CINCINNATI - Paycor HCM , Inc. (NASDAQ:PYCR), a leading provider of human capital management software, reported second-quarter fiscal 2025 earnings that exceeded analyst expectations, with revenue growing 13% year-over-year. The company’s stock remained flat following the announcement, likely due to its pending acquisition by Paychex (NASDAQ:PAYX), Inc.
Paycor posted adjusted earnings per share of $0.14 for the quarter ended December 31, 2024, surpassing the analyst estimate of $0.12. Revenue came in at $180.4 million, beating the consensus estimate of $177.17 million and marking a 13% increase from the same quarter last year.
The company’s recurring revenues, a key metric for software-as-a-service businesses, rose 14% YoY to $167.4 million. Paycor also reported improved profitability, with adjusted operating income increasing 36% YoY to $31.8 million, representing 18% of total revenues compared to 15% in the prior-year period.
"Our strong second-quarter results demonstrate the continued demand for our HCM solutions and our ability to execute efficiently," said Raul Villar Jr., Chief Executive Officer of Paycor. "We’re pleased with our performance as we prepare for the next chapter in our company’s journey."
Paycor announced on January 7, 2025, that it had entered into a definitive agreement to be acquired by Paychex, Inc. in an all-cash transaction valued at approximately $4.1 billion, or $22.50 per share. The merger is expected to close in the first half of calendar 2025, subject to regulatory approvals and other customary closing conditions.
Due to the pending acquisition, Paycor has suspended financial guidance for fiscal year 2025 and will not provide guidance for the upcoming third quarter. The company’s stock remained flat following the earnings release, as investors’ focus has shifted to the pending merger rather than quarterly results.
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