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Automation Tools Power Paycom Software's Q2 Recurring Revenue Gain
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Key Takeaways
{\"0\":\"PAYC\'s Q2 revenues rose 10.5% to $483.6M, beating estimates on strong recurring revenue growth.\",\"1\":\"Recurring revenue hit $455.1M, driven by wider use of Beti and GONE automation tools.\",\"2\":\"Beti adoption led to client returns, while GONE improved efficiency in time-off and vacation tracking.\"}
Paycom Software, Inc.’s (PAYC - Free Report) total revenues for recently reported second-quarter 2025 results surged 10.5% year over year to $483.6 million and surpassed the Zacks Consensus Estimate of $472 million. The robust top-line performance was mainly driven by a 12.2% increase in recurring revenues.
Second-quarter Recurring revenues of $455.1 million represented 94% of total sales and came ahead of our model estimate of $445.5 million. A key driver of this growth was the increasing adoption of its automation tools, Beti and GONE, across its client base.
Beti is Paycom Software’s tool that allows employees to manage and approve their payroll. The solution helps reduce errors and saves time for HR teams. CEO Chad Richison said Beti continues to show strong adoption, and even some clients who had left Paycom Software have come back because of it. Beti makes payroll easier and more accurate, which leads to higher client satisfaction and more use of Paycom Software’s platform.
GONE is another tool that automates time-off requests and vacation tracking. It cuts down manual tasks and improves accuracy. With Paycom Software’s single-database design, GONE works smoothly with payroll, scheduling and other HR functions.
Paycom Software, Inc. Price, Consensus and EPS Surprise
The adoption of these tools helps reduce the need for manual work and supports more efficient operations. As more clients activate these features, usage increases across Paycom Software’s platform, pushing recurring revenues higher.
Together with strong sales and the recent rollout of Paycom Software’s new AI tool, IWant, these automation products are making its offering more valuable. Management expects Beti and GONE to continue playing an important role in growing recurring revenues in the second half of 2025.
PAYC’s Zacks Rank & Stocks to Consider
Currently, Paycom Software carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, implying a strong improvement from the loss of $4.61 reported in 2024. Bumble shares have declined 21% year to date.
The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised downward by a penny to $2.57 per share over the past seven days and suggests a year-over-year increase of 13.2%. Arista Networks shares have rallied 26% year to date.
The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward by 4 cents to $3.07 per share in the past 60 days, calling for a 16.1% year-over-year decline. MongoDB shares have fallen 2.2% year to date.
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Automation Tools Power Paycom Software's Q2 Recurring Revenue Gain
Key Takeaways
Paycom Software, Inc.’s (PAYC - Free Report) total revenues for recently reported second-quarter 2025 results surged 10.5% year over year to $483.6 million and surpassed the Zacks Consensus Estimate of $472 million. The robust top-line performance was mainly driven by a 12.2% increase in recurring revenues.
Second-quarter Recurring revenues of $455.1 million represented 94% of total sales and came ahead of our model estimate of $445.5 million. A key driver of this growth was the increasing adoption of its automation tools, Beti and GONE, across its client base.
Beti is Paycom Software’s tool that allows employees to manage and approve their payroll. The solution helps reduce errors and saves time for HR teams. CEO Chad Richison said Beti continues to show strong adoption, and even some clients who had left Paycom Software have come back because of it. Beti makes payroll easier and more accurate, which leads to higher client satisfaction and more use of Paycom Software’s platform.
GONE is another tool that automates time-off requests and vacation tracking. It cuts down manual tasks and improves accuracy. With Paycom Software’s single-database design, GONE works smoothly with payroll, scheduling and other HR functions.
Paycom Software, Inc. Price, Consensus and EPS Surprise
Paycom Software, Inc. price-consensus-eps-surprise-chart | Paycom Software, Inc. Quote
The adoption of these tools helps reduce the need for manual work and supports more efficient operations. As more clients activate these features, usage increases across Paycom Software’s platform, pushing recurring revenues higher.
Together with strong sales and the recent rollout of Paycom Software’s new AI tool, IWant, these automation products are making its offering more valuable. Management expects Beti and GONE to continue playing an important role in growing recurring revenues in the second half of 2025.
PAYC’s Zacks Rank & Stocks to Consider
Currently, Paycom Software carries a Zacks Rank #4 (Sell).
Some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector are Bumble (BMBL - Free Report) , Arista Networks (ANET - Free Report) and MongoDB (MDB - Free Report) . Bumble sports a Zacks Rank #1 (Strong Buy) at present, while Arista Networks and MongoDB each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, implying a strong improvement from the loss of $4.61 reported in 2024. Bumble shares have declined 21% year to date.
The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised downward by a penny to $2.57 per share over the past seven days and suggests a year-over-year increase of 13.2%. Arista Networks shares have rallied 26% year to date.
The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward by 4 cents to $3.07 per share in the past 60 days, calling for a 16.1% year-over-year decline. MongoDB shares have fallen 2.2% year to date.