The chart below shows how PYCR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PYCR sees a +3.65% change in stock price 10 days leading up to the earnings, and a -0.93% change 10 days following the report. On the earnings day itself, the stock moves by -0.85%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Increase Achievement: Paycor achieved total revenues of $167 million, marking a 17% year-over-year increase.
Recurring Revenue Increase: Recurring revenue grew by 16% compared to the previous year, driven by an expanding employee base and increased charges per employee.
Employee Growth Impact: The average number of employees on the platform increased by 5%, contributing to a 16% recurring revenue growth.
Operating Income Surge: Adjusted operating income increased over 40% to $23 million, with margins improving to 13.6%, up 250 basis points from last year.
Free Cash Flow Improvement: Free cash flow was a use of $22 million, representing a significant margin improvement of nearly 15 percentage points compared to the prior year.
Negative
Quarterly Revenue Increase: We had another impressive quarter, delivering total revenues of $167 million, an increase of 17% year-over-year.
Recurring Revenue Increase: Recurring revenue grew 16% over the prior year.
Recurring Revenue Expansion: Our recurring revenue growth is primarily driven by expanding the number of employees on our platform and the amount we charge per employee per month.
Marketing Expense Reduction: Sales and marketing expense was $52 million for the quarter or 31% of revenue, down over 200 basis points from a year ago.
R&D Investment Strategy: We invested $28 million, or 17% of revenue, in R&D on a gross basis this quarter to continue differentiating our HCM suite and expanding our PEPM opportunity.
Paycor HCM, Inc. (PYCR) Q1 2025 Earnings Call Transcript
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