2024-01-23 20:00:14 ET
Summary
- Paycom Software, Inc. is facing a decrease in revenue due to the success of its new payroll software, Beti, which is reducing billable items.
- The human capital management company expects lower growth rates until the majority of customers transition to the new self-service software.
- Paycom stock trades at a stretched 24x '24 EPS target until the company can convince the market of re-accelerating growth rates.
Paycom Software, Inc. ( PAYC ) has done such a good job that the company is solving too many problems for customers. The payroll software company had to cut numbers due to customers reducing billing for unscheduled events. My investment thesis is Neutral on the stock heading into Q4'23 earnings ( expected post-market on February 7th) due to the risks for additional warnings....
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Paycom: Solving Too Many Problems