Paycom Software (NYSE:PAYC) experienced an 18% decline in its shares intra-day today following the company’s report of decelerating subscriber revenue growth.
The company reported an adjusted EPS of $1.62 on revenue amounting to $401.1 million for Q2. These figures slightly exceeded analysts’ expectations, as they were anticipating a profit per share of $1.60 on revenue of $398.1 million. The company’s sales experienced a year-over-year increase of 27%, indicating continued growth. However, it’s worth noting that the gross margin fell by 60 basis points.
For the current quarter, Paycom anticipates revenue to reach $411 million, while the full-year revenue projection is set at $1.716 billion. Market consensus stood at $412 million and $1.71 billion, respectively.