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Paycor Announces First Quarter Fiscal Year 2025 Financial Results

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Paycor HCM reported strong Q1 FY2025 results with total revenues of $167.5 million, up 17% year-over-year, and recurring revenues of $154.0 million, up 16%. Operating loss improved 39% to $14.3 million, while adjusted operating income increased 43% to $22.8 million. The company launched Paycor Assistant, an AI-powered HR companion, and introduced the Paycor Integration Platform connecting to over 320 technology partners. For FY2025, Paycor projects revenues between $726.0-$733.0 million, representing 12% growth at the range's top end.

Paycor HCM ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con un fatturato totale di 167,5 milioni di dollari, in aumento del 17% rispetto all'anno precedente, e entrate ricorrenti di 154,0 milioni di dollari, in crescita del 16%. La perdita operativa è migliorata del 39% a 14,3 milioni di dollari, mentre il reddito operativo rettificato è aumentato del 43% a 22,8 milioni di dollari. L'azienda ha lanciato Paycor Assistant, un assistente HR potenziato dall'IA, e ha introdotto la Paycor Integration Platform, che si connette a oltre 320 partner tecnologici. Per l'anno fiscale 2025, Paycor prevede ricavi tra 726,0 e 733,0 milioni di dollari, pari a una crescita del 12% nella parte superiore dell'intervallo.

Paycor HCM reportó resultados sólidos en el primer trimestre del año fiscal 2025, con ingresos totales de 167,5 millones de dólares, un aumento del 17% interanual, y ingresos recurrentes de 154,0 millones de dólares, en crecimiento del 16%. La pérdida operativa mejoró un 39% a 14,3 millones de dólares, mientras que el ingreso operativo ajustado creció un 43% a 22,8 millones de dólares. La compañía lanzó Paycor Assistant, un asistente de recursos humanos potenciado por IA, e introdujo la Paycor Integration Platform, que se conecta con más de 320 socios tecnológicos. Para el año fiscal 2025, Paycor proyecta ingresos entre 726,0 y 733,0 millones de dólares, lo que representa un crecimiento del 12% en el extremo superior del rango.

Paycor HCM은 2025 회계연도 1분기 실적을 발표하였으며, 총 수익 1억 6천 7백 50만 달러로 작년 대비 17% 증가하였고, 반복 수익 1억 5천 4백만 달러로 16% 증가하였습니다. 운영 손실은 39% 개선되어 1천 4백 30만 달러에 달하였고, 조정된 운영 소득은 43% 증가하여 2천 2백 80만 달러에 이르렀습니다. 회사는 AI 기반의 인사 동반자인 Paycor Assistant를 출시하였으며, 320개 이상의 기술 파트너와 연결되는 Paycor Integration Platform을 소개했습니다. 2025 회계연도에 대해 Paycor는 수익을 7억 2천 6백만 달러에서 7억 3천 3백만 달러로 예상하며, 이는 범위의 상단에서 12% 성장을 나타냅니다.

Paycor HCM a rapporté de solides résultats pour le premier trimestre de l'exercice 2025, avec des revenus totaux de 167,5 millions de dollars, en hausse de 17 % par rapport à l'année précédente, et des revenus récurrents de 154,0 millions de dollars, en hausse de 16 %. La perte opérationnelle s'est améliorée de 39 % pour atteindre 14,3 millions de dollars, tandis que le résultat opérationnel ajusté a augmenté de 43 % pour atteindre 22,8 millions de dollars. La société a lancé Paycor Assistant, un assistant RH alimenté par l'IA, et a introduit la Paycor Integration Platform, qui se connecte à plus de 320 partenaires technologiques. Pour l'exercice 2025, Paycor prévoit des revenus compris entre 726,0 et 733,0 millions de dollars, représentant une croissance de 12 % à l'extrémité supérieure de la fourchette.

