Needham Reiterates Hold Rating on Paycom Software (PAYC)

Needham analyst Joshua Reilly reiterated a Hold rating on Paycom Software (NYSE: PAYC).

The analyst commented: "Paycom reported solid Q4 results with a stronger revenue beat than recent quarters at 280 bps versus the mid-point of guidance. The company issued 2025 guidance in-line with our estimates for revenue and above on EBITDA, but below consensus on revenue as not enough analysts updated their estimates following management's public comments about 2025 at a recent investor conference. We believe investors were broadly aware of management's comments, and the in-line guidance with commentary will actually be viewed favorably including gross revenue retention of 90%, flat Y/Y, and likely set for improvement as discussed below. We believe Paycom is set for improved trends in 2H/25, and Q1/25 represents a low for recurring growth in the current cycle. We continue to monitor churn, but are incrementally positive following solid sales execution."

For an analyst ratings summary and ratings history on Paycom Software click here. For more ratings news on Paycom Software click here.

Shares of Paycom Software closed at $207.05 yesterday.

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