Company: PAYC
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-024136
Chunk: 167

Company: Paycom Software, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 167
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%

    Operating income

    634.3

    33.7
    %

    451.3

    26.6
    %
     
    40.5%

    Interest expense

    (3.4
    )

    -0.2
    %

    (1.9
    )

    -0.1
    %
     
    75.2%

    Other income (expense), net

    18.1

    1.0
    %

    23.0

    1.4
    %
     
    -21.3%

    Income before income taxes

    649.0

    34.5
    %

    472.4

    27.9
    %
     
    37.4%

    Provision for income taxes

    147.0

    7.8
    %

    131.6

    7.8
    %
     
    11.7%

    Net income
     
    $
    502.0

    26.7
    %
     
    $
    340.8

    20.1
    %
     
    47.3%

Revenues

Recurring and Other Revenues

The increase in recurring and other revenues for the year ended December 31, 2024 from the year ended December 31, 2023 was the result of the addition of new clients, increased revenue from sales of additional applications and services to existing clients, additions and increased usage of existing products and services, and the realization of pricing strategies. Client attrition, particularly among smaller clients, partially offset the favorable impact of these revenue drivers. Client-driven acceleration of payroll processing due to the public holiday on January 1, 2025 contributed to the increase in recurring and other revenue recognized for the year ended December 31, 2024, as compared to the prior year.

Interest on Funds Held For Clients

Higher interest rates and an increase in average funds held for client balances, resulted in increased interest earned on funds held for clients for the year ended December 31, 2024 as compared to the year ended December 31, 2023. The average daily balance of funds held for clients was $2.4 billion and $2.2 billion the years ended December 31, 2024 and 2023, respectively.

Expenses

Cost of Revenues

During the year