Paycom Software Inc PAYC

Paycom Achieves Steady Growth From a Sticky Base Despite Revenue Cannibalization

Paycom's unified platform appeals to midsize and enterprise clients that prefer an all-in-one payroll and human capital management solution. The company's platform is supported by a single database, which provides a single source of truth and allows efficient software development and maintenance. Unlike competitors, Paycom discourages data integrations to third-party providers but instead incentivizes clients to contain their HCM solutions within its unified platform by offering add-on modules, including time and attendance and benefits administration. In practice, new clients may consolidate their payroll and HCM solutions from multiple providers to an all-in-one solution by Paycom. The company is focused on driving greater automation and employee self-service, supported by complementary analytics tools for clients and the rollout of its Beti self-service payroll module.