Paycor HCM berichtete von soliden Ergebnissen im ersten Quartal des Geschäftsjahres 2025 mit Gesamteinnahmen von 167,5 Millionen Dollar, was einem Anstieg von 17 % im Jahresvergleich entspricht, und recurring revenues von 154,0 Millionen Dollar, ein Anstieg von 16 %. Der operative Verlust verbesserte sich um 39 % auf 14,3 Millionen Dollar, während das bereinigte operative Einkommen um 43 % auf 22,8 Millionen Dollar stieg. Das Unternehmen hat Paycor Assistant, einen KI-gestützten HR-Assistenten, vorgestellt und die Paycor Integration Platform eingeführt, die eine Verbindung zu über 320 Technologiepartnern herstellt. Für das Geschäftsjahr 2025 erwartet Paycor Einnahmen zwischen 726,0 und 733,0 Millionen Dollar, was einem Wachstum von 12 % am oberen Ende der Spanne entspricht.

Positive
  • Total revenue growth of 17% YoY to $167.5M
  • Recurring revenue growth of 16% YoY to $154.0M
  • Adjusted operating income increased 43% to $22.8M
  • Operating loss improved 39% to $14.3M
  • Net loss decreased from $20.6M to $7.3M YoY
Negative
  • Operating loss of $14.3M in Q1
  • Net loss of $7.3M in Q1
  • Negative adjusted free cash flow of $22.2M
  • Negative operating cash flow of $8.3M

Insights

Paycor's Q1 FY2025 results demonstrate robust growth and improving operational efficiency. Total revenue grew 17% year-over-year to $167.5 million, with recurring revenue up 16% to $154.0 million. The company significantly reduced its operating loss by 39% while expanding adjusted operating margin to 14% from 11% last year.

Key positives include improved cash flow metrics and healthy FY2025 guidance projecting 12% top-line growth. The launch of AI-powered Paycor Assistant and Integration Platform with 320+ partners strengthens their competitive position. However, the company still operates at a net loss of $7.3 million, though improved from $20.6 million last year. The negative free cash flow of $22.2 million, while better than previous year, requires monitoring.

The introduction of Paycor Assistant represents a strategic move into AI-powered HR automation, addressing a critical market need for efficient employee query management. The new Integration Platform's extensive connectivity with 320+ partners positions Paycor competitively in the HCM space, where seamless system integration is increasingly important for enterprise clients.

These technological advancements should drive higher customer retention and potentially accelerate new customer acquisition by reducing integration barriers and improving operational efficiency. The platform's developer tools for custom connections also create opportunities for expanding enterprise market share where specialized integrations are often required.

  • Q1 Total revenues of $167.5 million, an increase of 17% year-over-year, while expanding operating margins
  • Q1 Recurring revenues of $154.0 million, an increase of 16% year-over-year
  • FY 2025 revenue guidance of $726.0-$733.0 million, an increase of 12% year-over-year at the top end of the range

CINCINNATI, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (“HCM”) software, today announced financial results for the first quarter fiscal year 2025, which ended September 30, 2024.

“Paycor had an impressive start to the year, delivering 17% revenue growth year-over-year,” said Raul Villar, Jr., Chief Executive Officer of Paycor. “Our continued success is a testament to the strength of our award-winning HCM solution, which empowers leaders to drive tangible business results through connectivity with people, data, and expertise.”

“We continued to pragmatically invest in sales and product expansion to fuel future growth while demonstrating the scalability of our business model with significant margin and free cash flow expansion. We remain confident in our ability to deliver attractive growth and significantly higher operating leverage over the longer-term.”

First Quarter Fiscal Year 2025 Financial Highlights

  • Total revenues were $167.5 million, an increase of 17% from the first quarter of FY 2024.
  • Operating loss was $14.3 million, compared to $23.4 million or an improvement of 39% from the first quarter of FY 2024 or (9%) of Total revenues compared to (16%) in the first quarter of FY 2024.
  • Adjusted operating income* was $22.8 million, compared to $15.9 million or an increase of 43% from the first quarter of FY 2024, or 14% of Total revenues compared to 11% in the first quarter of FY 2024.
  • Net loss was $7.3 million, compared to $20.6 million for the first quarter of FY 2024.
  • Adjusted net income* was $18.7 million, compared to $12.8 million for the first quarter of FY 2024.
  • Net cash used in operating activities improved to ($8.3) million from ($26.1) million for the first quarter of FY 2024.
  • Adjusted free cash flow* improved to ($22.2) million from ($40.0) million for the first quarter of FY 2024.

