Paycom Software Inc (PAYC)

Shares of Paycom Softwware (PAYC) dropped by 38.49% from $244.97 to $150.69 in the trading on Wednesday, November 1, 2023. The reason why PAYC down is due to Paycom's decision to withdraw its previously announced public offering due to unfavorable market conditions, coupled with a disappointing earnings report.

• Q3 Earnings Report Disappoints: Paycom released its third-quarter results, causing a negative market reaction. The company's sales performance fell short of Wall Street's expectations, and its guidance for the upcoming year raised concerns among investors.
• Cannibalization Challenges Paycom's Growth: Paycom's core business, the Beti platform for payroll services, is well-regarded. However, its efficiency has led to clients cutting spending on other services and purchases, effectively limiting Paycom's growth through self-cannibalization.
• Q4 outlook: In the fourth quarter, Paycom forecasts sales between $400 million and $425 million, falling short of the average analyst target. Looking to 2024, the company expects continued weak sales growth, with a range of 10% to 12%.

Paycom Software, Inc. (PAYC) fell 19.2% to $299.62 following second-quarter results, as shares of PAYC have declined 7% year to date.

https://www.zacks.com/stock/news/2131000/paycom-payc-beats-q2-earnings-estimates-raises-fy23-view