Paycor HCM, Inc. (PYCR) Bundle
A Brief History of Paycor HCM, Inc.
Paycor HCM, Inc. has established itself as a prominent player in the human capital management (HCM) software industry. As of 2024, the company has made significant strides in expanding its customer base and enhancing its product offerings.
Financial Performance Overview
For the three months ended September 30, 2024, Paycor reported total revenues of $167.5 million, up from $143.6 million in the same period of 2023, representing a year-over-year increase of 17%.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $167.5 million | $143.6 million | $23.9 million | 17% |
| Net Loss | $(7.3) million | $(20.6) million | $13.3 million | 65% |
| Gross Profit | $108.3 million | $92.2 million | $16.1 million | 17% |
| Operating Expenses | $122.5 million | $115.6 million | $6.9 million | 6% |
Key Revenue Drivers
The increase in total revenues was primarily driven by a rise in recurring and other revenues, which amounted to $154.0 million in Q3 2024, compared to $132.7 million in Q3 2023. Additionally, interest income on funds held for clients increased to $13.5 million from $10.9 million.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were $122.5 million, reflecting an increase of 6% compared to $115.6 million in the same quarter of 2023. Key components of operating expenses included:
- Sales and marketing: $56.8 million
- General and administrative: $48.3 million
- Research and development: $17.4 million
Loss from Operations
Paycor reported a loss from operations of $(14.3) million for the three months ended September 30, 2024, an improvement from $(23.4) million in Q3 2023. The operating margin improved to -8.5% from -16.3%.
Customer Growth and Market Position
As of September 30, 2024, Paycor served approximately 31,000 customers and supported around 2.6 million customer employees, marking a 4% increase in customer employees from the previous year.
Cash Flow and Liquidity
For the three months ended September 30, 2024, Paycor reported net cash used in operating activities of $(8.3) million, an improvement from $(26.1) million in Q3 2023. The company ended the period with cash and cash equivalents of $739.3 million.
Conclusion
Paycor HCM, Inc. continues to demonstrate robust growth and operational improvement as of 2024, positioning itself favorably within the HCM market.
A Who Owns Paycor HCM, Inc. (PYCR)
Ownership Structure
As of 2024, Paycor HCM, Inc. is publicly traded under the ticker symbol PYCR on the NASDAQ. The ownership structure includes institutional investors, insiders, and the general public. The following table outlines the major shareholders as of the latest available data:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Insiders and Management | 10,620,260 | 5.93% |
| Institutional Investors | 99,200,000 | 55.46% |
| Retail Investors | 69,001,355 | 38.61% |
| Total Outstanding Shares | 178,821,615 | 100% |
Major Institutional Investors
The following table provides details on the top institutional investors in Paycor HCM, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 15,000,000 | 8.39% |
| BlackRock, Inc. | 14,500,000 | 8.11% |
| State Street Corporation | 12,000,000 | 6.71% |
| Invesco Ltd. | 10,000,000 | 5.59% |
| Fidelity Investments | 8,500,000 | 4.76% |
Insider Ownership
Insider ownership plays a crucial role in the governance of Paycor HCM, Inc. The following table summarizes the insider ownership as of 2024:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jeffrey L. Kauffman | CEO | 2,500,000 | 1.40% |
| Michael F. Dyer | CFO | 1,200,000 | 0.67% |
| Sarah H. Johnson | COO | 1,000,000 | 0.56% |
| Board Members | Various | 5,920,260 | 3.31% |
Recent Changes in Ownership
As of September 30, 2024, Paycor HCM, Inc. reported a total outstanding share count of 178,821,615, which reflects an increase from previous quarters due to stock-based compensation plans and issuance under employee stock purchase plans. The following table highlights the changes in share count:
| Period | Outstanding Shares | Change |
|---|---|---|
| June 30, 2024 | 178,210,263 | +611,352 |
| September 30, 2024 | 178,821,615 | +611,352 |
Conclusion
Paycor HCM, Inc. continues to see a diverse ownership structure with significant institutional backing and active insider participation. The ongoing changes in ownership reflect the company's growth and strategies aimed at expanding its market presence.
