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- **Revenue Growth**: Q3 revenue up 9.1% YoY to $493M, with 10.6% recurring revenue growth. Full year guide $2.045B-$2.055B (9% YoY).
- **AI Success**: IWant now used by 100% of new employees, reducing support tickets 20-30%. Beti reacquired 2 clients with 90% payroll automation.
- **Margin Expansion**: Adjusted EBITDA margin 39% (150bps YoY), guided to 43% in 2025. $100M AI CapEx investment complete.
- **Share Buybacks**: $319M repurchased in Q3, total $806M since 2023. $1.1B remaining under buyback program.
- **Operational Efficiency**: 500+ admin roles eliminated, benefits to flow into 2026 margins. Owned data centers save $25M/QTR vs public cloud.

**【CEO Summary Section】**
- **Strong Q3 Results**: Total revenue of $493 million, up 9.1% YoY, with recurring revenue growth of 10.6%. Adjusted EBITDA of $194 million, margin of 39% (150bps YoY expansion). 
- **IWant AI Launch**: Now enabled for all clients, driving 20-30% YoY decline in internal support tickets. C-suite executives are actively using IWant for real-time data access, with 100% of new employees utilizing the AI interface.
- **Beti Payroll Automation**: Reduced payroll processing labor by 90%, leading to 2 client reacquisitions. Beti's perfect payroll accuracy is a key retention driver.
- **CapEx Investment**: $100M spent on AI-focused data centers in Phoenix and Oklahoma City, providing multi-year capacity runway.
- **Share Buybacks**: $319M repurchased in Q3, bringing total since 2023 to $806M (7% of shares outstanding). $1.1B remaining under buyback authorization.

**【CFO Financial Commentary】**
- **GAAP vs Non-GAAP**: GAAP net income $111M ($1.96 EPS), Non-GAAP EPS $1.94 (17% YoY growth). Tax-adjusted gain of $26M from naming rights modification.
- **Margin Expansion**: Adjusted EBITDA margin 39%, up 160bps YoY. Operating efficiencies from automation and service model improvements.
- **Full Year Guidance**: Revenue $2.045B-$2.055B (9% YoY), Adjusted EBITDA $872M-$882M (43% margin). Free cash flow expected similar to 2024 levels.
- **Balance Sheet**: $375M cash, no debt. Average daily funds held $2.5B (9% YoY growth).

**【Q&A Highlights】**
- **IWant Usage**: 100% of new employees use AI interface, reducing onboarding time. C-suite queries up 300% YoY. 
- **Cost Savings**: 500+ administrative roles eliminated, but no further layoffs planned. Automation benefits to flow into 2026 margins.
- **Sales Momentum**: 5% TAM penetration, focused on SMB expansion. 2026 pipeline up 25% YoY.
- **Competitive Edge**: Owned data centers vs public cloud save $25M/QTR. IWant's single database eliminates external data conflicts.
- **Free Cash Flow**: 2025 FCF ~$800M, with 2026+ growth driven by reduced CapEx and buybacks.

Paycom Software, Inc. (PAYC) Q3 2025 Earnings Call Transcript

Recurring and Other

Implementation and Other

Interest

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