*Adjusted operating income, adjusted net income and adjusted free cash flow are non-GAAP financial measures. Please see the discussion below under the heading "Non-GAAP Financial Measures" and the reconciliations at the end of this press release for information concerning these and other non-GAAP financial measures referenced in this press release.

First Quarter and Recent Business Highlights

  • Launched Paycor Assistant, an AI-powered HR companion that transforms the way customers interact with Paycor. This modern and intuitive solution is designed to boost productivity by enhancing the speed and effectiveness of responding to employees' HR-related questions, empowering leaders to focus on powering people and performance.
  • Introduced the Paycor Integration Platform, enabling customers to seamlessly connect their preferred business solutions to our HCM platform. This platform provides pre-built connections to over 320 best-in-breed technology partners, along with robust developer tools and services to create custom connections, making it easier for customers to integrate their technology systems to enhance efficiency and accuracy.

Business Outlook

Based on information as of today, November 6, 2024, Paycor is issuing the following financial guidance:

Second Quarter Ending December 31, 2024:

  • Total revenues in the range of $176.0-$178.0 million.
  • Adjusted operating income* in the range of $26.0-$27.0 million.

Fiscal Year Ending June 30, 2025:

  • Total revenues in the range of $726.0-$733.0 million.
  • Adjusted operating income* in the range of $127.0-$130.0 million.

*We are unable to reconcile forward-looking adjusted operating income to forward-looking income (loss) from operations, the most closely comparable GAAP financial measure, because the information needed to provide a complete reconciliation is unavailable at this time without unreasonable effort.

Conference Call Information

Paycor will host a conference call today, November 6, 2024, at 5:00 p.m. Eastern Time to discuss its financial results and guidance. To access this call, dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). The access code is 13748589. A live webcast and replay of the event will be available on the Paycor Investor Relations website at investors.paycor.com.

About Paycor

Paycor’s HR, payroll, and talent platform connects leaders to people, data, and expertise. We help leaders drive engagement and retention by giving them tools to coach, develop, and grow employees. We give them unprecedented insights into their operational data with a unified HCM experience that can seamlessly connect to other mission-critical technology. By providing expert guidance and consultation, we help them achieve business results and become an extension of their teams. Learn more at paycor.com.​

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including statements regarding our future results of operations and financial position, our business outlook, our business strategy and plans, our objectives for future operations, and any statements of a general economic or industry specific nature, are forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” “outlook,” “potential,” “targets,” “contemplates,” or the negative or plural of these words and similar expressions are intended to identify forward-looking statements.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in our most recent Annual Report on Form 10-K, as well as in our other filings with the Securities and Exchange Commission. We believe that these risks include, but are not limited to: our ability to manage our growth effectively; the potential unauthorized access to our customers’ or their employees’ personal data as a result of a breach of our or our vendors’ security measures; the expansion and retention of our direct sales force with qualified and productive persons and the related effects on the growth of our business; the impact on customer expansion and retention if implementation, user experience, customer service, or performance relating to our solutions is not satisfactory; the timing of payments made to employees and taxing authorities relative to the timing of when a customer’s electronic funds transfers are settled to our account; future acquisitions of other companies’ businesses, technologies, or customer portfolios; the continued service of our key executives; our ability to innovate and deliver high-quality, technologically advanced products and services; risks specifically associated with our development and use of artificial intelligence in our solutions; our ability to attract and retain qualified personnel; the proper operation of our software; our relationships with third parties that provide financial and other functionality integrated into our HCM platform; the extent to which negative macroeconomic conditions persist or worsen in the markets in which we or our customers operate; and the impact of an economic downturn or recession in the United States or global economy. You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations and assumptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We undertake no obligation to publicly update any forward-looking statement after the date of this report, whether as a result of new information, future developments or otherwise, or to conform these statements to actual results or revised expectations, except as may be required by law.

