Paycom Software, Inc. is a leading provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as Software-as-a-Service (SaaS). Their solution manages the entire employment lifecycle, from recruitment to retirement, using a core system of record in a single database. This allows for easy adoption by employees, enabling self-management of their HCM activities and reducing administrative burdens on employers. The company's primary revenue stream comes from its payroll applications, though it offers a suite of other HR-related applications. Paycom sells its solution directly through an internal sales force based in offices across the United States. They have approximately 36,800 clients, with a high client retention rate.

• Employees: 7,308 (as of December 31, 2023)
• Geographic Footprint: Offices across the United States, with some international expansion
• Headquarters: Oklahoma City, Oklahoma
• Founded: 1998
• Number of locations/facilities: Three secure data center facilities in Oklahoma and Texas, and 28 leased offices
• Revenue: $1.69 billion (FY2023)
• Market Capitalization: $16.6 billion (as of June 30, 2023, for non-affiliates)
• Key Subsidiaries/Brands: Paycom Payroll, LLC

• CEO: Chad Richison (Co-Chief Executive Officer and President)
• CEO: Christopher G. Thomas (Co-Chief Executive Officer)
• CFO: Craig E. Boelte (Chief Financial Officer)

Chad Richison founded Paycom in 1998. Christopher G. Thomas was appointed Co-Chief Executive Officer on February 7, 2024. Craig E. Boelte has been CFO since 2005.

• Annual Revenue: $1.69 billion (FY2023)
• Net Income: $340.8 million (FY2023)
• Market Cap: $16.6 billion (as of June 30, 2023, for non-affiliates)
• Total Assets: $4.2 billion (as of December 31, 2023)
• Employees: 7,308 (as of December 31, 2023)
• Key Financial Highlights: Revenue increased 23.2% year-over-year; Net income increased 21.1% year-over-year.

Paycom offers a comprehensive suite of HCM applications, including:

• Talent Acquisition: Applicant Tracking, Candidate Tracker, Enhanced Background Checks, Onboarding, E-Verify, and Tax Credits.
• Time and Labor Management: Time and Attendance, Scheduling, Time-Off Requests with GONE, Labor Allocation, Labor Management Reports/Push Reporting, Geofencing/Geotracking, and Microfence.
• Payroll: Beti, Payroll and Tax Management, Vault, Everyday, Paycom Pay, Client Action Center, Expense Management, Mileage Tracker/FAVR, Garnishment Administration, and GL Concierge.
• Talent Management: Employee Self-Service, Compensation Budgeting, Performance Management, Position Management, My Analytics, and Paycom Learning.
• HR Management: Manager on-the-Go, Direct Data Exchange, Ask Here, Documents and Checklists, Government and Compliance, Benefits Administration/Benefits to Carrier, Benefit Enrollment Service, COBRA Administration, Personnel Action Forms and Performance Discussion Forms, Surveys, Enhanced ACA and Clue.

Paycom's payroll application is the foundation of their solution, and all clients are required to utilize this application to access other applications.

Paycom operates in a single operating and reporting segment, providing a cloud-based human capital management solution. The company does not break down revenue by specific application, as they are often sold in various groupings and configurations for a single price.

Paycom's strategy is focused on establishing its solution as the HCM industry standard by increasing its presence in existing markets and expanding into additional markets. Key strategic initiatives include:

• Increasing domestic sales capacity.
• Expanding into additional international markets.
• Targeting larger clients.
• Capturing small business demand.
• Strengthening and extending their solution through continuous innovation and development of new applications and features.

The company also focuses on maintaining high levels of client satisfaction and retention through personalized support and continuous improvements to their platform.

Paycom operates in the highly competitive HCM solutions market. Key aspects of the competitive landscape include:

• Market Position: Leading provider of cloud-based HCM solutions.
• Key Competitors: Automatic Data Processing, Inc., Cornerstone OnDemand, Inc., Dayforce, Inc., Gusto, Inc., Intuit, Inc., Insperity, Inc., Oracle Corporation, Paychex, Inc., Paylocity Holding Corporation, Paycor HCM, Inc., People Center, Inc. d/b/a Rippling, SAP SE, ServiceNow, Inc., Ultimate Kronos Group, Workday, Inc., and other international, national, regional, and local providers.
• Industry Trends: The market is rapidly evolving with new technologies, shifting client needs, and frequent introductions of new products and services. Cloud-based solutions are becoming more prevalent, and there is an emergence of white-label and embedded payroll offerings. Competition is based on service responsiveness, product quality, reputation, breadth of service, application offering and price.

• Cybersecurity Risks: The company faces risks related to security vulnerabilities, cyber-attacks, and network disruptions, which could lead to data breaches, data loss, and business interruptions.
• Operational Risks: Any damage, failure, or disruption of the company's SaaS network infrastructure or data centers could impair the ability to provide their solution, harm their reputation, and adversely affect their business.
• Competition: The market for HCM solutions is highly competitive, and if the company does not compete effectively, their business, operating results, or financial condition could be adversely affected.
• Regulatory Risks: The company is subject to varying degrees of regulations in each of the jurisdictions in which they provide services, including data privacy laws and regulations, which could have a material adverse effect on their business and results of operations.