On this page of StockholderLetter.com we present the latest annual shareholder letter from Paycom Software, Inc. — ticker symbol PAYC. Reading current and past PAYC letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2025 Letter Continued (Full PDF)
 •  3/28/2023 PAYC Stockholder Letter
 •  3/28/2024 PAYC Stockholder Letter
 •  More "Application Software" Category Stockholder Letters
 •  PAYC Benford's Law Stock Score = 80

PAYC Shareholder/Stockholder Letter Transcript:

RECOGNIZED AS ONE OF THE
WORLD   S BEST COMPANIES
BY TIME, PAYCOM CONTINUES
TO SHAPE THE FUTURE.
Our comprehensive human capital management technology
transforms businesses through a single, easy-to-use software.
Every part of our cloud-based tech is built to simplify
employees    lives, one streamlined, automated payroll
and HR task at a time. With full adoption of Paycom,
every level of an organization benefits, from the
front-line worker to the C-suite executive.
   Employees gain autonomy as they are empowered to take
responsibility for their data.
   Relieved of that administrative burden, HR professionals
experience a shift from menial to meaningful duties, like
empowering employees.
   Employers enjoy more efficiency, maximize ROI and
save resources.
Paycom allows employees to effortlessly onboard,
train, enroll in benefits, verify payroll and track their
development anytime, anywhere     all in the Paycom app.
Since our inception in 1998, payroll has served as our
software   s core. And today, what puts us above our
competitors is how we have reshaped payroll with Beti  ,
our industry-first automated payroll experience.
Beti self-starts each period, pulling live data that affects
employee pay. Then, it automatically finds errors and
guides employees to fix them before payroll submission.
The employee gains confidence knowing their check will
be 100% correct, saving HR from costly corrections that
otherwise divert time from more meaningful tasks.
And with GONE  , a revolutionary enhancement to our
Time-Off Requests tool, organizations can set a variety
of time-off decision-making criteria for timely resolutions
that abide by company policies and meet departmental
needs. Automating the historically undermanaged
time-off request process creates a more efficient
and empowering practice for everyone involved.
When companies provide the tools today   s workforce
expects, they earn employees    trust and gain a vital
competitive edge. As more organizations realize
the power of employees using HR and payroll tech,
we remain focused on innovating to meet businesses   
evolving needs.
Learn more at paycom.com.

ANNUAL REVENUE
22%
2 0 2 1-2 0 24 C OM P O U N D
A N N UA L G R O W TH R ATE
JAN . 1, 2021 THR OUG H D E C . 31, 2 024
2024
2023
$1.694 B
2022
$1.375 B
$1.883 B

2024 HIGHLIGHTS
R E TU R NS TO
STO CK H O L DE R S
$229
MILLION+
ADJ USTED
E BITDA MARGIN
41%
(through dividends and stock repurchases)
A DJ USTED EBIT DA
$775
F R E E CAS H F LO W
$337
MILLION
MILLION
In 2024, net cash provided by
operating activities was $534
million. For a reconciliation of
net cash provided by operating
activities to free cash flow,
see the last page of this report.
In 2024, net income was $502 million and net
income margin was 27%. For a reconciliation
of net income to adjusted EBITDA, see Item
7,    Management   s Discussion and Analysis of
Financial Condition and Results of Operations   
Non-GAAP Financial Measures    in the
accompanying Form 10-K.
STRONG
BAL ANCE
S HEET
$0
DEBT
$402
MILLION CASH
(as of 12/31/24)

FELLOW STOCKHOLDERS,
We remained focused on providing world-class service to our
clients, solidifying client ROI achievement and deepening our
automation capabilities through product innovation in 2024.
Because of these priorities, combined with solid organic sales
growth and operational efficiency gains, we saw our performance
strengthen throughout the year. I   m very pleased with the progress
we are making on our client-focused initiatives that are resonating
across our client base and fueling our momentum into 2025.
The results are notable: robust revenue growth, high profit margins
and strong free cash flow. Our single software remains the industry
leader as we continue to automate tasks for our user buyers, while
making the employee experience even stronger.
Financial highlights
   Revenue increased to $1.88 billion, representing
11% year-over-year organic growth.
   GAAP net income was $502 million, representing
27% of total revenues.
   Adjusted EBITDA increased to $775 million,
representing a full-year margin of 41%.*
   We maintained our revenue retention rate of 90%,
which is consistent with 2023.
   Our balance sheet is very strong, including cash
and cash equivalents of $402 million and zero debt.
   Our compound annual growth rate was 22%   
from Jan. 1, 2021, through Dec. 31, 2024.
In 2024, we returned even more value to stockholders,
repurchasing over $144 million worth of our shares
and paying quarterly dividends totaling $1.50 per
share for the year, or more than $84 million in the
aggregate. During 2023 and 2024, we repurchased
over 2.4 million shares, or about 4% of shares
outstanding, for approximately $445 million.   
We had approximately $1.48 billion remaining under
our buyback authorization as of Dec. 31, 2024.
*In 2024, net income was $502 million and net income margin was
27%. For a reconciliation of net income to adjusted EBITDA, see Item
7    Management   s Discussion and Analysis of Financial Condition
and Results of Operations   Non-GAAP Financial Measures,    in the
accompanying Form 10-K.



 4/3/2025 Letter Continued (Full PDF)