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present the following non-GAAP financial measures in this press release and on the related teleconference call: adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted sales and marketing expense, adjusted general and administrative expense, adjusted research and development expense, adjusted net income, adjusted net income per share, adjusted free cash flow and adjusted free cash flow margin. Management believes these non-GAAP measures are useful in evaluating our core operating performance and trends to prepare and approve our annual budget, and to develop short-term and long-term operating plans. Management believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. We define (i) adjusted gross profit as gross profit before amortization of intangible assets and stock-based compensation expense, in each case that are included in costs of revenues, (ii) adjusted gross profit margin as adjusted gross profit divided by total revenues, (iii) adjusted operating income as income (loss) from operations before amortization of acquired intangible assets and naming rights, stock-based compensation expense, exit costs due to exiting leases of certain facilities and other certain corporate expenses, such as costs related to secondary offerings, professional, consulting and other costs and acquisition costs, (iv) adjusted operating income margin as adjusted operating income divided by total revenues, (v) adjusted sales and marketing expense as sales and marketing expenses before amortization of naming rights and stock-based compensation expense, (vi) adjusted general and administrative expense as general and administrative expenses before amortization of acquired intangible assets, stock-based compensation expense, exit costs due to exiting leases of certain facilities and other certain corporate expenses, such as costs related to secondary offerings, professional, consulting and other costs and acquisition costs, (vii) adjusted research and development expense as research and development expenses before stock-based compensation expense, (viii) adjusted net income as income (loss) before expense (benefit) for income taxes after adjusting for amortization of acquired intangible assets and naming rights, accretion expense associated with the naming rights, change in fair value of contingent consideration, stock-based compensation expense, exit costs due to exiting leases of certain facilities and other certain corporate expenses, such as costs related to secondary offerings, professional, consulting and other costs and acquisition costs, all of which are tax effected by applying an adjusted effective income tax rate, (ix) adjusted net income per share as adjusted net income divided by adjusted shares outstanding, which includes potentially dilutive securities excluded from the GAAP dilutive net income (loss) per share calculation, (x) adjusted free cash flow as cash provided (used) by operating activities less the purchase of property and equipment and internally developed software costs, excluding other certain corporate expenses, which are included in cash provided (used) by operating activities and (xi) adjusted free cash flow margin as adjusted free cash flow divided by total revenues.

The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for gross profit, gross margin, income (loss) from operations, operating income margin, sales and marketing expense, general and administrative expense, research and development expense, net income (loss), diluted net income (loss) per share and cash provided (used) by operating activities. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures used by other companies. A reconciliation is provided below under “Reconciliations of Non-GAAP Measures to GAAP Measures,” for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP.

