Feb 11 (Reuters) – Paycom Software forecast annual revenue below Wall Street expectations on Wednesday, as businesses delay or reduce HR and payroll software purchases amid tighter budgets, sending its shares down over 7% in extended trading. Macroeconomic challenges could constrain Paycom's new customer acquisition, as companies exercise greater caution with HR technology budgets, analysts have said. A slowdown in hiring or job cuts among small- and medium-sized businesses, Paycom's core client base, could be an additional headwind. The human capital management market has become increasingly crowded, with Paycom competing against rivals such as ADP, Paylocity and Workday for market share. The Oklahoma City-based company provides cloud-based software that handles everything from talent acquisition and payroll to time management on a single platform. Paycom forecast 2026 revenue in the range of $2.18 billion to $2.20 billion, below analysts' average estimate of $2.23 billion, according to data compiled by LSEG. The payroll processor reported revenue of $544.3 million for the fourth quarter ended December 31, ahead of analysts' estimates of $543 million. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona and Vijay Kishore)
(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
