Paycor HCM, Inc. reported significant financial performance improvements for the three months ended September 30, 2024, compared to the same period in 2023. Total revenues increased by 17% to $167.5 million, up from $143.6 million, driven primarily by a rise in effective per-employee-per-month (PEPM) rates and an increase in customer employees. Recurring and other revenue also saw a 16% increase, reaching $154.0 million, compared to $132.7 million in the prior year.

The company's gross profit for the quarter was $108.3 million, reflecting a gross profit margin of 64.6%, slightly up from 64.2% in the previous year. Loss from operations improved to $(14.3) million, a notable reduction from $(23.4) million in the same period last year. The net loss for the quarter was $(7.3) million, significantly lower than $(20.6) million in 2023, with adjusted net income attributable to Paycor increasing to $18.7 million from $12.8 million.

Cash and cash equivalents as of September 30, 2024, totaled $97.6 million, a decrease from $117.9 million at the end of June 2024. Total current assets also declined to $1.2 billion from $1.4 billion, while total assets decreased to $2.4 billion from $2.6 billion. However, total stockholders' equity increased to $1.3 billion from $1.3 billion, indicating a stable financial position.

The company’s operational efficiency improved, as evidenced by a reduction in net cash used in operating activities, which fell to $(8.3) million from $(26.1) million in the prior year. However, net cash used in financing activities surged to $(143.2) million, compared to $(16.5) million in 2023, primarily due to a decrease in funds held to satisfy client fund obligations.

Strategically, Paycor has focused on product innovation, launching new solutions such as Paycor Compensation Management and Time-Off Management during the quarter. The company continues to invest in research and development to enhance its offerings, which include payroll, HR services, and talent management solutions primarily delivered through a Software-as-a-Service (SaaS) model.

As of September 30, 2024, Paycor maintained approximately 31,000 customers, with a stable customer base and a 4% increase in customer employees to approximately 2.6 million. The company’s partnership with the Cincinnati Bengals, granting naming rights to Paycor Stadium, remains a significant intangible asset, reflecting its commitment to brand visibility and community engagement.