Investor Relations:
Rachel White
513-954-7388
IR@paycor.com

Media Relations:
Carly Pennekamp
513-954-7282
PR@paycor.com

 
Paycor HCM, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
 
 September 30,
2024
 June 30,
2024
Assets(Unaudited)  
Current assets:   
Cash and cash equivalents$97,618  $117,958 
Accounts receivable, net allowance for credit losses 47,957   48,164 
Deferred contract costs 73,128   70,377 
Prepaid expenses 14,693   12,749 
Other current assets 8,673   3,458 
Current assets before funds held for clients 242,069   252,706 
Funds held for clients 967,189   1,109,136 
Total current assets 1,209,258   1,361,842 
Property and equipment, net 34,871   35,220 
Operating lease right-of-use assets 14,021   14,417 
Goodwill 766,832   766,653 
Intangible assets, net 147,925   171,493 
Capitalized software, net 70,173   67,376 
Long-term deferred contract costs 194,941   189,826 
Other long-term assets 2,853   2,566 
Total assets$2,440,874  $2,609,393 
Liabilities and Stockholders' Equity   
Current liabilities:   
Accounts payable$20,419  $27,309 
Accrued expenses and other current liabilities 29,535   26,450 
Accrued payroll and payroll related expenses 22,006   44,923 
Deferred revenue 13,124   13,600 
Current liabilities before client fund obligations 85,084   112,282 
Client fund obligations 963,998   1,111,373 
Total current liabilities 1,049,082   1,223,655 
Deferred income taxes 11,197   16,019 
Long-term operating leases 12,653   13,447 
Other long-term liabilities 68,309   69,346 
Total liabilities 1,141,241   1,322,467 
Commitments and contingencies   
Stockholders' equity:   
Common stock $0.001 par value per share, 500,000,000 shares authorized, 178,821,615 shares outstanding at September 30, 2024 and 178,210,263 shares outstanding at June 30, 2024 179   178 
Treasury stock, at cost, 10,620,260 shares at September 30, 2024 and June 30, 2024 (245,074)  (245,074)
Preferred stock, $0.001 par value, 50,000,000 shares authorized, — shares outstanding at September 30, 2024 and June 30, 2024     
Additional paid-in capital 2,097,454   2,081,668 
Accumulated deficit (555,721)  (548,437)
Accumulated other comprehensive income (loss) 2,795   (1,409)
Total stockholders' equity 1,299,633   1,286,926 
Total liabilities and stockholders' equity$2,440,874  $2,609,393 
 


 
Paycor HCM, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share amounts)
 
 Three Months Ended
 September 30,
  2024   2023 
Revenues:   
Recurring and other revenue$153,999  $132,708 
Interest income on funds held for clients 13,477   10,880 
Total revenues 167,476   143,588 
Cost of revenues 59,217   51,378 
Gross profit 108,259   92,210 
Operating expenses:   
Sales and marketing 56,789   52,778 
General and administrative 48,296   48,749 
Research and development 17,428   14,055 
Total operating expenses 122,513   115,582 
Loss from operations (14,254)  (23,372)
Other (expense) income:   
Interest expense (1,138)  (1,244)
Other 1,670   931 
Loss before benefit for income taxes (13,722)  (23,685)
Income tax benefit (6,438)  (3,089)
Net loss$(7,284) $(20,596)
Basic and diluted net loss per share$(0.04) $(0.12)
Weighted average common shares outstanding:   
Basic and diluted 178,729,710   176,953,395 
 

 

 
Paycor HCM, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
 
 Three Months Ended
 September 30,
  2024   2023 
Cash flows from operating activities:   
Net loss$(7,284) $(20,596)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation 1,451   1,511 
Amortization of intangible assets and software 34,341   34,183 
Amortization of deferred contract costs 18,834   14,366 
Stock-based compensation expense 12,665   12,915 
Deferred tax benefit (6,795)  (3,098)
Bad debt expense 730   1,291 
Loss on sale of investments 83   61 
(Gain) loss on foreign currency exchange (52)  184 
Loss (gain) on lease exit 6   (144)
Naming rights accretion expense 1,006   1,030 
Change in fair value of deferred consideration (112)   
Other 23   23 
Changes in assets and liabilities, net of effects from acquisitions:   
Accounts receivable (478)  (5,228)
Prepaid expenses and other assets (6,641)  (6,393)
Accounts payable (6,848)  (7,877)
Accrued liabilities and other (21,914)  (21,314)
Deferred revenue (626)  43 
Deferred contract costs (26,700)  (27,086)
Net cash used in operating activities (8,311)  (26,129)
Cash flows from investing activities:   
Purchases of client funds available-for-sale securities (83,244)  (22,542)
Proceeds from sale and maturities of client funds available-for-sale securities 78,135   23,652 
Purchase of property and equipment (1,169)  (1,435)
Acquisition of intangible assets (127)  (12)
Internally developed software costs (13,441)  (13,254)
Net cash used in investing activities (19,846)  (13,591)
Cash flows from financing activities:   
Net change in cash and cash equivalents held to satisfy client funds obligations (145,984)  (16,270)
Payment of capital expenditure financing    (3,689)
Repayments of debt and finance lease obligations (297)  (266)
Withholding taxes paid related to net share settlements (323)  (418)
Proceeds from employee stock purchase plan 3,444   4,172 
Net cash used in financing activities (143,160)  (16,471)
Impact of foreign exchange on cash and cash equivalents (2)  1 
Net change in cash, cash equivalents, restricted cash and short-term investments, and funds held for clients (171,319)  (56,190)
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, beginning of period 910,580   879,046 
Cash, cash equivalents, restricted cash and short-term investments, and funds held for clients, end of period$739,261  $822,856 
Supplemental disclosure of non-cash investing, financing and other cash flow information:   
Capital expenditures in accounts payable$12  $11 
Cash paid for interest$  $145 
Capital lease asset obtained in exchange for capital lease liabilities$   3,393 
Reconciliation of cash, cash equivalents, restricted cash and short-term investments, and funds held for clients to the Consolidated Balance Sheets   
Cash and cash equivalents$97,618  $54,277 
Funds held for clients 641,643   768,579 
Total cash, cash equivalents, restricted cash and short-term investments, and funds held for clients$739,261  $822,856 
 


