How consistent is PAYC's earnings performance?

Paycom Software Inc (PAYC) has demonstrated consistent earnings performance over the past years, with strong growth and exceeding market expectations in recent quarters: 1. **Consistent Growth**: Paycom has shown a consistent growth trajectory in its net income and earnings per share (EPS). The 5-year net income CAGR indicates a strong and stable increase in net income over the period. 2. **Strong Financial Performance**: In Q1 2024, Paycom reported a remarkable revenue of $500 million, an 11% increase year-over-year, surpassing the estimate of $495.84 million. The GAAP net income was $247 million, significantly exceeding the estimated $140.77 million, with a GAAP EPS of $4.37, outperforming the estimated $2.45. This performance was further highlighted in Q4 2024, with full-year revenue growth of 11% organic growth compared to 2023, and a fourth-quarter revenue growth of 14% year-over-year. 3. **Efficient Operations**: The company's operational efficiency has been improving, as evidenced by the increase in adjusted EBITDA and adjusted EBITDA margin. Additionally, Paycom's annual revenue retention rate has remained high at 90%, indicating a strong ability to retain its client base. 4. **Shareholder Value**: Paycom has been actively returning value to shareholders through share repurchases and dividends. In Q1 2024, the company repurchased shares worth $3.1 million and paid $21.2 million in cash dividends. This commitment to shareholder value is a positive indicator of stable earnings and cash flows. In conclusion, Paycom Software Inc (PAYC) has consistently delivered strong earnings performance, exceeding market expectations and demonstrating robust growth. Its efficient operations, high revenue retention rates, and commitment to shareholder value further underscore the consistency of its earnings performance.