Paycor

Paycor is a Software-as-a-Service (SaaS) and human capital management firm offering small and medium-sized enterprises (SMEs) with talent management, payroll, and HR solutions. Its HR solutions include time and attendance management, scheduling, and employee experience surveys. The talent management offering includes recruiting and onboarding software, while payroll and benefits features include tax processing and documentation, payments and benefits administration. In September 2022, the company launched a mobile wallet for employees in partnership with Payactiv. This includes features such as budgeting tools, goal-based savings, discount marketplace, and direct bill pay. In July 2021, Paycor raised USD 425.5 million in an initial public offering on the Nasdaq.

The company operates a subscription-based business model with paid plans starting at USD 99 per month per user. As of April 2021, the company serves more than 40,000 SMEs. As of April 2021, the company serves more than 40,000 SMEs.

In October 2022, Paycor acquired Talenya, an AI-driven recruiting platform, for an undisclosed amount. The acquisition was expected to reduce the time needed for Paycor to fill key roles by sourcing active and passive candidates using Talenya’s AI platform.

Funding and financials

In FY2021, Paycor reported a GAAP loss per share of USD 0.66, coming in below analyst consensus expectations for a loss per share of USD 0.59. FY2021 revenue rose 7.6% year-over-year (YoY) to USD 352.8 million edging out analyst estimates for revenue of USD 350.7 million. The annual revenue was driven by a 43% YoY increase in total bookings which amounted to USD 115.1 million. Adjusted operating income rose marginally (+3.7%) YoY to USD 47.9 million, while adjusted net income amounted to USD 33.5 million (-4.4% YoY). In Q4 FY2022, the company guided FY2023 revenue to USD 510.0–516.0 million USD (18.8%–20.2% YoY implied growth) and FY2023 adjusted operating income guidance to USD 58.0–61.0 million (22.1%–28.5% YoY implied growth).