 
Reconciliations of Non-GAAP Measures to GAAP Measures
 
Adjusted Gross Profit and Adjusted Gross Profit Margin (Unaudited)
 
 Three Months Ended
(in thousands)September 30,
2024
 September 30,
2023
Gross Profit*$108,259  $92,210 
Gross Profit Margin 64.6%  64.2%
Amortization of intangible assets 875   1,375 
Stock-based compensation expense 1,502   1,595 
Corporate adjustments 21    
Adjusted Gross Profit*$110,657  $95,180 
Adjusted Gross Profit Margin 66.1%  66.3%
 


* Gross Profit and Adjusted Gross Profit are burdened by depreciation expense of $0.6 million for both the three months ended September 30, 2024 and 2023, respectively. Gross Profit and Adjusted Gross Profit are burdened by amortization of capitalized software of $10.6 million and $8.5 million for the three months ended September 30, 2024 and 2023, respectively. Gross Profit and Adjusted Gross Profit are burdened by amortization of deferred contract costs of $10.8 million and $8.1 million for the three months ended September 30, 2024 and 2023, respectively.
   

Adjusted Operating Income (Unaudited)

 Three Months Ended
(in thousands)September 30,
2024
 September 30,
2023
Loss from Operations$(14,254) $(23,372)
Operating Margin (8.5)% (16.3)%
Amortization of intangible assets 23,696   25,710 
Stock-based compensation expense 12,665   12,915 
Loss (gain) on lease exit* 6   (144)
Corporate adjustments** 687   811 
Adjusted Operating Income$22,800  $15,920 
Adjusted Operating Income Margin 13.6%  11.1%
 


* Represents exit costs due to exiting leases of certain facilities.
** Corporate adjustments for the three months ended September 30, 2024 relate to professional, consulting, and other costs associated with strategic initiatives of $0.7 million. Corporate adjustments for the three months ended September 30, 2023 relate to professional, consulting, and other costs associated with strategic initiatives of $0.8 million.
   

Adjusted Operating Expenses (Unaudited)

 Three Months Ended
(in thousands)September 30,
2024
 September 30,
2023
Sales and Marketing expenses$56,789  $52,778 
Amortization of intangible assets (1,059)  (1,059)
Stock-based compensation expense (4,185)  (4,318)
Adjusted Sales and Marketing expenses$51,545  $47,401 
General and Administrative expenses$48,296  $48,749 
Amortization of intangible assets (21,762)  (23,276)
Stock-based compensation expense (4,786)  (5,072)
(Loss) gain on lease exit* (6)  144 
Corporate adjustments** (666)  (811)
Adjusted General and Administrative expenses$21,076  $19,734 
Research and Development expenses$17,428  $14,055 
Stock-based compensation expense (2,192)  (1,930)
Adjusted Research and Development expenses$15,236  $12,125 
 


* Represents exit costs due to exiting leases of certain facilities.
** Corporate adjustments for the three months ended September 30, 2024 relate to professional, consulting, and other costs associated with strategic initiatives of $0.7 million. Corporate adjustments for the three months ended September 30, 2023 relate to professional, consulting, and other costs associated with strategic initiatives of $0.8 million.
 