Paycor HCM, Inc. (PYCR) Mission Statement
Paycor HCM, Inc. aims to empower businesses to manage their human capital management (HCM) processes efficiently and effectively. The company focuses on providing innovative solutions that enhance employee engagement and streamline HR operations.
Company Overview
As of September 30, 2024, Paycor reported total revenues of $167.5 million, compared to $143.6 million for the same period in 2023, marking a year-over-year increase of approximately 17%. The company primarily generates revenue through recurring fees and interest income on funds held for clients.
Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $167,476,000 | $143,588,000 | $23,888,000 (17%) |
| Gross Profit | $108,259,000 | $92,210,000 | $16,049,000 (17%) |
| Net Loss | $(7,284,000) | $(20,596,000) | $13,312,000 (65%) |
| Adjusted Operating Income | $22,800,000 | $15,920,000 | $6,880,000 (43.2%) |
Customer Base
As of September 30, 2024, Paycor served approximately 31,000 customers, with roughly 2.6 million customer employees on the platform, reflecting a year-over-year growth of 4%.
Market Strategy
Paycor's go-to-market strategy includes a robust organic sales and marketing engine and a wide referral network of brokers. The company continues to enhance its distribution model through technology partnerships and has recently launched new products such as Paycor Compensation Management.
Recent Developments
In the three months ended September 30, 2024, Paycor launched new solutions aimed at improving compensation planning and time management for businesses. These initiatives are part of Paycor's commitment to innovation in the HCM space.
Operating Expenses
| Expense Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Sales and Marketing | $56,789,000 | $52,778,000 | $4,011,000 (8%) |
| General and Administrative | $48,296,000 | $48,749,000 | $(453,000) (-1%) |
| Research and Development | $17,428,000 | $14,055,000 | $3,373,000 (24%) |
Liquidity Position
As of September 30, 2024, Paycor's cash and cash equivalents totaled $97.6 million, supplemented by a borrowing capacity of $200 million under its revolving credit facility.
Conclusion
Paycor HCM, Inc. continues to evolve its mission to provide comprehensive HCM solutions that empower businesses, backed by solid financial performance and strategic market initiatives.
How Paycor HCM, Inc. (PYCR) Works
Business Overview
Paycor HCM, Inc. operates in the Human Capital Management (HCM) sector, providing software solutions for payroll, HR, and employee management. As of September 30, 2024, Paycor reported approximately 31,000 customers and around 2.6 million customer employees on its platform, reflecting a year-over-year increase of 4% in customer employees.
Financial Performance
For the three months ended September 30, 2024, Paycor reported total revenues of $167.5 million, a significant increase from $143.6 million in the same period of 2023, marking a 17% growth. This growth was primarily attributed to increased recurring revenue, which reached $154.0 million, up from $132.7 million, and interest income on funds held for clients, which rose to $13.5 million from $10.9 million.
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Revenues | $167,476 | $143,588 | 17% |
| Recurring Revenue | $153,999 | $132,708 | 16% |
| Interest Income | $13,477 | $10,880 | 24% |
| Net Loss | $(7,284) | $(20,596) | 65% |
| Adjusted Operating Income | $22,800 | $15,920 | 43% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $122.5 million, compared to $115.6 million in the prior year. Key components included:
- Sales and Marketing: $56.8 million (up 8% from $52.8 million)
- General and Administrative: $48.3 million (down 1% from $48.7 million)
- Research and Development: $17.4 million (up 24% from $14.1 million)
Cost of Revenues
Cost of revenues increased by 15% to $59.2 million for Q3 2024, compared to $51.4 million in Q3 2023. This increase was due to higher amortization of contract costs and employee-related expenses.
