- Q2 Total revenues of $132.9 million, an increase of 29% year-over-year, while expanding margins
- Q2 Recurring revenue of $125.0 million, an increase of 22% year-over-year, and the fifth consecutive quarter of achieving our long-term target of sustainable 20%+ revenue growth
- Raises FY’23 revenue and Adjusted operating income guidance $11 million and $10 million, respectively, 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, today announced financial results for the second quarter of fiscal year 2023, which ended December 31, 2022.
“Paycor produced excellent second quarter results highlighted by 29% revenue growth year-over-year, which reflects continued demand and product innovation,” said Raul Villar, Jr., Chief Executive Officer of Paycor. “We continue investing to differentiate our HCM suite and client experience while delivering margin expansion for the third consecutive quarter as we scale the business.”
“We are committed to empowering frontline leaders to build winning teams through insights and automation so they can focus on the key elements that drive business performance. This quarter we completed the acquisition of Talenya, which leverages AI to simplify and streamline candidate sourcing, and launched a programmatic way to measure and enhance leader effectiveness. Finding and retaining talent remains a top challenge for our customers and we are encouraged by the robust demand for our advanced talent acquisition solutions.”
Second Quarter Fiscal Year 2023 Financial Highlights
- Total revenues were $132.9 million, compared to $103.1 million for the second quarter of fiscal year 2022.
- Operating loss was $31.6 million, compared to $33.8 million for the second quarter of fiscal year 2022.
- Adjusted operating income* was $17.6 million, compared to $10.3 million for the second quarter of fiscal year 2022.
- Net loss attributable to Paycor HCM was $27.5 million, compared to $25.5 million for the second quarter of fiscal year 2022.
- Adjusted net income attributable to Paycor HCM* was $13.6 million, compared to $8.0 million for the second quarter of fiscal year 2022.
*Adjusted operating income and adjusted net income attributable to Paycor HCM 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.
Second Quarter and Recent Business Highlights
- Completed the acquisition of Talenya’s AI-powered recruiting technology, now Paycor Smart Sourcing, enhancing our industry-leading talent management solution and bringing our full suite of HCM solutions to $44 per-employee-per-month (PEPM).
- Introduced real-time employee insights and frontline leader effectiveness dashboards to the COR Leadership Framework. Our leadership survey gathers feedback on several aspects of how well these leaders coach, optimize and engage their team with the goal of tailoring career development and improving business results.
- Distinguished as a Top Workplace USA by Energage for the third consecutive year, which underscores Paycor’s continued commitment to exemplify the cultural best practices that impact associate engagement and business performance.
Business Outlook
Based on information as of today, February 8, 2023, Paycor is issuing the following financial guidance:
Third Quarter Ending March 31, 2023:
- Total revenues in the range of $155-$157 million.
- Adjusted operating income* in the range of $35-$36 million.
Fiscal Year Ending June 30, 2023:
- Total revenues in the range of $539-$545 million.
- Adjusted operating income* in the range of $75-$78 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, February 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 13735320. 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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