Paycom Stock Plunges on Weak Q3 Revenue and Bleak 2024 Outlook
Paycom Software's stock (PAYC) plummeted by 38.5% after reporting a revenue miss for the third quarter and providing weak sales guidance for 2024. The company attributed the weak results to cannibalization of services revenue and acknowledged the challenges it faces in a competitive human capital management market. Paycom's earnings for Q3 were $1.77 per share, up 39% YoY, with revenue increasing by 22% to $406.3 million. However, the company's outlook for 2024 predicts revenue growth of only 10% to 12%, significantly lower than consensus estimates of 21% growth. The disappointing report also affected shares of Paylocity Holding, Paychex, and Workday.