Adjusted Net Income Attributable to Paycor HCM, Inc. and Adjusted Net Income Attributable to Paycor HCM, Inc. Per Share (Unaudited)

 Three Months Ended
(in thousands)September 30,
2024
 September 30,
2023
Net loss before benefit for income taxes$(13,722) $(23,685)
Amortization of intangible assets 23,696   25,710 
Naming rights accretion expense 1,006   1,030 
Change in fair value of contingent consideration (112)   
Stock-based compensation expense 12,665   12,915 
Loss (gain) on lease exit* 6   (144)
Corporate adjustments** 687   811 
Non-GAAP adjusted income before applicable income taxes 24,226   16,637 
Income tax effect on adjustments*** (5,572)  (3,827)
Adjusted Net Income Attributable to Paycor HCM, Inc.$18,654  $12,810 
    
Adjusted Net Income Attributable to Paycor HCM, Inc. Per Share$0.10  $0.07 
Adjusted shares outstanding**** 177,912,794   177,334,568 
 


* Represents exit costs due to exiting leases of certain facilities.
** Corporate adjustments for the three months ended September 30, 2024 relate to professional, consulting, and other costs associated with strategic initiatives of $0.7 million. Corporate adjustments for the three months ended September 30, 2023 relate to professional, consulting, and other costs associated with strategic initiatives of $0.8 million.
*** Non-GAAP adjusted income before applicable income taxes is tax effected using an adjusted effective income tax rate of 23.0% for both of the three months ended September 30, 2024 and 2023.
**** Adjusted shares outstanding for both the three months ended September 30, 2024 and 2023 are based on the if-converted method and include potentially dilutive securities that are excluded from the U.S. GAAP dilutive net income per share calculation because including them in the computation of net income per share would have had an anti-dilutive effect.
   

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin (Unaudited)

 Three Months Ended
(in thousands)September 30,
2024
 September 30,
2023
Net cash used in operating activities$(8,311) $(26,129)
Purchase of property and equipment (1,169)  (1,435)
Internally developed software costs (13,441)  (13,254)
Corporate adjustments* 687   811 
Adjusted Free Cash Flow$(22,234) $(40,007)
Adjusted Free Cash Flow Margin(13.3)% (27.9)%
 


* Corporate adjustments for the three months ended September 30, 2024 relate to professional, consulting, and other costs associated with strategic initiatives of $0.7 million. Corporate adjustments for the three months ended September 30, 2023 relate to professional, consulting, and other costs associated with strategic initiatives of $0.8 million.

FAQ

What was Paycor's (PYCR) revenue growth in Q1 FY2025?

Paycor reported total revenues of $167.5 million in Q1 FY2025, representing a 17% increase year-over-year.

What is Paycor's (PYCR) revenue guidance for FY2025?

Paycor projects total revenues in the range of $726.0-$733.0 million for FY2025, representing 12% growth at the top end of the range.

What new products did Paycor (PYCR) launch in Q1 FY2025?

Paycor launched Paycor Assistant, an AI-powered HR companion, and the Paycor Integration Platform, which connects to over 320 technology partners.

What was Paycor's (PYCR) operating loss in Q1 FY2025?

Paycor reported an operating loss of $14.3 million in Q1 FY2025, an improvement of 39% compared to the $23.4 million loss in Q1 FY2024.

Paycor HCM, Inc.

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3.13B
81.32M
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96.62%
4.06%
Software - Application
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United States of America
CINCINNATI