Chad Richison on financial guidance
From Paycom Software Inc ($PAYC) Q1 2025 Earnings Call · · Castify Earnings Call
“We are raising our full year revenue and adjusted EBITDA guidance ranges. We expect total revenue to be between $2.023 billion and $2.038 billion, up approximately 8% year-over-year at the midpoint of the range. This represents an expansion of adjusted EBITDA margin to approximately 42% at the midpoint of the range, up 70 basis points compared to 2024.”
On , Chad Richison, Founder, President, CEO & Chairman of the Board at Paycom Software, spoke about financial guidance during Paycom Software Inc ($PAYC) Q1 2025 Earnings Call on Castify Earnings Call.
About Chad Richison
Chad Richison, founder and CEO of Paycom, said on the company’s Q2 2025 earnings call that the company’s voice-command AI tool, I Want, is “the biggest release since the company’s founding.” He stated that Paycom does not plan to charge clients directly for the tool, adding, “I really don’t think we need to charge for it directly because I want to spend my time helping clients achieve full utilization of the system rather than selling them on features.” Richison noted that the company frontloaded approximately $100 million in AI-focused capital expenditures in Q3 2025 to support the rollout of I Want, which he described as “the best way to do payroll for employees.” He also said that Paycom operates its own data centers and that the company’s AI spending was reflected in its third-quarter financials. On the Q4 2025 earnings call, Richison said the company “executed well against our 2025 plan exceeding our strategic and financial goals by focusing on full solution automation, client ROI achievement, and providing world-class service.” He reported that Paycom repurchased over 1.7 million shares of common stock in 2025 for a total of $370 million and paid approximately $85 million in cash dividends. Richison also described automation as “the future of our industry” and said Paycom’s single-database architecture and employee-first technology allow for “automated decisioning that is unmatched in our industry.” On the Q3 2025 call, he said that laying off employees “makes me sick to my stomach” and that he does not expect to go through that again.