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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PAYC

PAYC fundamentals

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