% of revenues

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Adjusted totaladministrative expenses:

Total administrative $ 125,453 $ 91,188 $ 248,511 $ 199,325 expenses

Less: Non-cashstock-based (19,485 ) (5,288 ) (34,098 ) (33,463 )compensation expense

Adjusted total $ 105,968 $ 85,900 $ 214,413 $ 165,862 administrative expenses



Total revenues $ 181,587 $ 169,313 $ 423,955 $ 369,256

Total administrativeexpenses as a % of 69.1 % 53.9 % 58.6 % 54.0 %revenues

Adjusted totaladministrative expenses 58.4 % 50.7 % 50.6 % 44.9 %as a % of revenues

Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Adjusted research and development expenses:

Research and $ 21,778 $ 16,775 $ 43,399 $ 35,264 development expenses

Less: Non-cashstock-based (2,984 ) (505 ) (5,155 ) (3,551 )compensation expense

Adjusted research and $ 18,794 $ 16,270 $ 38,244 $ 31,713 development expenses



Total revenues $ 181,587 $ 169,313 $ 423,955 $ 369,256

Research anddevelopment expenses as 12.0 % 9.9 % 10.2 % 9.6 %a % of revenues

Adjusted research anddevelopment expenses as 10.3 % 9.6 % 9.0 % 8.6 %a % of revenues



Three Months Ended June Six Months Ended June 30, 30,

2020 2019 2020 2019

Total research and development costs:

Capitalized research $ 10,975 $ 6,697 $ 20,721 $ 15,637 and development costs

Research and 21,778 16,775 43,399 35,264 development expenses

Total research and $ 32,753 $ 23,472 $ 64,120 $ 50,901 development costs



Total revenues $ 181,587 $ 169,313 $ 423,955 $ 369,256

Total research anddevelopment costs as a 18.0 % 13.9 % 15.1 % 13.8 %% of revenues



Adjusted total research and development costs:

Total research and $ 32,753 $ 23,472 $ 64,120 $ 50,901 development costs

Less: Capitalizednon-cash stock-based (2,117 ) (624 ) (3,718 ) (3,953 )compensation

Less: Non-cashstock-based (2,984 ) (505 ) (5,155 ) (3,551 )compensation expense

Adjusted total research $ 27,652 $ 22,343 $ 55,247 $ 43,397 and development costs



Total revenues $ 181,587 $ 169,313 $ 423,955 $ 369,256

Adjusted total researchand development costs 15.2 % 13.2 % 13.0 % 11.8 %as a % of revenues



Paycom Software, Inc.

Unaudited Components of Non-Cash Stock-Based Compensation Expense

(in thousands)

Three Months Ended Six Months Ended June June 30, 30,

2020 2019 2020 2019

Non-cash stock-based compensation expense:

Operating expenses $ 1,733 $ 309 $ 2,931 $ 3,205

Sales and marketing 3,801 2,526 6,966 5,109

Research and development 2,984 505 5,155 3,551

General and administrative 12,700 2,257 21,977 24,803

Total non-cash stock-based $ 21,218 $ 5,597 $ 37,029 $ 36,668 compensation expense



View source version on businesswire.com: https://www.businesswire.com/news/home/20200804005920/en/

CONTACT: Paycom Software, Inc. Investor Relations Contact: James Samford, 800-580-4505 investors@paycom.com