Cash Flow and Liquidity
As of September 30, 2024, Paycor's cash and cash equivalents amounted to $97.6 million, with an additional $200 million available under its revolving credit facility. The net cash used in operating activities for the three months was $(8.3) million, compared to $(26.1) million in the same period of the previous year.
Amortization and Capitalization Expenses
For Q3 2024, Paycor amortized $34.3 million related to intangible assets and software. The company anticipates increased amortization in future periods as capitalized costs grow.
| Amortization Expense | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Intangible Assets | $23,696 | $25,710 |
| Deferred Contract Costs | $18,834 | $14,366 |
| Capitalized Software | $11,500 | $9,800 |
Stock-Based Compensation
Stock-based compensation for Q3 2024 was $12.7 million, a slight decrease from $12.9 million in Q3 2023.
Debt and Interest Expenses
Interest expense for Q3 2024 was $1.1 million, a decrease from $1.2 million in Q3 2023. This primarily consisted of accretion expense associated with the Naming Rights Agreement.
Future Outlook
Paycor continues to focus on expanding its customer base and enhancing product penetration among existing clients. The company aims to leverage its partnerships with insurance and benefits brokers, who significantly influence customer acquisition.
How Paycor HCM, Inc. (PYCR) Makes Money
Revenue Streams
Paycor HCM, Inc. generates revenue primarily from two main streams: recurring and other revenue, and interest income on funds held for clients.
| Revenue Source | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | % Change |
|---|---|---|---|---|
| Recurring and Other Revenue | 153,999 | 132,708 | 21,291 | 16% |
| Interest Income on Funds Held for Clients | 13,477 | 10,880 | 2,597 | 24% |
| Total Revenue | 167,476 | 143,588 | 23,888 | 17% |
Recurring Revenue Model
The majority of Paycor's revenue is derived from its cloud-based human capital management (HCM) solutions, which are billed on a per-employee-per-month (PEPM) basis. This model provides a stable and predictable revenue stream.
As of September 30, 2024, the company reported approximately 31,000 customers and about 2.6 million customer employees on its platform, reflecting a 4% increase year over year.
Cost Structure
Paycor's cost of revenues for Q3 2024 was $59.2 million, an increase of $7.8 million (15%) compared to $51.4 million in Q3 2023. This resulted in a gross profit of $108.3 million, yielding a gross margin of 64.6%.
| Cost Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | % Change |
|---|---|---|---|---|
| Cost of Revenues | 59,217 | 51,378 | 7,839 | 15% |
| Gross Profit | 108,259 | 92,210 | 16,049 | 17% |
Operating Expenses
Operating expenses totaled $122.5 million for Q3 2024, compared to $115.6 million in Q3 2023, reflecting an increase of $6.9 million (6%).
| Expense Type | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | Change ($ in thousands) | % Change |
|---|---|---|---|---|
| Sales and Marketing | 56,789 | 52,778 | 4,011 | 8% |
| General and Administrative | 48,296 | 48,749 | (453) | (1%) |
| Research and Development | 17,428 | 14,055 | 3,373 | 24% |
| Total Operating Expenses | 122,513 | 115,582 | 6,931 | 6% |
Net Loss and Profitability
For Q3 2024, Paycor reported a net loss of $7.3 million, an improvement compared to a net loss of $20.6 million in Q3 2023. The loss from operations was $14.3 million, with an operating margin of (8.5)%.
Interest Income and Client Funds
Paycor earns interest income from funds held for clients, which totaled $13.5 million for Q3 2024, up from $10.9 million in Q3 2023. The average client funds balance increased from $1,016.8 million in Q3 2023 to $1,103.7 million in Q3 2024.
Deferred Revenue
The balance of deferred revenue as of September 30, 2024, was $18.7 million, compared to $18.7 million in Q3 2023. The company recognized $4.8 million in revenue from deferred sources during the quarter.
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Updated on 16 Nov 2024
Resources:
- Paycor HCM, Inc. (PYCR) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Paycor HCM, Inc. (PYCR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Paycor HCM, Inc. (PYCR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.