Paycor announces First Quarter Fiscal Year 2024 Financial Results

November 9, 2023

Q1 Total revenues of $143.6 million, an increase of 21% year-over-year, while expanding margins
Q1 Recurring revenue of $132.7 million, an increase of 16% year-over-year
FY’24 revenue guidance of $648 – $654 million, an increase of 18% year-over-year at the top end of the range

Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (“HCM”) software, announced financial results for the first quarter fiscal year 2024, which ended September 30, 2023.

“We had a strong start to the year driven by a continued healthy demand environment for our modern HCM solution that powers people and performance,” said Raul Villar, Jr., Chief Executive Officer of Paycor. “We are delivering compelling value, empowering leaders to enhance business decisions, attract and retain top talent, and achieve their organizational objectives.”

“During the first quarter, we continued to invest in differentiating our platform while expanding margins over 200 basis points year-over-year, demonstrating the scalability of our business model. We see a significant opportunity to invest in additional solutions that will increase the value of our HCM suite to our customers and increase our future PEPM opportunity.”

First Quarter Fiscal Year 2024 Financial Highlights

Total revenues were $143.6 million, compared to $118.3 million for the first quarter of fiscal year 2023.
Operating loss was $23.4 million, compared to $33.4 million for the first quarter of fiscal year 2023.
Adjusted operating income* was $15.9 million, compared to $10.4 million for the first quarter of fiscal year 2023.
Net loss was $20.6 million, compared to $29.1 million for the first quarter of fiscal year 2023.
Adjusted net income* was $12.8 million, compared to $8.2 million for the first quarter of fiscal year 2023.

*Adjusted operating income and adjusted net income 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.

First Quarter and Recent Business Highlights

Unveiled an Embedded HCM Solution, enabling technology partners to integrate Paycor’s award-winning HCM suite into their software platforms. Our industry-leading interoperability engine expands our go to market approach and the mutually beneficial business model provides a premium HCM offering in the market for technology partners.
Introduced a generative AI Analytics Digital Assistant, powered by Visier. The innovative offering empowers leaders to quickly and easily consume people-focused analytics in a conversational chat interface.

Business Outlook

Based on information as of today, November 8, 2023, Paycor is issuing the following financial guidance:

Second Quarter Ending December 31, 2023:

Total revenues in the range of $154.5 – $156.5 million.
Adjusted operating income* in the range of $19.5 – $20.5 million.

Fiscal Year Ending June 30, 2024:

Total revenues in the range of $648 – $654 million.
Adjusted operating income* in the range of $102 – $106 million.

*We are unable to reconcile forward-looking adjusted operating income to forward-looking 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 8, 2023, 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 13736725. A live webcast and replay of the event will be available on the Paycor Investor Relations website at investors.paycor.com.

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